BRT Apartments Corp. (BRT): Business Model Canvas [Dec-2025 Updated]

You're digging into how a focused real estate player like BRT Apartments Corp. (BRT) actually works under the hood, and honestly, it's a classic value-add play in a tough interest rate environment. Their core engine is acquiring and improving multi-family properties-they own 8,311 units across 31 assets in the Sun Belt-aiming to deliver tenants reasonably priced housing and investors a high dividend yield, which sat near 6.9% recently, all while pulling in $98.00 million in revenue for the last twelve months ending Q3 2025. But that strategy comes with real costs, like significant interest expense on mortgages and capital needs for those targeted improvements, so you need to see the full picture of their key activities and cost structure. Check out the detailed Business Model Canvas below to see exactly where their capital comes from and how they manage day-to-day operations.

BRT Apartments Corp. (BRT) - Canvas Business Model: Key Partnerships

You're looking at the structure that supports BRT Apartments Corp.'s real estate holdings, focusing on who provides the capital, management muscle, and financing backbone. Honestly, for a REIT, these external relationships are everything.

Unconsolidated Joint Venture Partners for Property Equity

BRT Apartments Corp. relies on joint ventures (JVs) for a portion of its asset base. As of September 30, 2025, the company held ownership interests through unconsolidated entities in ten multi-family properties, totaling 2,891 units across four states.

The carrying value of BRT's net equity investment in these JVs was $48,169,000 as of that date. This contrasts with the June 30, 2025, figure, where the net-equity carrying value for eight JV properties was $30.0 million. The underlying debt on those eight JV properties not reflected on BRT's consolidated balance sheet was $251.1 million on June 30, 2025. Distributions received from these joint venture properties contributed $603,000 to BRT's liquidity in the quarter ended June 30, 2025. For the first quarter of 2025, BRT's equity in earnings of unconsolidated joint venture properties was $413,000 for the three months ended March 31, 2025.

External Property Management Firms for Day-to-Day Operations

Day-to-day management often flows through affiliated entities, which is common in this structure. Majestic Property Management LLC, which is wholly owned by BRT director/officer Fredric H. Gould, manages properties BRT owns and those held in JVs. The fees paid to Majestic Property for management, brokerage, and construction supervision services show the direct cost of this partnership:

This is a small fraction of the overall operating costs, but it highlights a key relationship.

Lenders for Mortgage Financing (e.g., Valley National Bank affiliate)

Financing is critical, and BRT carries significant property-level mortgage debt. The weighted average interest rate across the entire portfolio was 4.26% as of June 30, 2025. The weighted average term to maturity on this debt was only 3.4 years as of that same date.

A recent financing example from July 2025 involved assuming an interest-only mortgage at 5.38% for a property in Auburn, Alabama, which matures in 2032. This loan was part of a $36.5 million acquisition, with the assumed mortgage amount being $24 million.

For revolving credit, BRT has a facility with VNB New York. As of August 1, 2025, the outstanding balance on this credit facility was $7 million, with $33 million available to be borrowed. The company was in compliance with all material requirements of this facility as of June 30, 2025.

BRT Advisors, LLC for External Management Services

While specific fee data for a separate entity named BRT Advisors, LLC wasn't explicitly detailed in the latest filings, BRT Apartments Corp. does operate under a shared services agreement with affiliated entities, including Gould Investors, L.P., for executive, administrative, legal, accounting, and clerical functions. The allocation of expenses for these shared resources is included in general and administrative expense on the consolidated statements of operations. The company itself is described as an internally managed real estate investment trust.

The portfolio structure as of September 30, 2025, breaks down as follows:

• Wholly-owned properties: 21 properties, 5,420 units, carrying value of $600,544,000.
• Investments treated as loans (Preferred Equity Investments): Carrying value of $17,713,000.
• Other assets (consolidated/unconsolidated subsidiaries): Carrying value of $1,597,000.

Finance: draft 13-week cash view by Friday.

BRT Apartments Corp. (BRT) - Canvas Business Model: Key Activities

You're managing a portfolio of older, value-add multi-family assets, so your key activities center on the physical asset lifecycle and capital structure management. Here's a look at the hard numbers driving BRT Apartments Corp.'s operations as of late 2025.

