BRT Apartments Corp (NYSE:BRT) Q3 2023 Earnings Conference Call November 7, 2023 9:00 AM ET

Company Participants

Tripp Sullivan - Head of Investor Relations

Jeffrey Gould - President, Chief Executive Officer & Director

George Zweier - Vice President & Chief Financial Officer

Ryan Baltimore - Chief Operating Officer

Conference Call Participants

Barry Oxford - Colliers

Operator

Good morning and welcome to the BRT Apartments Corp. Third Quarter Earnings Conference Call. Today's conference is being recorded.

At this time, I would like to turn the floor over to Tripp Sullivan of SCR Partners. Thank you. You may now begin.

Tripp Sullivan

Thank you for joining us today. On the call are Jeffrey Gould, President and Chief Executive Officer; George Zweier, Chief Financial Officer; Ryan Baltimore, Chief Operating Officer; as well as David Kalish, Senior Vice President.

I would like to remind everyone that this conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs. Listeners should not place undue reliance on any forward-looking statements and are encouraged to review the company's SEC filings, including its Form 10-Q for a more complete discussion of risks and other factors that could affect these forward-looking statements. Except as required by law, BRT does not undertake any obligation to publicly update or revise any forward-looking statements. This call also includes a discussion of non-GAAP measures, including FFO, AFFO, NOI, combined portfolio NOI and information regarding our pro rata share of revenues, expenses, NOI, assets and liabilities of BRT's unconsolidated subsidiaries. All of the non-GAAP information discussed today has certain limitation and should be used with caution and in conjunction with the GAAP data presented in our supplemental earnings release and in our reports filed with the SEC. Please see these reports and filings for the definitions of each non-GAAP measure. As a reminder, the company's supplemental information and earnings release have been posted on the Investor Relations section of BRT's website at www.brtapartments.com.

I'd now like to turn the call over to President and CEO, Jeffrey Gould. Please go ahead, Jeff.

Jeffrey Gould

Thank you and welcome to the call. Before I turn it over to George and Ryan for some color around our results, I want to spend some time on a few topics. The first is the current operating environment. The second is the state of the transaction environment. The third is how we're thinking about capital allocation. We are still seeing rent growth on a blended basis with occupancy in the tight band around 94%. Fundamentals in our markets are strong and absent Nashville and Dallas where new suppliers are weighing on absorption and are requiring higher concessions. New supply isn't having an adverse impact above what we've been anticipating. While these rent increases are not what we and others in the industry achieved during the pandemic on a blended basis, we are still seeing positive growth but we're more cautious about where trends are heading on new leases.