BRT APARTMENTS CORP. (NYSE:BRT) Files An 8-K Financial Statements and Exhibits
Item 9.01(a), the audited statement of revenues and certain
expenses of Vanguard Heights, a 174 unit multi-family property
located at 10362 Old Olive Street Road, Creve Coeur, Missouri
(“Vanguard Heights”), for the period from April 1,2016
(commencement of operations) through December 31, 2016, and (ii)
Item 9.01(b) our unaudited pro forma financials statements
reflecting the acquisition of the Vanguard Heights property.
Vanguard Heights was purchased on April 4, 2017 for $39.6 million,
including $29.0 million of mortgage debt obtained in connection
with the acquisition. The mortgage loan bears interest at a
floating rate of one month LIBOR 2.50% (3.48% at closing), matures
in July 2018, has a nine month extension option and is interest
only for the initial loan term. We contributed $9.4 million to this
venture for our 78.4% interest.
including $29.0 million of mortgage debt obtained in connection
with the acquisition. The mortgage loan bears interest at a
floating rate of one month LIBOR 2.50% (3.48% at closing), matures
in July 2018, has a nine month extension option and is interest
only for the initial loan term. We contributed $9.4 million to this
venture for our 78.4% interest.
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Item 9.01
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Financial Statements and Exhibits.
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(a)
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Financial Statement of property acquired-Vanguard
Heights |
Page
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(i) Independent Auditors Report
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(ii) Statement of Revenues and Certain Expenses for the
period from April 1, 2016 (commencement of operations) through December 31, 2016 |
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(iii) Notes to Statement of Revenues and Certain Expenses
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(b)
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Unaudited Pro Forma Consolidated Financial Statements
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(i) Pro Forma Consolidated Balance Sheet at December 31,
2016 |
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(ii) Pro Forma Consolidated Statements of Income:
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For the year ended September 30, 2016
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For the three months ended December 31, 2016
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(ii) Notes to Pro Forma Consolidated Financial Statements
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(d)
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Exhibits
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Exhibit No.
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Title of Exhibit
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23.1
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Consent of BDO USA, LLP, dated May 5, 2017
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Independent Auditors Report
Stockholders and Board of Directors
BRT Apartments Corp.
Great Neck, New York
We have audited the accompanying statement of revenues and certain
expenses of the property located at 10362 Old Olive Street Road,
Creve Coeur, Missouri (“Vanguard Heights”) for the period from
April 1, 2016 (commencement of operations) through December 31,
2016.
expenses of the property located at 10362 Old Olive Street Road,
Creve Coeur, Missouri (“Vanguard Heights”) for the period from
April 1, 2016 (commencement of operations) through December 31,
2016.
Managements Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation
of the statement of revenues and certain expenses in accordance
with accounting principles generally accepted in the United States
of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and
fair presentation of the statement of revenues and certain expenses
that is free from material misstatement, whether due to fraud or
error.
of the statement of revenues and certain expenses in accordance
with accounting principles generally accepted in the United States
of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and
fair presentation of the statement of revenues and certain expenses
that is free from material misstatement, whether due to fraud or
error.
Auditors Responsibility
Our responsibility is to express an opinion on the statement of
revenues and certain expenses based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in
the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether
the statement of revenues and certain expenses is free from
material misstatement.
revenues and certain expenses based on our audit. We conducted our
audit in accordance with auditing standards generally accepted in
the United States of America. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether
the statement of revenues and certain expenses is free from
material misstatement.
An audit involves performing procedures to obtain audit evidence
about the amounts and disclosures in the statement of revenues and
certain expenses. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material
misstatement of the statement of revenues and certain expenses,
whether due to fraud or error. In making those risk assessments,
the auditor considers internal controls relevant to the entity’s
preparation and fair presentation of the statement of revenues and
certain expenses in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entitys internal
controls. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used
and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the
revenues and certain expenses.
about the amounts and disclosures in the statement of revenues and
certain expenses. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material
misstatement of the statement of revenues and certain expenses,
whether due to fraud or error. In making those risk assessments,
the auditor considers internal controls relevant to the entity’s
preparation and fair presentation of the statement of revenues and
certain expenses in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entitys internal
controls. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used
and the reasonableness of significant accounting estimates made by
management, as well as evaluating the overall presentation of the
revenues and certain expenses.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our audit opinion.
