SUPPLEMENTAL FINANCIAL INFORMATION FOR THREE MONTHS ENDED SEPTEMBER 30, 2024

November 07, 2024

60 Cutter Mill Rd., Great Neck, NY 11021

We consider some of the information set forth herein to contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, or the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, or the Exchange Act, with respect to our expectations for future periods. Forward-looking statements do not discuss historical fact, but instead include statements related to expectations, projections, intentions or other items related to the future. Such forward-looking statements include, without limitation, statements regarding expected operating performance and results, property acquisition and disposition activity, joint venture activity, development and value add activity and other capital expenditures, and capital raising and financing activity, as well as revenue and expense growth, occupancy, interest rate and other economic expectations. Words such as “expects,” “anticipates,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “forecasts,” “projects,” “assumes,” “will,” “may,” “could,” “should,” “budget,” “target,” “outlook,” “opportunity,” “guidance” and variations of such words and similar expressions are intended to identify such forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some cases, beyond our control, which may cause our actual results, performance or achievements to be materially different from the results of operations, financial conditions or plans expressed or implied by such forward-looking statements. Although we believe that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore such forward-looking statements included in this report may not prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that the results or conditions described in such statements or our objectives and plans will be achieved and investors are cautioned not to place undue reliance on such information.

The following factors, among others, could cause our actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking statements:

•inability to generate sufficient cash flows due to unfavorable economic and market conditions (e.g., inflation, volatile interest rates and the possibility of a recession), changes in supply and/or demand, competition, uninsured losses, changes in tax and housing laws or other factors;

•adverse changes in real estate markets, including, but not limited to, the extent of future demand for multifamily units in our significant markets, barriers of entry into new markets which we may seek to enter in the future, limitations on our ability to increase or collect rental rates, competition, our ability to identify and consummate attractive acquisitions and dispositions on favorable terms, and our ability to reinvest sale proceeds in a manner that generates favorable returns;

•general and local real estate conditions, including any changes in the value of our real estate;

•decreasing rental rates or increasing vacancy rates;

•challenges in acquiring or investing in multi-family properties (including challenges in (i) buying properties directly without the participation of joint venture partners and (ii) making alternative investments in multi-family properties, and the limited number of multi-family property investment/acquisition opportunities available to us), which transactions may not be completed or may not produce the cash flows or income expected;

•the competitive environment in which we operate, including competition that could adversely affect our ability to acquire properties and/or limit our ability to lease apartments or increase or maintain rental rates;

•exposure to risks inherent in investments in a single industry and sector;

•the concentration of our multi-family properties in the Southeastern United States and Texas, which makes us more susceptible to adverse developments in those markets;

•increases in expenses over which we have limited control, such as real estate taxes, insurance costs and utilities, due to inflation and other factors;

•impairment in the value of real estate we own;

•failure of property managers to properly manage properties;

•accessibility of debt and equity capital markets;

•disagreements with, or misconduct by, joint venture partners;

•inability to obtain financing at favorable rates, if at all, or refinance existing debt as it matures due to the level and volatility of interest or capitalization rates or capital market conditions;

•extreme weather and natural disasters such as hurricanes, tornadoes and floods;

•lack of or insufficient amounts of insurance to cover, among other things, losses from catastrophes;

•risks associated with acquiring value-add multi-family properties, which involves greater risks than more conservative approaches;

•the condition of Fannie Mae or Freddie Mac, which could adversely impact us;

•changes in Federal, state and local governmental laws and regulations, including laws and regulations relating to taxes and real estate and related investments;

•our failure to comply with laws, including those requiring access to our properties by disabled persons, which could result in substantial costs;

•board determinations as to timing and payment of dividends, if any, and our ability or willingness to pay future dividends;

•our ability to satisfy the complex rules required to maintain our qualification as a REIT for federal income tax purposes;

•possible environmental liabilities, including costs, fines or penalties that may be incurred due to necessary remediation of contamination of properties presently owned or previously owned by us or a subsidiary owned by us or acquired by us;

•our dependence on information systems and risks associated with breaches of such systems;

•disease outbreaks and other public health events, and measures that are taken by federal, state, and local governmental authorities in response to such outbreaks and events;

•impact of climate change on our properties or operations;

•risks associated with the stock ownership restrictions of the Internal Revenue Code of 1986, as amended (the "Code") for REITs and the stock ownership limit imposed by our charter; and

•the other factors described in the reports we file with the SEC, including those set forth in our Annual Report on Form 10-K under the captions "Item 1. Business," "Item 1A. Risk Factors," and "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations".

