DEBT OBLIGATIONS

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

DEBT OBLIGATIONS

DEBT OBLIGATIONS

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

	December 31,
	2022		2021
Mortgages payable	$	407,958	$	200,857
Junior subordinated notes	37,400		37,400
Credit Facility	19,000		—
Deferred loan costs	(4,941)		(1,277)
Total debt obligations	$	459,417	$	236,980

A summary of activity in property debt for the year ended December 31, 2022 is as follows (dollars in thousands):

Balance at December 31, 2021	$	199,877
Acquisitions	236,615
Increase due to refinancing/payoff of acquisition debt	6,749
Fair value adjustment upon consolidation	(4,719)
Amortization of fair value adjustment	137
Debt Payoff	(29,462)
Principal Amortization	(2,219)
Changes in Deferred Fees	(3,186)
Balance at December 31, 2022	$	403,792

At December 31, 2022, $407,958,000 of mortgage debt with a weighted average interest rate of 4.00% and a weighted average remaining term to maturity of 7.9 years is outstanding on 17 of the Company's multi-family properties. Scheduled principal repayments for the periods indicated are as follows (dollars in thousands):

Year Ending December 31,	Scheduled Principal Payments
2023	$	2,712
2024	3,667
2025	20,188
2026	74,652
2027	46,220
Thereafter	260,519
	$	407,958

NOTE 8—DEBT OBLIGATIONS (continued)

The following table summarizes the information regarding the mortgages relating to the properties in which BRT purchased the remaining interests of its joint venture partners during the twelve months ended December 31, 2022 and 2021 (dollars in thousands):

Property Name	Location	Debt at Purchase Date (a)		Interest Rate	Maturity Date	Interest only through
2022
Verandas at Alamo	San Antonio, TX	$	27,000	3.64%	Oct 2029	Oct 2024
Vanguard Heights	Creve Coeur, MO	29,700		4.41%	July 2031	June 2025
Jackson Square	Tallahassee, FL	21,524		4.19%	Sept 2027	Sept 2022
Brixworth at Bridge Street (b)	Huntsville, AL	11,147		4.25%	June 2032	Maturity
The Woodland Apartments	Boerne, TX	7,914		4.74%	Feb 2026	N/A
Grove at River Place (c)	Macon, GA	11,426		4.39%	Feb 2026	N/A
Civic I	Southaven, MS	27,389		4.24%	March 2026	N/A
Civic II	Southaven, MS	30,105		3.73%	Sept 2026	N/A
Abbotts	Wilmington, NC	23,160		4.71%	July 2030	July 2025
Somerset at Trussville	Trussville, AL	32,250		4.19%	June 2029	May 2025
Magnolia Pointe	Madison, AL	15,000		4.08%	Jan 2028	Dec 2022
		$	236,615
2021
Bells Bluff	Nashville, TN	$	52,000	3.48%	Aug 2041	N/A
Crestmont at Thornblade	Greenville, SC	26,425		4.69%	Nov 2028	N/A
Crossings of Bellevue	Nashville, TN	37,680		3.11%	Dec 2031	N/A
		$	116,105

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(a) Excludes fair value adjustments of $4,719 determined as part of the purchase price allocation.

(b) The original mortgage debt of $11,147 was refinanced with new ten-year mortgage debt of $18,952 immediately following the buyout. The interest rate, maturity date and interest - only terms reflect the new mortgage.

(c) Includes a supplemental mortgage of $1,056 which was paid off immediately following the buyout.

The unamortized balance of acquisition related mortgage intangibles, which is included in mortgages payable in the consolidated balance sheet, was $2,000,000 at December 31, 2022 and will be amortized as follows (dollars in thousands):

Year Ending December 31,	Amount
2023	$	613
2024	556
2025	501
2026	215
2027	(29)
Thereafter	144
Total	$	2,000

NOTE 8—DEBT OBLIGATIONS (continued)

The Company paid off the following debt in the years ended December 31, 2022 and 2021 (dollars in thousands):

Property Name	Location	Mortgage Payoff		Interest Rate		Payoff Date	Maturity Date	Prepayment Charges
2022
Avalon	Pensacola, FL	$	14,558	4.29	%	1/26/2022	3/1/2022	$	—
Silvana Oaks	N. Charleston, SC	14,904		3.79	%	10/28/2022	11/1/2022	—
Total		$	29,462					$	—
2021
Avalon - supplemental	Pensacola, FL	2,903		4.92	%	7/29/2021	3/1/2022	29
Avondale Station	Decatur, GA	7,140		3.74	%	8/30/2021	12/1/2022	376
Avondale Station - supplemental	Decatur, GA	6,866		5.53	%	8/31/2021	12/1/2022	277
Woodland Trails	LaGrange, GA	14,025		4.36	%	7/30/2021	2/1/2022	140
Ripco (a)	Yonkers, NY	945		5.25	%	8/18/2021	4/1/2022	—
Total		$	31,879					$822

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(a) In connection with the payoff of this debt, the Company terminated the related interest rate swap.

Credit Facility

On September 15, 2022, the Company's credit facility with an affiliate of Valley National Bank ("VNB"),was amended to, among other things, increase the amount the Company can borrow, subject to compliance with borrowing base requirements and other conditions, up to $60,000,000, extend the facility's maturity date to September 2025, reduce the adjustable interest rate to the prime rate, with a floor of 3.50% and revise certain financing covenants. The facility can be used to facilitate the acquisition of multi-family properties, repay mortgage debt secured by multi family properties and for operating expense (i.e.,working capital (including dividend payments)); provided that no more than $25,000,000 may be used for operating expenses. The facility is secured by the cash available in certain cash accounts maintained by the Company at VNB and the Company's pledge of its interests in the entities that own the unencumbered properties used in calculating the borrowing base. The interest rate in effect as of December 31, 2022 and March 1, 2023 is 7.50% and 7.75%, respectively. There is an unused facility fee of 0.25% per annum on the total amount committed by VNB and unused by the Company. At December 31, 2022, the Company is in compliance in all material respects with its obligations under the facility.

At December 31, 2022, there was an outstanding balance on the facility of $19,000,000 and $41,000,000 was available to be borrowed. At December 31, 2021, there was no outstanding balance on the facility. The average balance outstanding on the facility for 2022 and 2021 was $7,907,000 and $—. At March 1, 2023, there is no balance outstanding on the facility. Interest expense for the years ended December 31, 2022 and 2021, which includes amortization of deferred financing costs and unused fees, was $713,000 and $101,000, respectively. Deferred costs of $498,000 and $270,000 are recorded on the consolidated balance sheets at December 31, 2022 and 2021, respectively.

Junior Subordinated Notes

At December 31, 2022 and 2021, the outstanding principal balance of the Company's junior subordinated notes was $37,400,000, before deferred financing costs of $277,000 and $297,000, respectively. The interest rate on the outstanding balance resets quarterly and is based on three month LIBOR + 2.00%. The rate in effect at December 31, 2022 and 2021 was 6.41% and 2.13% respectively. The notes mature April 30, 2036.

NOTE 8—DEBT OBLIGATIONS (continued)

The notes require interest only payments through the maturity date, at which time repayment of all outstanding principal and unpaid interest is due. Interest expense for the years ended December 31, 2022 and 2021, which includes amortization of deferred costs, was $1,478,000 and $845,000, respectively.