INVESTMENT IN UNCONSOLIDATED VENTURES

12 Months Ended

Dec. 31, 2023

Equity Method Investments and Joint Ventures [Abstract]

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


	December 31,
	2023		2022
ASSETS
Real estate properties, net of accumulated depreciation of $69,970 and $66,945	$	275,874	$	318,304
Cash and cash equivalents	6,447		6,591
Other Assets (1)	54,715		35,372


Total Assets	$	337,036	$	360,267

LIABILITIES AND EQUITY
Liabilities:
Mortgages payable, net of deferred costs of $1,135 and $1,421	$	246,966	$	255,261
Accounts payable and accrued liabilities	8,751		8,222
Total Liabilities	255,717		263,483
Commitments and contingencies
Equity:
Total unconsolidated joint venture equity	81,319		96,784
Total Liabilities and Equity	$	337,036	$	360,267

Company equity interest in all joint venture equity	$	34,242	$	42,576

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(1) Includes work-in-process at December 31, 2023 and 2022 of approximately $46,509 and $24,335, respectively, related to the Stono Oaks development project.

NOTE 6—INVESTMENT IN UNCONSOLIDATED VENTURES (continued)

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


	Year Ended December 31,
	2023		2022
Revenues:
Rental and other revenue	$	44,785	$	72,873
Total revenues	44,785		72,873

Expenses:
Real estate operating expenses	20,577		33,086
Interest expense	9,268		16,269
Depreciation	10,403		17,798
Total expenses	40,248		67,153
Total revenues less total expenses	4,537		5,720
Other equity earnings	126		121
Impairment of assets	—		(8,553)
Insurance recoveries	—		8,553
Gain on insurance recoveries	65		567
Gain on sale of real estate properties	38,418		118,270
Loss on extinguishment of debt	(561)		(3,491)
Net income from joint ventures	$	42,585	$	121,187

BRT equity in earnings and equity in earnings from sale of unconsolidated joint venture properties	$	17,037	$	66,426

Purchase of Interest in a Joint Venture

On March 10, 2022, the Company acquired for $3,500,000, a 17.45% interest in a planned 240-unit development property located in Johns Island, SC. In 2023, the Company contributed an additional $316,000 to this venture. In December 2022, the venture recorded an impairment charge of $8,553,000 due to a fire at the development. This loss is covered by insurance and accordingly, the venture recorded an insurance recovery of $8,553,000. The Company recorded its proportionate share of the impairment charge and the insurance recovery. As of December 31, 2023, the property is substantially complete and leasing has commenced.

NOTE 6—INVESTMENT IN UNCONSOLIDATED VENTURES (continued)

Dispositions of Properties

The table below provides information regarding the disposition of real estate properties by unconsolidated joint ventures in the year ended December 31, 2023 and 2022 (dollars in thousands):


Location	Sale Date	Number of Units	Sale Price		Gain on Sale		BRT Share of Gain on Sale		BRT Share of Loss of Extinguishment on Debt
2023
Chatham Court and Reflections - Dallas, TX	5/12/2023	494	$	73,000	$	38,418	$	14,744	$	212

2022
Verandas at Shavano - San Antonio, TX	2/8/2022	288	$	53,750	$	23,652	$	12,961	$	—
Reatreat at Cinco Ranch - Katy, TX	6/14/2022	268	68,300		30,595		17,378		686
The Vive - Kannapolis, NC	6/30/2022	312	91,250		47,086		22,720		787
Waters Edge - Columbia, SC	8/31/2022	204	32,400		16,937		11,472		388
Total 2022		1,072	$	245,700	$	118,270	$	64,531	$	1,861

Joint Venture Buyouts

In 2022, the Company purchased its venture partners' remaining interests in joint ventures that owned 11 multi-family properties. The operations and accounts of these joint ventures which, as a result of such purchases, are wholly-owned by the Company are consolidated into the operations and accounts of the Company as of their respective acquisition dates. See Note 3 for information regarding these buyouts.