We undertake no obligation to update or revise the information herein, whether as a result of new information, future events or circumstances, or otherwise.

Units under rehabilitation for which we have received or accrued rental income from business interruption insurance, while not physically occupied, are treated as leased (i.e., occupied) at rental rates in effect at the time of the casualty.

We use pro rata (as defined under "Non-GAAP Financial Measures and Definitions") to help the reader gain a better understanding of our unconsolidated joint ventures. However, the use of pro rata information has certain limitations and is not representative of our operations and accounts as presented in accordance with GAAP. Accordingly, pro rata information should be used with caution and in conjunction with the GAAP data presented herein and in our reports filed with the SEC.

The state-by-state and property-by-property revenue, weighted average rent per occupied unit and similar information presented herein do not give effect to the deferred rent concessions. Revenues for each of the three and nine months ended September 30, 2024, exclude $952,000 of the deferred rent concessions, including amortization, with respect to the consolidated data and $105,000 with respect to the unconsolidated data.

    

•Reported results for the third quarter of 2024 of net loss of $2.2 million, or $(0.12) per diluted share, Funds from Operations, or FFO, of $0.30 per diluted share and Adjusted Funds from Operations, or AFFO, of $0.36 per diluted share.

•Equity in earnings of unconsolidated joint ventures was $369,000 in the third quarter of 2024.

•Combined Portfolio NOI increased 0.6% for the third quarter of 2024 compared to the prior-year period.

•Combined Portfolio NOI, net loss, FFO and AFFO results were in line with the operational environment the Company previously outlined in its 2024 outlook.

•Repurchased 6,563 shares during the third quarter at a weighted average price of $17.55.

•Maintained revolving credit facility of up to $40.0 million, with $0 outstanding, and maturity in September 2027.

•Closed a $28.0 million, seven-year mortgage at an interest rate of 5.22% secured by the Company’s Woodland Trails – LaGrange, Georgia property.

•Provided a total of $18.3 million at a weighted average initial current pay rate of 6.0% to 6.5% and an all-in rate, including PIK, of 13.0%. These funds were provided to a 204-unit multifamily property in Wilmington, North Carolina and a 184-unit multifamily property in Kennesaw, Georgia.

The Company has updated its previously issued commentary below:

•The operational environment in BRT’s Combined Portfolio is expected to be consistent with other Sunbelt-focused operators with new supply muting new and renewal lease rent growth until at least part of 2025 as the new supply is absorbed.

•BRT intends to emphasize stable average occupancy within the portfolio until it can achieve a lift in rental rates.

•Controllable expense growth is expected to grow modestly compared to 2023 and non-controllable expenses, particularly insurance, are expected to moderate somewhat compared to 2023.

•BRT’s balance sheet has no debt maturities until the third quarter of 2025, improved pricing and full availability on its credit facility and ample liquidity to deploy.

•The 240-unit Stono Oaks development in Johns Island, SC, of which BRT owns a 17.45% interest, is in lease up and is anticipated to continue to lead to a drag on earnings from equity in unconsolidated joint ventures as the Company recognizes depreciation and interest expense associated with the development.

•A more favorable environment for transactions with smaller, private operators experiencing capital, ownership and/or refinancing challenges has materialized in the second half of 2024. The Company remains patient on asset growth in the near term but is cautiously optimistic that it may find additional opportunities to deploy its available liquidity for capital situations and/or asset acquisitions in 2025.

•Long-term, the Company believes the Sunbelt offers compelling advantages due to the predominance of pro-business states, along with better population and job growth from migration patterns and business investment.

