10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC  20549

FORM 10-Q

☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended June 30, 2019

OR

 ☐ \Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

      Commission File Number 001-07172

BRT APARTMENTS CORP.

(Exact name of Registrant as specified in its charter)

Maryland	13-2755856
(State or other jurisdiction of	(I.R.S. Employer Identification No.)
incorporation or organization)

60 Cutter Mill Road, Great Neck, NY	11021
(Address of principal executive offices)	(Zip Code)

516-466-3100

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock	BRT	NYSE

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Date File required to be submitted pursuant to Rule 405 of Regulations S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 

Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See definition of “large accelerated filer” “accelerated filer”, “smaller reporting company”and "emerging growth company" in Rule 12b-2 of the Exchange Act.  (Check one):

Large accelerated filer ☐	Accelerated filer ☒
Non-accelerated filer ☐	Smaller reporting company ☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐  No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of stock, as of the latest practicable date.

15,896,805 Shares of Common Stock,

par value $0.01 per share, outstanding on August 1, 2019

BRT APARTMENTS CORP. AND SUBSIDIARIES

Table of Contents

Part I - Financial Information		Page No.
Item 1.	Financial Statements
	Consolidated Balance Sheets - June 30, 2019 (unaudited) and December 31, 2018 (unaudited)	2
	Consolidated Statements of Operations – Three and six months ended June 30, 2019 and 2018 (unaudited)	3
	Consolidated Statements of Comprehensive Income – Three and six months ended June 30, 2019 and 2018 (unaudited)	4
	Consolidated Statement of Equity – Three and six months ended June 30, 2019 and 2018 (unaudited)	5
	Consolidated Statements of Cash Flows – Three and six months ended June 30, 2019 and 2018 (unaudited)	7
	Notes to Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	21
Item 3.	Quantitative and Qualitative Disclosures About Market Risks	30
Item 4.	Controls and Procedures	30
Part II – Other Information
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 6.	Exhibits	31

1

Part I ‑ FINANCIAL INFORMATION

Item 1. Financial Statements

BRT APARTMENTS CORP. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Amounts in thousands, except per share data)

	June 30, 2019		December 31, 2018
ASSETS
Real estate properties, net of accumulated depreciation and amortization of $107,587 and $91,715	$	1,098,932	$	1,029,239
Real estate loan	4,450		4,750
Cash and cash equivalents	17,336		32,428
Restricted cash	9,962		8,180
Deposits and escrows	17,103		21,268
Investments in unconsolidated joint ventures	18,474		19,758
Other assets	8,929		8,084
Real estate property held for sale	22,722		—
Total Assets (a)	$	1,197,908	$	1,123,707
LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs of $6,448 and $6,289	$	846,409	$	771,817
Junior subordinated notes, net of deferred costs of $347 and $357	37,053		37,043
Credit facility, net of deferred costs of $ 77 and $0	8,923		—
Accounts payable and accrued liabilities	28,738		24,487
Total Liabilities (a)	921,123		833,347
Commitments and contingencies
Equity:
BRT Apartments Corp. stockholders' equity:
Preferred shares $.01 par value 2,000 shares authorized, none outstanding	—		—
Common stock, $.01 par value, 300,000 shares authorized;
15,172 and 15,038 shares outstanding	152		150
Additional paid-in capital	217,671		216,981
Accumulated other comprehensive income	143		1,688
Accumulated deficit	(35,049)		(20,044)
Total BRT Apartments Corp. stockholders’ equity	182,917		198,775
Non-controlling interests	93,868		91,585
Total Equity	276,785		290,360
Total Liabilities and Equity	$	1,197,908	$	1,123,707

(a) The Company's consolidated balance sheets include the assets and liabilities of consolidated variable interest entities (VIEs). See note 6. The consolidated balance sheets include the following amounts related to the Company's VIEs as of June 30, 2019 and December 31, 2018, respectively: $660,226 and $584,074 of real estate properties; $7,143 and $5,207 of cash and cash equivalents; $9,250 and $11,705 of deposits and escrows; $4,840 and $6,302 of other assets; $22,722 and $0 of real estate property held for sale; $522,707 and $446,779 of mortgages payable, net of deferred costs; and $13,835 and $11,816 of accounts payable and accrued liabilities.

See accompanying notes to consolidated financial statements.

2

BRT APARTMENTS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(Dollars in thousands)

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Revenues:
Rental revenue	$	32,930	$	29,951	$	63,632	$	59,427
Other income	190		203		434		378
Total revenues	33,120		30,154		64,066		59,805
Expenses:
Real estate operating expenses - including $990 and $851 to related parties for the three months ended and $1,917 and $1,687 for the six months ended	16,100		14,459		30,914		28,657
Interest expense	9,739		8,786		18,508		17,443
General and administrative - including $155 and $160 to related parties for the three months ended and $297 and $306 for the six months ended	2,481		2,452		5,025		4,905
Depreciation	10,347		10,200		19,964		19,440
Total expenses	38,667		35,897		74,411		70,445
Total revenues less total expenses	(5,547)		(5,743)		(10,345)		(10,640)
Equity in loss of unconsolidated joint ventures	(161)		(127)		(384)		(190)
Gain on sale of real estate	—		—		—		51,981
Gain on insurance recoveries	517		—		517		3,227
Loss on extinguishment of debt	—		—		—		(593)
(Loss) income from continuing operations	(5,191)		(5,870)		(10,212)		43,785
Income tax provision (benefit)	59		101		121		(152)
Net (loss) income from continuing operations, net of taxes	(5,250)		(5,971)		(10,333)		43,937
Net loss (income) attributable to non-controlling interests	933		1,282		1,769		(23,404)
Net (loss) income attributable to common stockholders	$	(4,317)	$	(4,689)	$	(8,564)	$	20,533
Weighted average number of shares of common stock outstanding:
Basic	15,900,316		14,411,940		15,893,443		14,327,477
Diluted	15,900,316		14,411,940		15,893,443		14,527,477
Per share amounts attributable to common stockholders:
Basic	$	(0.27)	$	(0.33)	$	(0.54)	$	1.43
Diluted	$	(0.27)	$	(0.33)	$	(0.54)	$	1.41

See accompanying notes to consolidated financial statements.

3

BRT APARTMENTS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME

(Unaudited)

(Dollars in thousands)

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Net (loss) income	$	(5,250)	$	(5,971)	$	(10,333)	$	43,937
Other comprehensive (loss) income:
Unrealized (loss) gain on derivative instruments	(1,353)		398		(2,222)		1,530
Other comprehensive (loss) income	(1,353)		398		(2,222)		1,530
Comprehensive (loss) income	(6,603)		(5,573)		(12,555)		45,467
Comprehensive loss (income) attributable to non-controlling interests	1,346		1,160		2,446		(23,872)
Comprehensive (loss) income attributable to common stockholders	$	(5,257)	$	(4,413)	$	(10,109)	$	21,595

See accompanying notes to consolidated financial statements.

4

BRT APARTMENTS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF EQUITY

(Unaudited)

(Dollars in thousands, except per share data)

	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income		Accumulated Deficit		Non- Controlling Interest		Total
Balances, December 31, 2017	$	133	$	202,225	$	1,346	$	(33,292)	$	72,935	$	243,347
Distributions - common stock - $0.20 per share	—		—		—		(2,897)		—		(2,897)
Restricted stock vesting	1		(1)		—		—		—		—
Compensation expense - restricted stock and restricted stock units	—		297		—		—		—		297
Consolidation of investment in limited partnership	—		—		—		—		12,370		12,370
Contributions from non-controlling interests	—		—		—		—		18,088		18,088
Distributions to non-controlling interests	—		—		—		—		(32,020)		(32,020)
Purchase of non-controlling interest	—		(82)		—		—		(168)		(250)
Shares issued through equity offering program, net	2		1,399		—		—		—		1,401
Net income	—		—		—		25,222		24,686		49,908
Other comprehensive income	—		—		786		—		346		1,132
Comprehensive income											51,040
Balances, March 31, 2018	$	136	$	203,838	$	2,132	$	(10,967)	$	96,237	$	291,376
Distributions - common stock - $0.20 per share	—		—		—		(2,970)				(2,970)
Compensation expense - restricted stock and restricted stock units	—		361		—		—		—		361
Contributions from non-controlling interests	—		—		—		—		9,930		9,930
Distributions to non-controlling interests	—		—		—		—		(2,163)		(2,163)
Shares issued through equity offering program, net	8		10,517		—		—		—		10,525
Net loss	—		—		—		(4,689)		(1,282)		(5,971)
Other comprehensive income	—		—		276		—		122		398
Comprehensive loss											(5,573)
Balances, June 30, 2018	$	144	$	214,716	$	2,408	$	(18,626)	$	102,844	$	301,486

 See accompanying notes to consolidated financial statements.

5

BRT APARTMENTS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF EQUITY

(Unaudited)

(Dollars in thousands, except per share data)

	Common Stock		Additional Paid-In Capital		Accumulated Other Comprehensive Income		Accumulated Deficit		Non- Controlling Interest		Total
Balances, December 31, 2018	$	150	$	216,981	$	1,688	$	(20,044)	$	91,585	$	290,360
Distributions - common stock - $0.20 per share	—		—		—		(3,221)		—		(3,221)
Restricted stock vesting	2		(2)		—		—		—		—
Compensation expense - restricted stock and restricted stock units	—		365		—		—		—		365
Consolidation of investment in limited partnership	—		—		—		—		6,047		6,047
Contributions from non-controlling interests	—		—		—		—		264		264
Distributions to non-controlling interests	—		—		—		—		(2,345)		(2,345)
Net loss	—		—		—		(4,247)		(836)		(5,083)
Other comprehensive loss	—		—		(606)		—		(263)		(869)
Comprehensive loss											(5,952)
Balances, March 31, 2019	$	152	$	217,344	$	1,082	$	(27,512)	$	94,452	$	285,518
Distributions - common stock - $0.20 per share	—		—		—		(3,220)		—		(3,220)
Compensation expense - restricted stock and restricted stock units	—		373		—		—		—		373
Contributions from non-controlling interests	—		—		—		—		3,027		3,027
Distributions to non-controlling interests	—		—		—		—		(2,264)		(2,264)
Shares repurchased - 3,590 shares	—		(46)		—		—		—		(46)
Net loss	—		—		—		(4,317)		(933)		(5,250)
Other comprehensive loss	—		—		(939)		—		(414)		(1,353)
Comprehensive loss	—		—		—		—		—		(6,603)
Balances, June 30, 2019	$	152	$	217,671	$	143	$	(35,049)	$	93,868	$	276,785

See accompanying notes to consolidated financial statements.

6

BRT APARTMENTS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in Thousands)

	Six Months Ended June 30,
	2019		2018
Cash flows from operating activities:
Net (loss) income	$	(10,333)	$	43,937
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation	19,964		19,440
Amortization of deferred financing costs	937		766
Amortization of restricted stock and restricted stock units	738		658
Equity in loss of unconsolidated joint ventures	384		190
Gain on sale of real estate	—		(51,981)
Gain on insurance recovery	(517)		(3,227)
Loss on extinguishment of debt	—		593
Increases and decreases from changes in other assets and liabilities:
Decrease in deposits and escrows	4,861		3,926
(Increase) decrease in other assets	(2,358)		5,138
Decrease in accounts payable and accrued liabilities	1,604		2,007
Net cash provided by operating activities	15,280		21,447
Cash flows from investing activities:
Collections from real estate loan	300		300
Additions to real estate properties	(56,840)		(140,433)
Improvements to real estate properties	(4,755)		(10,019)
Investment in joint venture	(11,231)		(12,370)
Purchase of non-controlling interests	—		(250)
Consolidation of investment in joint venture	1,458		1,279
Net proceeds from the sale of real estate properties	—		146,901
Distributions from unconsolidated joint ventures	898		381
Net cash used in investing activities	(70,170)		(14,211)
Cash flows from financing activities:
Proceeds from mortgages payable	82,325		82,524
Mortgage payoffs	(38,200)		(75,436)
Mortgage principal payments	(2,721)		(2,424)
Proceeds from credit facility	9,000		—
Increase in deferred financing costs	(1,098)		(943)
Dividends paid	(6,361)		(5,788)
Contributions from non-controlling interests	3,291		28,018
Distributions to non-controlling interests	(4,610)		(34,183)
Proceeds from the sale of common stock	—		11,926
Repurchase of shares of common stock	(46)		—
Net cash provided by financing activities	41,580		3,694
Net (decrease) increase in cash, cash equivalents and restricted cash	(13,310)		10,930
Cash, cash equivalents and restricted cash at beginning of period	40,608		21,761
Cash, cash equivalents and restricted cash at end of period	$	27,298	$	32,691

7

BRT APARTMENTS CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS - CONTINUED

(Unaudited)

(Dollars in Thousands)

	Six Months Ended June 30,
	2019		2018
Supplemental disclosure of cash flow information:
Cash paid during the period for interest, net of capitalized interest of $695 and $59, respectively	$	18,218	$	15,780
Taxes paid	$	44	$	114
Acquisition of real estate through assumption of debt	$	—	$	13,608
Real estate properties reclassified to assets held for sale	$	22,722	$	—
Accrued additions of property and equipment	$	2,160	$	—
Consolidation of investment in joint venture:
Increase in real estate assets	$	(48,624)	$	—
Increase in deposits and escrows	(696)		—
Increase in other assets	(189)		—
Increase in mortgage payable	33,347		—
Increase in deferred financing costs	(65)		—
Increase in accounts payable and accrued liabilities	407		—
Increase in non controlling interest	6,047		—
Decrease in investment in joint venture	11,231		—
Increase in cash upon consolidation of joint venture	$	1,458	$	—

See accompanying notes to consolidated financial statements.

8

BRT APARTMENTS CORP. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

June 30, 2019

Note 1 – Organization and Background

BRT Apartments Corp. (the "Company"), a Maryland corporation, owns, operates and develops multi-family properties. The Company conducts its operations to qualify as a real estate investment trust, or REIT, for federal income tax purposes.

Generally, the multi-family properties are acquired with joint venture partners in transactions in which the Company contributes a significant portion of the equity. At June 30, 2019, the Company owns: (a) 37 multi-family properties with 10,336 units (including 402 units in lease-up), located in 12 states with a carrying value of $1,111,344,000; and (b) interests in three unconsolidated multi-family joint ventures with 1,026 units (including 339 units in lease-up) located in two states with a carrying value of $18,402,000.

Note 2 – Basis of Preparation

The accompanying interim unaudited consolidated financial statements as of June 30, 2019, and for the three and six months ended June 30, 2019 and 2018, reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for such interim periods. The results of operations for the three and six months ended June 30, 2019 and 2018, are not necessarily indicative of the results for the full year. The consolidated unaudited balance sheet as of December 31, 2018, has been derived from the unaudited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States ("GAAP"). Accordingly, these unaudited statements should be read in conjunction with the Company's audited financial statements included in its Annual Report on Form 10-K for the year ended September 30, 2018, filed with the Securities and Exchange Commission ("SEC") on December 10, 2018, for complete financial statements.

The consolidated financial statements include the accounts and operations of the Company, its wholly owned subsidiaries, and its majority owned or controlled real estate entities and its interests in variable interest entities ("VIEs") in which the Company is determined to be the primary beneficiary. Material intercompany balances and transactions have been eliminated.

The Company’s consolidated joint ventures that own multi-family properties, except as set forth in the following paragraph, were determined to be VIEs because the voting rights of some equity investors in the applicable joint venture entity are not proportional to their obligations to absorb the expected losses of the entity and their right to receive the expected residual returns. It was determined that the Company is the primary beneficiary of these joint ventures because it has a controlling interest in that it has the power to direct the activities of the VIE that most significantly impact the entity's economic performance and it has the obligation to absorb losses of the entity and the right to receive benefits that could potentially be significant to the VIE.

The joint ventures that own properties in Ocoee, FL, Lawrenceville, GA, Dallas, TX, Farmers Branch, TX and Grand Prairie, TX were determined not to be a VIEs but are consolidated because the Company has controlling rights in such entities.

With respect to its unconsolidated joint ventures, as (i) the Company is generally the managing member but does not exercise substantial operating control over these entities or the Company is not the managing member and (ii) such entities are not VIEs, the Company has determined that such joint ventures should be accounted for under the equity method of accounting for financial statement purposes.

The distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro-rata to the percentage equity interest each partner has in the applicable venture.  

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results could differ from those estimates. Substantially all of the Company's assets are comprised of multi- family real estate assets generally leased to tenants on a one-year basis. Therefore, the Company aggregates real estate assets for reporting purposes and operates in one reportable segment.

9

In February 2019, the Board of Directors of the Company authorized a change in the Company’s fiscal year end from September 30 to December 31. The change is intended to better align the Company’s fiscal year with the fiscal year of other multi-family REITs. As a result of the change in fiscal year, (i) the Company’s 2019 fiscal year began on January 1, 2019 and ends on December 31, 2019 and (ii) the Company filed a Transition Report on Form 10-Q covering the transition period from October 1, 2018 to December 31, 2018.

Note 3 - Equity

Equity Distribution Agreements

In January 2018, the Company entered into equity distribution agreements, which were amended in May 2018, with three sales agents to sell up to an aggregate of $30,000,000 of its common stock from time-to-time in an at-the-market offering. During the quarter ended June 30, 2019, the Company did not sell any shares. From the commencement of this program through June 30, 2019, the Company sold 1,590,935 shares for an aggregate sales price of $20,913,000 before commissions of $424,000 and offering related expenses of $78,000.

Common Stock Dividend Distribution

The Company declared a quarterly cash distribution of $0.20 per share, payable on July 9, 2019 to stockholders of record on June 25, 2019.

Stock Based Compensation

The Company's 2018 Incentive Plan (the "2018 Plan") permits the Company to grant: (i) stock options, restricted stock, restricted stock units, performance share awards and any one or more of the foregoing, up to a maximum of 600,000 shares; and (ii) cash settled dividend equivalent rights in tandem with the grant of restricted stock units or certain performance based awards.

Restricted Stock Units

In June 2016, the Company issued restricted stock units (the "Units") to acquire up to 450,000 shares of common stock pursuant to the 2016 Amended and Restated Incentive Plan (the "2016 Incentive Plan"). The Units entitle the recipients, subject to continued service through the March 31, 2021 vesting date, to receive (i) the underlying shares if and to the extent certain performance and/or market conditions are satisfied at the vesting date, and (ii) an amount equal to the cash dividends paid from the grant date through the vesting date with respect to the shares of common stock underlying the Units if, when, and to the extent, the related Units vest. For financial statement purposes, because the Units are not participating securities, the shares underlying the Units are excluded in the outstanding shares reflected on the consolidated balance sheet and from the calculation of basic earnings per share. The shares underlying the Units are contingently issuable shares.

Expense is recognized over the five-year vesting period on the Units which the Company expects to vest. For the three months ended June 30, 2019 and 2018, the Company recorded $36,000 and $73,000, respectively, and for the six months ended June 30, 2019 and 2018, the Company recorded $71,000 and $146,000 of compensation expense related to the amortization of unearned compensation with respect to the Units. At June 30, 2019, and December 31, 2018, $248,000 and $319,000 of compensation expense, respectively, had been deferred and will be charged to expense over the remaining vesting period.

Restricted Stock

In January 2019, the Company granted 156,399 shares of restricted stock pursuant to the 2018 Incentive Plan. As of June 30, 2019, an aggregate of 725,296 shares of unvested restricted stock are outstanding pursuant to the 2018 Incentive Plan, 2016 Incentive Plan and 2012 Incentive Plan. No additional awards may be granted under the 2016 Incentive Plan and the 2012 Incentive Plan. The shares of restricted stock vest five years from the date of grant and under specified circumstances, including a change in control, may vest earlier. For financial statement purposes, the restricted stock is not included in the outstanding shares shown on the consolidated balance sheets until they vest, but are included in the earnings per share computation. 

For the three months ended June 30, 2019 and 2018, the Company recorded $337,000 and $287,000, respectively, and for the six months ended June 30, 2019 and 2018, the Company recorded $667,000 and $511,000 of compensation expense related to the amortization of unearned compensation with respect to the restricted stock awards. At June 30, 2019

10

and December 31, 2018, $4,011,000 and $2,735,000 has been deferred as unearned compensation and will be charged to expense over the remaining vesting periods of these restricted stock awards. The weighted average remaining vesting period of these shares of restricted stock is 2.6 years.