Acquiring and disposing of multi-family properties

BRT Apartments Corp. continues to execute its strategy of buying assets, often through joint ventures, in Sun Belt markets. As of November 6, 2025, BRT owned or held interests in 31 multi-family properties encompassing 8,311 units across 11 states, in addition to preferred equity investments in two multi-family properties. This reflects growth from the 30 properties and 8,161 units reported at the end of Q2 2025. A significant acquisition in July 2025 involved an 80% joint venture interest in 1322 North, a 214-unit complex in Auburn, Alabama, for a total cost of $36.5 million, which included assuming a $24.4 million mortgage. BRT's equity contribution for this specific deal was $10.7 million. The company has completed two such 80% ownership interest acquisitions in the second half of 2025.

The portfolio metrics as of mid-2025 show the core operational base:

Hands-on property management and leasing strategies

Management focuses on stabilizing occupancy and driving modest rent growth, though expense pressures have compressed NOI recently. For the first half of 2025, the average monthly rent on the wholly owned portfolio was $1,365, marking a 1.2% increase versus the same period in 2024 ($1,349). Occupancy improved slightly to 93.9% in H1 2025 from 93.7% in H1 2024. However, the overall occupancy rate has recently fallen from over 96% to below 94%. The combined portfolio NOI slipped 3.4% year-over-year to $15.1 million for the three months ended June 30, 2025.

Key operational expense changes in Q2 2025 included:

• Repairs and maintenance rose 19.1% YoY.
• Utilities increased by 3.5%.
• Real estate taxes were up 3.4%.

Targeted capital improvements on older, distressed assets

The core strategy involves investing in properties to enhance their value, though specific capital expenditure amounts for improvements are not detailed in the latest filings, expense line items reflect this activity. Repairs/maintenance spending, a proxy for upkeep and improvements, saw a significant jump of 19.1% year-over-year in Q2 2025. The CEO noted that the purchase of the Auburn property is an example of investing in the Southeast where there is low supply and high demand for quality. The company's overall approach is described as actively refurbishing distressed properties.

Securing and refinancing mortgage debt (e.g., $15 million facility payoff in late 2025)

Managing the balance sheet and debt maturity schedule is a critical activity, especially given the higher rate environment. BRT Apartments Corp. had $15 million outstanding on a revolving credit facility following its latest purchase, which it planned to pay off through a refinancing scheduled for December 2025. For the Auburn acquisition, BRT drew $7.0 million from its $40 million credit facility, which carried a 6.87% interest rate at that time. The company's total debt was reported as just under $500 million as of the close of Q3 2025. As of June 30, 2025, consolidated mortgages payable stood at $444,983 thousand.

Debt structure details from recent activity include:

The company has 21% of its mortgages outstanding, totaling $108.9 million, set to roll over between July 1, 2025, and December 31, 2026.

Financial reporting and managing REIT compliance

BRT Apartments Corp. is required to meet regular SEC filing deadlines to maintain its status as a publicly traded REIT. The company filed its quarterly report on Form 10-Q for the quarter ended September 30, 2025, on November 6, 2025. For the first half of 2025, the Adjusted Funds From Operations (AFFO) per share was $0.75, easily covering the two quarterly disbursements of $0.25 per share made in 1H25, resulting in a payout ratio of 67%. The Third Quarter 2025 Funds From Operations (FFO) was reported as 28 cents per share. The company's market capitalization was approximately $290 million as of mid-November 2025, with 19.94 million shares outstanding.

BRT Apartments Corp. (BRT) - Canvas Business Model: Key Resources

You're looking at the core assets that power BRT Apartments Corp. (BRT) right now, late in 2025. These aren't just line items; they are the physical and financial engines driving the business.

The foundation is definitely the real estate portfolio. BRT Apartments Corp. has built this up over time, focusing on value-add opportunities in the Sun Belt, and as of the Q3 2025 filing, the scale is clear.

Liquidity is another critical resource, especially when you are actively acquiring assets, as BRT Apartments Corp. has been. You need cash on hand to manage operations and fund growth initiatives.

Here's the quick math on the immediate financial resources available:

• Cash and restricted cash totaled $23.6 million at the close of Q3 2025.
• The company also holds other assets with a carrying value of $1,597,000 through consolidated and unconsolidated subsidiaries.

