BRTMEDIUM SIGNALFINANCIAL10-K

BRT significantly expanded its debt by $103.3M while operating cash flow declined 42% and stockholders' equity fell 14%, indicating aggressive growth financing amid deteriorating operational cash generation.

The substantial debt increase to $623.1M suggests BRT is leveraging up to fund acquisitions and growth, but the concurrent decline in operating cash flow raises questions about the company's ability to service this expanded debt load. The 14% decline in stockholders' equity combined with worsening net losses indicates the growth strategy is diluting shareholder value in the near term.

Comparing 2026-03-13 vs 2025-03-12View on EDGAR →
FINANCIAL ANALYSIS

BRT's financial profile shows a company in aggressive expansion mode, with total debt growing 20% to $623.1M while operating cash flow declined sharply by 42% to $14.1M. Net losses worsened from -$9.8M to -$11.9M despite a significant 82% reduction in credit loss provisions, and stockholders' equity declined 14% to $177.2M. The combination of increased leverage, reduced cash generation, and declining equity suggests BRT is funding growth at the expense of current profitability and balance sheet strength, creating execution risk for investors.

FINANCIAL STATEMENT CHANGES
Provision for Credit Losses
P&L
-81.5%
$17.1M$3.2M

Provisions reduced 81.5% — improving credit quality or reserve release boosting reported earnings.

Share Buybacks
Cash Flow
+42.7%
$3.5M$5.0M

Share repurchases increased 42.7% — management returning capital, signals confidence in intrinsic value.

Operating Cash Flow
Cash Flow
-41.6%
$24.1M$14.1M

Operating cash flow fell 41.6% — earnings quality concerns; investigate working capital changes and non-cash items.

Net Income
P&L
-22%
-$9.8M-$11.9M

Net income declined 22% — review whether driven by operations, interest costs, or non-recurring items.

Total Debt
Balance Sheet
+19.9%
$519.8M$623.1M

Debt rose 19.9% — additional borrowing for investment or operations; monitor coverage ratios.

Stockholders Equity
Balance Sheet
-13.5%
$205.0M$177.2M

Equity decreased 13.5% — buybacks or losses reducing book value, monitor solvency ratios.

LANGUAGE CHANGES
NEW — 2026-03-13
PRIOR — 2025-03-12
ADDED
As of February 27, 2026, the registrant had 18,983,013 shares of common stock outstanding.
( Majestic Property ), a property management company which compensates certain of our executive officers, and which is indirectly owned by, among others, Jeffrey A.
The use of the term "affiliated entities" or similar terms does not constitute an acknowledgement that such person(s) or entities are affiliates (as such term is used in the Securities Act (as defined below) or Exchange Act (as defined below)) of ours or one another; "same store properties" refer to properties that we owned and operated for the entirety of periods being compared, except for properties that are in lease-up.
At December 31, 2025, we (i) wholly-own 21 multi-family properties with an aggregate of 5,420 units and a carrying value of $595.2 million; (ii) have ownership interests, through unconsolidated entities, in ten multi-family properties with an aggregate of 2,891 units for which the carrying value of our net equity investment therein is $46.1 million; (iii) have preferred equity investments in two multi-family properties with a carrying value of $17.7 million; and (iv) own other assets, through consolidated and unconsolidated subsidiaries, with a carrying value of $1.6 million.
The 31 multi-family properties are located in 11 s tates; primarily in the Southeast United States and Texas.
During 2025: we acquired, through two unconsolidated joint ventures in two separate and unrelated transactions, an 80% interest in two multi-family properties (referred to collectively as the "2025 Acquisitions") with an aggregate of 364 units for an aggregate purchase price of $59.5 million, including $40.1 million of mortgage debt.
The mortgage debt bears a weighted average interest rate of 4.34% and a weighted average remaining term to maturity of 6.6 years.
we refinanced four mortgages maturing in 2025 and 2026 in aggregate principal amount of $58.0 million (the Prior Mortgages ) and bearing a weighted average fixed interest rate of 4.38% with four replacement mortgages in aggregate principal amount $87.7 million (the "2025 Financings").
The replacement mortgages (the Replacement Mortgages ) have a weighted average remaining term to maturity of 8.5 years, a weighted average fixed interest rate of 4.97%, and unlike the Prior Mortgages, are interest only until maturity (other than with respect to a mortgage in principal amount of $15.8 million, which is interest only until 2030, one year prior to its maturity).
As a result of the 2025 Financings, our aggregate annual principal payments are expected to decrease by $1.2 million (until 2030), and our annual interest expense is expected to increase by $1.8 million, from the corresponding amounts under the Prior Mortgages.
REMOVED
As of February 28, 2025, the registrant had 18,929,742 shares of common stock outstanding.
and its consolidated and unconsolidated subsidiaries; "acquisitions" include investments in unconsolidated joint ventures.
our "significant subsidiaries" (as such term is by Rule 1-02(w) of Regulation S-X), include TRB Holdings LLC, TRB Bells Bluff LLC, which own Bells Bluff, a property located in West Nashville, TN and TRB Civic Center LLC, which owns Civic Center I and II, properties located in Southaven MS.
the term "promote" refers to our joint venture partner's share of the income and/or cash flow from a multi-family property greater than that implied by their percentage of equity interest in such project.
we refer to certain entities as affiliated entities , because such entities share with us certain executive personnel and ownership.
( Majestic Property ), a property management company which compensates certain of our executive officers, and which is wholly owned by Fredric H.
The use of the term "affiliated entities" or similar terms does not constitute an acknowledgement that such person(s) or entities are affiliates (as such term is used in the Securities Act (as defined below) or Exchange Act (as defined below) of ours or one another.
"same store properties" refer to properties that we owned and operated for the entirety of periods being compared, except for properties that are in lease-up.
While carve-outs vary from lender to lender and transaction to transaction, the carve-outs may include, among other things, a voluntary bankruptcy filing, environmental liabilities, the sale, financing or encumbrance of the property in violation of loan documents, damage to property as a result of intentional misconduct or gross negligence, failure to pay valid taxes and other claims which could or in certain cases, would create a lien on a property and the conversion of security deposits, insurance proceeds or condemnation awards.
references to unconsolidated joint ventures exclude ventures in which we have a preferred equity investment.
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