Investment in Unconsolidated Ventures

6 Months Ended

Jun. 30, 2022

Equity Method Investments and Joint Ventures [Abstract]

At June 30, 2022 and December 31, 2021, the Company held interests in unconsolidated joint ventures that own 14 and 23 multi-family properties (the "Unconsolidated Properties"), respectively. The condensed balance sheets below present information regarding such properties (dollars in thousands):


	June 30, 2022		December 31, 2021
ASSETS
Real estate properties, net of accumulated depreciation of $91,031 and $133,615	$	483,332	$	734,247
Cash and cash equivalents	11,002		13,741
Other assets	30,147		25,535
Real estate properties held for sale	14,989		—
Total Assets	$	539,470	$	773,523

LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs of $2,331 and $3,423	$	387,725	$	584,479
Accounts payable and accrued liabilities	12,484		17,064
Total Liabilities	400,209		601,543
Commitments and contingencies
Equity:
Total unconsolidated joint venture equity	139,261		171,980
Total Liabilities and Equity	$	539,470	$	773,523

BRT's interest in joint venture equity	$	79,782	$	112,347

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


	June 30, 2022		December 31, 2021
Land	$	71,545	$	97,230
Building	479,897		739,577
Building improvements	22,921		31,055
Real estate properties	574,363		867,862
Accumulated depreciation	(91,031)		(133,615)
Total real estate properties, net	$	483,332	$	734,247

At June 30, 2022 and December 31, 2021, the weighted average interest rate on the mortgages payable is 4.00% and 3.97%, respectively, and the weighted average remaining term to maturity is 6.3 years and 7.6 years, respectively.

The condensed income statement below presents information regarding the Unconsolidated Properties (dollars in thousands):


	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Revenues:
Rental and other revenue	$	22,107	$	33,005	$	47,338	$	65,677
Total revenues	22,107		33,005		47,338		65,677

Expenses:
Real estate operating expenses	9,842		15,233		21,011		30,936
Interest expense	4,893		8,472		10,919		16,994
Depreciation	5,208		9,791		11,844		20,176
Total expenses	19,943		33,496		43,774		68,106
Total revenues less total expenses	2,164		(491)		3,564		(2,429)
Other equity earnings	22		5		77		14
Impairment of assets	—		(490)		—		(2,813)
Insurance recoveries	—		490		—		2,813
Gain on insurance recoveries	52		—		567		—
Gain on sale of real estate	77,681		—		101,333		—
Loss on extinguishment of debt	(2,888)		—		(2,918)		—
Net income (loss) from joint ventures	$	77,031	$	(486)	$	102,623	$	(2,415)

BRT's equity in (loss) earnings and equity in earnings from sale of unconsolidated joint venture properties	$	40,048	$	(492)	$	54,239	$	(1,837)

Joint Venture Sales

On February 8, 2022, the unconsolidated joint venture in which the Company had a 65% equity interest sold The Verandas at Shavano, a 288-unit multi-family property in San Antonio, TX, for a sales price of $53,750,000. The gain on the sale of this property was $23,652,000 and BRT's share of the gain was $12,961,000. In connection with the sale, mortgage debt of $25,100,000 with 1.2 years of remaining term to maturity and bearing an interest rate of 3.61% was repaid.

On June 14, 2022, the unconsolidated joint ventures in which the Company had a 75% equity interest sold Retreat at Cinco Ranch, a 268-unit multi family property in San Antonio, TX for $68,300,000. The gain on the sale of this property was $30,595,000 and BRT's share of the gain was $17,378,000. In connection with the sale, mortgage debt of $30,096,000 with 3.6 years of remaining term to maturity and bearing an interest rate of 4.44% was repaid and the joint venture incurred $1,257,000 from the loss on the extinguishment of debt, of which BRT's share was $686,000.

On June 30, 2022, the unconsolidated joint venture in which the Company had a 65% equity interest sold The Vive, a 312-unit multi-family property in Kannapolis, NC for $91,250,000. The gain on the sale of this property was $47,086,000 and BRT's share of the gain was $22,720,000. In connection with the sale, mortgage debt of $31,420,000 with 29.7 years of remaining term to maturity and bearing an interest rate of 3.52% was repaid and the joint venture incurred $1,631,000 from the loss on extinguishment of debt, of which BRT's share was $787,000.

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, which includes $455,000 held in escrow at June 30, 2022.

Joint Venture Buyouts

The Company completed the partner buyout transactions in the unconsolidated joint ventures that own the properties identified in note 5 - Real Estate Properties - Partner Buyouts. As a result of these purchases, these properties (including the

related mortgage debt - see note 9 - "Debt Obligations) are wholly-owned effective as of the closing of each purchase, and are included in the Company's consolidated balance sheet and results of operations as of the applicable date.