Stock Buyback

On September 5, 2017, the Board of Directors approved a repurchase plan authorizing the Company, effective as of October 1, 2017, to repurchase up to $5,000,000 of shares of common stock through September 30, 2019. During the three and six months ended June 30, 2019, the Company repurchased 3,590 shares of common stock at an average market price of $12.80 for an aggregate cost of $46,000. During the three and six months ended June 30, 2018, there were no repurchases of common stock. As of June 30, 2019, $4,793,000 is remaining under the repurchase plan

Per Share Data

Basic earnings (loss) per share is determined by dividing net income (loss) applicable to common stockholders for the applicable period by the weighted average number of shares of common stock outstanding during such period. The Units are excluded from the basic earnings per share calculation, as they are not participating securities. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into shares of common stock or resulted in the issuance of shares of common stock that share in the earnings of the Company. Diluted earnings per share is determined by dividing net income applicable to common stockholders for the applicable period by the weighted average number of shares of common stock deemed to be outstanding during such period. In calculating diluted earnings per share, the Company, for the three and six months ended June 30, 2019 and the three months ended June 30, 2018, did not include any shares underlying the Units as their effect would have been anti-dilutive. For the six months ended June 30, 2018, the Company included 200,000 shares of common stock underlying the Units as the market criteria with respect to the Units had been met at June 30, 2018.

The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Numerator for basic and diluted earnings (loss) per share attributable to common stockholders:
Net (loss) income attributable to common stockholders	$	(4,317)	$	(4,689)	(8,564)		20,533
Denominator:
Denominator for basic earnings per share—weighted average number of shares	15,900,316		14,411,940		15,893,443		14,327,477
Effect of diluted securities	—		—		—		200,000
Denominator for diluted earnings per share—adjusted weighted average number of shares and assumed conversions	15,900,316		14,411,940		15,893,443		14,527,477
Basic (loss) earnings per share	$	(0.27)	$	(0.33)	$	(0.54)	$	1.43
Diluted (loss) earnings per share	$	(0.27)	$	(0.33)	$	(0.54)	$	1.41

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Note 4 ‑ Real Estate Properties

Real estate properties, including properties held for sale, consist of the following (dollars in thousands):

	June 30, 2019		December 31, 2018
Land	$	164,838	$	155,573
Building	1,022,194		924,378
Building improvements	46,297		41,003
Real estate properties	1,233,329		1,120,954
Accumulated depreciation	(111,675)		(91,715)
Total real estate properties, net	$	1,121,654	$	1,029,239

A summary of real estate properties owned, including properties held for sale, is as follows (dollars in thousands):

	December 31, 2018 Balance		Additions		Capitalized Costs and Improvements		Depreciation		June 30, 2019 Balance
Multi-family	$	964,320	$	92,170	$	6,837	$	(19,682)	$	1,043,645
Multi-family lease-up - West Nashville, TN	54,555		—		13,372		(227)		67,700
Land - Daytona, FL	8,021		—		—		—		8,021
Shopping centers/Retail - Yonkers, NY	2,343		—		—		(55)		2,288
Total real estate properties	$	1,029,239	$	92,170	$	20,209	$	(19,964)	$	1,121,654

The following table summarizes the allocation of the purchase price with respect to two properties purchased during the six months ended June 30, 2019 (dollars in thousands):

	Allocation of Purchase Price
Land	$	6,101
Building and improvements	84,987
Acquisition-related intangible assets	1,082
Total consideration	$	92,170

The purchase price of the properties acquired, inclusive of acquisition costs, was allocated to the acquired assets based on their estimated relative fair values on the acquisition date.

Note 5 ‑ Acquisitions and Dispositions

Property Acquisitions

The table below provides information regarding the Company's purchase of multi-family properties during the six months ended June 30, 2019 (dollars in thousands):

Location	Purchase Date	No. of Units	Purchase Price		Acquisition Mortgage Debt		Initial BRT Equity		Ownership Percentage		Capitalized Acquisition Costs
Kannapolis, North Carolina	3/12/2019	312	$	48,065	$	33,347	$	11,231	65	%	$	559
Birmingham, Alabama	5/7/2019	328	43,000		32,250		11,625		80	%	546
		640	$	91,065	$	65,597	$	22,856			$	1,105

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The table below provides information regarding the Company's purchases of multi-family properties during the six months ended June 30, 2018 (dollars in thousands):

Location	Purchase Date	No. of Units	Purchase Price		Acquisition Mortgage Debt		Initial BRT Equity		Ownership Percentage		Capitalized Acquisition Costs
Ocoee, FL	2/7/2018	522	$	71,347	$	53,060	$	12,370	50.0	%	$	1,047
Lawrenceville, GA	2/15/2018	586	77,229		54,447		15,179		50.0	%	767
Daytona, FL	4/30/2018	208	20,500		13,608		6,900		80.0	%	386
Grand Prairie, TX	5/17/2018	281	30,800		18,995		7,300		50.0	%	411
		1,597	$	199,876	$	140,110	$	41,749			$	2,611

Property Dispositions

The Company did not dispose of any real estate properties during the six months ended June 30, 2019.

The following table is a summary of the real estate properties disposed of by the Company during the six months ended June 30, 2018 (dollars in thousands):

Location	Sale Date	No. of Units	Sales Price		Gain on Sale		Non-controlling partner's portion of the gain
Palm Beach Gardens, FL	2/5/2018	542	$	97,200	$	41,830	$	20,593
Valley, AL	2/23/2018	618	51,000		9,712		4,547
New York, NY	1/18/2018	1	470		439		—
		1,161	$	148,670	$	51,981	$	25,140

Impairment Charges

The Company reviews each real estate asset owned, including those held through investments in unconsolidated joint ventures, for impairment when there is an event or a change in circumstances indicating that the carrying amount may not be recoverable. The Company measures and records impairment losses, and reduces the carrying value of properties, when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. In cases where the Company does not expect to recover its carrying costs on properties held for use, the Company reduces its carrying costs to fair value, and for properties held for sale, the Company reduces its carrying value to the fair value less costs to sell. During the three and six months ended June 30, 2019 and 2018, no impairment charges were recorded.

Note 6 - Variable Interest Entities

The Company conducts a significant portion of its business with joint venture partners. Many of the Company's consolidated joint ventures that own properties were determined to be VIEs because the voting rights of some equity partners are not proportional to their obligations to absorb the expected loses of the entity and their rights to receive expected residual returns. It was determined that the Company is the primary beneficiary of these joint ventures because it has a controlling financial interest in that it has the power to direct the activities of the VIE that most significantly impacts the entity's economic performance and it has the obligation to absorb losses of the entity and the right to receive benefits from the entity that could potentially be significant to the VIE.

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The following is a summary of the carrying amounts with respect to the consolidated VIEs and their classification on the Company's consolidated balance sheets (dollars in thousands):

	June 30, 2019 (unaudited)		December 31, 2018 (unaudited)
ASSETS
Real estate properties, net of accumulated depreciation of $65,094 and $53,637	$	660,298	$	584,074
Cash and cash equivalents	7,143		5,207
Deposits and escrows	9,250		11,705
Other assets	4,840		6,302
Real estate properties held for sale	22,722		—
Total Assets	$	704,253	$	607,288
LIABILITIES
Mortgages payable, net of deferred costs of $3,957 and $3,786	$	522,707	$	446,779
Accounts payable and accrued liabilities	13,835		11,816
Total Liabilities	$	536,542	$	458,595

Note 7 - Real Estate Properties Held for Sale

At June 30, 2019, Stonecrossing Apartments and Stonecrossing East Apartments, Houston, TX, with a combined book value of $22,722,000 were held for sale. The sale of these properties closed on July 10, 2019.

Note 8 - Restricted Cash

Restricted cash represents funds held for specific purposes and are therefore not available for general corporate purposes. The restricted cash reflected on the consolidated balance sheets represents funds that are held by or on behalf of the Company specifically for capital improvements at certain multi-family properties.

Note 9 – Investment in Unconsolidated Ventures

The Company has interests in unconsolidated joint ventures that own multi-family properties. The table below provides information regarding these joint ventures at June 30, 2019 (dollars in thousands):

Location	Number of Units	Carrying Value of Investment		Mortgage Balance		Percent Ownership
Columbia, SC	374	$	4,426	$	39,847	32	%
Columbia, SC (a)	339	7,786		40,679		46	%
Forney, TX (b)	313	6,189		25,350		50	%
Other investments	N/A	73		N/A		N/A
	1,026	$	18,474	$	105,876

________________________

(a) Property is currently in lease-up. Construction financing for this project of up to $42,019 has been secured. Such financing bears interest at 4.95% and matures in June 2020.

(b) This interest is held through a tenancy-in-common.

The net loss from these ventures was $161,000 and $127,000 for the three months ended June 30, 2019 and 2018, and $384,000 and $190,000 for the six months ended June 30, 2019 and 2018, respectively.

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Note 10 – Debt Obligations

Debt obligations consist of the following (dollars in thousands):

	June 30, 2019		December 31, 2018
Mortgages payable	$	852,857	$	778,106
Junior subordinated notes	37,400		37,400
Credit facility	9,000		—
Deferred financing costs	(6,872)		(6,646)
Total debt obligations, net of deferred costs	$	892,385	$	808,860

Mortgages Payable

During the six months ended June 30, 2019, the Company obtained the following mortgage debt in connection with the related property (dollars in thousands):

Location	Closing Date	Acquisition Mortgage Debt		Interest Rate		Interest only period	Maturity Date
Kannapolis, NC	3/12/19	$	33,347	3.52	%	—	3/1/2052
Birmingham, AL	5/7/19	32,250		4.19	%	72 months	6/1/2029
		$	65,597

The Company has a construction loan financing a project with 402 units, of which 164 units are in development and 238 units are in lease-up. Information regarding this loan at June 30, 2019 is set forth below (dollars in thousand):

Location	Closing Date	Maximum Loan Amount		Amount outstanding		Interest Rate	Maturity Date	Extension Option
Nashville,TN	6/2/2017	$	47,426	$	41,580	30 day LIBOR + 2.85%	6/2/2022	N/A

In the three months ended June 30, 2019, $528,000 of interest was incurred on this loan, of which $304,000 was capitalized. In the six months ended June 30,2019, $960,000 of interest was incurred on this loan, of which $ $695,000 was capitalized.

On June 13, 2019, the Company refinanced a $29,000,000 adjustable rate mortgage on its East St Louis, MO property with a fixed rate loan in the amount of $29,700,000. The mortgage debt bears interest at a fixed rate of 4.41%, matures in July 2031, is interest only for six years, amortizes thereafter on a 30 year schedule with a balloon payment of the unpaid principal and interest due at maturity.

On February 1, 2019, the Company refinanced a $9,200,000 adjustable rate mortgage on its Boerne, TX property with a fixed rate loan in the amount of $8,067,000. The mortgage debt bears interest at a fixed rate of 4.74%, matures in February 2026, is interest only for three years, amortizes thereafter on a 30 year schedule, with a balloon payment of the unpaid principal and interest due at maturity.

Credit Facility

The Company entered into a credit facility dated April 18, 2019, as subsequently amended, with an affiliate of Valley National Bank. The facility allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $10,000,000 to facilitate the acquisition of multi-family properties, and is secured by the cash available in certain cash accounts maintained by the Company at Valley National Bank. The facility matures April 2021 and bears an adjustable interest rate of 50 basis points over the prime rate, with a floor 5%. The interest rate in effect as of June 30, 2019, is 6%. There is an unused facility fee of 0.25% per annum on the difference between the outstanding loan balance and maximum amount then available under the facility.

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On May 2, 2019, the Company borrowed $9,000,000 on the facility in connection with the acquisition of the Trussville, AL property. On July 11, 2019, the Company repaid the outstanding balance. Interest expense for the three and six months ended June 30, 2019, which includes amortization of deferred costs, was $96,000.

Junior Subordinated Notes

At June 30, 2019 and December 31, 2018, the Company's junior subordinated notes had an outstanding principal balance of $37,400,000, before deferred financing costs of $347,000 and $357,000, respectively. At June 30, 2019, the interest rate on the outstanding balance is three month LIBOR + 2.00% or 4.58%.

The junior subordinated notes require interest only payments through the maturity date of April 30, 2036, at which time repayment of the outstanding principal and unpaid interest become due. Interest expense for the three months ended June 30, 2019 and 2018, which includes amortization of deferred costs, was $439,000 and $386,000, respectively, and for the six months ended June 30, 2019 and 2018 was $888,000 and $738,000, respectively.

Note 11 – Related Party Transactions

The Company has retained certain of its executive officers and Fredric H. Gould, a director, to provide, among other things, the following services: participating in the Company's multi-family property analysis and approval process (which includes service on an investment committee), providing investment advice, long-term planning and consulting with executives and employees with respect to other business matters, as required. The aggregate fees incurred and paid for these services in the three months ended June 30, 2019 and 2018 were $333,000 and $317,000, respectively, and for the six months ended June 30, 2019 and 2018 were $666,000 and $634,000, respectively.

Management of certain properties owned by the Company and certain joint venture properties is provided by Majestic Property Management Corp. ("Majestic Property"), a company wholly owned by Fredric H. Gould. Certain of the Company's officers and directors are also officers and directors of Majestic Property. Majestic Property may also provide real estate brokerage and construction supervision services to these properties. These fees amounted to $8,000 and $6,000 for the three months ended June 30, 2019 and 2018, respectively, and for the six months ended June 30, 2019 and 2018 were $16,000 and $16,000, respectively.

The Company shares facilities, personnel and other resources with One Liberty Properties, Inc., Majestic Property, and Gould Investors L.P. Certain of the Company's executive officers and/or directors also serve in management positions, and have ownership interests, in One Liberty, Majestic Property and/or Georgetown Partners Inc., the managing general partner of Gould Investors L.P. The allocation of expenses for the facilities, personnel and other resources shared by the Company, One Liberty, Majestic Property and Gould Investors is computed in accordance with a shared services agreement by and among the Company and these entities and is included in general and administrative expense on the consolidated statements of operations. For the three months ended June 30, 2019 and 2018, net allocated general and administrative expenses reimbursed by the Company to Gould Investors L.P. pursuant to the shared services agreement aggregated $155,000 and $160,000, respectively, and for the six months ended June 30, 2019 and 2018 were $297,000 and $307,000, respectively.

Management of many of the Company's multi-family properties (including three multi-family properties owned by two unconsolidated joint ventures) is performed by the Company's joint venture partners or their affiliates. None of these joint venture partners is Gould Investors L.P., Majestic Property or their affiliates. Management fees to these joint venture partners or their affiliates for the three months ended June 30, 2019 and 2018 were $1,090,000 and $926,000, and $2,113,000 and $1,834,000 for the six months ended June 30, 2019 and 2018, respectively. In addition, the Company may pay an acquisition fee to a joint venture partner in connection with a property purchased by such joint venture. Capitalized acquisition fees paid to these related parties for the three months ended June 30, 2019 and 2018 were $430,000 and $513,000, respectively, and for the six months ended June 30, 2019 and 2018 were $851,000 and $1,813,000, respectively.

Note 12 – Fair Value of Financial Instruments

Financial Instruments Not Carried at Fair Value

The following methods and assumptions were used to estimate the fair value of each class of financial instruments that are not recorded at fair value on the consolidated balance sheets:

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Cash and cash equivalents, restricted cash, accounts receivable (included in other assets), accounts payable and accrued liabilities: The carrying amounts reported in the balance sheets for these instruments approximate their fair value due to the short term nature of these accounts.

Junior subordinated notes: At June 30, 2019 and December 31, 2018, the estimated fair value of the notes is lower than their carrying value by approximately $10,324,000 and $11,974,000, respectively, based on a market interest rate of 6.90% and 7.79%, respectively.

Credit facility: At June 30, 2019, the estimated fair value of the credit facility is equal to its carrying value.

Mortgages payable: At June 30, 2019, the estimated fair value of the Company’s mortgages payable is lower than their carrying value by approximately $11,932,000, assuming market interest rates between 3.25% and 4.86% and at December 31, 2018, the estimated fair value of the Company's mortgages payable was lower than their carrying value by approximately $19,334,000 assuming market interest rates between 3.94% and 5.61%. Market interest rates were determined using rates which the Company believes reflects institutional lender yield requirements at the balance sheet dates.

Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value assumptions.

Financial Instruments Carried at Fair Value

The Company’s fair value measurements are based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, there is a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other “observable” market inputs, and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs. The Company does not currently own any financial instruments that are classified as Level 3. Set forth below is information regarding the Company’s financial assets and liabilities measured at fair value as of June 30, 2019 (dollars in thousands):

	Carrying and Fair Value		Fair Value Measurements Using Fair Value Hierarchy
			Level 1	Level 2
Financial Assets:
Interest rate swaps	$	225	—	$	225
Interest rate caps	—		—	—
Total Financial Assets	$	225	—	$	225
Financial Liabilities:
Interest rate swap	$	13	—	$	13

Derivative financial instruments: Fair values are approximated using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivatives. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities. At June 30, 2019, these derivatives are included in other assets on the consolidated balance sheet.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with them utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. As of June 30, 2019, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative position and determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivatives valuation is classified in Level 2 of the fair value hierarchy.

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Note 13 – Derivative Financial Instruments

Cash Flow Hedges of Interest Rate Risk

The Company's objective in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.

As of June 30, 2019, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands):

Interest Rate Derivative	Current Notional Amount		Fixed Rate		Maturity
Interest rate swap	$	1,234	5.25	%	April 1, 2022
Interest rate swap	25,794		3.61	%	May 6, 2023
Interest rate swap	27,000		4.05	%	September 19, 2026

Non-designated Derivatives

Derivatives not designated as hedges are not speculative and are used to manage the Company's exposure to interest rate movements and other identified risks but do not meet the hedge accounting requirements. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As a result of two mortgage refinancings of adjustable rate loans to fixed rate loans, at June 30, 2019, the Company had two interest rate caps with a notional value of $38,200,000 that were not designated as hedges in a qualifying hedge relationship. At June 30, 2019, these derivatives had no value.

The table below presents the fair value of the Company’s derivative financial instruments as well as its classification on the consolidated balance sheets as of the dates indicated (dollars in thousands):

Derivatives as of:
June 30, 2019			December 31, 2018
Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Other Assets	$	225	Other Assets	$	3,793
Accounts payable and accrued liabilities	$	13	Accounts payable and accrued liabilities	$	—

The following table presents the effect of the Company’s interest rate swaps on the consolidated statements of comprehensive (loss) income for the dates indicated (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Amount of gain (loss) recognized on derivative in Other Comprehensive Income	$	(1,234)	$	444	$	(1,978)	$	1,576
Amount of gain (loss) reclassified from Accumulated Other Comprehensive Income into Interest expense	$	108	$	46	$	226	$	46
Total amount of Interest expense presented in the Consolidated Statement of Operations	$	9,739	$	8,786	$	18,508	$	17,443

The Company estimates an additional $135,000 will be reclassified from other comprehensive loss as a decrease to interest expense over the next twelve months.

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Credit-risk-related Contingent Features

The agreement between the Company and its derivative counterparties provides that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, the Company could be declared in default on its derivative obligations.

Note 14 – New Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which prescribes a single, common revenue standard that supersedes nearly all existing revenue recognition guidance under U.S. GAAP, including most industry-specific requirements. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 outlines a five step model to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein. The Company's revenues are primarily derived from rental income, which is scoped out from this standard and is currently accounted for in accordance with ASC Topic 840, Leases. The Company adopted this standard effective October 1, 2018, using the modified retrospective approach, applying the provisions to open contracts as of the date of adoption. Certain revenues, such as tenant reimbursements, tenant fees, and other property income, are subject to the new guidance. The adoption of the new revenue recognition standard did not have a material impact on the consolidated financial statements and no cumulative effect adjustment was recorded upon adoption as there was no change in the amount or timing of revenue recognized.

In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 supersedes the current accounting for leases and while retaining two distinct types of leases, finance and operating, and requires lessees to recognize most leases on their balance sheets and makes targeted changes to lessor accounting. Further, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This amendment provides a new practical expedient that allows lessors, by class of underlying asset, to avoid separating lease and associated non-lease components within a contract if the following criteria are met: (i) the timing and pattern of transfer for the non-lease component and the associated lease component are the same, and (ii) the stand-alone lease component would be classified as an operating lease if accounted for separately. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company adopted this standard effective January 1, 2019, and its adoption did not have a material effect on the consolidated financial statements. As a lessor, the adoption of ASU 2016-02 (as amended by subsequent ASUs) did not change the timing of revenue recognition of the Company’s rental revenues. As a lessee, the Company is party to a ground lease, and an operating lease with future payment obligations for which the Company recorded right-of-use assets and lease liabilities at the present value of the remaining minimum rental payments upon adoption of this standard.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides specific guidance on eight cash flow classification issues and how to reduce diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company adopted this standard effective October 1, 2018, using the “cumulative earnings approach” whereby distributions received from equity method investments are classified as cash flows from operations to the extent of equity earnings and then as cash flows from investing activities thereafter. The adoption of this guidance did not have a material effect on the consolidated financial statements.

