NYSE:BRT

Stock Analysis Report

Executive Summary

BRT is a real estate investment trust that owns, operates and develops multi-family properties.

Rewards

PE ratio (30.2x) is below the REITs industry average (37.8x)

Risk Analysis

Earnings are forecast to decline by an average of -39% per year for the next 3 years

Dividend of 5.04% is not well covered by earnings

Large one-off items impacting financial results

Profit margins (7.3%) are lower than last year (19.9%)

+ 1 more risk


Snowflake Analysis

Second-rate dividend payer and slightly overvalued.


Similar Companies

Share Price & News

How has BRT Apartments's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BRT has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.06%

BRT

0.8%

US REITs

-1.3%

US Market


1 Year Return

38.8%

BRT

17.8%

US REITs

22.0%

US Market

Return vs Industry: BRT exceeded the US REITs industry which returned 17.9% over the past year.

Return vs Market: BRT exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

BRTIndustryMarket
7 Day-0.06%0.8%-1.3%
30 Day4.5%3.5%1.6%
90 Day6.4%1.7%8.9%
1 Year47.0%38.8%22.7%17.8%24.7%22.0%
3 Year144.7%108.9%37.5%20.2%49.4%39.7%
5 Year195.4%152.2%49.2%18.4%78.1%58.5%

Price Volatility Vs. Market

How volatile is BRT Apartments's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is BRT Apartments undervalued compared to its fair value and its price relative to the market?

30.89x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: BRT ($17.46) is trading above our estimate of fair value ($11.42)

Significantly Below Fair Value: BRT is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: BRT is good value based on its PE Ratio (30.2x) compared to the REITs industry average (37.8x).

PE vs Market: BRT is poor value based on its PE Ratio (30.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: BRT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: BRT is good value based on its PB Ratio (1.5x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is BRT Apartments forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

-39.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BRT's earnings are forecast to decline over the next 3 years (-39% per year).

Earnings vs Market: BRT's earnings are forecast to decline over the next 3 years (-39% per year).

High Growth Earnings: BRT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: BRT's revenue (5.6% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: BRT's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if BRT's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has BRT Apartments performed over the past 5 years?

29.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BRT has a large one-off gain of $35.9M impacting its September 30 2019 financial results.

Growing Profit Margin: BRT's current net profit margins (7.3%) are lower than last year (19.9%).


Past Earnings Growth Analysis

Earnings Trend: BRT has become profitable over the past 5 years, growing earnings by 29.4% per year.

Accelerating Growth: BRT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BRT had negative earnings growth (-59.7%) over the past year, making it difficult to compare to the REITs industry average (8.1%).


Return on Equity

High ROE: BRT's Return on Equity (5.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is BRT Apartments's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: BRT has a high level of physical assets or inventory.

Debt Coverage by Assets: BRT's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: BRT's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if BRT has a sufficient allowance for bad loans.

Low Risk Liabilities: BRT reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if BRT has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BRT has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if BRT has an appropriate level of bad loans.


Next Steps

Dividend

What is BRT Apartments's current dividend yield, its reliability and sustainability?

4.94%

Current Dividend Yield


Dividend Yield vs Market

company4.9%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years4.7%

Current dividend yield vs market & industry

Notable Dividend: BRT's dividend (5.04%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: BRT's dividend (5.04%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, BRT has been paying a dividend for less than 10 years.

Growing Dividend: BRT's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (102.6%), BRT's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BRT's dividends in 3 years are forecast to be thoroughly covered by earnings (4.9% payout ratio).


Next Steps

Management

What is the CEO of BRT Apartments's salary, the management and board of directors tenure and is there insider trading?

15.4yrs

Average management tenure


CEO

Jeff Gould (53yo)

18yrs

Tenure

US$1,262,316

Compensation

Mr. Jeffrey A. Gould, also known as Jeff, has been the Chief Executive Officer and President of BRT Realty Trust since January 1, 2002. Mr. Gould has been a Senior Vice President of One Liberty Properties  ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD1.26M) is about average for companies of similar size in the US market ($USD1.08M).