and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the statement of revenues and certain expenses
referred to above presents fairly, in all material respects, the
statement of revenues and certain expenses of Vanguard Heights for
the period from April 1, 2016 (commencement of operations) through
ended December 31, 2016, in accordance with accounting principles
generally accepted in the United States of America.
referred to above presents fairly, in all material respects, the
statement of revenues and certain expenses of Vanguard Heights for
the period from April 1, 2016 (commencement of operations) through
ended December 31, 2016, in accordance with accounting principles
generally accepted in the United States of America.
Emphasis of Matter
The accompanying statements of revenues and certain expenses was
prepared for the purpose of complying with rules and regulations of
the U.S. Securities and Exchange Commission and for inclusion in a
Current Report on Form 8-K of BRT Apartments Corp. as described in
Note 2 to the statement of revenues and certain expenses and is not
intended to be a complete presentation of Vanguard Heights’
revenues and expenses.
prepared for the purpose of complying with rules and regulations of
the U.S. Securities and Exchange Commission and for inclusion in a
Current Report on Form 8-K of BRT Apartments Corp. as described in
Note 2 to the statement of revenues and certain expenses and is not
intended to be a complete presentation of Vanguard Heights’
revenues and expenses.
/s/ BDO USA, LLP
New York, New York
May 5, 2017
/div>
Vanguard Heights
Statement of Revenues and Certain Expenses
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From April 1, 2016 (commencement of operations)
through December 31, 2016 |
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Revenues:
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Rental income
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$
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671,000
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Other income
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73,000
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Rental and other income
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744,000
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Certain Expenses:
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Real estate taxes
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39,000
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Management fees
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77,000
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Utilities
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112,000
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Payroll
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355,000
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Insurance
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52,000
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Repairs and maintenance
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82,000
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Total certain expenses
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717,000
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Revenues in excess of certain expenses
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$
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27,000
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See Independent Auditors Report and accompanying notes to the
Statement of Revenues and Certain Expenses
Statement of Revenues and Certain Expenses
/div>
Vanguard Heights
Notes to Statement of Revenues and Certain Expenses
1. Organization
Vanguard Heights, located at 10362 Old Olive Street Road, Creve
Coeur, Missouri (“Vanguard Heights” or the “Property”) is a
174 unit multi-family property. Construction of the property
was completed in March 2016 and operations commenced on April
1, 2016.
Coeur, Missouri (“Vanguard Heights” or the “Property”) is a
174 unit multi-family property. Construction of the property
was completed in March 2016 and operations commenced on April
1, 2016.
BRT Apartments Corp. (BRT or the Company) is a corporation
organized in Maryland. BRT is a real estate investment trust,
also known as a REIT, that is primarily focused on the
ownership, operation and development of multifamily properties.
organized in Maryland. BRT is a real estate investment trust,
also known as a REIT, that is primarily focused on the
ownership, operation and development of multifamily properties.
On April 4, 2017, a consolidated joint venture comprised of an
indirect 78.4% owned subsidiary of the Company and unaffiliated
joint venture partners acquired the Property for $39.6 million,
including $29.0 million of floating rate mortgage debt.
indirect 78.4% owned subsidiary of the Company and unaffiliated
joint venture partners acquired the Property for $39.6 million,
including $29.0 million of floating rate mortgage debt.
2. Basis of Presentation and Significant Accounting Policies
Basis of Presentation
The accompanying statement of revenues and certain expenses of
Vanguard Heights has been prepared in accordance with Rule 3-14
of Regulation S-X of the U.S. Securities and Exchange
Commission for inclusion in the Companys Current Report on Form
8-K. Accordingly, the statement of revenues and certain
expenses excludes certain expenses that may not be comparable
to those expected to be incurred in the future operations of
the aforementioned property. Items excluded consist of interest
expense, depreciation, amortization, corporate expenses, and
other costs not directly related to future operations.