In November 2016, the FASB issued ASU Update No. 2016-018, Statement of Cash Flows (Topic 230): Restricted

Cash. The new standard requires that the statement of cash flows explain the change during the period in the combined total of

cash, cash equivalents, and amounts generally described as restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose relevant information about the nature of the restrictions on the basis of their individual facts and circumstances. The Company adopted this standard effective October 1, 2018 using the retrospective approach. The adoption of this update did not have a material effect on the consolidated financial statements.

In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of

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Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which amends the guidance on nonfinancial assets in ASC 610-20. The amendments clarify that (i) a financial asset is within the scope of ASC 610-20 if it meets the definition of an in substance nonfinancial asset and may include nonfinancial assets transferred within a legal entity to a counter-party, (ii) an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counter-party and de-recognize each asset when a counter-party obtains control of it, and (iii) an entity should allocate consideration to each distinct asset by applying the guidance in ASC 606 on allocating the transaction price to performance obligations. Further, ASU 2017-05 provides guidance on accounting for partial sales of nonfinancial assets. The amendments are effective at the same time as the amendments in ASU 2014-09. The Company adopted this standard effective October 1, 2018. The adoption of this guidance did not have a material effect on the consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The update better aligns a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company adopted this standard effective January 1, 2019. The adoption of this guidance did not have a material effect on the consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to

Nonemployee Share-Based Payment Accounting. This update provides specific guidance for transactions for acquiring goods

and services from nonemployees and specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (i) financing to the issuer or (ii) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC Topic 606, Revenue from Contracts with Customers. This guidance is effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. Early adoption is permitted but not earlier than the adoption of ASC Topic 606. The Company does not believe that this guidance will have a material effect on its consolidated financial statements as it has not historically issued share-based payments in exchange for goods or services to be consumed within its operations.

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which removes, modifies, and adds certain disclosure requirements related to fair value measurements in ASC Topic 820. This guidance is effective for public companies in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.

In October 2018, the FASB issued ASU 2018-16, (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) as a Benchmark Interest Rate for Hedging Purposes. The amendments in this update permit the OIS rate based on SOFR as an eligible benchmark interest rate. The amendments in this update are effective for fiscal years beginning after December 15, 2018. The Company adopted this guidance on January 1, 2019. The Company does not believe this guidance will have a material effect on its consolidated financial statements.

Note 15 – Subsequent Events

Subsequent events have been evaluated and any significant events, relative to our consolidated financial statements as of June 30, 2019, that warrant additional disclosure, have been included in the notes to the consolidated financial statements.

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Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

With the exception of historical information, this Quarterly Report on Form 10-Q contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended. We intend such forward-looking statements to be covered by the safe harbor provision for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995 and include this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words "may", "will", "believe", "expect", "intend", "anticipate", "estimate", "project", or similar expressions or variations thereof. Forward-looking statements involve known and unknown risks, uncertainties and other factors which are, in some cases, beyond our control and which could materially affect actual results, performance or achievements. Investors are cautioned not to place undue reliance on any forward-looking statements and are urged to read “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2018, and in reports we filed with the SEC thereafter.

Overview

General

We are a real estate investment trust, also known as a REIT, that is focused on the ownership, operation and development of multi-family properties. These properties derive revenue from tenant rental payments. Generally, these properties are owned by consolidated joint ventures in which we contributed 65% to 80% of the equity, with the balance of the equity contributed by our joint venture partner. At June 30, 2019, we (i) own 37 multi-family properties located in 12 states with an aggregate of 10,336 units (including 402 units at a property (i.e., Bells Bluff - West Nashville, TN) that commenced leasing activities in the three months ended March 31, 2019) with a carrying value of $1.1 billion and (ii) have ownership interests, through unconsolidated entities, in three multi-family properties located in two states with 1,026 units (including 339 units at a property in lease-up) with a carrying value of $18.4 million. Most of our properties are located in the southeast United States and Texas.

As used herein, the term "same store properties" refers to operating properties that were owned for the entirety of the periods being presented and excludes properties that were in development or lease-up during such periods. Retreat at Cinco Ranch, Katy, Texas, has been excluded from same store properties due to the damage it sustained from Hurricane Harvey in 2017. For the three months ended June 30, 2019 and 2018, there were 29 same store properties and for the six months ended June 30, 2019 and 2018 there were 27 same store properties.

Change in Fiscal Year

In February 2019, we changed our fiscal year end from September 30 to December 31. The change is intended to better align our fiscal year with the fiscal year of other multi-family REITs. As a result of this change, our fiscal year began January 1, 2019 and will end December 31, 2019 .

Credit Facility

On April 18, 2019, we entered into a credit facility with an affiliate of Valley National Bank. The facility allows us to borrow, subject to compliance with borrowing base requirements and other conditions , up to $10 million to facilitate the acquisition of multi-family properties. The facility matures April 2021 and bears an adjustable rate interest rate of 50 basis points over the prime rate with a floor of 5%.

Status of Bells Bluff Project

Leasing on the completed units at the 402-unit Bells Bluff, West Nashville, TN, property commenced in the three months ended March 31, 2019. As of June 30, 2019, 180 units are available for lease. We anticipate that the remaining 222 units will be completed in stages during 2019. We capitalized $304,000 and $695,000 of interest expense on the mortgage debt of this property in the three and six months ended June 30, 2019, respectively. See Note 10 of our consolidated financial statements.

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Acquisition During the Three Months Ended June 30, 2019

On May 7, 2019, we acquired Somerset at Trussville, a 328-unit multi-family property located in Trussville, AL, a suburb of Birmingham, for $43.0 million, including $32.2 million of mortgage debt obtained in connection with the acquisition. Based on our underwriting, we estimate that on a quarterly basis, this property will generate $1.0 million of rental revenue, $424,000 of real estate operating expense, $328,000 of interest expense and $581,000 of depreciation expense.

Transactions Subsequent to June 30, 2019

On July 10, 2019, we sold Stonecrossing Apartments and Stonecrossing East Apartments, located in Houston TX, in which we had a 91% joint venture equity interest. These properties, comprised of 384 units, were sold for a gross sales price of $33.2 million and an estimated gain of $9.9 million, of which $894,000 will be allocated to the non-controlling interest. We incurred a $1.4 million prepayment charge, of which $125,000 will be allocated to the non-controlling interest. During the three months ended March 31, 2019, these properties contributed $1.0 million to rental revenue, $64,000 to real estate operating expense, $205,000 to interest expense and $186,000 to depreciation.

Results of Operations – Three months ended June 30, 2019 compared to three months ended June 30, 2018.

Revenues

The following table compares our revenues for the periods indicated:

	Three Months Ended June 30,
(Dollars in thousands):	2019		2018		Increase (Decrease)		% Change
Rental revenue	$	32,930	$	29,951	$	2,979	9.9
Other income	190		203		(13)		(6.4)
Total revenues	$	33,120	$	30,154	$	2,966	9.8

Rental revenue

The increase is due primarily to increases of:

•$2.6 million from three properties acquired during the twelve months ended June 30, 2019, including $645,000 from the property acquired during the current quarter,

•$1.5 million from same store properties - approximately (i) $825,000 of the increase is due to an increase in rental rates at most of these properties, (ii) $480,000 of the increase is due to an increase in variable lease payments (e.g., utility reimbursements, late fees and other rental related fees charged to tenants) and (iii) $240,000 of the increase is due to an increase in occupancy,

•$727,000 from the inclusion, for the entire three months ended June 30, 2019, of two properties that were only owned for a portion of the corresponding period in the prior year, and

•$310,000 from our Bells Bluff property ($203,000) which is in lease-up and our Vanguard property ($107,000) which was in lease-up in the corresponding period of the prior year.

Offsetting the increase is the inclusion, in the corresponding period of the prior year, of $2.1 million from the two properties sold from April 1, 2018 to June 30, 2019.

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Expenses

The following table compares our expenses for the periods indicated:

	Three Months Ended June 30,
(Dollars in thousands)	2019		2018		Increase (Decrease)		% Change
Real estate operating expenses	$	16,100	$	14,459	$	1,641	11.3
Interest expense	9,739		8,786		953		10.8
General and administrative	2,481		2,452		29		1.2
Depreciation	10,347		10,200		147		1.4
Total expenses	$	38,667	$	35,897	$	2,770	7.7

Real estate operating expenses.

The increase is due primarily to increases of:

•$1.2 million from three properties acquired during the twelve months ended June 30, 2019, including $247,000 from a property acquired during the current quarter,

•$800,000 from same store properties - approximately $241,000 of miscellaneous expenses (e.g. management fees, leasing costs and insurance), $240,000 from increased replacements, and repairs and maintenance, due to unit turns at several properties, $200,000 due to increased staffing, as we filled vacant positions at several properties, and $119,000 of real estate taxes primarily due to the inclusion, in the corresponding period of the prior year, of a refund related to a tax appeal,

•$503,000 from the inclusion, for the entire three months ended June 30, 2019, of two properties that were only owned for a portion of the corresponding period in the prior year, and

•$352,000 from Bells Bluff, which was in development in the corresponding period of the prior year and is currently in lease-up.

Offsetting the increase is the inclusion, in the corresponding period of the prior year, of $1.1 million of expense related to the two properties sold from April 1, 2018 to June 30, 2019.

Interest Expense.

The increase is due primarily to increases of:

•$826,000 from interest on mortgages on three properties acquired during the twelve months ended June 30, 2019, including $214,000 from a property acquired during the current quarter,

•$233,000 related to the Bells Bluff property which is in lease-up - in the corresponding period of the prior year, the entire property was in development and interest of $27,000 was capitalized,

•$290,000 paid in connection with the payoff of a loan at maturity.

•$157,000 from the inclusion, for the entire three months ended June 30, 2019, of interest expense from mortgages on two properties that were only owned for a portion of the corresponding period in the prior year, and

•$141,000 related to the increase in the (i) outstanding balance on our credit facility and (ii) interest rate on our floating rate subordinated debt.

Offsetting the increase is the inclusion, in the corresponding period of the prior year, of $545,000 of interest expense related to mortgages on two properties sold from April 1, 2018 to June 30, 2019

Depreciation.

The increase is due primarily to increases of:

•$1.5 million from three properties acquired during the twelve months ended June 30, 2019, including $302,000 from a property acquired in the current quarter,

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•$262,000 from the inclusion, for the entire three months ended June 30, 2019, of such expense on two properties that were only owned for a portion of the corresponding period of the prior year, and

•$183,000 from our Bells Bluff property which currently is in lease-up but which was in development in the corresponding period of the prior year.

Offsetting the increase is a decrease of (i) $1.1 million from same store properties due to the reduction of amortization, in the ordinary course of business, of tenant origination costs at several properties and (ii) $740,000 from properties sold from April 1, 2018 to June 30, 2019.

Other Income and Expenses

The following table compares our other income and expenses for the periods indicated:

	Three Months Ended June 30,
(Dollars in thousands)	2019		2018		Increase (Decrease)		% Change
Equity in loss of unconsolidated joint ventures	(161)		$	(127)	$	(34)	26.8
Gain on insurance recoveries	517		—		517		N/A
Total other income and expenses	$	356	$	(127)	$	483	(380.3)	%

Gain on insurance recoveries. During the three months ended June 30, 2019, we recognized a $517,000 gain from the receipt of insurance proceeds related to our Waterside Property - Indianapolis, IN, representing the insurance proceeds received in excess of the assets written-off.

Results of Operations – six months ended June 30, 2019 compared to six months ended June 30, 2018.

Revenues

The following table compares our revenues for the periods indicated:

	Six Months Ended June 30,
(Dollars in thousands):	2019		2018		Increase (Decrease)		% Change
Rental revenue	$	63,632	$	59,427	$	4,205	7.1
Other income	434		378		56		14.8
Total revenues	$	64,066	$	59,805	$	4,261	7.1

Rental revenue

The increase is due primarily to increases of:

•$3.8 million from three properties acquired during the twelve months ended June 30, 2019, including $1.9 million from two properties acquired during the current period,

•$3.8 million from the inclusion, for the entire six months ended June 30, 2019, of four properties that were only owned for a portion of the corresponding period in the prior year, and

•$2.1 million from same store properties - approximately (i) $1.2 million of the increase is due to an increase in rental rates at most of these properties, (ii) $600,000 of the increase is due to increases in variable lease payments and (iii) $300,000 of the increase is due to an increase in occupancy, and

•$395,000 from our Bells Bluff property ($221,000) which is in lease-up and our Vanguard property ($174,000) which was in lease-up in the corresponding period of the prior year.

Offsetting this increase is the inclusion, in the corresponding period of the prior year, of $5.8 million from the four properties sold from January 1, 2018 to June 30, 2019.

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Expenses

The following table compares our expenses for the periods indicated:

	Six Months Ended June 30,
(Dollars in thousands)	2019		2018		Increase (Decrease)		% Change
Real estate operating expenses	$	30,914	$	28,657	$	2,257	7.9
Interest expense	18,508		17,443		1,065		6.1
General and administrative	5,025		4,905		120		2.4
Depreciation	19,964		19,440		524		2.7
Total expenses	$	74,411	$	70,445	$	3,966	5.6

Real estate operating expenses.

The increase is due primarily to increases of:

•$2.1 million from the inclusion, for the entire six months ended June 30, 2019, of four properties that were only owned for a portion of the corresponding period in the prior year,

•$1.8 million from three properties acquired during the twelve months ended June 30, 2019, including $758,000 from two properties acquired during the current period,

•$1.2 million from same store properties, including approximately $392,000 due to increased real estate taxes resulting from increased assessments at several properties and the inclusion, in the corresponding period of the prior year, of a refund related to a tax appeal, $347,000 from increased replacements and repairs and maintenance due to unit turns at several properties and $287,000 due to increased staffing as we filled vacant positions at several properties.

Offsetting the increase is the inclusion, in the corresponding period in the prior year, of $3.4 million of expense related to the four properties sold from January 1, 2018 to June 30, 2019.

Interest Expense.

The increase is due primarily to increases of:

•$1.2 million from three properties acquired during the twelve months ended June 30, 2019, including $570,000 from two properties acquired during the current period,

•$712,000 from the inclusion, for the entire six months ended June 30, 2019, of four properties that were only owned for a portion of the corresponding period in the prior year,

•$277,000 related to the Bells Bluff property which is currently in lease-up - in the corresponding period of the prior year, the property was in development and interest of $27,000 was capitalized, and

•$240,000 related to the increase in the (i) outstanding balance on our credit facility ($96,000) and (ii) the interest rate on our floating rate subordinated debt ($144,000).

Offsetting the increase is the inclusion, in the corresponding period of the prior year, of $1.5 million of expense related to the four properties sold from January 1, 2018 to June 30, 2019.

Depreciation.

The increase is due primarily to increases of:

•$2.1 million from four properties acquired during the twelve months ended June 30, 2019, including $1.2 million from two properties acquired in the current period,

•$919,000 from the inclusion, for the entire six months ended June 30, 2019, of such expense on four properties that were only owned for a portion of the corresponding period of the prior year, and

•$227,000 from the Bells Bluff property, which in the corresponding period of the prior year was in development.

Offsetting the increase is the inclusion, in the corresponding period of the prior year, of $1.5 million from properties sold from January 1, 2018 to June 30, 2019, and $1.3 million from same store properties due to the reduction of amortization, in the ordinary course of business, of tenant origination costs at several properties.

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Other Income and Expenses

The following table compares our other income and expenses for the periods indicated:

	Six Months Ended June 30,
(Dollars in thousands)	2019		2018		Increase (Decrease)		% Change
Equity in loss of unconsolidated joint ventures	(384)		$	(190)	$	(194)	102.1
Gain on sale of real estate	—		51,981		(51,981)		(100.0)
Gain on insurance recoveries	517		3,227		(2,710)		(84.0)
Loss on extinguishment of debt	—		(593)		593		(100.0)
Total other income and expenses	$	133	$	54,425	$	(54,292)	(99.8)	%

Equity in loss of unconsolidated joint ventures. The increase in the loss is due primarily to the inclusion of depreciation and interest expense at a Columbia, SC property that was in development in the corresponding period in the prior year and is now in lease-up.

Gain on sale of real estate. During the six months ended June 30, 2018, we sold three properties and a cooperative apartment unit for a sales price of $148.7 million and recognized a gain of $52.0 million, of which $25.1 million was allocated to the non-controlling partner.

Gain on insurance recoveries. In the current six months, we recognized a gain of $517,000 from the receipt of insurance proceeds related to Waterside - Indianapolis, IN. During the six months ended June 30, 2018, we recognized a $3.2 million gain from the receipt of insurance proceeds related to Retreat at Cinco Ranch - Katy, TX. In each case, the gain represents the insurance proceeds received in excess of the assets written-off.

Loss on extinguishment of debt. During the six months ended June 30, 2018, we incurred $593,000 of mortgage prepayment charges in connection with the sale of The Fountains Apartments - Palm Beach Gardens, FL.

Income tax provision (benefit).

For the six months ended June 30, 2019, we recognized an income tax provision of $121,000 compared to an income tax benefit of $152,000 in the corresponding period of the prior year. The 2018 period includes a state tax refund related to a property sold prior to 2018.

Liquidity and Capital Resources

We require funds to pay operating expenses and debt service, acquire properties, make capital improvements and pay dividends. Generally, our primary sources of capital and liquidity are the operations of our multi-family properties (including distributions from the joint ventures that own such properties), mortgage debt financings and refinancings, equity contributions from our joint venture partners for acquisitions, our share of the proceeds from the sale of properties, the sale of shares of our common stock pursuant to our at-the-market equity distribution program, our credit facility and our available cash (including restricted cash). Our available liquidity at August 6, 2019, was $35.9 million, including $16.0 million of cash and cash equivalents, $9.9 million of restricted cash and, subject to borrowing base requirements, up to $10.0 million available under our credit facility.

We anticipate that (i) our operating expenses, dividend payments and $86.2 million (as of June 30, 2019) of interest expense and mortgage amortization payments over the next two years will be funded from cash generated from the operations of our multi-family properties and, to the extent such sources are insufficient, from mortgage refinancing, sales of properties, or sales of our common stock.

Capital improvements at (i) 18 multi-family properties will be funded by approximately $10.0 million of restricted cash available at June 30, 2019 and the cash flow from operations at such properties and (ii) other properties will be funded from the cash flow from operations of such properties.

Our ability to acquire additional multi-family properties is limited by our available cash, and our ability to (i) draw on our credit facility and (ii) obtain, on acceptable terms, equity contributions from joint venture partners and mortgage debt from

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lenders. Further, if and to the extent we generate ordinary taxable income, we will be required to make distributions to stockholders to maintain our REIT status and as a result, will be limited in our ability to use gains, if any, from property sales, as a source of funds for operating expenses, debt service and property acquisitions.

We anticipate that the costs associated with completing the Bells Bluff project will be funded by the remaining in-place construction financing of up to $5.8 million.

Credit Facility

We entered into a credit facility dated April 18, 2019, as amended, with VNB New York, LLC, an affiliate of Valley National Bank. The facility allows us to borrow, subject to compliance with borrowing base requirements and other conditions, up to $10 million. The facility is available for the acquisition of, and investment in, multi-family properties, is secured by the cash available in certain cash accounts maintained by the Company at VNB, matures April 2021 and bears an annual interest rate of 50 basis points over the prime rate, with a floor of 5%. There is an unused facility fee of 0.25% per annum on the difference between the outstanding loan balance and maximum amount then available under the facility.

The terms of the facility include certain restrictions and covenants which limit, among other things, the incurrence of liens, and which require compliance with financial ratios relating to, among other things, the minimum amount of debt service coverage with respect to the properties (and amounts drawn on the facility) used in calculating the borrowing base, the minimum number of wholly owned properties and the minimum number of properties used in calculating the borrowing base. Net proceeds received from the sale, financing or refinancing of wholly owned properties are generally required to be used to repay amounts outstanding under the facility.