•With new supply growth expected to moderate in Sunbelt markets in 2025 and 2026, the Company expects a disciplined capital allocation strategy, a focus on stabilizing occupancy in a challenging leasing environment during 2024 and a pipeline of new investment opportunities to translate from a bridge year in 2024 to better growth over the next two to three years.

(1) See the reconciliation of Funds From Operations, or FFO, and Adjusted Funds From Operations, or AFFO, to net income, as calculated in accordance with

GAAP, and the definitions of such terms under "Non-GAAP Financial Measures and Definitions."

(2) Enterprise Value is equal to debt plus market capitalization less cash and cash equivalents, including BRT's pro-rata share of cash and cash equivalents at the

unconsolidated Joint Ventures. Cash and cash equivalents excludes restricted cash. Debt is equal to 100% of the debt at the consolidated properties and BRT's

pro-rata share of debt at the unconsolidated joint ventures. See "Non-GAAP Financial Measures and Definitions" for an explanation of "pro-rata share."

(all in thousands)

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(1) See the Appendix for a reconciliation of the non-GAAP amounts presented to GAAP amounts (amounts in thousands except per share data)

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			Three Months Ended September 30,												Nine Months Ended September 30,
			2024						2023						2024						2023
Revenues:
Rental and other revenue from real estate properties			$	24,177					$	23,510					$	71,253					$	69,704
Interest and other income			219						342						408						405
Total revenues			24,396						23,852						71,661						70,109
Expenses:
Real estate operating expenses			11,187						10,583						32,612						31,565
Interest expense			5,745						5,581						16,768						16,577
General and administrative			3,811						4,017						11,776						11,920
Depreciation and amortization			6,499						6,544						19,400						22,095
Total expenses			27,242						26,725						80,556						82,157
Total revenues less total expenses			(2,846)						(2,873)						(8,895)						(12,048)
Equity in earnings of unconsolidated joint ventures			369						426						986						1,705
Equity in earnings from sale of unconsolidated joint venture properties			—						—						—						14,744
Gain on sale of real estate			—						604						—						604
Insurance recovery			—						261						—						476
Gain on insurance recoveries			—						—						—						240
(Loss) income from continuing operations			(2,477)						(1,582)						(7,909)						5,721
Income tax (benefit) provision			(310)						(122)						(297)						5
(Loss) income from continuing operations, net of taxes			(2,167)						(1,460)						(7,612)						5,716
Net income attributable to non-controlling interests			(38)						(34)						(109)						(106)
Net (loss) income attributable to common stockholders			$	(2,205)					$	(1,494)					$	(7,721)					$	5,610
Weighted average number of shares of common stock outstanding:
Basic			17,796,206						17,851,715						17,720,024						18,022,975
Diluted			17,796,206						17,851,715						17,720,024						18,045,767
Per share amounts attributable to common stockholders:
Basic			$	(0.12)					$	(0.08)					$	(0.41)					$	0.30
Diluted			$	(0.12)					$	(0.08)					$	(0.41)					$	0.27

(amounts in thousands)

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The tables below provides a reconciliation of net loss determined in accordance with GAAP to FFO and AFFO on a dollar and per share basis for each of the indicated periods (dollars in thousands, except per share amounts):

(dollars in thousands, except per share data)

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(amounts in thousands, except per share amounts)