Beyond the balance sheet, access to external funding is paramount for a REIT. BRT Apartments Corp. maintains its listing on the New York Stock Exchange, ticker symbol BRT, which provides public market access. Plus, they have established lines of credit to bridge financing gaps.

Specifically regarding debt capacity as of late 2025:

• The revolving credit facility has a maximum capacity of up to $40.0 million.
• As of October 31, 2025, the outstanding balance on that facility was $17.5 million, with management intending to pay this off by the end of 2025 through refinancing.

Finally, the intangible asset of human capital matters a great deal in real estate management. The operational expertise is channeled through BRT Advisors, LLC. That team is responsible for the active asset management, seeking out those value-add opportunities, and executing the strategy across the portfolio, which includes properties averaging over 24 years of age in the wholly-owned segment.

BRT Apartments Corp. (BRT) - Canvas Business Model: Value Propositions

You're looking at what BRT Apartments Corp. actually offers to its two main customer groups: the people who live in the apartments and the people who invest in the company. It's all about tangible benefits grounded in their specific real estate strategy.

Tenants: Quality, Reasonably Priced Housing in Growth Markets

For residents, the core value proposition centers on providing housing that hits a sweet spot: quality that meets expectations for a mid-market renter, priced accessibly, and located where jobs and population are moving. BRT Apartments Corp. focuses its acquisition strategy on secondary and tertiary markets, specifically targeting the Southeastern United States and Texas, where they see strong demographic trends supporting rental demand.

The portfolio as of late 2025 reflects this focus. You should know the scale of what they are managing for these tenants:

• The combined portfolio includes 8,311 units across 31 multi-family properties.
• These properties are spread across 11 states, with the majority concentrated in the Southeast and Texas regions.
• The company targets mid-market apartment communities, aiming for well-located, affordable options.

The operational performance in Q3 2025 shows how they are managing that quality proposition:

This occupancy rate suggests they are successfully attracting and retaining residents seeking that specific blend of location and price point. They are defintely delivering on the 'affordable' side of the equation for that market segment.

Investors: High Yield and Value-Add Real Estate Exposure

For investors, BRT Apartments Corp. offers a direct way to gain exposure to the value-add multi-family sector, primarily in those high-growth Sun Belt areas. The strategy involves acquiring properties and then enhancing their value through renovations and operational improvements, which is how they aim to drive returns.

The most concrete, immediate draw for many is the dividend. As of late 2025, the forward dividend yield is a key figure you need to track:

The forward dividend yield is reported around 6.90%, which is a strong number in the current interest rate environment. This yield is supported by the company's latest declared cash distribution.

The exposure to value-add multi-family real estate is the engine behind the potential for capital appreciation and future dividend growth. The company's focus on active asset management and targeted capital improvements is designed to increase Net Operating Income (NOI) over time, even if same-store NOI saw a temporary dip, such as the 3.4% decrease year-over-year in Q2 2025 due to operating expenses.

The value proposition here is clear: you get a high current yield while the management team works to improve the underlying assets in strategically selected, growing regions.

BRT Apartments Corp. (BRT) - Canvas Business Model: Customer Relationships

You're managing a portfolio of multi-family assets, and the relationship with your two main customer groups-tenants and investors-is what keeps the whole operation running. Here's how BRT Apartments Corp. structures those interactions as of late 2025.

Tenants: Direct, Hands-On Property Management and Leasing

BRT Apartments Corp. maintains a direct, hands-on approach to property management and leasing, which is central to executing their value-add strategy. This direct involvement helps them enhance tenant satisfaction and maintain high occupancy levels. As of the end of the third quarter 2025, the portfolio spanned 31 multi-family properties with 8,311 units across 11 states, primarily in Sun Belt locations. The company targets mid-market residents looking for well-located, affordable apartments, often involving one-, two-, and three-bedroom units. The goal is to sustain high portfolio occupancy, targeting levels above 93%, with the average occupancy reported recently at 94.1%. This hands-on management is key to justifying rent increases after capital improvement programs. If onboarding takes 14+ days, churn risk rises, so efficiency here is defintely important.

