BRT Apartments Corp. (BRT) Income Statement

Revenue compounded from $23.3M to a $25.6M peak before easing to $24.5M in 2026Q2, while year-over-year growth decelerated from 5.2% to 3.1%, a pattern that suggests the portfolio's top-line momentum is fading rather than building. The more consequential observation is that this modest revenue path has decoupled entirely from property-level results, as quarterly NOI moved from $14.6M to a deficit over the same span, implying occupancy and rent gains are not the binding constraint on earnings. The supplied data does not decompose revenue growth between acquisitions, development, and organic rent, so the attribution of the observed trend warrants further investigation.

Property-level margin held a tight 52.8%-56.8% band across eight consecutive quarters before collapsing to 3.0% and then -1.3%, a swing of roughly 58 percentage points that is far too wide to be explained by routine property tax, insurance, or utility inflation alone. Because revenue was essentially unchanged at $24.5M-$24.6M across those two periods, the implied operating expense base appears to have roughly doubled, which may indicate a substantial non-recurring charge booked within operating expenses or a change in the consolidated portfolio perimeter. Investors should monitor subsequent filings for clarification before treating the recent margin readings as a run-rate assumption.

FFO per share has drifted off a $0.25 peak to $0.19, with quarterly FFO growth negative in seven of the ten reported periods, a pattern that suggests earnings momentum is weakening even as revenue still grows low-single-digits. Notably, 2026Q2 FFO of $3.5M was recorded against a negative NOI of $324.0K, implying that income outside property operations may now be a material and potentially fragile contributor to the reported bottom line. Dividend safety therefore appears better assessed against the FFO line than against NOI, and the 1.7% indicated yield looks less secure than headline coverage alone would suggest.

Consistent net losses against consistently positive FFO confirm the familiar REIT accounting distortion, but the size of that gap relative to a roughly $24M quarterly revenue base implies the depreciation charge alone is running near a quarter of top line, which is unsurprising for a residential owner carrying assets at historical cost. However, the FFO-to-AFFO spread of $3.5M versus $1.4M in 2026Q2 indicates that a large portion of what GAAP treats as non-cash depreciation is in fact being re-spent as recurring capital, which materially weakens the usual argument that reported losses overstate economic cost. For this portfolio, the depreciation adjustment may be directionally correct rather than merely cosmetic, so FFO should not be read as fully sheltered from real outlays.