Vanguard Heights has been prepared in accordance with Rule 3-14
of Regulation S-X of the U.S. Securities and Exchange
Commission for inclusion in the Companys Current Report on Form
8-K. Accordingly, the statement of revenues and certain
expenses excludes certain expenses that may not be comparable
to those expected to be incurred in the future operations of
the aforementioned property. Items excluded consist of interest
expense, depreciation, amortization, corporate expenses, and
other costs not directly related to future operations.
Significant Accounting Policies
Use of Estimates
The preparation of the statements of revenues and certain
expenses in conformity with accounting principles generally
accepted in the United States requires management to make
estimates and assumptions that affect the amounts reported in
the statements of revenues and certain expenses. Actual results
could differ from those estimates.
expenses in conformity with accounting principles generally
accepted in the United States requires management to make
estimates and assumptions that affect the amounts reported in
the statements of revenues and certain expenses. Actual results
could differ from those estimates.
Revenue Recognition
Rental revenue is recognized on an accrual basis when earned
and due from tenants. Leases are generally for a one-year term
and have no renewal options.
and due from tenants. Leases are generally for a one-year term
and have no renewal options.
Repairs and Maintenance
Major replacement and betterments that improve or extend the
life of Vanguard Heights are capitalized. Expenditures for
ordinary repairs and maintenance are charged to operations as
incurred.
life of Vanguard Heights are capitalized. Expenditures for
ordinary repairs and maintenance are charged to operations as
incurred.
3. Subsequent Events
Subsequent events were evaluated through May 5, 2017, the date
on which the statements of revenues and certain expenses were
available to be issued.
on which the statements of revenues and certain expenses were
available to be issued.
/div>
BRT APARTMENTS CORP. AND SUBSIDIARIES
Pro Forma Consolidated Financial Statements
(Unaudited)
Conversion
BRT Apartments Corp., a Maryland corporation, is the
successor to BRT Realty Trust, a Massachusetts business
trust, to the conversion of BRT Realty Trust into BRT
Apartments Corp. on March 18, 2017.
successor to BRT Realty Trust, a Massachusetts business
trust, to the conversion of BRT Realty Trust into BRT
Apartments Corp. on March 18, 2017.
Acquisitions
On April 4, 2017, TRB Vanguard LLC, an indirect wholly owned
subsidiary of BRT Apartments Corp. (“BRT or the
“Company”), and an unaffiliated joint venture partner,
acquired a 174 unit multi-family property located at 10362
Old Olive Street Road, Creve Coeur, Missouri for $39.6
million including $29.0 million of mortgage debt obtained in
connection with the acquisition. The Company owns a 78.4%
interest in this venture.
subsidiary of BRT Apartments Corp. (“BRT or the
“Company”), and an unaffiliated joint venture partner,
acquired a 174 unit multi-family property located at 10362
Old Olive Street Road, Creve Coeur, Missouri for $39.6
million including $29.0 million of mortgage debt obtained in
connection with the acquisition. The Company owns a 78.4%
interest in this venture.
On February 28, 2017, TRB OPOP LLC, an indirect wholly owned
subsidiary of the Company and an unaffiliated joint venture
partner, acquired a 128 unit multi-family high rise building
located at 411 North 8th Street, St. Louis, Missouri (“OPOP
Tower”) and a 53 unit multi-family loft building located at
901 Locust Street, St. Louis, Missouri (“OPOP Lofts”; and
together with OPOP Tower, the “OPOP Properties”) for $27.0
million and $8.0 million, respectively, including $20.0
million and $6.2 million, respectively, of mortgage debt
obtained in connection with the acquisitions. The Company
owns a 75.5% interest in this venture.
subsidiary of the Company and an unaffiliated joint venture
partner, acquired a 128 unit multi-family high rise building
located at 411 North 8th Street, St. Louis, Missouri (“OPOP
Tower”) and a 53 unit multi-family loft building located at
901 Locust Street, St. Louis, Missouri (“OPOP Lofts”; and
together with OPOP Tower, the “OPOP Properties”) for $27.0
million and $8.0 million, respectively, including $20.0
million and $6.2 million, respectively, of mortgage debt
obtained in connection with the acquisitions. The Company
owns a 75.5% interest in this venture.