The relationship is built on operational excellence and asset enhancement:

• Value-add approach via targeted capital improvements.
• Active asset management for operational efficiencies.
• Focus on communities with on-site amenities like fitness centers.
• Portfolio includes properties requiring better hands-on management.

Tenants: Standard One-Year Lease Agreements

The standard contractual relationship with tenants is structured around fixed-term agreements. While the specific duration isn't always advertised as a primary metric, the industry standard for this asset class, and the expected structure for BRT Apartments Corp., involves standard one-year lease agreements. This provides predictable rental income streams, which is the primary revenue source for the REIT.

Investors: Quarterly Dividend Disbursements

For investors, the relationship is formalized through regular cash distributions, reflecting the company's status as a Real Estate Investment Trust (REIT). BRT Apartments Corp. has been paying dividends for the last eight years. The most recent declared cash dividend payment, as of late 2025, was $0.25 per share, with an ex-date of September 24, 2025. This translates to an annualized dividend of $1.00 per share. The current forward dividend yield stands at approximately 6.83%. Here's a quick comparison of key investor metrics based on recent reports:

Investors: Investor Relations and SEC Financial Filings

Transparency and accessibility are maintained through formal investor relations channels and mandatory regulatory disclosures. BRT Apartments Corp. provides resources for shareholders to track performance and governance. For instance, the company filed its Third Quarter 2025 Financial Statements on November 6, 2025, and its Form 10-Q for Q1 2025 was filed on May 8, 2025. You can reach the Investor Relations team directly for specific inquiries.

Key contact and disclosure points include:

• Investor Relations Contact Email: investors@brtapartments.com.
• Investor Relations Contact Phone: 516-466-3100.
• Latest Quarterly Report Filed: Third Quarter 2025 Financial Statements (November 6, 2025).
• Market Capitalization (Approximate as of Nov 2025): $290 million.

Finance: draft 13-week cash view by Friday.

BRT Apartments Corp. (BRT) - Canvas Business Model: Channels

You're looking at how BRT Apartments Corp. gets its value proposition-stable rental income and potential capital appreciation from multi-family properties-out to its two main customer segments: tenants and investors. The channels they use are quite distinct for each group.

Tenant Acquisition and Property Management Channels

For securing tenants, BRT Apartments Corp. relies on direct, localized channels, which makes sense for a company focused on physical real estate assets. The primary touchpoints are the on-site leasing offices at their properties and the company's main digital presence.

• The corporate website, www.brtapartments.com, serves as the central hub for property information.
• Leasing is executed through physical offices located directly at the multi-family communities.
• The portfolio as of September 30, 2025, included 31 multi-family properties across 11 states, primarily in the Southeast United States and Texas.
• Wholly-owned properties totaled 5,420 units, with an additional 2,891 units held through unconsolidated joint ventures.

Capital Market Channels

Getting capital and communicating with the investment community happens through regulated, public channels. This is where you see the numbers that define the company's public valuation.

The common stock trades on the New York Stock Exchange (NYSE) under the ticker BRT. As of early December 2025, the stock was trading in a tight range, for example, between a low of $14.50 and a high of $14.68 on a recent day. The market capitalization hovered around $276.08 million to $290.97 million, depending on the source used for the calculation. The company has maintained a commitment to shareholder returns, with a forward annual dividend set at $1.00, translating to a yield around 6.86% to 6.90%.

For financial data and news, investors use the dedicated Investor Relations website section. This is where BRT Apartments Corp. posts its required filings and updates. For instance, the Third Quarter 2025 Financial Statements were filed on November 6, 2025, following the Second Quarter 2025 Form 10-Q filed on August 7, 2025. You can reach their Investor Relations team directly via email at investors@brtapartments.com or by phone at 516-466-3100.

Property Transaction Channels

Acquisitions and dispositions, which are key to portfolio growth and value realization, are facilitated through specialized real estate investment brokers. This channel is crucial for executing their value-add strategy. For example, BRT Apartments Corp. announced the acquisition of 1322 North, a 214-unit Class A apartment complex in Auburn, Alabama, on July 21, 2025. Management has noted that the acquisitions environment has been quiet due to negative leverage and high interest rates, so these broker relationships are vital for sourcing deals when they do occur.

