DEBT OBLIGATIONS

12 Months Ended

Dec. 31, 2023

Debt Disclosure [Abstract]

DEBT OBLIGATIONS

DEBT OBLIGATIONS

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

	December 31,
	2023		2022
Mortgages payable	$	426,436	$	407,958
Junior subordinated notes	37,400		37,400
Credit facility	—		19,000
Deferred loan costs (1)	(4,266)		(4,443)
Total debt obligations	$	459,570	$	459,915

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(1) Excludes $289 and $498 at December 31, 2023 and 2022, respectively, of deferred fees related to our credit facility which is reflected in Other Assets

NOTE 7—DEBT OBLIGATIONS (continued)

A summary of activity in property debt, net of deferred loan fees, for the year ended December 31, 2023 is as follows (dollars in thousands):

Balance at December 31, 2022	$	403,792
New mortgage	21,173
Amortization of fair value adjustment	613
Principal amortization	(3,308)
Changes in deferred fees	157
Balance at December 31, 2023	$	422,427

At December 31, 2023, $426,436,000 of mortgage debt with a weighted average interest rate of 4.02% and a weighted average remaining term to maturity of 7.0 years is outstanding on 18 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
2024	$	3,331
2025	19,860
2026	74,622
2027	46,189
2028	40,697
Thereafter	241,737
	$	426,436

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 (dollars in thousands):

Property Name	Location	Debt at Purchase Date (a)		Interest Rate	Maturity Date	Interest only through
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 Run	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

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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.

NOTE 7—DEBT OBLIGATIONS (continued)

The unamortized balance of acquisition related mortgage intangibles, which is included in mortgages payable in the consolidated balance sheet, was $1,387,000 at December 31, 2023 and will be amortized as follows (dollars in thousands):

Year Ending December 31,	Amount
2024	$	556
2025	501
2026	215
2027	(29)
2028	1
Thereafter	143
Total	$	1,387

On February 24, 2023, the Company obtained mortgage debt of $21,173,000 on its Silvana Oaks - North Charleston, SC multi-family property; such mortgage debt matures in March 2033, bears an interest rate of 4.45% and is interest only for the term of the mortgage.

The Company paid off the following debt during the year ended December 31, 2022 (dollars in thousands):

Property Name	Location	Mortgage Payoff		Interest Rate		Payoff Date	Maturity Date
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

Credit Facility

The Company's credit facility with an affiliate of Valley National Bank ("VNB"), as amended, allows the Company to borrow, subject to compliance with borrowing base requirements and other conditions, up to $60,000,000. 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, which was amended in August 2023 to change the interest rate from a prime based rate to a SOFR based rate, 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, which adjusts monthly and is subject to a floor of 6.00%, equals one-month term SOFR plus 250 basis points. The interest rate in effect as of December 31, 2023 and March 1, 2024 was 7.85% and 7.82%, respectively. There is an unused facility fee of 0.25% per annum on the total amount committed by VNB and unused by the Company. The facility matures in September 2025. At December 31, 2023, the Company is in compliance in all material respects with its obligations under the facility.

At December 31, 2023, and March 1, 2024, there was no outstanding balance on the facility and $60,000,000 was available to be borrowed. At December 31, 2022, there was an outstanding balance of $19,000,000 on the facility. The average balance outstanding on the facility for 2023 and 2022 was $2,811,000 and $7,907,000, respectively. Interest expense for the years ended December 31, 2023 and 2022, which includes amortization of deferred financing costs and unused fees, was $574,000 and $713,000, respectively. Deferred costs of $289,000 and $498,000 are recorded in Other Assets on the consolidated balance sheets at December 31, 2023 and 2022, respectively.

NOTE 7—DEBT OBLIGATIONS (continued)

Junior Subordinated Notes

At December 31, 2023 and 2022, the outstanding principal balance of the Company's junior subordinated notes was $37,400,000, before deferred financing costs of $257,000 and $277,000, respectively. The interest rate on the outstanding balance resets quarterly and is based on three month term SOFR + 2.26%. The rate in effect at December 31, 2023 and 2022 was 7.65% and 6.41%, respectively. The notes mature April 30, 2036.

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, 2023 and 2022, which includes amortization of deferred costs, was $2,768,000 and $1,478,000, respectively.