On November 10, 2016, TRB Canalside Lofts, LLC, an indirect
wholly owned subsidiary of the Company and unaffiliated joint
venture partners, acquired a 374 unit multi-family property
located at 383 Taylor Street, Columbia, South Carolina
(Canalside Lofts”) for $58.3 million, including $41.0
million of mortgage debt assumed in connection with the
acquisitions. The Company owns a 32.12% interest in this
unconsolidated venture.
wholly owned subsidiary of the Company and unaffiliated joint
venture partners, acquired a 374 unit multi-family property
located at 383 Taylor Street, Columbia, South Carolina
(Canalside Lofts”) for $58.3 million, including $41.0
million of mortgage debt assumed in connection with the
acquisitions. The Company owns a 32.12% interest in this
unconsolidated venture.
On November 4, 2016, Kilburn Crossing, LLC, an indirect
wholly owned subsidiary of the Company and an unaffiliated
joint venture partner, acquired a 220 unit multi-family
property located at 6601 Charmed Way, Fredericksburg,
Virginia (Kilburn Crossing) for $38.5 million, including
$29.9 million of mortgage debt obtained in connection with
the acquisition. The Company owns an 80% interest in this
venture.
wholly owned subsidiary of the Company and an unaffiliated
joint venture partner, acquired a 220 unit multi-family
property located at 6601 Charmed Way, Fredericksburg,
Virginia (Kilburn Crossing) for $38.5 million, including
$29.9 million of mortgage debt obtained in connection with
the acquisition. The Company owns an 80% interest in this
venture.
The acquisitions of the OPOP Properties, Canalside Lofts and
Kilburn Crossing are referred to collectively as the
“Previously Reported Acquisitions.”
Kilburn Crossing are referred to collectively as the
“Previously Reported Acquisitions.”
Presentation
The unaudited pro forma consolidated balance sheet is
presented as if the acquisitions of the Vanguard Heights and
the Previously Reported Acquisitions had been completed on
December 31, 2016. The unaudited pro forma consolidated
statement of income for the year ended September 30, 2016 is
presented as if the Vanguard Heights and the Previously
Reported Acquisitions had been completed on October 1, 2015.
The unaudited pro forma consolidated statement of income for
the three months ended December 31, 2016, is presented as if
the acquisition had been completed on October 1, 2016.
presented as if the acquisitions of the Vanguard Heights and
the Previously Reported Acquisitions had been completed on
December 31, 2016. The unaudited pro forma consolidated
statement of income for the year ended September 30, 2016 is
presented as if the Vanguard Heights and the Previously
Reported Acquisitions had been completed on October 1, 2015.
The unaudited pro forma consolidated statement of income for
the three months ended December 31, 2016, is presented as if
the acquisition had been completed on October 1, 2016.
These unaudited pro forma consolidated financial statements
are presented for informational purposes only and should be
read in conjunction with the Companys Annual Report on Form
10-K for the year ended September 30, 2016.
are presented for informational purposes only and should be
read in conjunction with the Companys Annual Report on Form
10-K for the year ended September 30, 2016.
The unaudited pro forma consolidated financial statements are
based on assumptions and estimates considered appropriate by
the Companys management; however, such statements do not
purport to represent what the Companys financial position and
results of operations would have been assuming the completion
of the acquisition
based on assumptions and estimates considered appropriate by
the Companys management; however, such statements do not
purport to represent what the Companys financial position and
results of operations would have been assuming the completion
of the acquisition
/div>
on October 1, 2015, nor do they purport to project the
Companys financial position and results of operations at
any future date or for any future period.
Companys financial position and results of operations at
any future date or for any future period.
In the opinion of the Companys management, all adjustments
necessary to reflect the effects of the transactions
described above have been included in the pro forma
consolidated financial statements.
necessary to reflect the effects of the transactions
described above have been included in the pro forma
consolidated financial statements.
