GREAT NECK, NY--(Marketwire - August 5, 2010) - BRT REALTY TRUST (
For the nine months ended June 30, 2010, BRT reported total revenues of $6,253,000 and a net loss attributable to common shareholders of $6,849,000, or a net loss of $.50 per share on a diluted basis. For the nine months ended June 30, 2009, BRT reported total revenues of $10,041,000 and a net loss attributable to common shareholders of $51,222,000, or a net loss of $4.39 per share on a diluted basis. The weighted average number of common shares outstanding on a diluted basis for the nine months ended June 30, 2010 and 2009 is 13,800,708 and 11,667,055, respectively.
Commenting on the results of operations, Jeffrey Gould, President and Chief Executive Officer of BRT noted the following:
Three Months Ended June 30, 2010 Compared to Three Months Ended June 30, 2009.
-- Revenues increased by $285,000, or 14%, quarter over quarter, primarily
the result of an increase of $494,000 in rental revenues from real
estate properties, due to rental revenues derived from our Newark
properties. We also had a $317,000 increase in interest income on
purchase money mortgages from mortgages provided by us to facilitate
the sale of real estate acquired in foreclosure proceedings. In
addition, we recorded $365,000 from recoveries related to loans against
which we had taken loss provisions in prior periods. Offsetting these
increases was a $694,000 decline in interest on real estate loans,
caused by a $31 million decline in the average balance of outstanding
performing loans. This decline is due to reduced demand for short term
bridge loans.
-- Total expenses increased $1,369,000, or 27%, quarter over quarter, due
to $2,625,000 in impairment charges recorded in the quarter ending June
30, 2010. These impairments were taken to reduce the value of two real
estate assets located in Florida. Offsetting this increase in expense
were declines in interest expense, advisor's fee and general and
administrative expenses. The quarter ending June 30, 2009 contained
expenses of $685,000 for debt restructuring and $325,000 of
professional fees incurred in connection with the workout and
negotiation and resulting joint venture agreement related to our Newark
properties.
-- Discontinued operations, which represent the operations, impairment
charges and gains on the sale of assets held for sale, increased from a
loss of $2,738,000 in the three months ending June 30, 2009 to income
of $589,000 in the three months ending June 30, 2010. The change is
primarily attributable to the inclusion in the three months ended June
30, 2009 of impairment charges of $2,460,000.
Nine Months Ended June 30, 2010 Compared to Nine Months ended June 30, 2009.
-- Revenues declined $3,788,000, or 38%, primarily the result of a $67
million decline in the average balance of performing loans outstanding.
Offsetting this decline in part was an increase of $1,527,000 in rental
revenues from real estate properties, primarily from our Newark
properties and a $1,002,000 increase in interest income on purchase
money mortgages.
-- Total expenses declined $16,175,000, or 49%, due primarily to a
$14,365,000 decline in loan loss provisions. The Trust also benefited
from declines in interest expense, advisor's fee and general and
administrative expenses. The nine months ending June 30, 2009 also
contained expenses of $685,000 for debt restructuring and $325,000 of
professional fees for the workout and negotiation and resulting joint
venture agreement related to our Newark properties. Offsetting these
declines, in part, was an increase in real estate operating expenses,
due primarily to expenses incurred at our Newark properties.
-- Discontinued operations, which represent the operations, impairment
charges and gains on sale of assets held for sale, increased from a
loss of $ 27,025,000 in the nine months ended June 30, 2009, to income
of $577,000 in the nine months ended June 30, 2010. The change is
primarily attributable to the inclusion in the nine months ending June
30, 2009 of impairment charges of $25,561,000 on real estate held for
sale while the nine months ended June 30, 2010 contained $745,000 of
impairment charges.
Mr. Gould commented that, "our activities over approximately the past two plus years have concentrated on the resolution of our problem loans. We have resolved a significant portion of the problems that faced us and have refocused our attention on our primary business of short-term bridge lending." He noted that "there is still an apparent reluctance on the part of institutional lenders to be proactive in mortgage lending and this lack of liquidity has limited real estate transactions and development activity." He further noted that "we continue to actively pursue lending opportunities and hopefully we will soon see a more active institutional mortgage lending environment which should be positive for us in our origination activities. In the nine months ending June 30, 2010 we originated $14,747,000 of new loans. We had cash on hand and available-for-sale securities of $58,238,000 at June 30, 2010, and approximately $69,347,000 at August 4, 2010, which should allow us to take advantage of lending opportunities that present themselves as the level of real estate transactions and real estate development picks up."
BRT REALTY TRUST is a mortgage-oriented real estate investment Trust.
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, the lending environment, 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 encouraged to review the risk factors included in our Annual Report on Form 10-K for the year ended September 30, 2009 for a discussion of the factors which may cause actual results to differ materially from current expectations and are cautioned not to place undue reliance on any forward-looking statements.
BRT REALTY TRUST
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(In thousands, except per share data)
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
2010 2009 2010 2009
---------- ---------- ---------- ----------
Total revenues $ 2,345 $ 2,060 $ 6,253 $ 10,041
Provision for loan loss - - 3,165 17,530
Impairment Charges 2,625 122 2,625 1,272
Other expenses 3,742 4,876 10,784 13,947
---------- ---------- ---------- ----------
Total expenses 6,367 4,998 16,574 32,749
---------- ---------- ---------- ----------
Total revenues less total
expenses (4,022) (2,938) (10,321) (22,708)
Equity in earnings (loss)
of unconsolidated ventures 33 104 143 (1,983)
Gain on sale of joint
venture interests - 0 - 271
Gain on sale of
available-for-sale
securities - 92 1,586 92
---------- ---------- ---------- ----------
Loss from continuing
operations (3,989) (2,742) (8,592) (24,328)
Discontinued operations:
Loss from operations (54) (535) (596) (1,751)
Impairment Charges - (2,460) (745) (25,561)
Gain on sale of real
estate assets 643 257 1,918 287
---------- ---------- ---------- ----------
Income (loss) from
discontinued operations 589 (2,738) 577 (27,025)
---------- ---------- ---------- ----------
Net loss (3,400) (5,480) (8,015) (51,353)
Less: net loss attributable
to noncontrolling interest 429 217 1,166 131
---------- ---------- ---------- ----------
Net loss attributable to
common shareholders $ (2,971) $ (5,263) $ (6,849) $ (51,222)
========== ========== ========== ==========
Basic and diluted per share
amounts attributable to
common shareholders:
Loss from continuing
operations $ (0.25) $ (0.22) $ (0.54) $ (2.07)
Income (loss) from
discontinued operations 0.04 (0.23) 0.04 (2.32)
---------- ---------- ---------- ----------
Basic and diluted loss
per share $ (0.21) $ (0.45) $ (0.50) $ (4.39)
========== ========== ========== ==========
Amounts attributable to BRT
Realty Trust
Loss from continuing
operations $ (3,560) $ (2,525) $ (7,426) $ (24,197)
Income (loss) from
discontinued operations 589 (2,738) 577 (27,025)
---------- ---------- ---------- ----------
Net loss $ (2,971) $ (5,263) $ (6,849) $ (51,222)
========== ========== ========== ==========
Weighted average number of
common shares outstanding:
Basic and diluted 14,106,816 11,624,219 13,800,708 11,667,055
========== ========== ========== ==========
Contact Information: Contact: Simeon Brinberg (516) 466-3100