Cash Distribution Policy

We have elected to be treated as a REIT under the Internal Revenue Code of 1986, as amended, which we refer to as the “Code.” To qualify as a REIT, accordingly we must meet a number of organizational and operational requirements, including a requirement that we distribute to our stockholders within the time frames prescribed by the Code at least 90% of our ordinary taxable income. Management currently intends to maintain our REIT status. As a REIT, we generally will not be subject to corporate Federal income tax on taxable income we distribute to stockholders in accordance with the Code. If we fail to qualify as a REIT in any taxable year, we will be subject to Federal income taxes at regular corporate rates and may not be able to qualify as a REIT for four subsequent tax years. Even if we qualify for Federal taxation as a REIT, we are subject to certain state and local taxes on our income and to Federal income and excise taxes on undistributed taxable income, (i.e., taxable income not distributed in the amounts and in the time frames prescribed by the Code).

We estimate that our net operating loss at December 31, 2018 is approximately 16.8 million; therefore, we are not currently required by Code provisions relating to REITs to pay cash dividends to maintain our status as a REIT. Notwithstanding the foregoing, on each of January 4, 2019, April 5, 2019 and July 9, 2019 we paid a cash dividend of $0.20 per share. Though we currently intend to continue to pay cash dividends on a quarterly basis, we cannot provide any assurance that we will do so.

Off Balance Sheet Arrangements

None.

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Funds from Operations; Adjusted Funds from Operations

We disclose below funds from operations (“FFO”) and adjusted funds from operations (“AFFO”) because we believe that such metrics are a widely recognized and appropriate measure of the performance of an equity REIT.

We compute 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 (computed in accordance with generally accepting accounting principles), excluding gains (or losses) from sales of property, plus depreciation and amortization, plus impairment write-downs of depreciable real estate and after adjustments for unconsolidated partnerships and joint ventures. 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.We compute AFFO by deducting from FFO our straight-line rent accruals, loss on extinguishment of debt, restricted stock and restricted stock unit expense, deferred mortgage costs and gain on insurance recovery. Since the NAREIT White Paper only provides guidelines for computing FFO, the computation of AFFO may vary from one REIT to another.

We believe that FFO and AFFO are useful and standard supplemental measures of the operating performance for equity REITs and are used frequently by securities analysts, investors and other interested parties in evaluating equity REITs, many of which present FFO and AFFO when reporting their operating results. FFO and AFFO are intended to exclude GAAP historical cost depreciation and amortization of real estate assets, which assumes that the value of real estate assets diminish predictability over time. In fact, real estate values have historically risen and fallen with market conditions. As a result, we believe that FFO and AFFO provide a performance measure that when compared year over year, should reflect the impact to operations from trends in occupancy rates, rental rates, operating costs, interest costs and other matters without the inclusion of depreciation and amortization, providing a perspective that may not be necessarily apparent from net income. We also consider FFO and AFFO to be useful to us in evaluating potential property acquisitions.

FFO and AFFO do not represent net income or cash flows from operations as defined by GAAP. FFO and AFFO should not be considered to be an alternative to net income as a reliable measure of our operating performance; nor should FFO and AFFO be considered an alternative to cash flows from operating, investing or financing activities (as defined by GAAP) as measures of liquidity. FFO and AFFO do not measure whether cash flow is sufficient to fund all of our cash needs, including principal amortization and capital improvements. FFO and AFFO do not represent cash flows from operating, investing or financing activities as defined by GAAP.

Management recognizes that there are limitations in the use of FFO and AFFO. In evaluating our performance, management is careful to examine GAAP measures such as net income and cash flows from operating, investing and financing activities.

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

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
GAAP Net (loss) income attributable to common stockholders	$	(4,317)	$	(4,689)	$	(8,564)	$	20,533
Add: depreciation of properties	10,347		10,200		19,964		19,440
Add: our share of depreciation in unconsolidated joint ventures	467		385		934		832
Deduct: gain on sale of real estate	—		—		—		(51,981)
Adjustments for non-controlling interests	(3,018)		(3,160)		(5,793)		19,246
NAREIT Funds from operations attributable to common stockholders	3,479		2,736		6,541		8,070
Adjustments for: straight-line rent accruals	(10)		(10)		(20)		(20)
Add: loss on extinguishment of debt	—		—		—		593
Add: amortization of restricted stock and restricted stock units	372		361		737		658
Add: amortization of deferred mortgage costs	558		383		937		756
Deduct gain on insurance recovery	(517)		—		(517)		(3,227)
Adjustments for non-controlling interests	(11)		(87)		(89)		347
Adjusted funds from operations attributable to common stockholders	$	3,871	$	3,383	$	7,589	$	7,177

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
GAAP Net (loss) income attributable to common stockholders	$	(0.27)	$	(0.33)	$	(0.54)	$	1.41
Add: depreciation of properties	0.65		0.71		1.25		1.34
Add: our share of depreciation in unconsolidated joint ventures	0.03		0.03		0.06		0.06
Deduct: gain on sale of real estate	—		—		—		(3.58)
Adjustment for non-controlling interests	(0.19)		(0.21)		(0.36)		1.32
NAREIT Funds from operations per common stock basic and diluted	0.22		0.20		0.41		0.55
Adjustments for: straight line rent accruals	—		—		—		—
Add: loss on extinguishment of debt	—		—		—		0.04
Add: amortization of restricted stock and restricted stock units	0.01		0.02		0.05		0.05
Add: amortization of deferred mortgage costs	0.04		0.03		0.06		0.05
Deduct gain on insurance recovery	(0.03)		—		(0.03)		(0.22)
Adjustments for non-controlling interests	—		(0.01)		(0.01)		0.02
Adjusted funds from operations per common stock basic and diluted	$	0.24	$	0.24	$	0.48	$	0.49

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Item 3. Quantitative and Qualitative Disclosures About Market Risks

All of our mortgage debt is fixed rate, other than four mortgages, three of which are subject to interest rate swap agreements that effectively fix the rate at a fixed rate. With respect to the mortgage not subject to an interest rate swap, an increase of 100 basis points in interest rates would reduce annual net income by $416,000 and a decrease of 100 basis points would increase annual net income by $416,000.

As of June 30, 2019, we had three interest rate swap agreements outstanding and an interest rate cap. The fair value of these derivative instruments is dependent upon existing market interest rates and swap spreads, which change over time. At June 30, 2019, if there had been (i) an increase of 100 basis points in forward interest rates, the fair market value of these derivative instruments and the net unrealized gain thereon would have increased by approximately $2.6 million and (ii) if there had been a decrease of 100 basis points in forward interest rates, the fair market value of these derivatives and the net unrealized gain thereon would have decreased by approximately $2.7 million. These changes would not have any impact on our net income or cash.

Our junior subordinated notes bear interest at the rate of three month LIBOR plus 200 basis points. At June 30, 2019, the interest rate on these notes was 4.58%. A 100 basis point increase in the rate would increase our related interest expense by approximately $374,000 annually and a 100 basis point decrease in the rate would decrease our related interest expense by $374,000 annually.

As of June 30, 2019, based on the number of residential units in each state, 29% of our properties are located in Texas, 15% in Georgia, 12% in Florida, 8% in Mississippi, 7% in Tennessee, 7% in South Carolina, 7% in Alabama and the remaining 15% in five other states; we are therefore subject to risks associated with the economies in these areas.

Item 4. Controls and Procedures

As required under Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended, we carried out an evaluation under the supervision and with the participation of our management, including our Chief Executive Officer, Senior Vice President-Finance and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2019. Based upon that evaluation, the Chief Executive Officer, Senior Vice President-Finance and Chief Financial Officer concluded that our disclosure controls and procedures as of June 30, 2019 are effective.

There have been no changes in our internal control over financial reporting during the quarter ended June 30, 2019 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting or in other factors that could significantly affect these controls subsequent to the date of their evaluation, including any corrective actions with regard to significant deficiencies and material weaknesses.

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Part II - Other Information

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

On September 12, 2017, our Board of Directors authorized us to repurchase, effective as of October 1, 2017, up to $5.0 million of shares of our common stock through September 30, 2019. The table below provides information regarding our repurchase of shares of common stock pursuant to such authorization during the periods presented:

Period	(a) Total Number of Shares Purchased	(b) Average Price Paid per Share		(c) Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs	(d) Maximum Number (or Approximate Dollar Value) of Shares that May Yet Be Purchased Under the Plans or Programs
April 1 - April 30, 2019	—	—		—	4,838,489
May 1 - May 31, 2019	—	—		—	4,838,489
June 1 - June 30, 2019	3,590	$	12.80	3,590	4,792,535
Total	3,590	$	12.80	3,590

Item 6. Exhibits

Exhibit      No.	Title of Exhibits
31.1	Certification of President and Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2	Certification of Senior Vice President—Finance pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.3	Certification of Vice President and Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1	Certification of President and Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2	Certification of Senior Vice President—Finance pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.3	Certification of Vice President and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101.INS	XBRL Instance Document – the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Document
101.DEF	XBRL Taxonomy Extension Definitions Document
101.LAB	XBRL Taxonomy Extension Labels Document
101.PRE	XBRL Taxonomy Extension Presentation Document

_____________________

31

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

BRT APARTMENTS CORP.

August 8, 2019	/s/ Jeffrey A. Gould
	Jeffrey A. Gould, President and
	Chief Executive Officer
August 8, 2019	/s/ George Zweier
	George Zweier, Vice President
	and Chief Financial Officer
	(principal financial officer)

32

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Jeffrey A. Gould, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 of BRT Apartments Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

The foregoing certification is being furnished pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, regardless of any general incorporation language in such filing.

Date:	August 8, 2019	/s/ Jeffrey A. Gould
		Jeffrey A. Gould
		President and
		Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, David W. Kalish, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 of BRT Apartments Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

The foregoing certification is being furnished pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, regardless of any general incorporation language in such filing.

Date:	August 8, 2019	/s/ David W. Kalish
		David W. Kalish
		Senior Vice President - Finance

EX-31.3

EXHIBIT 31.3

CERTIFICATION

I, George Zweier, certify that:

1. I have reviewed this Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 of BRT Apartments Corp.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

The foregoing certification is being furnished pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, regardless of any general incorporation language in such filing.

Date:	August 8, 2019	/s/George Zweier
		George Zweier
		Vice President and
		Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

I, Jeffrey A. Gould, do hereby certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge, based upon a review of the Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 of BRT Apartments Corp. (“the Registrant”), as filed with the Securities and Exchange Commission on the date hereof (the "Report"):

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

The foregoing certification is being furnished pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, regardless of any general incorporation language in such filing.

Date:	August 8, 2019	/s/ Jeffrey A. Gould
		Jeffrey A. Gould
		President and
		Chief Executive Officer

EX-32.2

EXHIBIT 32.2

CERTIFICATION OF SENIOR VICE PRESIDENT-FINANCE

PURSUANT TO 18 U.S.C. SECTION 1350

(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

I, David W. Kalish, do hereby certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge, based upon a review of the Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 of BRT Apartments Corp. (“the Registrant”), as filed with the Securities and Exchange Commission on the date hereof (the "Report"):

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

The foregoing certification is being furnished pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, regardless of any general incorporation language in such filing.

Date:	August 8, 2019	/s/ David W. Kalish
		David W. Kalish
		Senior Vice President - Finance

EX-32.3

EXHIBIT 32.3

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER

PURSUANT TO 18 U.S.C. SECTION 1350

(SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002)

I, George Zweier, do hereby certify, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to the best of my knowledge, based upon a review of the Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 of BRT Apartments Corp. (“the Registrant”), as filed with the Securities and Exchange Commission on the date hereof (the "Report"):

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

The foregoing certification is being furnished pursuant to 18 U.S.C. Section 1350. It is not being filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and it is not to be incorporated by reference into any filing of the Company, regardless of any general incorporation language in such filing.

Date:	August 8, 2019	/s/ George Zweier
		George Zweier
		Vice President and
		Chief Financial Officer

XML

COVER PAGE - shares	6 Months Ended
	Jun. 30, 2019	Aug. 01, 2019
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2019
Document Transition Report	false
Entity File Number	001-07172
Entity Registrant Name	BRT APARTMENTS CORP.
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	13-2755856
Entity Address, Address Line One	60 Cutter Mill Road
Entity Address, City or Town	Great Neck
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	11021
City Area Code	516
Local Phone Number	466-3100
Title of 12(b) Security	Common Stock
Trading Symbol	BRT
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		15,896,805
Amendment Flag	false
Entity Central Index Key	0000014846
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2

XML

CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
ASSETS
Real estate properties, net of accumulated depreciation and amortization of $107,587 and $91,715		$ 1,098,932	$ 1,029,239
Real estate loan		4,450	4,750
Cash and cash equivalents		17,336	32,428
Restricted cash		9,962	8,180
Deposits and escrows		17,103	21,268
Investments in unconsolidated joint ventures		18,474	19,758
Other assets		8,929	8,084
Real estate property held for sale		22,722	0
Total Assets	[1]	1,197,908	1,123,707
Liabilities:
Mortgages payable, net of deferred costs of $6,448 and $6,289		846,409	771,817
Junior subordinated notes, net of deferred costs of $347 and $357		37,053	37,043
Credit facility, net of deferred costs of $ 77 and $0		8,923	0
Accounts payable and accrued liabilities		28,738	24,487
Total Liabilities	[1]	921,123	833,347
Commitments and contingencies
BRT Apartments Corp. stockholders' equity:
Preferred shares $.01 par value 2,000 shares authorized, none outstanding		0	0
Common stock, $.01 par value, 300,000 shares authorized; 15,175 and 15,038 shares outstanding		152	150
Additional paid-in capital		217,671	216,981
Accumulated other comprehensive income		143	1,688
Accumulated deficit		(35,049)	(20,044)
Total BRT Apartments Corp. stockholders’ equity		182,917	198,775
Non-controlling interests		93,868	91,585
Total Equity		276,785	290,360
Total Liabilities and Equity		1,197,908	1,123,707
Variable interest entity
ASSETS
Real estate properties, net of accumulated depreciation and amortization of $107,587 and $91,715		660,226	584,074
Cash and cash equivalents		7,143	5,207
Deposits and escrows		9,250	11,705
Other assets		4,840	6,302
Real estate property held for sale		22,722	0
Total Assets		704,253	607,288
Liabilities:
Mortgages payable, net of deferred costs of $6,448 and $6,289		522,707	446,779
Accounts payable and accrued liabilities		13,835	11,816
Total Liabilities		$ 536,542	$ 458,595

[1] The Company's consolidated balance sheets include the assets and liabilities of consolidated variable interest entities (VIEs). See note 6. The consolidated balance sheets include the following amounts related to the Company's VIEs as of June 30, 2019 and December 31, 2018, respectively: $660,226 and $584,074 of real estate properties; $7,143 and $5,207 of cash and cash equivalents; $9,250 and $11,705 of deposits and escrows; $4,840 and $6,302 of other assets; $22,722 and $0 of real estate property held for sale; $522,707 and $446,779 of mortgages payable, net of deferred costs; and $13,835 and $11,816 of accounts payable and accrued liabilities.

XML

CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Instrument [Line Items]
Real estate accumulated depreciation	$ 107,587	$ 91,715
Deferred costs	$ 6,872	$ 6,646
Preferred shares, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred shares, authorized (in shares)	2,000,000	2,000,000
Preferred shares, outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, authorized (in shares)	300,000,000	300,000,000
Common stock, outstanding (in shares)	15,172,000	15,038,000
Mortgages payable
Debt Instrument [Line Items]
Deferred costs	$ 6,448	$ 6,289
Junior subordinated notes
Debt Instrument [Line Items]
Deferred costs	347	357
Credit Facility, Maturing 2021 | Valley National Bank, Affiliate | Revolving Credit Facility
Debt Instrument [Line Items]
Deferred costs	$ 77	$ 0

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Revenues:
Rental revenue	$ 32,930	$ 29,951	$ 63,632	$ 59,427
Other income	190	203	434	378
Total revenues	33,120	30,154	64,066	59,805
Expenses:
Real estate operating expenses - including $990 and $851 to related parties for the three months ended and $1,917 and $1,687 for the six months ended	16,100	14,459	30,914	28,657
Interest expense	9,739	8,786	18,508	17,443
General and administrative - including $155 and $160 to related parties for the three months ended and $297 and $306 for the six months ended	2,481	2,452	5,025	4,905
Depreciation	10,347	10,200	19,964	19,440
Total expenses	38,667	35,897	74,411	70,445
Total revenues less total expenses	(5,547)	(5,743)	(10,345)	(10,640)
Equity in loss of unconsolidated joint ventures	(161)	(127)	(384)	(190)
Gain on sale of real estate	0	0	0	51,981
Gain on insurance recoveries	517	0	517	3,227
Loss on extinguishment of debt	0	0	0	(593)
(Loss) income from continuing operations	(5,191)	(5,870)	(10,212)	43,785
Income tax provision (benefit)	59	101	121	(152)
Net (loss) income from continuing operations, net of taxes	(5,250)	(5,971)	(10,333)	43,937
Net loss (income) attributable to non-controlling interests	933	1,282	1,769	(23,404)
Net (loss) income attributable to common stockholders	$ (4,317)	$ (4,689)	$ (8,564)	$ 20,533
Weighted average number of shares of common stock outstanding:
Basic (in shares)	15,900,316	14,411,940	15,893,443	14,327,477
Diluted (in shares)	15,900,316	14,411,940	15,893,443	14,527,477
Per share amounts attributable to common stockholders:
Basic (in dollars per share)	$ (0.27)	$ (0.33)	$ (0.54)	$ 1.43
Diluted (in dollars per share)	$ (0.27)	$ (0.33)	$ (0.54)	$ 1.41

XML

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Income Statement [Abstract]
Related party - real estate operating expenses	$ 990	$ 851	$ 1,917	$ 1,687
Related party - general and administrative	$ 155	$ 160	$ 297	$ 306

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Statement of Comprehensive Income [Abstract]
Net (loss) income	$ (5,250)	$ (5,971)	$ (10,333)	$ 43,937
Other comprehensive (loss) income:
Unrealized (loss) gain on derivative instruments	(1,353)	398	(2,222)	1,530
Other comprehensive (loss) income	(1,353)	398	(2,222)	1,530
Comprehensive (loss) income	(6,603)	(5,573)	(12,555)	45,467
Comprehensive loss (income) attributable to non-controlling interests	1,346	1,160	2,446	(23,872)
Comprehensive (loss) income attributable to common stockholders	$ (5,257)	$ (4,413)	$ (10,109)	$ 21,595