Compensation vs Earnings: Jeff's compensation has been consistent with company performance over the past year.


Management Age and Tenure

15.4yrs

Average Tenure

55yo

Average Age

Experienced Management: BRT's management team is seasoned and experienced (12.8 years average tenure).


Board Age and Tenure

16.2yrs

Average Tenure

61yo

Average Age

Experienced Board: BRT's board of directors are seasoned and experienced ( 16.2 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.8%.


Management Team

  • George Zweier (55yo)

    VP & CFO

    • Tenure: 21.4yrs
    • Compensation: US$483.38k
  • Matt Gould (59yo)

    Senior VP & Director

    • Tenure: 19yrs
    • Compensation: US$625.82k
  • Jeff Gould (53yo)

    President

    • Tenure: 18yrs
    • Compensation: US$1.26m
  • David Kalish (72yo)

    Senior Vice President of Finance

    • Tenure: 21.4yrs
    • Compensation: US$554.43k
  • Mark Lundy (57yo)

    Senior VP

    • Tenure: 12.8yrs
    • Compensation: US$576.23k
  • Mitch Gould (47yo)

    Executive Vice President

    • Tenure: 20.8yrs
    • Compensation: US$702.78k
  • Isaac Kalish (44yo)

    VP & Treasurer

    • Tenure: 7yrs
  • S. Gaffney

    Secretary

    • Tenure: 9.5yrs
  • Ryan Baltimore

    Vice President

    • Tenure: 3.1yrs
  • Brenda Maldonado

    Assistant Controller

    • Tenure: 3.1yrs

Board Members

  • Izzy Rosenzweig (72yo)

    Chairman of the Board

    • Tenure: 6.8yrs
    • Compensation: US$313.97k
  • Fred Gould (83yo)

    Director

    • Tenure: 37yrs
    • Compensation: US$79.76k
  • Matt Gould (59yo)

    Senior VP & Director

    • Tenure: 19yrs
    • Compensation: US$625.82k
  • Jeff Gould (53yo)

    President

    • Tenure: 18yrs
    • Compensation: US$1.26m
  • Jeffrey Rubin (51yo)

    Independent Director

    • Tenure: 15.8yrs
    • Compensation: US$94.06k
  • Gary Hurand (72yo)

    Independent Director

    • Tenure: 30yrs
    • Compensation: US$96.56k
  • Louis Grassi (63yo)

    Independent Director

    • Tenure: 16.6yrs
    • Compensation: US$103.56k
  • Alan Ginsburg (80yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$83.81k
  • Jonathan Simon (53yo)

    Independent Director

    • Tenure: 13.1yrs
    • Compensation: US$84.31k
  • Elie Weiss (46yo)

    Independent Director

    • Tenure: 12.1yrs
    • Compensation: US$91.31k

Company Information

BRT Apartments Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: BRT Apartments Corp.
  • Ticker: BRT
  • Exchange: NYSE
  • Founded: 1972
  • Industry: Residential REITs
  • Sector: Real Estate
  • Market Cap: US$284.429m
  • Shares outstanding: 15.95m
  • Website: https://www.brtapartments.com

Number of Employees


Location

  • BRT Apartments Corp.
  • 60 Cutter Mill Road
  • Suite 303
  • Great Neck
  • New York
  • 11021
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BRTNYSE (New York Stock Exchange)YesCommon StockUSUSDDec 1972
WWADB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972

Biography

BRT is a real estate investment trust that owns, operates and develops multi-family properties. Interested parties are urged to review the Form 10-Q to be filed with the Securities and Exchange Commission for the quarter ended June 30, 2019 and the supplemental disclosures regarding the quarter on the investor relations section of the Company’s website. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/01/25 23:48
End of Day Share Price2020/01/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.