Investment in Unconsolidated Ventures

6 Months Ended

Jun. 30, 2023

Equity Method Investments and Joint Ventures [Abstract]

At June 30, 2023 and December 31, 2022, the Company held interests in unconsolidated joint ventures that own seven and eight multi-family properties (the "Unconsolidated Properties"), respectively, and a property in development. The condensed balance sheets below present information regarding such properties (dollars in thousands):


	June 30, 2023		December 31, 2022
ASSETS
Real estate properties, net of accumulated depreciation of $64,831 and $66,945	$	280,305	$	318,304
Cash and cash equivalents	6,743		6,591
Other assets	37,701		35,372

Total Assets	$	324,749	$	360,267

LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs of $1,234 and $1,421	$	233,445	$	255,261
Accounts payable and accrued liabilities	6,880		8,222
Total Liabilities	240,325		263,483
Commitments and contingencies
Equity:
Total unconsolidated joint venture equity	84,424		96,784
Total Liabilities and Equity	$	324,749	$	360,267

BRT's interest in joint venture equity	$	35,530	$	42,576

At the indicated dates, real estate properties of the unconsolidated joint ventures consist of the following (dollars in thousands):


	June 30, 2023		December 31, 2022
Land	$	46,331	$	59,404
Building	291,473		315,400
Building improvements	7,332		10,445
Real estate properties	345,136		385,249
Accumulated depreciation	(64,831)		(66,945)
Total real estate properties, net	$	280,305	$	318,304

At June 30, 2023 and December 31, 2022, the weighted average interest rate on the mortgages payable is 4.07% and 3.99%, respectively, and the weighted average remaining term to maturity is 5.6 years and 6.1 years, respectively.

The condensed income statements below present information regarding the Unconsolidated Properties (dollars in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenues:
Rental and other revenue	$	11,476	$	22,107	$	23,608	$	47,338
Total revenues	11,476		22,107		23,608		47,338

Expenses:
Real estate operating expenses	5,137		9,842		10,812		21,011
Interest expense	2,390		4,893		4,845		10,919
Depreciation	2,558		5,208		5,265		11,844
Total expenses	10,085		19,943		20,922		43,774
Total revenues less total expenses	1,391		2,164		2,686		3,564
Other equity earnings	—		22		113		77


Gain on insurance recoveries	—		52		65		567
Gain on sale of real estate	38,418		77,681		38,418		101,333
Loss on extinguishment of debt	(561)		(2,888)		(561)		(2,918)
Net income from joint ventures	$	39,248	$	77,031	$	40,721	$	102,623

BRT's equity in earnings and equity in earnings from sale of unconsolidated joint venture properties	$	15,208	$	40,048	$	16,023	$	54,239

Joint Venture Sale

On May 12, 2023, the unconsolidated joint venture in which the Company had a 50% equity interest sold Chatham Court and Reflections, a 494 unit multi family property located in Dallas, TX, for a sales price of $73,000,000. The gain on the sale of this property was $38,418,000 and BRT's share of the gain was $14,744,000. In connection with the sale, mortgage debt of $25,405,000 with 5.0 years of remaining term to maturity and bearing an interest rate of 4.01% was repaid and the joint venture incurred $561,000 from the loss on the extinguishment of debt, of which the Company's share was $212,000.

Joint Venture Sales

During the six months ended June 30, 2022, the unconsolidated joint ventures in which the Company had equity interests, sold the following properties:


Property	Date of Sale	Units	Interest Sold		Sales Price		Gain on Sale		BRT Share of Gain		Mtge Debt at Sale Date		Loss on extinguishment of debt		BRT Share of extinguishment of debt
The Verandas at Shavano, San Antonio, TX	2/8/2022	288	65	%	$	53,750	$	23,652	$	12,961	$	25,100	$	—	$	—
Retreat at Cinco Ranch, San Antonio, TX	6/14/2022	268	75	%	68,300		30,595		17,378		30,096		1,257		686
The Vive, Kannapolis, NC	6/30/2022	312	65	%	91,250		47,086		22,720		31,420		1,631		787
		868			$	213,300	$	101,333	$	53,059	$	86,616	$	2,888	$	1,473

Acquisition of Interest in Joint Venture

On March 10, 2022, the Company purchased a 17.45% interest in a planned 240-unit development property, Stono Oaks, located in Johns Island, SC. The purchase price for the interest was $3,500,000.

During the quarter ended June 30, 2023, the Company funded a $122,000 capital call for this joint venture.