Good day and welcome to the BRT Apartments Corp. Fourth Quarter and Year-end 2021 Earnings Conference Call. Today's conference is being recorded. At this time, I would like to turn the floor over to Mr. Stephen Swett, Investor Relations. Thank you. You may begin.

Thank you for joining us today for BRT Apartment Corporation's fourth quarter and year-end 2021 earnings conference call. On the call today is Jeffrey Gould, President and Chief Executive Officer. Also available are George Zweier, Chief Financial Officer; Ryan Baltimore, Chief Operating Officer; and David Kalish Senior Vice President. I would like to remind everyone that this conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are based on management's current expectations, assumptions and beliefs. Forward-looking statements can often be identified by words such as believe, expect, estimate, anticipate, intend and similar expressions and variations or negatives of these words. These forward-looking statements include, but are not limited to, statements regarding BRT's strategy and expectations for the future. They are not guarantees of future results and are subject to risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statements. Listeners should not place undue reliance on any forward-looking statements and are encouraged to review the company's SEC filings including its Form 10-K and Form 10-Q for a more complete discussion of risks and other factors that could affect these forward-looking statements. Except as required by law, BRT does not undertake any obligation to publicly update or revise any forward-looking statements. This conference call also includes a discussion of funds from operations, or FFO, adjusted funds from operations, or AFFO, net operating income, or NOI, and information regarding our pro rata share of revenues, expenses, NOI, assets and liabilities of BRT's unconsolidated subsidiaries, all of which are non-GAAP financial measures of performance. These non-GAAP measures should be used as a supplement to, and not a substitute for, net income computed in accordance with GAAP. Unless otherwise indicated, or the context otherwise requires, discussions…

Thank you and welcome to the call. The fourth quarter was another strong quarter for BRT, capping off a solid year, during which we continue to make progress on our goals to increase our wholly owned portfolio, unlock value, decreased debt to enterprise value and strengthen our multifamily platform, while continuing to simplify our balance sheet. Let me begin with our results for the fourth quarter of 2021. Net loss attributable to common stockholders was $1.25 million or $0.08 per diluted share, compared to a net loss of $3.3 million or $0.19 per diluted share in the same quarter 2020. FFO was $6.3 million or $0.35 per diluted share, compared to $4.96 million or $0.29 per diluted share in the same quarter last year. Contributing to the net increase in FFO are higher operating margins at same-store properties and the effect of our acquisition of our partner's interest in several joint ventures. AFFO was $7.5 million or $0.41 per diluted share compared to $5.64 million or $0.33 per diluted share in the fourth quarter of 2020. This 24% increase per share was for the same reasons as mentioned before, but is not affected by debt prepayment charges non-cash amortization of restricted stock expenses and insurance recoveries. For the full year 2021, net income attributable to common stockholders was $29.1 million or $1.62 per diluted share compared to a net loss of $19.86 million or $1.16 per diluted share in 2020. FFO was $17.43 million or $0.97 per diluted share compared to $17 million or $0.99 per diluted share in 2020, contributing to the FFO increase on an absolute basis for higher operating margins at same-store properties and the effect of our acquisition of our partner's interest in several joint ventures. AFFO was $23.81 million or $1.33 per diluted share compared…

[Operator Instructions] Our first question comes from the line of Gaurav Mehta with EF Hutton. You may proceed with your question.

Thanks. Good morning guys.

Good morning.

First question I have is on the acquisition to acquire JV interest in the five properties that you have under contract. Can you provide some color on those acquisitions? How those transactions came about? And then maybe comment on how the valuation on those acquisitions are as compared to the current market cap rates?

Yes, sure. Good morning. Yes, so how they come about and we've been talking to a bunch of our different JV partners, and they do come about in different ways. These particular understandings and contracts came about just from negotiations, conversations with them. There are times where a BOV is necessary from the partners. There are times where we go to a full marketing. But there are also times where we can conduct and have an understanding amongst us together where we come to value. And if we think it's a good buy then we can move ahead and do so. In these particular cases, that's more or less what happened. As to market, we think we're executing at a bit better than what we can get in the market. Obviously, there's no other pursuers of the joint venture partners, so we have sort of exclusive access to them and that allows for us to do a little bit better than what we can do in the market. And we think it's obviously beneficial to consolidate.

Okay. Great. Jeff in your prepared remarks, you talked about a few goals for your company and one of that was to lower debt on your balance sheet. You have done that over last year or so. Can you maybe provide some color on what's your target leverage or where do you expect your balance sheet to end up as you make progress towards delevering of the balance sheet?

Sure. We do focus on that quite a bit. We've heard from investors that it's a bit of a concern and it's also something that we watch carefully. We do have one other decent mortgage debt that we're considering paying off. But generally speaking, I would say, we're very focused on our loan-to-enterprise value and loans and mortgages-to-enterprise value. As our stock increases in time that will lower. And like I said, we've done a good job in lowering those ratios and we're going to continue to focus on that. So I think you will see some more decline in the loan to equity and -- the loan-to-enterprise value as we move forward.

Okay. Thank you for taking my questions.

Thank you.

Ladies and gentlemen, we have reached the end of today's question-and-answer session. I would like to turn this call back over to Mr. Jeffrey Gould for closing remarks.

Yes. I just want to thank everyone for attending this morning. We appreciate your continued interest in BRT. If you have any further questions, you can always reach out to Ryan or myself. And just asking all to have a great day and thank you for your time.

This concludes today's conference. You may disconnect your lines at this time. Thank you for your participation. Enjoy the rest of your day.

Thank you.