Here's a quick look at some of the key financial and operational metrics tied to these channels as of late 2025:

What this estimate hides is the specific breakdown of tenant acquisition costs per property, which is proprietary. Still, the reliance on direct leasing offices suggests a high degree of local marketing spend relative to national advertising. Finance: draft 13-week cash view by Friday.

BRT Apartments Corp. (BRT) - Canvas Business Model: Customer Segments

You're looking at the core groups BRT Apartments Corp. (BRT) serves, both on the rental side and the capital side. Honestly, for a REIT like BRT, the customer segments are split cleanly between who pays the rent and who buys the stock.

Tenants: Middle-income residents seeking affordable, well-located housing

BRT Apartments Corp. focuses on owning and operating Class B or better multi-family complexes. This generally targets the middle-income renter who needs quality housing without the premium price tag of new, high-end construction. The company's approach involves acquiring older, distressed assets in growth areas and refurbishing them, which helps keep rents competitive for that segment.

The portfolio, as of the third quarter of 2025, spanned 31 multi-family properties across 11 states, encompassing 8,311 units. The focus isn't on one single market; rather, it's a diversified approach across regions showing favorable economic indicators.

Tenants: Renters in secondary/tertiary markets across the Sun Belt

The strategic geographic concentration is key here. BRT Apartments Corp. has the bulk of its revenue generated from properties located primarily in the Southeast United States and Texas, which are core Sun Belt markets. These areas have seen favorable population and job growth from migration patterns. For instance, one recent acquisition in Auburn, Alabama, a Sun Belt migration hotspot, showed strong underlying demand.

Here's a quick look at the operational metrics that define the rental side of the business as of mid-to-late 2025:

The company is defintely prioritizing rent growth over maximizing occupancy, as evidenced by the 7.3% rent increase, even with occupancy at 94.3%.

Investors: Retail and institutional investors seeking REIT income

This segment is driven by the income component of the REIT structure. BRT Apartments Corp. is structured to deliver consistent returns, which attracts investors looking for yield. The company has a small Wall Street following, which suggests that retail investors, perhaps those focused on dividend income, make up a significant portion of the ownership base, especially given the strong yield.

The financial commitment to this segment is clear through the dividend policy:

• Forward Annual Dividend Per Share: $1.00 USD.
• Forward Dividend Yield: Approximately 6.83% as of November 29, 2025.
• Payout Ratio (based on AFFO): A solid 67%.

You'll note that the company had $15 million outstanding on a revolving credit facility as of late 2025, which it planned to pay off through a December 2025 refinancing. This shows active management of the balance sheet to support shareholder returns.

Investors: Shareholders focused on high yield and total return

This group is focused on the total return picture, which includes both the dividend and any potential capital appreciation. The stock has traded around $14.50 a share, equating to an approximate market capitalization of $290 million as of late 2025. The Shareholder Yield, which combines dividends and buybacks, was reported at 5.30%.

The narrative for this segment is one of value and yield, despite headwinds like Sun Belt oversupply and higher refinancing rates. Insider buying has been reported as strong, which often signals confidence from those closest to the company's operations. The company's strategy of acquiring assets and employing funds to buy out partners is designed to enhance this total return profile over the long term.

BRT Apartments Corp. (BRT) - Canvas Business Model: Cost Structure

You're looking at the expenses that eat into BRT Apartments Corp.'s revenue, which is critical because the REIT is facing a tougher financing environment. Here's the quick math on what's hitting the bottom line as of late 2025.

Significant Interest Expense on Mortgages

The cost of debt is a major component, especially as older, lower-rate mortgages mature. For the first half of 2025 (H1 2025), BRT Apartments Corp. reported a total interest expense of $10.014 million. This figure reflects the carrying cost on the total debt obligations, which stood at approximately $482.156 million net of deferred costs as of June 30, 2025. The weighted average interest rate on the entire mortgage portfolio was 4.26% as of that same date.

Property Operating Expenses

These are the day-to-day costs of keeping the apartments running. For the six months ended June 30, 2025, BRT Apartments Corp.'s real estate operating expenses totaled $10.917 million. These expenses cover things like property taxes, utilities, and maintenance. While insurance expense declined by 15.5% year-over-year in Q1 2025, helping offset cost pressures, utilities were noted as being up by 6.8% year-over-year in that same quarter. The company expects controllable expense growth to grow modestly compared to 2024.