/div>
>>BRT APARTMENTS CORP. AND SUBSIDIARIES
PRO FORMA – UNAUDITED CONSOLIDATED BALANCE SHEET
At December 31, 2016
(Amounts in thousands, except per share data)
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The Company Historical
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Previously Reported Acquisitions
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Purchase of Vanguard Heights
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The Company
Pro Forma
as Adjusted
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ASSETS
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Real estate properties, net of accumulated
depreciation |
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$
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746,183
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|
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$
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35,557
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|
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$
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40,166
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|
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$
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821,906
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|
|
|
|
|
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Real estate loan
|
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5,900
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|
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|
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5,900
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Cash and cash equivalents
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51,231
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(8,172
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)
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(9,237
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)
|
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33,822
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Restricted cash
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6,683
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|
|
|
|
|
|
|
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6,683
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Deposits and escrows
|
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18,283
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|
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|
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|
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19,055
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Investment in unconsolidated joint ventures
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14,672
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14,672
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Other assets
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6,122
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6,354
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Total Assets
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$
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849,074
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|
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$
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28,071
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|
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$
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31,247
|
|
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$
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908,392
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|
|
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|
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LIABILITIES AND EQUITY
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Liabilities:
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|
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Mortgages payable, net of deferred costs
|
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$
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573,577
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|
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$
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25,855
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|
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$
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28,432
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|
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$
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627,864
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|
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Junior subordinated notes, net of deferred
costs |
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37,003
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|
|
|
|
|
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37,003
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Accounts payable and accrued liabilities
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18,873
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|
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|
|
|