XML

CONSOLIDATED STATEMENT OF EQUITY (Unaudited) - USD ($)	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive Income	Accumulated Deficit	Non- Controlling Interest
Beginning balance at Dec. 31, 2017	$ 243,347,000	$ 133,000	$ 202,225,000	$ 1,346,000	$ (33,292,000)	$ 72,935,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Distributions - common stock - $0.20 per share	(2,897,000)				(2,897,000)
Restricted stock vesting	0	1,000	(1,000)
Compensation expense - restricted stock and restricted stock units	297,000		297,000
Consolidation of investment in limited partnership	12,370,000					12,370,000
Contributions from non-controlling interests	18,088,000					18,088,000
Distributions to non-controlling interests	(32,020,000)					(32,020,000)
Purchase of non-controlling interest	(250,000)		(82,000)			(168,000)
Shares issued through equity offering program, net	1,401,000	2,000	1,399,000
Net (loss) income	49,908,000				25,222,000	24,686,000
Other comprehensive income (loss)	1,132,000			786,000		346,000
Comprehensive (loss) income	51,040,000
Ending balance at Mar. 31, 2018	291,376,000	136,000	203,838,000	2,132,000	(10,967,000)	96,237,000
Beginning balance at Dec. 31, 2017	243,347,000	133,000	202,225,000	1,346,000	(33,292,000)	72,935,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	43,937,000
Other comprehensive income (loss)	1,530,000
Comprehensive (loss) income	45,467,000
Ending balance at Jun. 30, 2018	301,486,000	144,000	214,716,000	2,408,000	(18,626,000)	102,844,000
Beginning balance at Mar. 31, 2018	291,376,000	136,000	203,838,000	2,132,000	(10,967,000)	96,237,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Distributions - common stock - $0.20 per share	(2,970,000)				(2,970,000)
Compensation expense - restricted stock and restricted stock units	361,000		361,000
Contributions from non-controlling interests	9,930,000					9,930,000
Distributions to non-controlling interests	(2,163,000)					(2,163,000)
Shares issued through equity offering program, net	10,525,000	8,000	10,517,000
Net (loss) income	(5,971,000)				(4,689,000)	(1,282,000)
Other comprehensive income (loss)	398,000			276,000		122,000
Comprehensive (loss) income	(5,573,000)
Ending balance at Jun. 30, 2018	301,486,000	144,000	214,716,000	2,408,000	(18,626,000)	102,844,000
Beginning balance at Dec. 31, 2018	290,360,000	150,000	216,981,000	1,688,000	(20,044,000)	91,585,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Distributions - common stock - $0.20 per share	(3,221,000)				(3,221,000)
Restricted stock vesting	0	2,000	(2,000)
Compensation expense - restricted stock and restricted stock units	365,000		365,000
Consolidation of investment in limited partnership	6,047,000					6,047,000
Contributions from non-controlling interests	264,000					264,000
Distributions to non-controlling interests	(2,345,000)					(2,345,000)
Net (loss) income	(5,083,000)				(4,247,000)	(836,000)
Other comprehensive income (loss)	(869,000)			(606,000)		(263,000)
Comprehensive (loss) income	(5,952,000)
Ending balance at Mar. 31, 2019	285,518,000	152,000	217,344,000	1,082,000	(27,512,000)	94,452,000
Beginning balance at Dec. 31, 2018	290,360,000	150,000	216,981,000	1,688,000	(20,044,000)	91,585,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net (loss) income	(10,333,000)
Other comprehensive income (loss)	(2,222,000)
Comprehensive (loss) income	(12,555,000)
Ending balance at Jun. 30, 2019	276,785,000	152,000	217,671,000	143,000	(35,049,000)	93,868,000
Beginning balance at Mar. 31, 2019	285,518,000	152,000	217,344,000	1,082,000	(27,512,000)	94,452,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Distributions - common stock - $0.20 per share	(3,220,000)				(3,220,000)
Compensation expense - restricted stock and restricted stock units	373,000		373,000
Contributions from non-controlling interests	3,027,000					3,027,000
Distributions to non-controlling interests	(2,264,000)					(2,264,000)
Shares repurchased - 3,590 shares	(46,000)		(46,000)
Net (loss) income	(5,250,000)				(4,317,000)	(933,000)
Other comprehensive income (loss)	(1,353,000)			(939,000)		(414,000)
Comprehensive (loss) income	(6,603,000)
Ending balance at Jun. 30, 2019	$ 276,785,000	$ 152,000	$ 217,671,000	$ 143,000	$ (35,049,000)	$ 93,868,000

XML

CONSOLIDATED STATEMENT OF EQUITY (Unaudited) (Parenthetical) - $ / shares shares in Thousands	3 Months Ended
	Jun. 30, 2019	Mar. 31, 2019	Jun. 30, 2018	Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]
Dividends paid (in dollars per share)	$ 0.20	$ 0.20	$ 0.20	$ 0.20
Shares repurchased (in shares)	3,590

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Cash flows from operating activities:
Net (loss) income	$ (10,333)	$ 43,937
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Depreciation	19,964	19,440
Amortization of deferred financing costs	937	766
Amortization of restricted stock and restricted stock units	738	658
Equity in loss of unconsolidated joint ventures	384	190
Gain on sale of real estate	0	(51,981)
Gain on insurance recovery	(517)	(3,227)
Loss on extinguishment of debt	0	593
Increases and decreases from changes in other assets and liabilities:
Decrease in deposits and escrows	4,861	3,926
(Increase) decrease in other assets	(2,358)	5,138
Decrease in accounts payable and accrued liabilities	1,604	2,007
Net cash provided by operating activities	15,280	21,447
Cash flows from investing activities:
Collections from real estate loan	300	300
Additions to real estate properties	(56,840)	(140,433)
Improvements to real estate properties	(4,755)	(10,019)
Investment in joint venture	(11,231)	(12,370)
Purchase of non-controlling interests	0	(250)
Consolidation of investment in joint venture	1,458	1,279
Net proceeds from the sale of real estate properties	0	146,901
Distributions from unconsolidated joint ventures	898	381
Net cash used in investing activities	(70,170)	(14,211)
Cash flows from financing activities:
Proceeds from mortgages payable	82,325	82,524
Mortgage payoffs	(38,200)	(75,436)
Mortgage principal payments	(2,721)	(2,424)
Proceeds from credit facility	9,000	0
Increase in deferred financing costs	(1,098)	(943)
Dividends paid	(6,361)	(5,788)
Contributions from non-controlling interests	3,291	28,018
Distributions to non-controlling interests	(4,610)	(34,183)
Proceeds from the sale of common stock	0	11,926
Repurchase of shares of common stock	(46)	0
Net cash provided by financing activities	41,580	3,694
Net (decrease) increase in cash, cash equivalents and restricted cash	(13,310)	10,930
Cash, cash equivalents and restricted cash at beginning of period	40,608	21,761
Cash, cash equivalents and restricted cash at end of period	27,298	32,691
Supplemental disclosure of cash flow information:
Cash paid during the period for interest, net of capitalized interest of $695 and $59, respectively	18,218	15,780
Taxes paid	44	114
Acquisition of real estate through assumption of debt	0	13,608
Real estate properties reclassified to assets held for sale	22,722	0
Accrued additions of property and equipment	2,160	0
Consolidation of investment in joint venture:
Increase in other assets	(2,358)	5,138
Decrease in accounts payable and accrued liabilities	1,604	2,007
Increase in cash upon consolidation of joint venture	1,458	1,279
Partnership Interest
Increases and decreases from changes in other assets and liabilities:
(Increase) decrease in other assets	(189)	0
Decrease in accounts payable and accrued liabilities	407	0
Cash flows from investing activities:
Consolidation of investment in joint venture	1,458	0
Consolidation of investment in joint venture:
Increase in real estate assets	(48,624)	0
Increase in deposits and escrows	(696)	0
Increase in other assets	(189)	0
Increase in mortgage payable	33,347	0
Increase in deferred financing costs	(65)	0
Decrease in accounts payable and accrued liabilities	407	0
Increase in non controlling interest	6,047	0
Decrease in investment in joint venture	11,231	0
Increase in cash upon consolidation of joint venture	$ 1,458	$ 0

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (Parenthetical) - USD ($)	6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018
Statement of Cash Flows [Abstract]
Capitalized interest	$ 824,000	$ 0

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Organization and Background

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization and Background

Organization and Background

BRT Apartments Corp. (the "Company"), a Maryland corporation, owns, operates and develops multi-family properties. The Company conducts its operations to qualify as a real estate investment trust, or REIT, for federal income tax purposes.

Generally, the multi-family properties are acquired with joint venture partners in transactions in which the Company contributes a significant portion of the equity. At June 30, 2019, the Company owns: (a) 37 multi-family properties with 10,336 units (including 402 units in lease-up), located in 12 states with a carrying value of $1,111,344,000; and (b) interests in three unconsolidated multi-family joint ventures with 1,026 units (including 339 units in lease-up) located in two states with a carrying value of $18,402,000.

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Basis of Preparation

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Preparation

Basis of Preparation

The accompanying interim unaudited consolidated financial statements as of June 30, 2019, and for the three and six months ended June 30, 2019 and 2018, reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for such interim periods. The results of operations for the three and six months ended June 30, 2019 and 2018, are not necessarily indicative of the results for the full year. The consolidated unaudited balance sheet as of December 31, 2018, has been derived from the unaudited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States ("GAAP"). Accordingly, these unaudited statements should be read in conjunction with the Company's audited financial statements included in its Annual Report on Form 10-K for the year ended September 30, 2018, filed with the Securities and Exchange Commission ("SEC") on December 10, 2018, for complete financial statements.

The consolidated financial statements include the accounts and operations of the Company, its wholly owned subsidiaries, and its majority owned or controlled real estate entities and its interests in variable interest entities ("VIEs") in which the Company is determined to be the primary beneficiary. Material intercompany balances and transactions have been eliminated.

The Company’s consolidated joint ventures that own multi-family properties, except as set forth in the following paragraph, were determined to be VIEs because the voting rights of some equity investors in the applicable joint venture entity are not proportional to their obligations to absorb the expected losses of the entity and their right to receive the expected residual returns. It was determined that the Company is the primary beneficiary of these joint ventures because it has a controlling interest in that it has the power to direct the activities of the VIE that most significantly impact the entity's economic performance and it has the obligation to absorb losses of the entity and the right to receive benefits that could potentially be significant to the VIE.

The joint ventures that own properties in Ocoee, FL, Lawrenceville, GA, Dallas, TX, Farmers Branch, TX and Grand Prairie, TX were determined not to be a VIEs but are consolidated because the Company has controlling rights in such entities.

With respect to its unconsolidated joint ventures, as (i) the Company is generally the managing member but does not exercise substantial operating control over these entities or the Company is not the managing member and (ii) such entities are not VIEs, the Company has determined that such joint ventures should be accounted for under the equity method of accounting for financial statement purposes.

The distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro-rata to the percentage equity interest each partner has in the applicable venture.  

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results could differ from those estimates. Substantially all of the Company's assets are comprised of multi- family real estate assets generally leased to tenants on a one-year basis. Therefore, the Company aggregates real estate assets for reporting purposes and operates in one reportable segment.

In February 2019, the Board of Directors of the Company authorized a change in the Company’s fiscal year end from September 30 to December 31. The change is intended to better align the Company’s fiscal year with the fiscal year of other multi-family REITs. As a result of the change in fiscal year, (i) the Company’s 2019 fiscal year began on January 1, 2019 and ends on December 31, 2019 and (ii) the Company filed a Transition Report on Form 10-Q covering the transition period from October 1, 2018 to December 31, 2018.

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Equity

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Equity

Equity

Equity Distribution Agreements

In January 2018, the Company entered into equity distribution agreements, which were amended in May 2018, with three sales agents to sell up to an aggregate of $30,000,000 of its common stock from time-to-time in an at-the-market offering. During the quarter ended June 30, 2019, the Company did not sell any shares. From the commencement of this program through June 30, 2019, the Company sold 1,590,935 shares for an aggregate sales price of $20,913,000 before commissions of $424,000 and offering related expenses of $78,000.

Common Stock Dividend Distribution

The Company declared a quarterly cash distribution of $0.20 per share, payable on July 9, 2019 to stockholders of record on June 25, 2019.

Stock Based Compensation

The Company's 2018 Incentive Plan (the "2018 Plan") permits the Company to grant: (i) stock options, restricted stock, restricted stock units, performance share awards and any one or more of the foregoing, up to a maximum of 600,000 shares; and (ii) cash settled dividend equivalent rights in tandem with the grant of restricted stock units or certain performance based awards.

Restricted Stock Units

In June 2016, the Company issued restricted stock units (the "Units") to acquire up to 450,000 shares of common stock pursuant to the 2016 Amended and Restated Incentive Plan (the "2016 Incentive Plan"). The Units entitle the recipients, subject to continued service through the March 31, 2021 vesting date, to receive (i) the underlying shares if and to the extent certain performance and/or market conditions are satisfied at the vesting date, and (ii) an amount equal to the cash dividends paid from the grant date through the vesting date with respect to the shares of common stock underlying the Units if, when, and to the extent, the related Units vest. For financial statement purposes, because the Units are not participating securities, the shares underlying the Units are excluded in the outstanding shares reflected on the consolidated balance sheet and from the calculation of basic earnings per share. The shares underlying the Units are contingently issuable shares.

Expense is recognized over the five-year vesting period on the Units which the Company expects to vest. For the three months ended June 30, 2019 and 2018, the Company recorded $36,000 and $73,000, respectively, and for the six months ended June 30, 2019 and 2018, the Company recorded $71,000 and $146,000 of compensation expense related to the amortization of unearned compensation with respect to the Units. At June 30, 2019, and December 31, 2018, $248,000 and $319,000 of compensation expense, respectively, had been deferred and will be charged to expense over the remaining vesting period.

Restricted Stock

In January 2019, the Company granted 156,399 shares of restricted stock pursuant to the 2018 Incentive Plan. As of June 30, 2019, an aggregate of 725,296 shares of unvested restricted stock are outstanding pursuant to the 2018 Incentive Plan, 2016 Incentive Plan and 2012 Incentive Plan. No additional awards may be granted under the 2016 Incentive Plan and the 2012 Incentive Plan. The shares of restricted stock vest five years from the date of grant and under specified circumstances, including a change in control, may vest earlier. For financial statement purposes, the restricted stock is not included in the outstanding shares shown on the consolidated balance sheets until they vest, but are included in the earnings per share computation. 

For the three months ended June 30, 2019 and 2018, the Company recorded $337,000 and $287,000, respectively, and for the six months ended June 30, 2019 and 2018, the Company recorded $667,000 and $511,000 of compensation expense related to the amortization of unearned compensation with respect to the restricted stock awards. At June 30, 2019

and December 31, 2018, $4,011,000 and $2,735,000 has been deferred as unearned compensation and will be charged to expense over the remaining vesting periods of these restricted stock awards. The weighted average remaining vesting period of these shares of restricted stock is 2.6 years.

Stock Buyback

On September 5, 2017, the Board of Directors approved a repurchase plan authorizing the Company, effective as of October 1, 2017, to repurchase up to $5,000,000 of shares of common stock through September 30, 2019. During the three and six months ended June 30, 2019, the Company repurchased 3,590 shares of common stock at an average market price of $12.80 for an aggregate cost of $46,000. During the three and six months ended June 30, 2018, there were no repurchases of common stock. As of June 30, 2019, $4,793,000 is remaining under the repurchase plan

Per Share Data

Basic earnings (loss) per share is determined by dividing net income (loss) applicable to common stockholders for the applicable period by the weighted average number of shares of common stock outstanding during such period. The Units are excluded from the basic earnings per share calculation, as they are not participating securities. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into shares of common stock or resulted in the issuance of shares of common stock that share in the earnings of the Company. Diluted earnings per share is determined by dividing net income applicable to common stockholders for the applicable period by the weighted average number of shares of common stock deemed to be outstanding during such period. In calculating diluted earnings per share, the Company, for the three and six months ended June 30, 2019 and the three months ended June 30, 2018, did not include any shares underlying the Units as their effect would have been anti-dilutive. For the six months ended June 30, 2018, the Company included 200,000 shares of common stock underlying the Units as the market criteria with respect to the Units had been met at June 30, 2018.

The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Numerator for basic and diluted earnings (loss) per share attributable to common stockholders:
Net (loss) income attributable to common stockholders	$	(4,317)	$	(4,689)	(8,564)		20,533
Denominator:
Denominator for basic earnings per share—weighted average number of shares	15,900,316		14,411,940		15,893,443		14,327,477
Effect of diluted securities	—		—		—		200,000
Denominator for diluted earnings per share—adjusted weighted average number of shares and assumed conversions	15,900,316		14,411,940		15,893,443		14,527,477
Basic (loss) earnings per share	$	(0.27)	$	(0.33)	$	(0.54)	$	1.43
Diluted (loss) earnings per share	$	(0.27)	$	(0.33)	$	(0.54)	$	1.41

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Real Estate Properties

6 Months Ended

Jun. 30, 2019

Real Estate [Abstract]

Real Estate Properties

Real Estate Properties

Real estate properties, including properties held for sale, consist of the following (dollars in thousands):

	June 30, 2019		December 31, 2018
Land	$	164,838	$	155,573
Building	1,022,194		924,378
Building improvements	46,297		41,003
Real estate properties	1,233,329		1,120,954
Accumulated depreciation	(111,675)		(91,715)
Total real estate properties, net	$	1,121,654	$	1,029,239

A summary of real estate properties owned, including properties held for sale, is as follows (dollars in thousands):

	December 31, 2018 Balance		Additions		Capitalized Costs and Improvements		Depreciation		June 30, 2019 Balance
Multi-family	$	964,320	$	92,170	$	6,837	$	(19,682)	$	1,043,645
Multi-family lease-up - West Nashville, TN	54,555		—		13,372		(227)		67,700
Land - Daytona, FL	8,021		—		—		—		8,021
Shopping centers/Retail - Yonkers, NY	2,343		—		—		(55)		2,288
Total real estate properties	$	1,029,239	$	92,170	$	20,209	$	(19,964)	$	1,121,654

The following table summarizes the allocation of the purchase price with respect to two properties purchased during the six months ended June 30, 2019 (dollars in thousands):

	Allocation of Purchase Price
Land	$	6,101
Building and improvements	84,987
Acquisition-related intangible assets	1,082
Total consideration	$	92,170

The purchase price of the properties acquired, inclusive of acquisition costs, was allocated to the acquired assets based on their estimated relative fair values on the acquisition date.

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Acquisitions and Dispositions

6 Months Ended

Jun. 30, 2019

Business Combinations [Abstract]

Acquisitions and Dispositions

Acquisitions and Dispositions

Property Acquisitions

The table below provides information regarding the Company's purchase of multi-family properties during the six months ended June 30, 2019 (dollars in thousands):

Location	Purchase Date	No. of Units	Purchase Price		Acquisition Mortgage Debt		Initial BRT Equity		Ownership Percentage		Capitalized Acquisition Costs
Kannapolis, North Carolina	3/12/2019	312	$	48,065	$	33,347	$	11,231	65	%	$	559
Birmingham, Alabama	5/7/2019	328	43,000		32,250		11,625		80	%	546
		640	$	91,065	$	65,597	$	22,856			$	1,105

The table below provides information regarding the Company's purchases of multi-family properties during the six months ended June 30, 2018 (dollars in thousands):

Location	Purchase Date	No. of Units	Purchase Price		Acquisition Mortgage Debt		Initial BRT Equity		Ownership Percentage		Capitalized Acquisition Costs
Ocoee, FL	2/7/2018	522	$	71,347	$	53,060	$	12,370	50.0	%	$	1,047
Lawrenceville, GA	2/15/2018	586	77,229		54,447		15,179		50.0	%	767
Daytona, FL	4/30/2018	208	20,500		13,608		6,900		80.0	%	386
Grand Prairie, TX	5/17/2018	281	30,800		18,995		7,300		50.0	%	411
		1,597	$	199,876	$	140,110	$	41,749			$	2,611

Property Dispositions

The Company did not dispose of any real estate properties during the six months ended June 30, 2019.

The following table is a summary of the real estate properties disposed of by the Company during the six months ended June 30, 2018 (dollars in thousands):

Location	Sale Date	No. of Units	Sales Price		Gain on Sale		Non-controlling partner's portion of the gain
Palm Beach Gardens, FL	2/5/2018	542	$	97,200	$	41,830	$	20,593
Valley, AL	2/23/2018	618	51,000		9,712		4,547
New York, NY	1/18/2018	1	470		439		—
		1,161	$	148,670	$	51,981	$	25,140

Impairment Charges

The Company reviews each real estate asset owned, including those held through investments in unconsolidated joint ventures, for impairment when there is an event or a change in circumstances indicating that the carrying amount may not be recoverable. The Company measures and records impairment losses, and reduces the carrying value of properties, when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. In cases where the Company does not expect to recover its carrying costs on properties held for use, the Company reduces its carrying costs to fair value, and for properties held for sale, the Company reduces its carrying value to the fair value less costs to sell. During the three and six months ended June 30, 2019 and 2018, no impairment charges were recorded.

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Variable Interest Entities

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Variable Interest Entities

Variable Interest EntitiesThe Company conducts a significant portion of its business with joint venture partners. Many of the Company's consolidated joint ventures that own properties were determined to be VIEs because the voting rights of some equity partners are not proportional to their obligations to absorb the expected loses of the entity and their rights to receive expected residual returns. It was determined that the Company is the primary beneficiary of these joint ventures because it has a controlling financial interest in that it has the power to direct the activities of the VIE that most significantly impacts the entity's economic performance and it has the obligation to absorb losses of the entity and the right to receive benefits from the entity that could potentially be significant to the VIE.

The following is a summary of the carrying amounts with respect to the consolidated VIEs and their classification on the Company's consolidated balance sheets (dollars in thousands):

	June 30, 2019 (unaudited)		December 31, 2018 (unaudited)
ASSETS
Real estate properties, net of accumulated depreciation of $65,094 and $53,637	$	660,298	$	584,074
Cash and cash equivalents	7,143		5,207
Deposits and escrows	9,250		11,705
Other assets	4,840		6,302
Real estate properties held for sale	22,722		—
Total Assets	$	704,253	$	607,288
LIABILITIES
Mortgages payable, net of deferred costs of $3,957 and $3,786	$	522,707	$	446,779
Accounts payable and accrued liabilities	13,835		11,816
Total Liabilities	$	536,542	$	458,595

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Real Estate Properties Held for Sale	6 Months Ended
	Jun. 30, 2019
Discontinued Operations and Disposal Groups [Abstract]
Real Estate Properties Held for Sale	Real Estate Properties Held for SaleAt June 30, 2019, Stonecrossing Apartments and Stonecrossing East Apartments, Houston, TX, with a combined book value of $22,722,000 were held for sale. The sale of these properties closed on July 10, 2019.

