▸ group Consolidated Properties Unconsolidated Properties· · · · ● 1 ▸ group Provisions for credit losses are difficult to estimate· · · · ● 1 ▸ Our business and operations are subject to physical and transition risks related to climate change.· · ● ● ● 3 ▸ Our efforts to buy properties directly may involve greater risks than buying properties with joint venture partners.· · ● ● ● 3 ▸ group Risks Related to Real Estate Investments and Our Operations· · ● ● ● 3 ▸ Short-term leases expose us to the effects of declining market rents and we may be unable to renew leases or relet units as leases expire.· · ● ● ● 3 ▸ Unfavorable market and economic conditions could adversely affect rental revenues, occupancy levels and the value of our properties.· · ● ● ● 3 ▸ We may be unable to compete to acquire, finance or dispose of our properties or to lease rental units.· · ● ● ● 3 ▸ Our failure to comply with our obligations under our debt instruments may reduce our stockholders’ equity, and adversely affect our net income and ability to pay dividends.· ● ● ● ● 4 ▸ Our transactions with affiliated entities involve conflicts of interest; certain of our affiliated entities have purchased multi-family properties in the Southeast United States.· · ● · · 1 ▸ If, under the ADA, we are required to make substantial alterations and capital expenditures in one or more of our properties, it could adversely affect our financial condition and results of operations.· ● · · · 1 ▸ A material weakness in our internal control over financial reporting was identified and has not been remediated.● · · · · 1 ▸ At any time, the U.S. federal income tax laws governing REITs or the administrative interpretations of those laws may be amended. We cannot predict when or if any new U.S. federal income tax law, regulation or administrative interpretation, or any● · · · · 1 ▸ Development, redevelopment and construction risks could affect our operating results.● ● · · · 2 ▸ If we are unable to address effectively these and other risks associated with development projects, our financial condition and results of operations may be adversely effected.● ● · · · 2 ▸ Increased competition and increased affordability of residential homes could limit our ability to retain our tenants or increase or maintain rents.● ● · · · 2 ▸ Our value-add activities involve greater risks than more conservative investment approaches.● ● ● · · 3 rw ▸ group Risks Related to our Business● ● · · · 2 ▸ group Risks Related to the COVID-19 Pandemic● ● · · · 2 ▸ The expiration of our $10 million credit facility in April 2021 will adversely affect our liquidity● · · · · 1 ▸ The phasing out of LIBOR may adversely affect our cash flow and financial results.● ● ● · · 3 rw ▸ We could be adversely affected if we or any of our subsidiaries are required to register as an investment company under the Investment Company Act of 1940 as amended (the “1940 Act”).● ● · · · 2 ▸ We may not be able to compete with competitors, many of which have greater financial and other resources than we possess.● ● · · · 2 ▸ If our insurance coverage is insufficient to cover losses sustained as a result of one or more casualty events, our operating results and the value of our portfolio will be adversely affected.● · ● ● ● 4 ▸ Our transactions with affiliated entities involve conflicts of interest● ● · ● ● 4 rw ▸ Because real estate investments are illiquid, we may not be able to reconfigure our portfolio on a timely basis.● ● ● ● ● 5 ▸ Breaches of information technology systems could materially harm our business and reputation.● ● ● ● ● 5 ▸ Certain provisions of our Articles of Incorporation, our Bylaws and Maryland law may inhibit a change in control that stockholders consider favorable and could also limit the market price of our common stock● ● ● ● ● 5 ▸ Changes to the U.S. federal income tax laws could have an adverse impact on our business and financial results.● ● ● ● ● 5 ▸ Compliance or failure to comply with the ADA or other safety regulations and requirements could result in substantial costs.● ● ● ● ● 5 ▸ Compliance with REIT requirements may hinder our ability to maximize profits.● ● ● ● ● 5 ▸ If we are required to make payments under any “bad boy” carve out guarantees that we have provided in connection with certain mortgages and related loans, our business and financial results could be materially adversely affected.● ● ● ● ● 5 ▸ If we are unable to refinance our mortgage debt at maturity on acceptable terms, we may be forced to sell properties on disadvantageous terms.● ● ● ● ● 5 rw ▸ If we do not continue to pay cash dividends, the price of our common stock may decline.● ● ● ● ● 5 ▸ Increasing real estate taxes, utilities and insurance premiums may negatively impact operating results● ● ● ● ● 5 rw ▸ Liabilities relating to environmental matters may impact the value of our properties.● ● ● ● ● 5 ▸ Most of our multi-family properties are located in the Southeast and Texas which makes us susceptible to adverse developments in such markets.● ● ● ● ● 5 ▸ Our acquisition, development and value-add activities are limited by the funds available to us.● ● ● ● ● 5 ▸ Our operating results and assets may be negatively affected if our insurance coverage is insufficient to compensate us for casualty events occurring at our properties.● ● ● ● ● 5 ▸ Our operating results are significantly influenced by demand for multi-family properties generally, and a decrease in such demand will likely have a greater adverse effect on our revenues than if we owned a more diversified real estate portfolio.● ● ● ● ● 5 ▸ Risks Associated with the Real Estate Industry and REITs.● ● ● ● ● 5 ▸ Risks Related to BRT's Organization, Structure and Ownership of its Stock● ● ● ● ● 5 ▸ Risks Related to Our Financing Activities, Indebtedness and Capital Resources● ● ● ● ● 5 ▸ Risks involved in conducting real estate activity through joint ventures.● ● ● ● ● 5 ▸ Senior management and other key personnel are critical to our business and our future success may depend on our ability to retain them.● ● ● ● ● 5 ▸ The failure of property management companies to properly manage our properties could adversely impact our results of operations.● ● ● ● ● 5 rw ▸ The stock market is volatile, and fluctuations in our operating results, removal from various indices and other factors could cause our stock price to decline.● ● ● ● ● 5 ▸ We could be negatively impacted by changes in our relationship with Fannie Mae or Freddie Mac, changes in the condition of Fannie Mae or Freddie Mac and by changes in government support for multi-family housing.● ● ● ● ● 5 ▸ We depend on our subsidiaries for cash flow and will be adversely impacted if these subsidiaries are prohibited from distributing cash to us.● ● ● ● ● 5 ▸ We do not carry key man life insurance on members of our senior management.● ● ● ● ● 5 ▸ We face numerous risks associated with the real estate industry that could adversely affect our results of operations through decreased revenues or increased costs.● ● ● ● ● 5 ▸ We may be adversely effected if we are unable to maintain a satisfactory working relationship with any one or more of our joint venture partners.● ● ● ● ● 5 rw ▸ We may incur impairment charges in 2025.● ● ● ● ● 5 rw ▸ We may not have sufficient funds to make required or desired capital improvements.● ● ● ● ● 5 