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|
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19,184
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|
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Total Liabilities
|
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629,453
|
|
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25,951
|
|
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28,647
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|
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684,051
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Commitments and contingencies
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Equity:
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BRT Apartments Corp. stockholders’ equity:
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Preferred shares, $.01 and $1 par value:
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authorized 2,000 and 10,000 shares, none issued
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Common stock $.01 par value, 300,000 shares
authorized; |
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Shares of beneficial interest, $3 par value:
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|
|
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|
|
|
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||||||||
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authorized number of shares, unlimited, 13,306
issued |
|
39,693
|
|
|
|
|
|
|
|
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39,693
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|
||||
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Additional paid-in capital
|
|
161,639
|
|
|
|
|
|
|
|
|
161,639
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|
||||
|
Accumulated other comprehensive loss
|
|
1,666
|
|
|
|
|
|
|
|
|
1,666
|
|
||||
|
Accumulated deficit
|
|
(32,355
|
)
|
|
|
|
|
|
|
|
(32,355
|
)
|
||||
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Total BRT Apartments Corp. shareholders’
equity |
|
170,643
|
|
|
|
|
|
|
|
|
170,643
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|
||||
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Non-controlling interests
|
|
48,978
|
|
|
2,120
|
|
|
2,600
|
|
|
53,698
|
|
||||
|
Total Equity
|
|
219,621
|
|
|
2,120
|
|
|
2,600
|
|
|
224,341
|
|
||||
|
Total Liabilities and Equity
|
|
$
|
849,074
|
|
|
$
|
28,071
|
|
|
$
|
31,247
|
|
|
$
|
908,392
|
|
See accompanying notes to the unaudited pro forma
consolidated financial statements
consolidated financial statements
/div>
BRT APARTMENTS CORP. AND SUBSIDIARIES
PRO FORMA – UNAUDITED CONSOLIDATED STATEMENT OF INCOME
For The Year Ended September 30, 2016
(Dollars in thousands, except share data)
|
|
The Company Historical
|
|
Previously Reported Acquisitions
|
|
Purchase of Vanguard Heights
|
|
The Company
Pro Forma
as Adjusted
|
||||||||
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Revenues:
|
|
|
|
|
|
|
|
||||||||
|
Rental and other revenues from real estate
properties
|
$
|
90,945
|
|
|
$
|
7,193
|
|
|
$
|
3,094
|
|
|
$
|
101,232
|
|
|
Other income
|
3,319
|
|
|
|
|
|
|
|
|
3,319
|
|
||||
|
Total revenues
|
94,264
|
|
|
7,193
|
|
|
3,094
|
|
|
104,551
|
|
||||
|
Expenses:
|
|
|
|
|
|
|
|
||||||||
|
Real estate operating expenses – including
$1,950 to related parties
|
43,262
|
|
|
2,778
|
|
|
1,221
|
|
|
47,261
|
|
||||
|
Interest expense
|
23,878
|
|
|
2,413
|
|
|
1,753
|
|
(a)
|
28,044
|
|
||||
|
Advisor’s fees, related party
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Property acquisition costs – including $2,221
to related parties |
3,852
|
|
|
|
|
|
|
|
|
3,852
|
|
||||
|
General and administrative-including $1,020
to related party |
8,536
|
|
|
|
|
|
|
|
|
8,536
|
|
||||
|
Provision for Federal Tax
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Depreciation
|
23,180
|
|
|
2,777
|
|
|
1,594
|
|
(b)
|
27,551
|
|
||||
|
Total expenses
|
104,101
|
|
|
7,968
|
|
|
4,568
|
|
|
116,637
|
|
||||
|
Total revenues less total expenses
|
(9,837
|
)
|
|
(775
|
)
|
|
(1,474
|
)
|
|
(12,086
|
)
|
||||
|
Gain on sale of real estate assets
|
46,477
|
|
|
|
|
|
|
|
|
46,477
|
|
||||
|
Gain on sale of partnership interest
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Loss on extinguishment of debt
|
(4,547
|
)
|
|
|
|
|
|
|
|
(4,547
|
)
|
||||
|
Equity in earnings of unconsolidated joint
ventures |
|
|
|
|
|
|
|
|
|
|
|
||||
|
Income (loss) from continuing operations
|
32,479
|
|
|
(575
|
)
|
|
(1,474
|
)
|
|
30,430
|
|
||||
|
Discontinued Operations:
|
|
|
|
|
|
|
|
||||||||
|
Loss from discontinued operations
|
(2,788
|
)
|
|
|
|
|
|
|
|
(2,788
|
)
|
||||
|
Gain on sale of partnership interest
|
15,467
|
|
|
|
|
|
|
|
|
15,467
|
|
||||
|
Income from discontinued operations
|
12,679
|
|
|
|
|
|
|
|
|
12,679
|
|
||||
|
Net income (loss)
|
45,158
|
|
|
(575
|
)
|
|
(1,474
|
)
|
|
43,109
|
|
||||
|
Net (income) loss attributable to
non-controlling interests |
(13,869
|
)
|
|
|
|
|
|
|
|
(13,352
|
)
|
||||
|
Net income (loss) attributable to common
stockholders |
$
|
31,289
|
|
|
$
|
(377
|
)
|
|
$
|
(1,155
|
)
|
|
$
|
29,757
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Basic and diluted per share amounts
attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
|
Basic and diluted earnings (loss) per share
|
$
|
2.23
|
|
|
$
|
(0.02
|
)
|
|
$
|
(0.08
|
)
|
|
$
|
2.13