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Restricted Cash	6 Months Ended
	Jun. 30, 2019
Cash and Cash Equivalents [Abstract]
Restricted Cash	Restricted CashRestricted cash represents funds held for specific purposes and are therefore not available for general corporate purposes. The restricted cash reflected on the consolidated balance sheets represents funds that are held by or on behalf of the Company specifically for capital improvements at certain multi-family properties.

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Investment in Unconsolidated Ventures

6 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Investment in Unconsolidated Ventures

Investment in Unconsolidated Ventures

The Company has interests in unconsolidated joint ventures that own multi-family properties. The table below provides information regarding these joint ventures at June 30, 2019 (dollars in thousands):

Location	Number of Units	Carrying Value of Investment		Mortgage Balance		Percent Ownership
Columbia, SC	374	$	4,426	$	39,847	32	%
Columbia, SC (a)	339	7,786		40,679		46	%
Forney, TX (b)	313	6,189		25,350		50	%
Other investments	N/A	73		N/A		N/A
	1,026	$	18,474	$	105,876

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(a) Property is currently in lease-up. Construction financing for this project of up to $42,019 has been secured. Such financing bears interest at 4.95% and matures in June 2020.

(b) This interest is held through a tenancy-in-common.

The net loss from these ventures was $161,000 and $127,000 for the three months ended June 30, 2019 and 2018, and $384,000 and $190,000 for the six months ended June 30, 2019 and 2018, respectively.

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Debt Obligations

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Debt Obligations

Debt Obligations

Debt obligations consist of the following (dollars in thousands):

	June 30, 2019		December 31, 2018
Mortgages payable	$	852,857	$	778,106
Junior subordinated notes	37,400		37,400
Credit facility	9,000		—
Deferred financing costs	(6,872)		(6,646)
Total debt obligations, net of deferred costs	$	892,385	$	808,860

Mortgages Payable

During the six months ended June 30, 2019, the Company obtained the following mortgage debt in connection with the related property (dollars in thousands):

Location	Closing Date	Acquisition Mortgage Debt		Interest Rate		Interest only period	Maturity Date
Kannapolis, NC	3/12/19	$	33,347	3.52	%	—	3/1/2052
Birmingham, AL	5/7/19	32,250		4.19	%	72 months	6/1/2029
		$	65,597

The Company has a construction loan financing a project with 402 units, of which 164 units are in development and 238 units are in lease-up. Information regarding this loan at June 30, 2019 is set forth below (dollars in thousand):

Location	Closing Date	Maximum Loan Amount		Amount outstanding		Interest Rate	Maturity Date	Extension Option
Nashville,TN	6/2/2017	$	47,426	$	41,580	30 day LIBOR + 2.85%	6/2/2022	N/A

In the three months ended June 30, 2019, $528,000 of interest was incurred on this loan, of which $304,000 was capitalized. In the six months ended June 30,2019, $960,000 of interest was incurred on this loan, of which $ $695,000 was capitalized.

On June 13, 2019, the Company refinanced a $29,000,000 adjustable rate mortgage on its East St Louis, MO property with a fixed rate loan in the amount of $29,700,000. The mortgage debt bears interest at a fixed rate of 4.41%, matures in July 2031, is interest only for six years, amortizes thereafter on a 30 year schedule with a balloon payment of the unpaid principal and interest due at maturity.

On February 1, 2019, the Company refinanced a $9,200,000 adjustable rate mortgage on its Boerne, TX property with a fixed rate loan in the amount of $8,067,000. The mortgage debt bears interest at a fixed rate of 4.74%, matures in February 2026, is interest only for three years, amortizes thereafter on a 30 year schedule, with a balloon payment of the unpaid principal and interest due at maturity.

Credit Facility

The Company entered into a credit facility dated April 18, 2019, as subsequently amended, with an affiliate of Valley National Bank. The facility allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $10,000,000 to facilitate the acquisition of multi-family properties, and is secured by the cash available in certain cash accounts maintained by the Company at Valley National Bank. The facility matures April 2021 and bears an adjustable interest rate of 50 basis points over the prime rate, with a floor 5%. The interest rate in effect as of June 30, 2019, is 6%. There is an unused facility fee of 0.25% per annum on the difference between the outstanding loan balance and maximum amount then available under the facility.

On May 2, 2019, the Company borrowed $9,000,000 on the facility in connection with the acquisition of the Trussville, AL property. On July 11, 2019, the Company repaid the outstanding balance. Interest expense for the three and six months ended June 30, 2019, which includes amortization of deferred costs, was $96,000.

Junior Subordinated Notes

At June 30, 2019 and December 31, 2018, the Company's junior subordinated notes had an outstanding principal balance of $37,400,000, before deferred financing costs of $347,000 and $357,000, respectively. At June 30, 2019, the interest rate on the outstanding balance is three month LIBOR + 2.00% or 4.58%.

The junior subordinated notes require interest only payments through the maturity date of April 30, 2036, at which time repayment of the outstanding principal and unpaid interest become due. Interest expense for the three months ended June 30, 2019 and 2018, which includes amortization of deferred costs, was $439,000 and $386,000, respectively, and for the six months ended June 30, 2019 and 2018 was $888,000 and $738,000, respectively.

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Related Party Transactions

6 Months Ended

Jun. 30, 2019

Related Party Transactions [Abstract]

Related Party Transactions

Related Party Transactions

The Company has retained certain of its executive officers and Fredric H. Gould, a director, to provide, among other things, the following services: participating in the Company's multi-family property analysis and approval process (which includes service on an investment committee), providing investment advice, long-term planning and consulting with executives and employees with respect to other business matters, as required. The aggregate fees incurred and paid for these services in the three months ended June 30, 2019 and 2018 were $333,000 and $317,000, respectively, and for the six months ended June 30, 2019 and 2018 were $666,000 and $634,000, respectively.

Management of certain properties owned by the Company and certain joint venture properties is provided by Majestic Property Management Corp. ("Majestic Property"), a company wholly owned by Fredric H. Gould. Certain of the Company's officers and directors are also officers and directors of Majestic Property. Majestic Property may also provide real estate brokerage and construction supervision services to these properties. These fees amounted to $8,000 and $6,000 for the three months ended June 30, 2019 and 2018, respectively, and for the six months ended June 30, 2019 and 2018 were $16,000 and $16,000, respectively.

The Company shares facilities, personnel and other resources with One Liberty Properties, Inc., Majestic Property, and Gould Investors L.P. Certain of the Company's executive officers and/or directors also serve in management positions, and have ownership interests, in One Liberty, Majestic Property and/or Georgetown Partners Inc., the managing general partner of Gould Investors L.P. The allocation of expenses for the facilities, personnel and other resources shared by the Company, One Liberty, Majestic Property and Gould Investors is computed in accordance with a shared services agreement by and among the Company and these entities and is included in general and administrative expense on the consolidated statements of operations. For the three months ended June 30, 2019 and 2018, net allocated general and administrative expenses reimbursed by the Company to Gould Investors L.P. pursuant to the shared services agreement aggregated $155,000 and $160,000, respectively, and for the six months ended June 30, 2019 and 2018 were $297,000 and $307,000, respectively.

Management of many of the Company's multi-family properties (including three multi-family properties owned by two unconsolidated joint ventures) is performed by the Company's joint venture partners or their affiliates. None of these joint venture partners is Gould Investors L.P., Majestic Property or their affiliates. Management fees to these joint venture partners or their affiliates for the three months ended June 30, 2019 and 2018 were $1,090,000 and $926,000, and $2,113,000 and $1,834,000 for the six months ended June 30, 2019 and 2018, respectively. In addition, the Company may pay an acquisition fee to a joint venture partner in connection with a property purchased by such joint venture. Capitalized acquisition fees paid to these related parties for the three months ended June 30, 2019 and 2018 were $430,000 and $513,000, respectively, and for the six months ended June 30, 2019 and 2018 were $851,000 and $1,813,000, respectively.

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Fair Value of Financial Instruments

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

Fair Value of Financial Instruments

Financial Instruments Not Carried at Fair Value

The following methods and assumptions were used to estimate the fair value of each class of financial instruments that are not recorded at fair value on the consolidated balance sheets:

Cash and cash equivalents, restricted cash, accounts receivable (included in other assets), accounts payable and accrued liabilities: The carrying amounts reported in the balance sheets for these instruments approximate their fair value due to the short term nature of these accounts.

Junior subordinated notes: At June 30, 2019 and December 31, 2018, the estimated fair value of the notes is lower than their carrying value by approximately $10,324,000 and $11,974,000, respectively, based on a market interest rate of 6.90% and 7.79%, respectively.

Credit facility: At June 30, 2019, the estimated fair value of the credit facility is equal to its carrying value.

Mortgages payable: At June 30, 2019, the estimated fair value of the Company’s mortgages payable is lower than their carrying value by approximately $11,932,000, assuming market interest rates between 3.25% and 4.86% and at December 31, 2018, the estimated fair value of the Company's mortgages payable was lower than their carrying value by approximately $19,334,000 assuming market interest rates between 3.94% and 5.61%. Market interest rates were determined using rates which the Company believes reflects institutional lender yield requirements at the balance sheet dates.

Considerable judgment is necessary to interpret market data and develop estimated fair value. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value assumptions.

Financial Instruments Carried at Fair Value

The Company’s fair value measurements are based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, there is a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other “observable” market inputs, and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs. The Company does not currently own any financial instruments that are classified as Level 3. Set forth below is information regarding the Company’s financial assets and liabilities measured at fair value as of June 30, 2019 (dollars in thousands):

	Carrying and Fair Value		Fair Value Measurements Using Fair Value Hierarchy
			Level 1	Level 2
Financial Assets:
Interest rate swaps	$	225	—	$	225
Interest rate caps	—		—	—
Total Financial Assets	$	225	—	$	225
Financial Liabilities:
Interest rate swap	$	13	—	$	13

Derivative financial instruments: Fair values are approximated using widely accepted valuation techniques including discounted cash flow analysis on the expected cash flows of the derivatives. This analysis reflects the contractual terms of the derivatives, including the period to maturity, and uses observable market-based inputs, including interest rate curves, foreign exchange rates, and implied volatilities. At June 30, 2019, these derivatives are included in other assets on the consolidated balance sheet.

Although the Company has determined that the majority of the inputs used to value its derivatives fall within Level 2 of the fair value hierarchy, the credit valuation adjustments associated with them utilize Level 3 inputs, such as estimates of current credit spreads to evaluate the likelihood of default by itself and its counterparties. As of June 30, 2019, the Company assessed the significance of the impact of the credit valuation adjustments on the overall valuation of its derivative position and determined that the credit valuation adjustments are not significant to the overall valuation of its derivatives. As a result, the Company determined that its derivatives valuation is classified in Level 2 of the fair value hierarchy.

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

Cash Flow Hedges of Interest Rate Risk

The Company's objective in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount.

The changes in the fair value of derivatives designated and that qualify as cash flow hedges is recorded in Accumulated Other Comprehensive Income and is subsequently reclassified into earnings in the period that the hedged forecasted transaction affects earnings.

As of June 30, 2019, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands):

Interest Rate Derivative	Current Notional Amount		Fixed Rate		Maturity
Interest rate swap	$	1,234	5.25	%	April 1, 2022
Interest rate swap	25,794		3.61	%	May 6, 2023
Interest rate swap	27,000		4.05	%	September 19, 2026

Non-designated Derivatives

Derivatives not designated as hedges are not speculative and are used to manage the Company's exposure to interest rate movements and other identified risks but do not meet the hedge accounting requirements. Changes in the fair value of derivatives not designated in hedging relationships are recorded directly in earnings. As a result of two mortgage refinancings of adjustable rate loans to fixed rate loans, at June 30, 2019, the Company had two interest rate caps with a notional value of $38,200,000 that were not designated as hedges in a qualifying hedge relationship. At June 30, 2019, these derivatives had no value.

The table below presents the fair value of the Company’s derivative financial instruments as well as its classification on the consolidated balance sheets as of the dates indicated (dollars in thousands):

Derivatives as of:
June 30, 2019			December 31, 2018
Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Other Assets	$	225	Other Assets	$	3,793
Accounts payable and accrued liabilities	$	13	Accounts payable and accrued liabilities	$	—

The following table presents the effect of the Company’s interest rate swaps on the consolidated statements of comprehensive (loss) income for the dates indicated (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Amount of gain (loss) recognized on derivative in Other Comprehensive Income	$	(1,234)	$	444	$	(1,978)	$	1,576
Amount of gain (loss) reclassified from Accumulated Other Comprehensive Income into Interest expense	$	108	$	46	$	226	$	46
Total amount of Interest expense presented in the Consolidated Statement of Operations	$	9,739	$	8,786	$	18,508	$	17,443

The Company estimates an additional $135,000 will be reclassified from other comprehensive loss as a decrease to interest expense over the next twelve months.

Credit-risk-related Contingent Features

The agreement between the Company and its derivative counterparties provides that if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, the Company could be declared in default on its derivative obligations.

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New Accounting Pronouncements

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

New Accounting Pronouncements

New Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which prescribes a single, common revenue standard that supersedes nearly all existing revenue recognition guidance under U.S. GAAP, including most industry-specific requirements. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 outlines a five step model to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein. The Company's revenues are primarily derived from rental income, which is scoped out from this standard and is currently accounted for in accordance with ASC Topic 840, Leases. The Company adopted this standard effective October 1, 2018, using the modified retrospective approach, applying the provisions to open contracts as of the date of adoption. Certain revenues, such as tenant reimbursements, tenant fees, and other property income, are subject to the new guidance. The adoption of the new revenue recognition standard did not have a material impact on the consolidated financial statements and no cumulative effect adjustment was recorded upon adoption as there was no change in the amount or timing of revenue recognized.

In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 supersedes the current accounting for leases and while retaining two distinct types of leases, finance and operating, and requires lessees to recognize most leases on their balance sheets and makes targeted changes to lessor accounting. Further, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This amendment provides a new practical expedient that allows lessors, by class of underlying asset, to avoid separating lease and associated non-lease components within a contract if the following criteria are met: (i) the timing and pattern of transfer for the non-lease component and the associated lease component are the same, and (ii) the stand-alone lease component would be classified as an operating lease if accounted for separately. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company adopted this standard effective January 1, 2019, and its adoption did not have a material effect on the consolidated financial statements. As a lessor, the adoption of ASU 2016-02 (as amended by subsequent ASUs) did not change the timing of revenue recognition of the Company’s rental revenues. As a lessee, the Company is party to a ground lease, and an operating lease with future payment obligations for which the Company recorded right-of-use assets and lease liabilities at the present value of the remaining minimum rental payments upon adoption of this standard.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides specific guidance on eight cash flow classification issues and how to reduce diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company adopted this standard effective October 1, 2018, using the “cumulative earnings approach” whereby distributions received from equity method investments are classified as cash flows from operations to the extent of equity earnings and then as cash flows from investing activities thereafter. The adoption of this guidance did not have a material effect on the consolidated financial statements.

In November 2016, the FASB issued ASU Update No. 2016-018, Statement of Cash Flows (Topic 230): Restricted

Cash. The new standard requires that the statement of cash flows explain the change during the period in the combined total of

cash, cash equivalents, and amounts generally described as restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose relevant information about the nature of the restrictions on the basis of their individual facts and circumstances. The Company adopted this standard effective October 1, 2018 using the retrospective approach. The adoption of this update did not have a material effect on the consolidated financial statements.

In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of

Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which amends the guidance on nonfinancial assets in ASC 610-20. The amendments clarify that (i) a financial asset is within the scope of ASC 610-20 if it meets the definition of an in substance nonfinancial asset and may include nonfinancial assets transferred within a legal entity to a counter-party, (ii) an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counter-party and de-recognize each asset when a counter-party obtains control of it, and (iii) an entity should allocate consideration to each distinct asset by applying the guidance in ASC 606 on allocating the transaction price to performance obligations. Further, ASU 2017-05 provides guidance on accounting for partial sales of nonfinancial assets. The amendments are effective at the same time as the amendments in ASU 2014-09. The Company adopted this standard effective October 1, 2018. The adoption of this guidance did not have a material effect on the consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The update better aligns a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company adopted this standard effective January 1, 2019. The adoption of this guidance did not have a material effect on the consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to

Nonemployee Share-Based Payment Accounting. This update provides specific guidance for transactions for acquiring goods

and services from nonemployees and specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (i) financing to the issuer or (ii) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC Topic 606, Revenue from Contracts with Customers. This guidance is effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. Early adoption is permitted but not earlier than the adoption of ASC Topic 606. The Company does not believe that this guidance will have a material effect on its consolidated financial statements as it has not historically issued share-based payments in exchange for goods or services to be consumed within its operations.

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which removes, modifies, and adds certain disclosure requirements related to fair value measurements in ASC Topic 820. This guidance is effective for public companies in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.

In October 2018, the FASB issued ASU 2018-16, (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) as a Benchmark Interest Rate for Hedging Purposes. The amendments in this update permit the OIS rate based on SOFR as an eligible benchmark interest rate. The amendments in this update are effective for fiscal years beginning after December 15, 2018. The Company adopted this guidance on January 1, 2019. The Company does not believe this guidance will have a material effect on its consolidated financial statements.

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Subsequent Events	6 Months Ended
	Jun. 30, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent EventsSubsequent events have been evaluated and any significant events, relative to our consolidated financial statements as of June 30, 2019, that warrant additional disclosure, have been included in the notes to the consolidated financial statements.

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Basis of Preparation (Policies)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Preparation

The accompanying interim unaudited consolidated financial statements as of June 30, 2019, and for the three and six months ended June 30, 2019 and 2018, reflect all normal recurring adjustments which, in the opinion of management, are necessary for a fair presentation of the results for such interim periods. The results of operations for the three and six months ended June 30, 2019 and 2018, are not necessarily indicative of the results for the full year. The consolidated unaudited balance sheet as of December 31, 2018, has been derived from the unaudited financial statements at that date but does not include all the information and footnotes required by accounting principles generally accepted in the United States ("GAAP"). Accordingly, these unaudited statements should be read in conjunction with the Company's audited financial statements included in its Annual Report on Form 10-K for the year ended September 30, 2018, filed with the Securities and Exchange Commission ("SEC") on December 10, 2018, for complete financial statements.

Consolidated Financial Statements and Variable Interest Entities

The consolidated financial statements include the accounts and operations of the Company, its wholly owned subsidiaries, and its majority owned or controlled real estate entities and its interests in variable interest entities ("VIEs") in which the Company is determined to be the primary beneficiary. Material intercompany balances and transactions have been eliminated.

The Company’s consolidated joint ventures that own multi-family properties, except as set forth in the following paragraph, were determined to be VIEs because the voting rights of some equity investors in the applicable joint venture entity are not proportional to their obligations to absorb the expected losses of the entity and their right to receive the expected residual returns. It was determined that the Company is the primary beneficiary of these joint ventures because it has a controlling interest in that it has the power to direct the activities of the VIE that most significantly impact the entity's economic performance and it has the obligation to absorb losses of the entity and the right to receive benefits that could potentially be significant to the VIE.

The joint ventures that own properties in Ocoee, FL, Lawrenceville, GA, Dallas, TX, Farmers Branch, TX and Grand Prairie, TX were determined not to be a VIEs but are consolidated because the Company has controlling rights in such entities.

With respect to its unconsolidated joint ventures, as (i) the Company is generally the managing member but does not exercise substantial operating control over these entities or the Company is not the managing member and (ii) such entities are not VIEs, the Company has determined that such joint ventures should be accounted for under the equity method of accounting for financial statement purposes.

The distributions to each joint venture partner are determined pursuant to the applicable operating agreement and may not be pro-rata to the percentage equity interest each partner has in the applicable venture.

Use of Estimates

The preparation of the financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. Actual results could differ from those estimates. Substantially all of the Company's assets are comprised of multi- family real estate assets generally leased to tenants on a one-year basis. Therefore, the Company aggregates real estate assets for reporting purposes and operates in one reportable segment.

