BRT Apartments Corp. (BRT) · Nov 5, 2026 · Earnings
Miss — EPS $(0.23) vs approximately $(0.21) consensus
BRT’s third-quarter earnings missed expectations as AFFO declined and joint-venture NOI weakened despite stable occupancy and modest rent growth.
BRT is a small multifamily REIT pursuing selective Sunbelt acquisitions, value-add renovations, and joint ventures rather than rapid broad-based expansion. This quarter says the portfolio is holding occupancy, but the cash earnings engine is under pressure from weaker joint-venture properties, higher costs, and heavier leverage.
The headline result missed the published bar. GAAP loss per share was $(0.23), versus an approximately $(0.21) consensus estimate, making this a modest earnings miss. The larger operating measure also deteriorated: AFFO per share fell to $0.31 from $0.36, while FFO per share declined to $0.26 from $0.28. The filing reports that “Adjusted funds from operations per diluted common share” was $0.31 in the quarter.
| Metric | Q3 2026 | Q3 2025 | Consensus |
|---|---|---|---|
| Loss per share (Per share data) | $(0.23) | $(0.14) | $(0.21) |
| FFO per share (FFO reconciliation) | $0.26 | $0.28 | |
| AFFO per share (AFFO reconciliation) | $0.31 | $0.36 | |
| Combined same-store NOI (Same-store comparisons) | $15.09M | $15.34M | |
| Consolidated same-store NOI (Same-store comparisons) | $12.43M | $12.42M | |
| Weighted average occupancy (Portfolio metrics) | 94.4% | 94.4% | |
| Debt to enterprise value (Financial highlights) | 76% | 70% |
The consolidated portfolio is stable, but the joint ventures are pulling down the total story. Consolidated same-store NOI was essentially flat at $12.43 million versus $12.42 million, helped by 0.4% rent growth and unchanged 94.7% occupancy. But unconsolidated same-store NOI fell 8.8% to $2.66 million, driven particularly by Texas, where nine-month NOI declined 15.0% and occupancy fell to 89.9%. The filing states that “Combined Operating Income” declined 1.60% in the quarter as expenses rose faster than revenue.
The balance sheet gives BRT less room for operating weakness. Debt to enterprise value rose to 76% from 70%, while total debt outstanding reached $676.6 million and interest expense increased to $6.3 million from $5.9 million. Refinancing extended maturities, but largely at higher interest rates: the company replaced 3.73% and 3.97% mortgages with debt carrying rates of 5.38% and 5.45%. That protects near-term liquidity but raises the recurring financing burden.
Capital allocation remains active, but it is not yet translating into stronger per-share cash earnings. BRT acquired Riverbend through a 70%-owned joint venture, has a 336-unit Ranch Lake acquisition targeted for the first quarter of 2027, continued its value-add program, and repurchased shares. Those actions support future portfolio growth and per-share value, but the current quarter still shows AFFO down 14% and combined same-store NOI down 1.6% year over year. The filing says the company “repurchased 242,631 shares of its common stock” after quarter-end. 〔0〕
Bottom line: This was not a breakdown in occupancy or the consolidated portfolio, but it was a clear step backward in current cash earnings. The earnings miss, falling AFFO, weak joint-venture NOI, and higher leverage outweigh the acquisition and buyback activity for this quarter.
Ranch Lake acquisition closing, Q1 2027
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