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average number of shares of common
stock outstanding: |
|
|
|
|
|
|
|
||||||||
|
Basic and diluted
|
14,017,279
|
|
|
14,017,279
|
|
|
14,017,279
|
|
|
14,017,279
|
|
See accompanying notes to the pro forma unaudited
consolidated financial statements
consolidated financial statements
/div>
BRT APARTMENTS CORP. AND SUBSIDIARIES
PRO FORMA – UNAUDITED CONSOLIDATED STATEMENT OF
INCOME
INCOME
For The Three Months Ended December 31, 2016
(Dollars in thousands, except share data)
|
|
The Company Historical
|
|
Previously Reported Acquisitions
|
|
Purchase of Vanguard Heights
|
|
The Company
Pro Forma
as Adjusted
|
||||||||
|
Revenues:
|
|
|
|
|
|
|
|
||||||||
|
Rental and other revenues from real estate
properties
|
$
|
25,029
|
|
|
$
|
1,284
|
|
|
$
|
|
|
|
$
|
27,087
|
|
|
Other income
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Total revenues
|
25,640
|
|
|
1,284
|
|
|
|
|
|
27,698
|
|
||||
|
Expenses:
|
|
|
|
|
|
|
|
||||||||
|
Real estate operating expenses – including
$1,950 to related parties
|
12,446
|
|
|
|
|
|
|
|
|
13,291
|
|
||||
|
Interest expense
|
6,687
|
|
|
|
|
|
|
|
(a)
|
7,557
|
|
||||
|
Advisor’s fees, related party
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Property acquisition costs – including
$2,221 to related parties |
|
|
|
|
|
|
|
|
|
|
|
||||
|
General and administrative-including $1,020
to related party |
2,597
|
|
|
|
|
|
|
|
|
2,597
|
|
||||
|
Provision for Federal Tax
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Depreciation
|
6,297
|
|
|
|
|
|
|
|
(b)
|
7,261
|
|
||||
|
Total expenses
|
28,377
|
|
|
1,531
|
|
|
1,148
|
|
|
31,056
|
|
||||
|
Total revenues less total expenses
|
(2,737
|
)
|
|
(247
|
)
|
|
(374
|
)
|
|
(3,358
|
)
|
||||
|
Gain on sale of real estate assets
|
35,838
|
|
|
|
|
|
|
|
|
35,838
|
|
||||
|
Loss on extinguishment of debt
|
(799
|
)
|
|
|
|
|
|
|
|
(799
|
)
|
||||
|
Equity in earnings of unconsolidated joint
ventures |
|
|
|
|
|
|
|
|
|
|
|||||
|
Net income (loss)
|
32,302
|
|
|
(197
|
)
|
|
(374
|
)
|
|
31,731
|
|
||||
|
Net (income) loss attributable to
non-controlling interests |
(16,532
|
)
|
|
|
|
|
|
|
|
(16,392
|
)
|
||||
|
Net income (loss) attributable to common
stockholders |
$
|
15,770
|
|
|
$
|
(138
|
)
|
|
$
|
(293
|
)
|
|
$
|
15,339
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Basic and diluted per share amounts
attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
|
Basic and diluted earnings (loss) per share
|
$
|
1.13
|
|
|
$
|
(0.01
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
1.10
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
Weighted average number of shares of common
stock outstanding: |
|
|
|
|
|
|
|
||||||||
|
Basic and diluted
|
13,898,626
|
|
|
13,898,626
|
|
|
13,898,626
|
|
|
13,898,626
|
|
/div>
BRT APARTMENTS CORP. AND SUBSIDIARIES
Notes to Pro Forma Unaudited Consolidated Financial
Statements
Statements
(Unaudited)
Basis of Pro Forma Presentation
|
1.
|
The historical consolidated financial
statements of the Company include the accounts of the Company and consolidated subsidiaries in which the Company is presumed to have control in accordance with the consolidation guidance of the Financial Accounting Standards Board Accounting Standards Codification (ASC). Investments in entities for which the Company has the ability to exercise significant influence but does not have financial or operating control, are accounted for under the equity method of accounting. Accordingly, the Companys share of the net earnings (or losses) of entities accounted for under the equity method are included in consolidated net income (loss) under the caption Other Income. Investments in entities for which the Company does not have the ability to exercise any influence are accounted for under the cost method of accounting. |
|
2.
|
Notes to the pro forma unaudited consolidated
balance sheet and statements of income for Vanguard Heights for the year ended September 30, 2016. |
|
a)
|
To reflect the interest expense resulting
from the mortgage securing Vanguard Heights which expense is calculated an interest rate of 3.48% and includes amortization of deferred financing costs. |
|
b)
|
To reflect depreciation expense on the
estimated useful life of the property of 30 years. |
/div>
About BRT APARTMENTS CORP. (NYSE:BRT)
BRT Apartments Corp. is a real estate investment trust (REIT). The Trust is focused on the ownership, operation and development of multi-family properties. These activities are primarily conducted through joint ventures in which the Trust has an equity interest in the entity owning the property. The Trust’s segments include Multi-Family Real Estate and Other Assets. The Multi-Family Real Estate segment includes the ownership, operation and development of multi-family properties. The Other Assets segment includes the ownership and operation of the Trust’s other real estate assets and a real estate loan. As of December 31, 2016, the Trust owned 30 multi-family properties with 8,624 units located in 11 states (including 271 units at a property in the lease up stage), and interests in two unconsolidated joint ventures. The Trust also owns and operates various other real estate assets. BRT APARTMENTS CORP. (NYSE:BRT) Recent Trading Information
BRT APARTMENTS CORP. (NYSE:BRT) closed its last trading session down -0.10 at 8.06 with 1,040 shares trading hands.