Financial Instruments Carried at Fair Value

Financial Instruments Carried at Fair Value The Company’s fair value measurements are based on the assumptions that market participants would use in pricing the asset or liability. As a basis for considering market participant assumptions in fair value measurements, there is a fair value hierarchy that distinguishes between market participant assumptions based on market data obtained from sources independent of the reporting entity and the reporting entity’s own assumptions about market participant assumptions. Level 1 assets/liabilities are valued based on quoted prices for identical instruments in active markets, Level 2 assets/liabilities are valued based on quoted prices in active markets for similar instruments, on quoted prices in less active or inactive markets, or on other “observable” market inputs, and Level 3 assets/liabilities are valued based significantly on “unobservable” market inputs.

New Accounting Pronouncements

New Accounting Pronouncements

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (ASU 2014-09), which prescribes a single, common revenue standard that supersedes nearly all existing revenue recognition guidance under U.S. GAAP, including most industry-specific requirements. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration to which an entity expects to be entitled for those goods or services. ASU 2014-09 outlines a five step model to achieve this core principle and, in doing so, more judgment and estimates may be required within the revenue recognition process than are required under existing U.S. GAAP. The standard is effective for annual periods beginning after December 15, 2017, and interim periods therein. The Company's revenues are primarily derived from rental income, which is scoped out from this standard and is currently accounted for in accordance with ASC Topic 840, Leases. The Company adopted this standard effective October 1, 2018, using the modified retrospective approach, applying the provisions to open contracts as of the date of adoption. Certain revenues, such as tenant reimbursements, tenant fees, and other property income, are subject to the new guidance. The adoption of the new revenue recognition standard did not have a material impact on the consolidated financial statements and no cumulative effect adjustment was recorded upon adoption as there was no change in the amount or timing of revenue recognized.

In February 2016, the FASB issued ASU 2016-02, Leases. ASU 2016-02 supersedes the current accounting for leases and while retaining two distinct types of leases, finance and operating, and requires lessees to recognize most leases on their balance sheets and makes targeted changes to lessor accounting. Further, in July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements. This amendment provides a new practical expedient that allows lessors, by class of underlying asset, to avoid separating lease and associated non-lease components within a contract if the following criteria are met: (i) the timing and pattern of transfer for the non-lease component and the associated lease component are the same, and (ii) the stand-alone lease component would be classified as an operating lease if accounted for separately. ASU 2016-02 is effective for fiscal years beginning after December 15, 2018 and early adoption is permitted. The Company adopted this standard effective January 1, 2019, and its adoption did not have a material effect on the consolidated financial statements. As a lessor, the adoption of ASU 2016-02 (as amended by subsequent ASUs) did not change the timing of revenue recognition of the Company’s rental revenues. As a lessee, the Company is party to a ground lease, and an operating lease with future payment obligations for which the Company recorded right-of-use assets and lease liabilities at the present value of the remaining minimum rental payments upon adoption of this standard.

In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides specific guidance on eight cash flow classification issues and how to reduce diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The effective date of the standard will be fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company adopted this standard effective October 1, 2018, using the “cumulative earnings approach” whereby distributions received from equity method investments are classified as cash flows from operations to the extent of equity earnings and then as cash flows from investing activities thereafter. The adoption of this guidance did not have a material effect on the consolidated financial statements.

In November 2016, the FASB issued ASU Update No. 2016-018, Statement of Cash Flows (Topic 230): Restricted

Cash. The new standard requires that the statement of cash flows explain the change during the period in the combined total of

cash, cash equivalents, and amounts generally described as restricted cash equivalents. Entities will also be required to reconcile such total to amounts on the balance sheet and disclose relevant information about the nature of the restrictions on the basis of their individual facts and circumstances. The Company adopted this standard effective October 1, 2018 using the retrospective approach. The adoption of this update did not have a material effect on the consolidated financial statements.

In February 2017, the FASB issued ASU 2017-05, Other Income—Gains and Losses from the Derecognition of

Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets, which amends the guidance on nonfinancial assets in ASC 610-20. The amendments clarify that (i) a financial asset is within the scope of ASC 610-20 if it meets the definition of an in substance nonfinancial asset and may include nonfinancial assets transferred within a legal entity to a counter-party, (ii) an entity should identify each distinct nonfinancial asset or in substance nonfinancial asset promised to a counter-party and de-recognize each asset when a counter-party obtains control of it, and (iii) an entity should allocate consideration to each distinct asset by applying the guidance in ASC 606 on allocating the transaction price to performance obligations. Further, ASU 2017-05 provides guidance on accounting for partial sales of nonfinancial assets. The amendments are effective at the same time as the amendments in ASU 2014-09. The Company adopted this standard effective October 1, 2018. The adoption of this guidance did not have a material effect on the consolidated financial statements.

In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities. The update better aligns a company’s financial reporting for hedging activities with the economic objectives of those activities. ASU 2017-12 is effective for fiscal years beginning after December 15, 2018, with early adoption, including adoption in an interim period, permitted. The Company adopted this standard effective January 1, 2019. The adoption of this guidance did not have a material effect on the consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation—Stock Compensation (Topic 718): Improvements to

Nonemployee Share-Based Payment Accounting. This update provides specific guidance for transactions for acquiring goods

and services from nonemployees and specifies that Topic 718 applies to all share-based payment transactions in which a grantor acquires goods or services to be used or consumed in a grantor’s own operations by issuing share-based payment awards. The amendments also clarify that Topic 718 does not apply to share-based payments used to effectively provide (i) financing to the issuer or (ii) awards granted in conjunction with selling goods or services to customers as part of a contract accounted for under ASC Topic 606, Revenue from Contracts with Customers. This guidance is effective for fiscal years beginning after December 15, 2019, and interim periods beginning after December 15, 2020. Early adoption is permitted but not earlier than the adoption of ASC Topic 606. The Company does not believe that this guidance will have a material effect on its consolidated financial statements as it has not historically issued share-based payments in exchange for goods or services to be consumed within its operations.

In August 2018, the FASB issued ASU 2018-13, Disclosure Framework — Changes to the Disclosure Requirements for Fair Value Measurement, which removes, modifies, and adds certain disclosure requirements related to fair value measurements in ASC Topic 820. This guidance is effective for public companies in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company is currently evaluating the impact this guidance will have on its consolidated financial statements.

In October 2018, the FASB issued ASU 2018-16, (Topic 815): Inclusion of the Secured Overnight Financing Rate (SOFR) Overnight Index Swap (OIS) as a Benchmark Interest Rate for Hedging Purposes. The amendments in this update permit the OIS rate based on SOFR as an eligible benchmark interest rate. The amendments in this update are effective for fiscal years beginning after December 15, 2018. The Company adopted this guidance on January 1, 2019. The Company does not believe this guidance will have a material effect on its consolidated financial statements.

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Equity (Tables)

6 Months Ended

Jun. 30, 2019

Equity [Abstract]

Schedule of computation of basic and diluted earnings per share

The following table sets forth the computation of basic and diluted earnings per share (dollars in thousands, except share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Numerator for basic and diluted earnings (loss) per share attributable to common stockholders:
Net (loss) income attributable to common stockholders	$	(4,317)	$	(4,689)	(8,564)		20,533
Denominator:
Denominator for basic earnings per share—weighted average number of shares	15,900,316		14,411,940		15,893,443		14,327,477
Effect of diluted securities	—		—		—		200,000
Denominator for diluted earnings per share—adjusted weighted average number of shares and assumed conversions	15,900,316		14,411,940		15,893,443		14,527,477
Basic (loss) earnings per share	$	(0.27)	$	(0.33)	$	(0.54)	$	1.43
Diluted (loss) earnings per share	$	(0.27)	$	(0.33)	$	(0.54)	$	1.41

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Real Estate Properties (Tables)

6 Months Ended

Jun. 30, 2019

Real Estate [Abstract]

Summary of real estate properties owned

Real estate properties, including properties held for sale, consist of the following (dollars in thousands):

	June 30, 2019		December 31, 2018
Land	$	164,838	$	155,573
Building	1,022,194		924,378
Building improvements	46,297		41,003
Real estate properties	1,233,329		1,120,954
Accumulated depreciation	(111,675)		(91,715)
Total real estate properties, net	$	1,121,654	$	1,029,239

A summary of real estate properties owned, including properties held for sale, is as follows (dollars in thousands):

	December 31, 2018 Balance		Additions		Capitalized Costs and Improvements		Depreciation		June 30, 2019 Balance
Multi-family	$	964,320	$	92,170	$	6,837	$	(19,682)	$	1,043,645
Multi-family lease-up - West Nashville, TN	54,555		—		13,372		(227)		67,700
Land - Daytona, FL	8,021		—		—		—		8,021
Shopping centers/Retail - Yonkers, NY	2,343		—		—		(55)		2,288
Total real estate properties	$	1,029,239	$	92,170	$	20,209	$	(19,964)	$	1,121,654

Summary of the allocation of purchase price

The following table summarizes the allocation of the purchase price with respect to two properties purchased during the six months ended June 30, 2019 (dollars in thousands):

	Allocation of Purchase Price
Land	$	6,101
Building and improvements	84,987
Acquisition-related intangible assets	1,082
Total consideration	$	92,170

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Acquisitions and Dispositions (Tables)

6 Months Ended

Jun. 30, 2019

Business Combinations [Abstract]

Schedule of real estate acquisitions

The table below provides information regarding the Company's purchase of multi-family properties during the six months ended June 30, 2019 (dollars in thousands):

Location	Purchase Date	No. of Units	Purchase Price		Acquisition Mortgage Debt		Initial BRT Equity		Ownership Percentage		Capitalized Acquisition Costs
Kannapolis, North Carolina	3/12/2019	312	$	48,065	$	33,347	$	11,231	65	%	$	559
Birmingham, Alabama	5/7/2019	328	43,000		32,250		11,625		80	%	546
		640	$	91,065	$	65,597	$	22,856			$	1,105

The table below provides information regarding the Company's purchases of multi-family properties during the six months ended June 30, 2018 (dollars in thousands):

Location	Purchase Date	No. of Units	Purchase Price		Acquisition Mortgage Debt		Initial BRT Equity		Ownership Percentage		Capitalized Acquisition Costs
Ocoee, FL	2/7/2018	522	$	71,347	$	53,060	$	12,370	50.0	%	$	1,047
Lawrenceville, GA	2/15/2018	586	77,229		54,447		15,179		50.0	%	767
Daytona, FL	4/30/2018	208	20,500		13,608		6,900		80.0	%	386
Grand Prairie, TX	5/17/2018	281	30,800		18,995		7,300		50.0	%	411
		1,597	$	199,876	$	140,110	$	41,749			$	2,611

Schedule of property dispositions

The Company did not dispose of any real estate properties during the six months ended June 30, 2019.

The following table is a summary of the real estate properties disposed of by the Company during the six months ended June 30, 2018 (dollars in thousands):

Location	Sale Date	No. of Units	Sales Price		Gain on Sale		Non-controlling partner's portion of the gain
Palm Beach Gardens, FL	2/5/2018	542	$	97,200	$	41,830	$	20,593
Valley, AL	2/23/2018	618	51,000		9,712		4,547
New York, NY	1/18/2018	1	470		439		—
		1,161	$	148,670	$	51,981	$	25,140

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Variable Interest Entities (Tables)

6 Months Ended

Jun. 30, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of the Consolidated VIEs Carrying Amounts

The following is a summary of the carrying amounts with respect to the consolidated VIEs and their classification on the Company's consolidated balance sheets (dollars in thousands):

	June 30, 2019 (unaudited)		December 31, 2018 (unaudited)
ASSETS
Real estate properties, net of accumulated depreciation of $65,094 and $53,637	$	660,298	$	584,074
Cash and cash equivalents	7,143		5,207
Deposits and escrows	9,250		11,705
Other assets	4,840		6,302
Real estate properties held for sale	22,722		—
Total Assets	$	704,253	$	607,288
LIABILITIES
Mortgages payable, net of deferred costs of $3,957 and $3,786	$	522,707	$	446,779
Accounts payable and accrued liabilities	13,835		11,816
Total Liabilities	$	536,542	$	458,595

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Investment in Unconsolidated Ventures (Tables)

6 Months Ended

Jun. 30, 2019

Equity Method Investments and Joint Ventures [Abstract]

Equity Method Investments

The table below provides information regarding these joint ventures at June 30, 2019 (dollars in thousands):

Location	Number of Units	Carrying Value of Investment		Mortgage Balance		Percent Ownership
Columbia, SC	374	$	4,426	$	39,847	32	%
Columbia, SC (a)	339	7,786		40,679		46	%
Forney, TX (b)	313	6,189		25,350		50	%
Other investments	N/A	73		N/A		N/A
	1,026	$	18,474	$	105,876

________________________

(a) Property is currently in lease-up. Construction financing for this project of up to $42,019 has been secured. Such financing bears interest at 4.95% and matures in June 2020.

(b) This interest is held through a tenancy-in-common.

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Debt Obligations (Tables)

6 Months Ended

Jun. 30, 2019

Debt Disclosure [Abstract]

Schedule of debt obligations

Debt obligations consist of the following (dollars in thousands):

	June 30, 2019		December 31, 2018
Mortgages payable	$	852,857	$	778,106
Junior subordinated notes	37,400		37,400
Credit facility	9,000		—
Deferred financing costs	(6,872)		(6,646)
Total debt obligations, net of deferred costs	$	892,385	$	808,860

Schedule of debt information

During the six months ended June 30, 2019, the Company obtained the following mortgage debt in connection with the related property (dollars in thousands):

Location	Closing Date	Acquisition Mortgage Debt		Interest Rate		Interest only period	Maturity Date
Kannapolis, NC	3/12/19	$	33,347	3.52	%	—	3/1/2052
Birmingham, AL	5/7/19	32,250		4.19	%	72 months	6/1/2029
		$	65,597

The Company has a construction loan financing a project with 402 units, of which 164 units are in development and 238 units are in lease-up. Information regarding this loan at June 30, 2019 is set forth below (dollars in thousand):

Location	Closing Date	Maximum Loan Amount		Amount outstanding		Interest Rate	Maturity Date	Extension Option
Nashville,TN	6/2/2017	$	47,426	$	41,580	30 day LIBOR + 2.85%	6/2/2022	N/A

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Fair Value of Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Fair Value Disclosures [Abstract]

Schedule of financial assets measured at fair value

Set forth below is information regarding the Company’s financial assets and liabilities measured at fair value as of June 30, 2019 (dollars in thousands):

	Carrying and Fair Value		Fair Value Measurements Using Fair Value Hierarchy
			Level 1	Level 2
Financial Assets:
Interest rate swaps	$	225	—	$	225
Interest rate caps	—		—	—
Total Financial Assets	$	225	—	$	225
Financial Liabilities:
Interest rate swap	$	13	—	$	13

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2019

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of outstanding interest rate derivatives

As of June 30, 2019, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk (dollars in thousands):

Interest Rate Derivative	Current Notional Amount		Fixed Rate		Maturity
Interest rate swap	$	1,234	5.25	%	April 1, 2022
Interest rate swap	25,794		3.61	%	May 6, 2023
Interest rate swap	27,000		4.05	%	September 19, 2026

Schedule of fair value of derivative financial instruments and classification on consolidated balance sheets

The table below presents the fair value of the Company’s derivative financial instruments as well as its classification on the consolidated balance sheets as of the dates indicated (dollars in thousands):

Derivatives as of:
June 30, 2019			December 31, 2018
Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Other Assets	$	225	Other Assets	$	3,793
Accounts payable and accrued liabilities	$	13	Accounts payable and accrued liabilities	$	—

Schedule of effect of derivative financial instrument on consolidated statements of comprehensive (loss) income

The following table presents the effect of the Company’s interest rate swaps on the consolidated statements of comprehensive (loss) income for the dates indicated (dollars in thousands):

	Three Months Ended June 30,				Six Months Ended June 30,
	2019		2018		2019		2018
Amount of gain (loss) recognized on derivative in Other Comprehensive Income	$	(1,234)	$	444	$	(1,978)	$	1,576
Amount of gain (loss) reclassified from Accumulated Other Comprehensive Income into Interest expense	$	108	$	46	$	226	$	46
Total amount of Interest expense presented in the Consolidated Statement of Operations	$	9,739	$	8,786	$	18,508	$	17,443

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Organization and Background - Narrative (Details) $ in Thousands	Jun. 30, 2019 USD ($) property investment property_Unit state	Dec. 31, 2018 USD ($)
Real Estate Properties [Line Items]
Number of properties | property	37
Number of units | property_Unit	10,336
Number of units under development | property_Unit	402
Number of states | state	12
Real estate properties | $	$ 1,098,932	$ 1,029,239
Investments in unconsolidated joint ventures | $	$ 18,474	$ 19,758
Unconsolidated joint ventures
Real Estate Properties [Line Items]
Number of properties | property	1,026
Number of units | property_Unit	1,026
Number of states | state	2
Number of investments | investment	3
Number of units in properties in lease up stage | property_Unit	339
Investments in unconsolidated joint ventures | $	$ 18,402
Apartment Building
Real Estate Properties [Line Items]
Real estate properties | $	$ 1,111,344

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Equity - Narrative (Details) - USD ($)		1 Months Ended		3 Months Ended		6 Months Ended		18 Months Ended
	Jul. 09, 2019	Jan. 31, 2019	Jun. 30, 2016	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Dec. 31, 2018	Jan. 31, 2018	Sep. 05, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares repurchased (in shares)				3,590,000
Repurchases of common stock						$ 46,000	$ 0
Effect of diluted securities (in shares)				0	0	0	200,000
Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends declared per share (in dollars per share)	$ 0.20
New Share Repurchase Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Beneficial interest purchased authorized amount											$ 5,000,000
Shares repurchased (in shares)				3,590	0	3,590	0
Average market price of shares repurchased (in dollars per share)				$ 12.80		$ 12.80
Repurchases of common stock				$ 46,000		$ 46,000
Remaining under repurchase plan				4,793,000		4,793,000		$ 4,793,000
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense				36,000	$ 73,000	71,000	$ 146,000
Deferred unearned compensation				248,000		248,000		248,000	$ 319,000
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense				337,000	$ 287,000	667,000	$ 511,000
Deferred unearned compensation				$ 4,011,000		$ 4,011,000		$ 4,011,000	$ 2,735,000
Remaining weighted average vesting period						2 years 7 months 6 days
Incentive Plan 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)				600,000		600,000		600,000
Incentive Plan 2018 | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issued (in shares)		156,399
Shares outstanding (in shares)				725,296		725,296		725,296
Incentive Plan 2016 | Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Issued (in shares)			450,000
Vesting period for shares issued						5 years
Incentive Plan 2016 | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period for shares issued		5 years
Prior Plan | Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of additional awards available for grant (in shares)				0		0		0
At-the-market
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock issued in offering										$ 30,000,000
Shares sold in offering (in shares)				0				1,590,935
Aggregate sales price								$ 20,913,000
Payments for commissions								424,000
Payments of offering related expenses								$ 78,000

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Equity - Schedule of Computation of Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Numerator for basic and diluted earnings (loss) per share attributable to common stockholders:
Net (loss) income attributable to common stockholders	$ (4,317)	$ (4,689)	$ (8,564)	$ 20,533
Denominator:
Denominator for basic earnings per share—weighted average number of shares (in shares)	15,900,316	14,411,940	15,893,443	14,327,477
Effect of diluted securities (in shares)	0	0	0	200,000
Denominator for diluted earnings per share—adjusted weighted average number of shares and assumed conversions (in shares)	15,900,316	14,411,940	15,893,443	14,527,477
Basic (loss) earnings per share (in dollars per share)	$ (0.27)	$ (0.33)	$ (0.54)	$ 1.43
Diluted (loss) earnings per share (in dollars per share)	$ (0.27)	$ (0.33)	$ (0.54)	$ 1.41

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Real Estate Properties - Schedule of Real Estate Properties (Including Properties Held For Sale) (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Real Estate [Abstract]
Land	$ 164,838	$ 155,573
Building	1,022,194	924,378
Building improvements	46,297	41,003
Real estate properties	1,233,329	1,120,954
Accumulated depreciation	(111,675)	(91,715)
Total real estate properties, net	$ 1,121,654	$ 1,029,239