The breakdown of key operating and administrative costs for the first half of 2025 (H1 2025) compared to the prior year period is detailed below:

General and Administrative Costs, Including External Management Fees

Corporate overhead is a drag on property-level returns. For H1 2025, general and administrative expenses totaled $7.8 million, which was a 1.9% decrease year-over-year. If we project this rate for the full year, the estimated full-year G&A expense would be around $15.6 million. Furthermore, allocated general and administrative expenses reimbursed to Gould Investors pursuant to the shared services agreement aggregated $341,000 for the six months ended June 30, 2025.

Capital Expenditures for Property Refurbishments and Improvements

BRT Apartments Corp. historically focuses on a value-add strategy, refurbishing older, distressed assets. However, market headwinds have slowed this management team's pace of activity. The company's supplemental information for Q1 2025 referenced a Value-Add Program which includes tracking Units Rehabilitated and Estimated Rehab Costs, though specific 2025 CapEx spending figures are not clearly itemized in the latest filings provided. The focus in 2025 has shifted toward stabilizing occupancy rather than aggressive growth or value-add deployment.

Debt Refinancing Costs Due to Higher Interest Rates

The primary cost risk here is the rollover of existing debt. BRT Apartments Corp. has 21% of its mortgages outstanding, totaling $108.9 million, scheduled to roll over between July 1, 2025, and December 31, 2026. The cost of this refinancing is already visible in new debt; for instance, a mortgage assumed in July 2025 carried a rate of 5.38%. Analysts estimate this undercurrent of higher refinancing rates will continue to erode future FFO and AFFO calculations by $0.03 to $0.06 per annum, ceteris paribus. The company is planning a refinancing in December 2025 to pay off $15 million outstanding on its revolving credit facility.

• Weighted Average Interest Rate on entire portfolio (as of 6/30/2025): 4.26%.
• Weighted Average Term to Maturity (as of 6/30/2025): 3.4 years.
• Mortgages Payable (Consolidated, as of 6/30/2025): $444,983,000 (net of deferred costs).
• Debt service coverage ratio (DSCR) for Q1 2025: 1.60.

BRT Apartments Corp. (BRT) - Canvas Business Model: Revenue Streams

Primary: Rental income from multi-family property operations

BRT Apartments Corp. generates the bulk of its revenue from owning and operating multi-family residential properties, primarily in Sun Belt locations. This is the core of the recurring revenue base.

The total revenue for the trailing twelve months ending September 30, 2025, was $96.71 million. This figure is the closest available data point to the requested LTM ending Q3 2025 amount.

For the third quarter ending September 30, 2025, the component for rental and other property revenue was $24.03 million. The specific figure for rental revenue for H1 2025 was not found in the latest reports.

The company's portfolio as of November 6, 2025, included ownership or interests in 31 multi-family properties with 8,311 units, plus preferred equity investments in two multi-family properties.

Revenue generation is also tied to the operational health of the portfolio, evidenced by the combined portfolio occupancy rate of 94.5% and a weighted average rent per occupied unit of $1,414 in Q3 2025.

The cumulative total revenue for the first three quarters of 2025 was $72.74 Million.

Here are the key revenue-related financial metrics from the Q3 2025 reporting period:

Income from unconsolidated joint ventures and preferred equity investments

BRT Apartments Corp. holds interests in joint ventures (JVs) that own and operate multi-family properties. Income or loss from these is reported separately.

For Q3 2025, the equity in earnings of unconsolidated JVs swung to a small loss of $75K, compared to a positive figure of $369K year-over-year for the same quarter.

Potential gains from property sales (capital recycling)

The strategy includes capital recycling, which involves selling properties to realize potential gains and reinvest proceeds. While recent acquisitions in Auburn, Alabama, and Savannah, Georgia, were noted, specific realized gains from property sales for the period were not explicitly detailed in the available summaries.

The company has been active in managing its capital structure, including mortgage refinancing and utilizing its credit facility to support new acquisitions.

• Debt outstanding on the revolving credit facility as of October 31, 2025: $17.5 million.
• The company intends to pay off all outstanding debt on its credit facility by the end of 2025.
• The company had an active buyback authorization with $8.75 million remaining as of the Q3 report.