BRT Apartments Corp.BRT

BRT Apartments Corp. Debt Disclosure

10-KFiled Mar 13, 20264 min read
DEBT OBLIGATIONS
Debt obligations consist of the following (dollars in thousands):
December 31,
20252024
Mortgages payable$475,697 $450,481 
Junior subordinated notes37,400 37,400 
Credit facility (1)
— — 
Deferred loan costs (2)
(4,831)(4,247)
Total debt obligations$508,266 $483,634 
________________________
(1) Draws associated with the acquisition of investments in unconsolidated ventures outlined in note 8 were repaid in full during 2025.
(2) Excludes $236 and $374 at December 31, 2025 and 2024, respectively, of deferred fees related to our credit facility which are reflected in Other Assets.

Mortgage Debt
A summary of activity in mortgage debt, net of deferred loan fees, for the year ended December 31, 2025 is as follows (dollars in thousands):
Balance at December 31, 2024$446,471 
New mortgage87,717 
Amortization of fair value adjustment525 
Debt payoff(58,040)
Principal amortization(4,986)
Changes in deferred fees(604)
Balance at December 31, 2025$471,083 
NOTE 9—DEBT OBLIGATIONS (continued)
At December 31, 2025, $475,697,000 of mortgage debt, all of which is fixed rate, with a weighted average interest rate of 4.22% and a weighted average remaining term to maturity of 6.4 years, is outstanding on 19 of the Company's multi-family properties. Scheduled principal repayments for the periods indicated are as follows (dollars in thousands):
Year Ending December 31,Scheduled Principal Payments
2026$31,981 
202746,190 
202840,696 
202956,272 
203022,432 
Thereafter278,126 
$475,697 

The unamortized balance of acquisition related mortgage intangibles, which is included in mortgages payable in the consolidated balance sheet, was $304 at December 31, 2025 and will be amortized as follows (dollars in thousands):
Year Ending December 31,Amount
2026$189 
2027(28)
20281 
2029127 
203015 
Thereafter— 
Total$304 

The following table summarizes mortgage debt obtained in the years ended December 31, 2025 and December 31, 2024 (dollars in thousands):
Property NameLocationDateMortgage (1)Interest RateMaturity Date
2025
Parkway GrandeLaGrange, GA09/26/2025$15,776 5.09%Oct 2032
Woodland ApartmentsBoerne, TX12/16/202511,505 5.04%Jan 2036
Grove at River PlaceMacon, GA12/16/202515,651 4.62%Jan 2031
Civic Center ISouthaven, MS12/16/202544,785 5.04%Jan 2036
2024
Woodland TrailsSan Marcos, TX08/22/2024$27,375 5.22%Oct 2032
(1) All mortgages are interest only for the full term with the exception of Woodland Trails which is interest only for five years.
NOTE 9—DEBT OBLIGATIONS (continued)
Interest expense relating to mortgages for the years ended December 31, 2025 and 2024, which includes amortization of deferred loans fees and fair value adjustments, was $20,426,000 and $19,372,000 respectively.
Credit Facility
On July 9, 2024, the Company's credit facility, with an affiliate of Valley National Bank ("VNB"), was amended to, among other things, reduce the borrowing capacity from $60,000,000 to $40,000,000, extend the facility's maturity from September 2025 to September 2027 and revise certain financial and other covenants. The facility allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $40,000,000. The facility can be used to facilitate the acquisition of multi-family properties, repay mortgage debt secured by multi-family properties and for operating expense (i.e.,working capital (including dividend payments)); provided that no more than $25,000,000 may be used for operating expenses. The facility is secured by the cash available at VNB and the Company's pledge of the interests in the entities that own the properties, and matures in September 2027.
The interest rate on the credit facility, which adjusts monthly and is subject to a floor of 6.00%, equals one-month term SOFR plus 250 basis points. The interest rate in effect as of December 31, 2025 and February 27, 2026 was 6.37% and 6.18%, respectively. There is an unused facility fee of 0.25% per annum on the total amount committed by VNB and unused by the Company.
On July 9, 2025, in connection with the acquisition of 1322 North, the Company borrowed $7,000,000 from its credit facility. On September 19, 2025, in connection with the acquisition of Oaks at Victory, the Company borrowed $8,000,000. On September 30, 2025, in connection with supplementing working capital reserves, the Company borrowed $2,500,000. On December 17, 2025, the outstanding balance of $17,500,000 was repaid in full.
At December 31, 2025, and February 27, 2026, there was no outstanding balance on the facility and $40,000,000 was available to be borrowed. At December 31, 2024, there was no outstanding balance of on the facility. The average balance outstanding on the facility for 2025 and 2024 was $5,595,000 and $2,811,000, respectively. Interest expense for the years ended December 31, 2025 and 2024, which includes amortization of deferred financing costs and unused fees, was $601,000 and $365,000, respectively. Deferred costs of $236,000 and $374,000 are recorded in Other Assets on the consolidated balance sheets at December 31, 2025 and 2024, respectively.
Junior Subordinated Notes
At December 31, 2025 and 2024, the outstanding principal balance of the Company's junior subordinated notes was $37,400,000, before deferred financing costs of $217,000 and $237,000, respectively. The interest rate on the outstanding balance resets quarterly and is based on three month term SOFR + 2.26%. The rate in effect at December 31, 2025 and 2024 was 6.10% and 6.85%, respectively. The notes mature April 30, 2036.
The notes require interest only payments through the maturity date, at which time repayment of all outstanding principal and unpaid interest is due. Interest expense for the years ended December 31, 2025 and 2024, which includes amortization of deferred costs, was $2,484,000 and $2,859,000, respectively.
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Historical Timeline

Fiscal YearFiled
2025Mar 13, 2026Showing above
2024Mar 12, 2025
2023Mar 14, 2024
2022Mar 15, 2023
2021Mar 16, 2022
2020Mar 15, 2021
2019May 15, 2020
2018Dec 10, 2018
2017Dec 14, 2017
2016Dec 13, 2016
2015Dec 11, 2015

About Debt Disclosures

Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.

Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.

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