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Real Estate Properties - Summary of Real Estate Properties Owned (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($)
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Real estate properties, beginning balance	$ 1,029,239
Additions	92,170
Capitalized Costs and Improvements	20,209
Depreciation	(19,964)
Real estate properties, ending balance	1,121,654
Apartment Building
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Real estate properties, beginning balance	964,320
Additions	92,170
Capitalized Costs and Improvements	6,837
Depreciation	(19,682)
Real estate properties, ending balance	1,043,645
Apartment Building | West Nashville, TN
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Real estate properties, beginning balance	54,555
Additions	0
Capitalized Costs and Improvements	13,372
Depreciation	(227)
Real estate properties, ending balance	67,700
Land - Daytona, FL | Daytona, FL
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Real estate properties, beginning balance	8,021
Additions	0
Capitalized Costs and Improvements	0
Depreciation	0
Real estate properties, ending balance	8,021
Shopping centers/Retail - Yonkers, NY | RBHTRB Newark Holdings LLC | Yonkers, NY | VIE
Reconciliation of Carrying Amount of Real Estate Investments [Roll Forward]
Real estate properties, beginning balance	2,343
Additions	0
Capitalized Costs and Improvements	0
Depreciation	(55)
Real estate properties, ending balance	$ 2,288

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Real Estate Properties - Allocation of Purchase Price (Details) $ in Thousands	Jun. 30, 2019 USD ($) property
Business Acquisition [Line Items]
Number of properties | property	37
Property Purchased During Period
Business Acquisition [Line Items]
Number of properties | property	2
Acquisition-related intangibles	$ 1,082
Total consideration	92,170
Property Purchased During Period | Land
Business Acquisition [Line Items]
Real estate property	6,101
Property Purchased During Period | Buildings and Improvements
Business Acquisition [Line Items]
Real estate property	$ 84,987

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Acquisitions and Dispositions - Property Acquisitions (Details)	6 Months Ended
	Jun. 30, 2019 USD ($) property property_Unit	Jun. 30, 2018 USD ($) property
Real Estate Properties [Line Items]
No. of Units | property_Unit	10,336
Acquisition Mortgage Debt	$ 65,597,000
Initial BRT Equity	$ 11,231,000	$ 12,370,000
Corporate Joint Venture | VIE | Apartment Building | Property Acquisition
Real Estate Properties [Line Items]
No. of Units | property	640	1,597
Purchase Price	$ 91,065,000	$ 199,876,000
Initial BRT Equity	22,856,000	41,749,000
Capitalized Acquisition Costs	$ 1,105,000	$ 2,611,000
Corporate Joint Venture | VIE | Kannapolis, North Carolina | Apartment Building | Property Acquisition
Real Estate Properties [Line Items]
No. of Units | property	312
Purchase Price	$ 48,065,000
Initial BRT Equity	$ 11,231,000
Ownership Percentage	65.00%
Capitalized Acquisition Costs	$ 559,000
Corporate Joint Venture | VIE | Birmingham, Alabama | Apartment Building | Property Acquisition
Real Estate Properties [Line Items]
No. of Units | property	328
Purchase Price	$ 43,000,000
Initial BRT Equity	$ 11,625,000
Ownership Percentage	80.00%
Capitalized Acquisition Costs	$ 546,000
Corporate Joint Venture | VIE | Ocoee, FL | Apartment Building | Property Acquisition
Real Estate Properties [Line Items]
No. of Units | property		522
Purchase Price		$ 71,347,000
Initial BRT Equity		$ 12,370,000
Ownership Percentage		50.00%
Capitalized Acquisition Costs		$ 1,047,000
Corporate Joint Venture | VIE | Lawrenceville, GA | Apartment Building | Property Acquisition
Real Estate Properties [Line Items]
No. of Units | property		586
Purchase Price		$ 77,229,000
Initial BRT Equity		$ 15,179,000
Ownership Percentage		50.00%
Capitalized Acquisition Costs		$ 767,000
Corporate Joint Venture | VIE | Daytona, FL | Apartment Building | Property Acquisition
Real Estate Properties [Line Items]
No. of Units | property		208
Purchase Price		$ 20,500,000
Initial BRT Equity		$ 6,900,000
Ownership Percentage		80.00%
Capitalized Acquisition Costs		$ 386,000
Corporate Joint Venture | VIE | Grand Prairie, TX | Apartment Building | Property Acquisition
Real Estate Properties [Line Items]
No. of Units | property		281
Purchase Price		$ 30,800,000
Initial BRT Equity		$ 7,300,000
Ownership Percentage		50.00%
Capitalized Acquisition Costs		$ 411,000
Acquisition Mortgages Debt | Corporate Joint Venture | VIE | Apartment Building | Property Acquisition
Real Estate Properties [Line Items]
Acquisition Mortgage Debt	65,597,000	140,110,000
Acquisition Mortgages Debt | Corporate Joint Venture | VIE | Kannapolis, North Carolina | Apartment Building | Property Acquisition
Real Estate Properties [Line Items]
Acquisition Mortgage Debt	33,347,000
Acquisition Mortgages Debt | Corporate Joint Venture | VIE | Birmingham, Alabama | Apartment Building | Property Acquisition
Real Estate Properties [Line Items]
Acquisition Mortgage Debt	$ 32,250,000
Acquisition Mortgages Debt | Corporate Joint Venture | VIE | Ocoee, FL | Apartment Building | Property Acquisition
Real Estate Properties [Line Items]
Acquisition Mortgage Debt		53,060,000
Acquisition Mortgages Debt | Corporate Joint Venture | VIE | Lawrenceville, GA | Apartment Building | Property Acquisition
Real Estate Properties [Line Items]
Acquisition Mortgage Debt		54,447,000
Acquisition Mortgages Debt | Corporate Joint Venture | VIE | Daytona, FL | Apartment Building | Property Acquisition
Real Estate Properties [Line Items]
Acquisition Mortgage Debt		13,608,000
Acquisition Mortgages Debt | Corporate Joint Venture | VIE | Grand Prairie, TX | Apartment Building | Property Acquisition
Real Estate Properties [Line Items]
Acquisition Mortgage Debt		$ 18,995,000

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Acquisitions and Dispositions - Property Dispositions (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2018 USD ($) property	Jun. 30, 2019 property_Unit
Business Acquisition [Line Items]
No. of Units | property_Unit		10,336
Property dispositions
Business Acquisition [Line Items]
No. of Units | property	1,161
Sales Price	$ 148,670
Gain on Sale	51,981
Non-controlling partner's portion of the gain	$ 25,140
Property dispositions | Palm Beach Gardens, FL
Business Acquisition [Line Items]
No. of Units | property	542
Sales Price	$ 97,200
Gain on Sale	41,830
Non-controlling partner's portion of the gain	$ 20,593
Property dispositions | Valley, AL
Business Acquisition [Line Items]
No. of Units | property	618
Sales Price	$ 51,000
Gain on Sale	9,712
Non-controlling partner's portion of the gain	$ 4,547
Property dispositions | New York, NY
Business Acquisition [Line Items]
No. of Units | property	1
Sales Price	$ 470
Gain on Sale	439
Non-controlling partner's portion of the gain	$ 0

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Acquisitions and Dispositions - Additional Information (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018
Business Combinations [Abstract]
Impairment charges	$ 0	$ 0	$ 0	$ 0

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Variable Interest Entities (Details) - USD ($) $ in Thousands		Jun. 30, 2019	Dec. 31, 2018
ASSETS
Real estate properties, net of accumulated depreciation of $65,094 and $53,637		$ 1,098,932	$ 1,029,239
Cash and cash equivalents		17,336	32,428
Deposits and escrows		17,103	21,268
Other assets		8,929	8,084
Real estate property held for sale		22,722	0
Total Assets	[1]	1,197,908	1,123,707
Liabilities:
Mortgages payable, net of deferred costs of $3,957 and $3,786		846,409	771,817
Accounts payable and accrued liabilities		28,738	24,487
Total Liabilities	[1]	921,123	833,347
Real estate accumulated depreciation		107,587	91,715
Deferred mortgage costs		6,872	6,646
Variable interest entity
ASSETS
Real estate properties, net of accumulated depreciation of $65,094 and $53,637		660,226	584,074
Cash and cash equivalents		7,143	5,207
Deposits and escrows		9,250	11,705
Other assets		4,840	6,302
Real estate property held for sale		22,722	0
Total Assets		704,253	607,288
Liabilities:
Mortgages payable, net of deferred costs of $3,957 and $3,786		522,707	446,779
Accounts payable and accrued liabilities		13,835	11,816
Total Liabilities		536,542	458,595
Real estate accumulated depreciation		65,094	53,637
Mortgages
Liabilities:
Deferred mortgage costs		6,448	6,289
Mortgages | Variable interest entity
Liabilities:
Deferred mortgage costs		$ 3,957	$ 3,786

[1] The Company's consolidated balance sheets include the assets and liabilities of consolidated variable interest entities (VIEs). See note 6. The consolidated balance sheets include the following amounts related to the Company's VIEs as of June 30, 2019 and December 31, 2018, respectively: $660,226 and $584,074 of real estate properties; $7,143 and $5,207 of cash and cash equivalents; $9,250 and $11,705 of deposits and escrows; $4,840 and $6,302 of other assets; $22,722 and $0 of real estate property held for sale; $522,707 and $446,779 of mortgages payable, net of deferred costs; and $13,835 and $11,816 of accounts payable and accrued liabilities.

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Real Estate Properties Held for Sale (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Discontinued Operations and Disposal Groups [Abstract]
Carrying value of properties held for sale	$ 22,722

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Investment in Unconsolidated Ventures (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019 USD ($) property	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) property	Jun. 30, 2018 USD ($)
Schedule of Equity Method Investments [Line Items]
Number of Units | property	37		37
Equity in loss of unconsolidated joint ventures	$ 161	$ 127	$ 384	$ 190
Other investments
Schedule of Equity Method Investments [Line Items]
Carrying Value of Investment			$ 73
Unconsolidated joint ventures
Schedule of Equity Method Investments [Line Items]
Number of Units | property	1,026		1,026
Carrying Value of Investment			$ 18,474
Mortgage Balance	$ 105,876		$ 105,876
Columbia, SC | Joint venture, thirty two percent ownership
Schedule of Equity Method Investments [Line Items]
Number of Units | property	374		374
Carrying Value of Investment			$ 4,426
Mortgage Balance	$ 39,847		$ 39,847
Percent Ownership	32.00%		32.00%
Columbia, SC (Location 2) | Joint venture, forty six percent ownership
Schedule of Equity Method Investments [Line Items]
Number of Units | property	339		339
Carrying Value of Investment			$ 7,786
Mortgage Balance	$ 40,679		$ 40,679
Percent Ownership	46.00%		46.00%
Forney, TX | Joint venture, fifty percent ownership
Schedule of Equity Method Investments [Line Items]
Number of Units | property	313		313
Carrying Value of Investment			$ 6,189
Mortgage Balance	$ 25,350		$ 25,350
Percent Ownership	50.00%		50.00%
Secured Debt | Joint venture, forty six percent ownership
Schedule of Equity Method Investments [Line Items]
Construction financing	$ 42,019		$ 42,019
Interest Rate	4.95%		4.95%

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Debt Obligations - Schedule of Debt Obligations (Details) - USD ($) $ in Thousands	Jun. 30, 2019	Dec. 31, 2018
Debt Obligations
Deferred financing costs	$ (6,872)	$ (6,646)
Total debt obligations, net of deferred costs	892,385	808,860
Mortgages payable
Debt Obligations
Total debt obligations, net of deferred costs	852,857	778,106
Deferred financing costs	(6,448)	(6,289)
Junior subordinated notes
Debt Obligations
Total debt obligations, net of deferred costs	37,400	37,400
Deferred financing costs	(347)	(357)
Credit facility
Debt Obligations
Total debt obligations, net of deferred costs	$ 9,000	$ 0

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Debt Obligations - Mortgage Payable (Details)	6 Months Ended
	Jun. 30, 2019 USD ($)
Debt Obligations
Acquisition Mortgage Debt	$ 65,597,000
Mortgages | Mortgages maturing in March 2052 | Kannapolis, NC
Debt Obligations
Acquisition Mortgage Debt	$ 33,347,000
Interest Rate	3.52%
Mortgages | Mortgages maturing in June 2029 | Birmingham, AL
Debt Obligations
Acquisition Mortgage Debt	$ 32,250,000
Interest Rate	4.19%
Interest only period	72 months

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Debt Obligations - Construction Loans (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2019 USD ($) property_Unit
Debt Instrument [Line Items]
Number of units	10,336
Construction Loans | Nashville, TN
Debt Instrument [Line Items]
Number of units	402
Number of units in properties in development	164
Number of units in properties in lease up stage	238
Maximum Loan Amount | $	$ 47,426
Amount outstanding | $	$ 41,580
Construction Loans | Nashville, TN | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Basis spread on variable rate	2.85%

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Debt Obligations - Mortgage Payable and Construction Loan Narrative (Details) - USD ($)			3 Months Ended	6 Months Ended
	Jun. 13, 2019	Feb. 01, 2019	Jun. 30, 2019	Jun. 30, 2019
Debt Instrument [Line Items]
Debt assumed, face value			$ 65,597,000	$ 65,597,000
Construction Loans | Nashville, TN
Debt Instrument [Line Items]
Interest incurred on loan			528,000	960,000
Interest expense capitalized			$ 304,000	$ 695,000
Mortgages Maturing In July 2031 | Mortgages | East St Louis, MO
Debt Instrument [Line Items]
Repurchased face amount	$ 29,000,000
Debt assumed, face value	$ 29,700,000
Interest rate	4.41%
Interest only period	6 years
Mortgages Maturing In July 2031 | Mortgages | East St Louis, MO | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt amortization period	30 years
Mortgages Maturing In February 2026 | Mortgages | Boerne, TX
Debt Instrument [Line Items]
Repurchased face amount		$ 9,200,000
Debt assumed, face value		$ 8,067,000
Interest rate		4.74%
Interest only period		3 years
Mortgages Maturing In February 2026 | Mortgages | Boerne, TX | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt amortization period		30 years

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Debt Obligations - Credit Facility (Details) - USD ($)			3 Months Ended	6 Months Ended
	May 02, 2019	Apr. 18, 2019	Jun. 30, 2019	Jun. 30, 2019	Jun. 30, 2018
Debt Instrument [Line Items]
Debt assumed, face value			$ 65,597,000	$ 65,597,000
Proceeds from credit facility				9,000,000	$ 0
Line of Credit | Valley National Bank | Credit Facility, Maturing April 2021 | Secured Debt
Debt Instrument [Line Items]
Debt assumed, face value		$ 10,000,000
Effective interest rate	6.00%
Unused borrowing capacity fee, percentage		0.25%
Line of Credit | Valley National Bank | Credit Facility, Maturing April 2021 | Secured Debt | Trussville, AL
Debt Instrument [Line Items]
Proceeds from credit facility	$ 9,000,000
Interest expense			$ 96,000	$ 96,000
Line of Credit | Valley National Bank | Credit Facility, Maturing April 2021 | Secured Debt | Prime Rate
Debt Instrument [Line Items]
Basis spread on variable rate		0.50%
Line of Credit | Valley National Bank | Credit Facility, Maturing April 2021 | Secured Debt | Floor
Debt Instrument [Line Items]
Basis spread on variable rate		5.00%

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Debt Obligations - Junior Subordinated Notes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019	Jun. 30, 2018	Jun. 30, 2019	Jun. 30, 2018	Dec. 31, 2018
Debt Instrument [Line Items]
Deferred financing costs	$ 6,872		$ 6,872		$ 6,646
Junior subordinated notes
Debt Instrument [Line Items]
Total debt obligations	37,400		37,400		37,400
Deferred financing costs	347		347		$ 357
Interest expense	$ 439	$ 386	$ 888	$ 738
London Interbank Offered Rate (LIBOR) | Junior subordinated notes
Debt Instrument [Line Items]
Basis spread on variable rate			2.00%
Interest rate	4.58%		4.58%

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Related Party Transactions - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2019 USD ($) property	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) property	Jun. 30, 2018 USD ($)
Related Party Transaction [Line Items]
Related party expense	$ 333	$ 317	$ 666	$ 634
Related party - general and administrative	155	160	297	306
Real Property Management Real Estate Brokerage And Construction Supervision Services | Majestic Property Management Corporation
Related Party Transaction [Line Items]
Related party expense	8	6	16	16
Shared Services Agreement | Gould Investors Limited Partnership
Related Party Transaction [Line Items]
Related party - general and administrative	155	160	297	307
Affiliated Entity
Related Party Transaction [Line Items]
Related party expense	$ 1,090	926	$ 2,113	1,834
Number of investments | property	3		3
Affiliated Entity | Payment of Acquisition Fee
Related Party Transaction [Line Items]
Related party expense	$ 430	$ 513	$ 851	$ 1,813

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Fair Value of Financial Instruments - Narrative (Details) - Level 2 - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2019	Dec. 31, 2018
Market Approach Valuation Technique | Junior subordinated notes
Financial Instruments Not Measured at Fair Value
Market interest rate (as a percent)	6.90%	7.79%
Market Approach Valuation Technique | Mortgages | Minimum
Financial Instruments Not Measured at Fair Value
Market interest rate (as a percent)	3.25%	3.94%
Market Approach Valuation Technique | Mortgages | Maximum
Financial Instruments Not Measured at Fair Value
Market interest rate (as a percent)	4.86%	5.61%
Carrying and Fair Value | Junior subordinated notes
Financial Instruments Not Measured at Fair Value
Estimated fair value (lower) higher than carrying value	$ 10,324	$ 11,974
Carrying and Fair Value | Mortgages
Financial Instruments Not Measured at Fair Value
Estimated fair value (lower) higher than carrying value	$ 11,932	$ 19,334

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Fair Value of Financial Instruments - Financial Instruments Measured at Fair Value (Details) $ in Thousands	Jun. 30, 2019 USD ($)
Financial Assets:
Total Financial Assets	$ 225
Interest rate swaps
Financial Assets:
Total Financial Assets	225
Financial Liabilities:
Total Financial Liabilities	13
Interest rate caps
Financial Assets:
Total Financial Assets	0
Level 1
Financial Assets:
Total Financial Assets	0
Level 1 | Interest rate swaps
Financial Assets:
Total Financial Assets	0
Financial Liabilities:
Total Financial Liabilities	0
Level 1 | Interest rate caps
Financial Assets:
Total Financial Assets	0
Level 2
Financial Assets:
Total Financial Assets	225
Level 2 | Interest rate swaps
Financial Assets:
Total Financial Assets	225
Financial Liabilities:
Total Financial Liabilities	13
Level 2 | Interest rate caps
Financial Assets:
Total Financial Assets	$ 0

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Derivative Financial Instruments (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2019 USD ($) numberOfRefinancings	Jun. 30, 2018 USD ($)	Jun. 30, 2019 USD ($) numberOfRefinancings	Jun. 30, 2018 USD ($)	Dec. 31, 2018 USD ($)
Derivative [Line Items]
Number of mortgage refinancings | numberOfRefinancings	2		2
Estimated amount to be reclassified from Accumulated other comprehensive income (loss) as an increase to interest expense	$ 135,000		$ 135,000
Interest Expense
Derivative [Line Items]
Amount of gain (loss) recognized on derivative in Other Comprehensive Income	(1,234,000)	$ 444,000	(1,978,000)	$ 1,576,000
Amount of gain (loss) reclassified from Accumulated Other Comprehensive Income into Interest expense	108,000	46,000	226,000	46,000
Total amount of Interest expense presented in the Consolidated Statement of Operations	9,739,000	$ 8,786,000	18,508,000	$ 17,443,000
Other Assets
Derivative [Line Items]
Fair value of derivative financial instrument asset	225,000		225,000		$ 3,793,000
Accounts payable and accrued liabilities
Derivative [Line Items]
Fair value of derivative financial instrument liability	13,000		13,000		$ 0
Hedging instrument | Interest Rate Swap, Maturity Date April 1, 2022
Derivative [Line Items]
Current Notional Amount	$ 1,234,000		$ 1,234,000
Fixed Rate	5.25%		5.25%
Hedging instrument | Interest Rate Swap, Maturity Date May 6, 2023
Derivative [Line Items]
Current Notional Amount	$ 25,794,000		$ 25,794,000
Fixed Rate	3.61%		3.61%
Hedging instrument | Interest Rate Swap, Maturity Date September 19, 2026
Derivative [Line Items]
Current Notional Amount	$ 27,000,000		$ 27,000,000
Fixed Rate	4.05%		4.05%
Not Designated as Hedging Instrument | Interest rate caps
Derivative [Line Items]
Current Notional Amount	$ 38,200,000		$ 38,200,000
Value of derivative	$ 0		$ 0