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Consolidated
Year						Total Principal Payments						Scheduled Amortization						Principal Payments Due at Maturity						Percent of Total Principal Payments Due At Maturity						Weighted Average Interest Rate (1)
2024						$	921					$	921					$	—					—		%				—		%
2025						19,860						4,485						15,375						4		%				4.42		%
2026						74,621						5,090						69,531						17		%				4.12		%
2027						46,190						3,395						42,795						10		%				3.96		%
2028						40,697						2,746						37,951						9		%				4.47		%
Thereafter						269,112						22,029						247,083						60		%				4.06		%
Total						$	451,401					$	38,666					$	412,735					100		%
Unconsolidated (BRT pro rata share)
Year						Total Principal Payments						Scheduled Amortization						Principal Payments Due at Maturity						Percent of Total Principal Payments Due At Maturity						Weighted Average Interest Rate (1)
2024						$	451					$	451					—						—		%				—		%
2025						1,842						1,842						$	—					—		%				—		%
2026						25,796						1,805						23,991						22		%				4.92		%
2027						13,026						1,472						11,554						11		%				4.15		%
2028						34,265						450						33,815						31		%				4.26		%
Thereafter						41,205						1,339						39,866						36		%				3.43		%
Total						$	116,585					$	7,359					$	109,226					100		%
Combined (2)
Year						Total Principal Payments						Scheduled Amortization						Principal Payments Due at Maturity						Percent of Total Principal Payments Due At Maturity						Weighted Average Interest Rate (1)
2024						$	1,372					$	1,372					$	—					—						—		%
2025						21,702						6,327						15,375						3		%				4.42		%
2026						100,417						6,895						93,522						18		%				4.32		%
2027						59,216						4,867						54,349						10		%				4.00		%
2028						74,962						3,196						71,766						14		%				4.37		%
Thereafter						310,317						23,368						286,949						55		%				3.98		%
Total						$	567,986					$	46,025					$	521,961					100		%
Weighted Average Remaining Term to Maturity (2)																		5.9			years
Weighted Average Interest Rate (2)																		4.09		%
Debt Service Coverage Ratio for the quarter ended September 30, 2024																		1.32			(3)
(1) Based on principal payments due at maturity.
(2) Includes consolidated and BRT's pro rata share of unconsolidated amounts.
(3) See definition under "Non-GAAP Financial Measures and Definitions." Includes consolidated and 100%       of the unconsolidated amounts.

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Income. Combined portfolio refers to the consolidated same store properties, the unconsolidated same store properties presented on a pro rata share basis, for all periods presented, with a total of 7,707 units, excluding a 240-unit multi-family property in lease up.

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Income. Combined portfolio refers to the consolidated same store properties, the unconsolidated same store properties presented on a pro rata share basis for all periods presented, with a total of 7,707 units, excluding a 240-unit multi-family property in lease up.

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BRT computes AFFO by adjusting FFO for loss on extinguishment of debt, our straight-line rent and rent concession accruals, restricted stock and RSU compensation expense, fair value adjustment of mortgage debt, gain on insurance recovery, insurance recovery from casualty loss and deferred mortgage and debt costs (including, in each case as applicable, from its share of its unconsolidated joint ventures). Since the NAREIT White Paper(as described below) does not provide guidelines for computing AFFO, the computation of AFFO may vary from one REIT to another.

Combined portfolio refers to the consolidated same store properties, the unconsolidated same store properties presented on a pro rata share basis.

Debt service coverage ratio is net operating income ("NOI") divided by total debt service and includes both consolidated and unconsolidated assets.

BRT computes FFO in accordance with the “White Paper on Funds from Operations” issued by the National Association of Real Estate Investment Trusts (“NAREIT”) and NAREIT's related guidance. FFO is defined in the White Paper as net income (calculated in accordance with generally accepted accounting principles), excluding depreciation and amortization related to real estate, gains and losses from the sale of certain real estate assets, gains and losses from change in control, impairment write-downs of certain real estate assets and investments in entities when the impairment is directly attributable to decreases in the value of depreciable real estate held by the entity. Adjustments for unconsolidated partnerships and joint ventures are calculated to reflect funds from operations on the same basis. In computing FFO we do not add back to net income the amortization of costs in connection with our financing activities or depreciation of non-real estate assets.

BRT computes NOI by adjusting net income (loss) to (a) add back (1) depreciation expense, (2) general and administrative expenses, (3) interest expense, (4) loss on extinguishment of debt, (5) equity in earnings (loss) of unconsolidated joint ventures, (6) provision for taxes, and (7) the impact of non-controlling interests, and (b) deduct (1) other income, (2) gain on sale of real estate (3) insurance recovery of casualty loss, and (4) gain on insurance recoveries related to casualty loss.

BRT's pro-rata share gives effect to its percentage equity interest in the unconsolidated joint ventures that own properties. Due to the operation of allocation/distribution provision of the joint venture agreements pursuant to which BRT participates in the ownership of these properties, BRT's share of the gain and loss on the sale of a property may be less than implied by BRT's percentage equity interest. Notwithstanding the foregoing, when referring to the number of units, average occupancy, and average rent per unit, the amount shown reflects 100% of the amount.

