BRT Apartments Corp. (NYSE:BRT) Q4 2022 Earnings Call Transcript

Ryan Baltimore : Yes. So just to start on the taxes, we work with real estate tax consultants in all of our properties. We budget based on the municipality where we anticipate militates being based on what we know at the time. That being said, obviously, some markets are a little more aggressive than others and some markets reassess every 3 years, 5 years. That’s all built into our assumptions and our guidance. We hope to do better if we can, but we don’t — we do it based on what we know at the time. So from a variability standpoint, there’s obviously potential for that to be varied. But based on what we know today, that’s where we were comfortable. And then on the insurance side, so obviously, this large increase, as I mentioned on the call, a lot of the increase is due to the timing of kind of accelerating these renewals that may have been more midyear.

But as we’re ending the year last year and had bought out these partners, we saw where the insurance market was heading. We wanted to bring that under our control as much as possible. So we were really able to take advantage before year-end, before these new treaty renewals and really jumped on a positive opportunity for us to bring this in-house and get a lot of our properties, 17 of the properties to be specific, all wholly-owned under our own control. So as we mentioned, in the short term, yes, this year is obviously a very large increase, but we hope as we grow with this portfolio and grow with this insurance program, to smooth that out over time.

Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Jeff Gould for any closing remarks.

Jeffrey Gould : I just want to say thank you all for your time and continued interest in BRT. We’re always available for any follow-up calls you may have. So please feel free to give us a ring. And that’s pretty much it. So have a great day, and thank you.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.