SOURCE: BRT Realty Trust

May 09, 2011 16:15 ET

BRT Realty Trust Reports Second Quarter Results

GREAT NECK, NY--(Marketwire - May 9, 2011) - BRT REALTY TRUST (NYSE: BRT), a real estate investment trust engaged in the business of originating and holding for investment senior mortgage loans secured by commercial and multi-family real estate in the United States, today announced operating results for the three months ended March 31, 2011.

Second Quarter Highlights:

--  Total revenues increased 181% to $5.7 million quarter-over-quarter.

--  $60.6 million of mortgage loans were originated during the quarter.

--  Net income attributable to common shareholders was $1.8 million, or
    $0.13 per share, compared to a net loss of ($1.4 million) or ($0.10)
    per share, quarter-over-quarter.

Operating Results:

Total revenues for the three months ended March 31, 2011 were approximately $5.7 million, an increase of 181% from the corresponding prior year period. The increase is attributable to increased interest on real estate loans of $940,000, a 132% increase, and the recovery of a previously provided allowance of $2.6 million. During the current quarter, the Trust originated approximately $60.6 million in loans compared to $9.2 million in loan originations in the corresponding quarter of the prior year.

Total expenses decreased by approximately $62,000, or 2%, in the quarter ended March 31, 2011 compared to the quarter ended March 31, 2010, due primarily to a decrease in interest on borrowed funds. The decrease in interest is primarily attributable to the capitalization of certain interest expense related to the Newark Joint Venture.

The current quarter also reflects a loss on the extinguishment of debt of $2.1 million related to the restructuring of the Trust's junior subordinated notes. Pursuant to the restructuring, the Trust redeemed $5 million of outstanding notes and the interest rate on the balance of the outstanding notes ($37.4 million) was reduced through the April 2036 maturity date.

Net income attributable to common shareholders was $1.8 million, or $0.13 per share, in the current quarter compared to a loss of $1.4 million or ($0.10) per share, in the corresponding quarter of the prior year. The improvement in net income is attributable to the factors described above as well as to a gain on the sale of available-for-sale securities of $593,000 ($0.04 per share) and a gain on the sale of real estate assets of $697,000 ($0.05 per share) in the quarter ending March 31, 2011.

Certain information contained herein is forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding lending activities and other positive business activities. BRT intends such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words "may," "will," "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions or variations thereof. Forward looking statements, including our loan origination activities, involve known and unknown risks, uncertainties and other factors, which, in some cases, are beyond BRT's control and could materially affect actual results, performance or achievements. Investors are cautioned not to place undue reliance on any forward-looking statements and to carefully review the section entitled "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended September 30, 2010.

                    BRT REALTY TRUST AND SUBSIDIARIES
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
              (Dollars in thousands, except per share data)


                              Three months ended       Six months ended
                                  March 31,               March 31,
                               2011        2010        2011        2010
                            ----------  ----------  ----------  ----------

Revenues:
  Interest and fees on
   loans                    $    2,021  $    1,062  $    3,420  $    1,959
  Rental revenue from real
   estate properties               959         862       1,813       1,739
  Recovery of previously
   provided allowance            2,566           -       2,566           -
  Other revenues                   151         103         350         210
                            ----------  ----------  ----------  ----------
    Total revenues               5,697       2,027       8,149       3,908

Expenses:
  Interest - borrowed funds        542         722       1,199       1,438
  Provision for loan loss            -           -           -       3,165
  General and
   administrative expenses       1,629       1,588       3,060       3,016
  Operating expenses on
   real estate properties          850         844       1,766       1,669
  Other expenses                   592         521       1,191         919
                            ----------  ----------  ----------  ----------
    Total expenses               3,613       3,675       7,216      10,207

                            ----------  ----------  ----------  ----------
    Total revenues less
     total expenses              2,084      (1,648)        933      (6,299)

Equity in earnings of
 unconsolidated ventures            86          35         135         110
Gain on sale of
 available-for-sale
 securities                        593           -       1,014       1,586
Loss on extinguishment of
 debt                           (2,138)          -      (2,138)          -
                            ----------  ----------  ----------  ----------
  Income (loss) from
   continuing operations           625      (1,613)        (56)     (4,603)

Discontinued operations:
  Loss from operations               -        (136)          -        (542)
  Impairment Charges                 -           -           -        (745)
  Gain on sale of real
   estate assets                   697          22         697       1,275
                            ----------  ----------  ----------  ----------
    Discontinued operations        697        (114)        697         (12)

                            ----------  ----------  ----------  ----------
Net income (loss)                1,322      (1,727)        641      (4,615)

Less net loss attributable
 to noncontrolling interest        525         370         698         737

                            ----------  ----------  ----------  ----------
Net income (loss)
 attributable to common
 shareholders               $    1,847  $   (1,357) $    1,339  $   (3,878)
                            ==========  ==========  ==========  ==========



Basic and diltued per share
 amounts attributable to
 common shareholders:

Income (loss) from
 continuing operations      $     0.08  $    (0.09) $     0.05  $    (0.28)
Discontinued operations           0.05       (0.01)       0.05       (0.00)
                            ----------  ----------  ----------  ----------
  Basic  and diluted
   earnings (loss) per
   share                    $     0.13  $    (0.10) $     0.10  $    (0.28)
                            ==========  ==========  ==========  ==========

Amounts attributable to BRT
 Realty Trust:
  Income (loss) from
   continuing operations    $    1,150  $   (1,243) $      642  $   (3,866)
  Discontinued operations          697        (114)        697         (12)
                            ----------  ----------  ----------  ----------
    Net income (loss)       $    1,847  $   (1,357) $    1,339  $   (3,878)
                            ==========  ==========  ==========  ==========

Weighted average number of
 common shares outstanding:
  Basic and diluted         14,047,924  14,090,229  14,012,404  13,647,654
                            ==========  ==========  ==========  ==========

Contact Information

  • Contact:
    David W. Kalish
    (516) 466-3100
    BRT REALTY TRUST
    60 Cutter Mill Road
    Suite 303
    Great Neck, New York 11021
    Telephone (516) 466-3100
    Telecopier (516) 466-3132
    www.BRTRealty.com