Same store properties refer to stabilized properties (as described below) that we owned and operated for the entirety of periods being compared, except for properties that are under construction, legacy assets, in lease-up, or are undergoing development or redevelopment. We move properties previously excluded from our same store portfolio (because they were under construction, in lease up or are in development or redevelopment) into the same store designation once they have stabilized and such status has been reflected fully in all applicable periods of comparison.

Newly constructed, lease-up, development and redevelopment properties are deemed stabilized upon the earlier to occur of the first full calendar quarter beginning (a) 12 months after the property is fully completed and put in service and (b) attainment of at least 90% physical occupancy. 

Total debt service is the cash required to cover the repayment of interest and principal on a debt for a particular period. Total debt service is used in the calculation of the debt service coverage ratio which is used to determine the borrower’s ability to make debt service payments.

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												Revenues																		Property Operating Expenses																		NOI (2)
						Units						2024						2023						% Change						2024						2023						% Change						2024						2023						% Change
Georgia						688						$	2,647					$	2,716					(2.5)		%				$	1,418					$	1,295					9.5		%				$	1,229					$	1,421					(13.5)		%
Florida						518						2,352						2,368						(0.7)		%				1,225						1,195						2.5		%				1,127						1,173						(3.9)		%
Texas						600						2,377						2,346						1.3		%				1,326						1,398						(5.2)		%				1,051						948						10.9		%
Ohio						264						981						941						4.3		%				515						400						28.8		%				466						541						(13.9)		%
Virginia						220						1,219						1,141						6.8		%				515						467						10.3		%				704						674						4.5		%
North Carolina						264						1,059						1,056						0.3		%				460						441						4.3		%				599						615						(2.6)		%
South Carolina						474						2,181						2,136						2.1		%				1,268						1,102						15.1		%				913						1,034						(11.7)		%
Tennessee						702						3,509						3,594						(2.4)		%				1,473						1,479						(0.4)		%				2,036						2,115						(3.7)		%
Alabama						740						2,810						2,807						0.1		%				1,287						1,185						8.6		%				1,523						1,622						(6.1)		%
Mississippi						776						3,151						3,084						2.2		%				1,119						1,033						8.3		%				2,032						2,051						(0.9)		%
Missouri						174						948						953						(0.5)		%				448						441						1.6		%				500						512						(2.3)		%
Net deferred rent						—						539						—												—			—			—												539			—			—
Totals						5,420						$	23,773					$	23,142					2.7		%				$	11,054					$	10,436					5.9		%				$	12,719					$	12,706					0.1		%
												Weighted Average Occupancy																		Weighted Average Monthly Rent per Occupied Unit
												2024						2023						% Change						2024						2023						% Change
Georgia												91.7		%				93.4		%				(1.8)		%				$	1,243					$	1,245					(0.2)		%
Florida												94.9		%				95.5		%				(0.6)		%				1,469						1,459						0.7		%
Texas												94.2		%				92.4		%				1.9		%				1,208						1,193						1.3		%
Ohio												94.1		%				96.8		%				(2.8)		%				1,172						1,102						6.4		%
Virginia												96.8		%				94.5		%				2.4		%				1,714						1,635						4.8		%
North Carolina												95.0		%				95.3		%				(0.3)		%				1,291						1,272						1.5		%
South Carolina												95.2		%				96.1		%				(0.9)		%				1,443						1,400						3.1		%
Tennessee												95.0		%				94.4		%				0.6		%				1,615						1,658						(2.6)		%
Alabama												95.1		%				93.3		%				1.9		%				1,180						1,197						(1.4)		%
Mississippi												95.0		%				96.1		%				(1.1)		%				1,317						1,281						2.8		%
Missouri												95.6		%				94.8		%				0.8		%				1,703						1,738						(2.0)		%
Weighted Average												94.5		%				94.4		%				0.1		%				$	1,363					$	1,352					0.8		%

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Definitions."

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