GREAT NECK, NY--(Marketwire - February 8, 2011) - BRT REALTY TRUST (
NYSE:
BRT), a real estate
investment trust primarily 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 December 31, 2010.
Operating Results:
Total revenues for the three months ended December 31, 2010 was
approximately $2.5 million, an increase of 30% from the three months ended
December 31, 2009. The increase was primarily due to the increases in
interest on real estate loans and loan fee income. This increase generally
resulted from the increase in the average balance of earning loans
outstanding, which is attributable to increased loan originations. For the
three months ended December 31, 2010, BRT originated approximately $28.3
million in loans compared to $1.3 million in the corresponding period in
the prior year. The increase in interest on real estate loans was partially
offset by a decrease from 13.21% to 11.82% in the weighted average interest
rate earned on the performing loan portfolio.
Total expenses decreased by approximately $2.9 million, or 45%, in the
quarter ended December 31, 2010 compared to the quarter ended December 31,
2009. The quarter ended December 31, 2009 included a $3.2 million loan loss
provision. There was no loan loss provision recorded in the current
quarter. Partially offsetting the decrease was a $169,000 increase in
professional fees associated with foreclosure and related actions.
Net loss attributable to common shareholders was $508,000 in the current
quarter compared to $2.5 million in the corresponding quarter last year.
The improvement is attributable primarily to the factors described above.
Partially offsetting the improved results was a decrease of approximately
$1.2 million in the gain on sale of available-for-sale securities
quarter-over-quarter.
Jeffrey A. Gould, president and chief executive officer, commented that
"the economic environment seems to be improving." As a result, he noted,
"we have been experiencing an increased level of interest in short-term
bridge lending and look forward to applying our liquidity, approximately
$37 million in cash and cash equivalents and $10 million in
available-for-sale securities, to fund additional loan originations."
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 the apparent improvement in the economic environment and BRT's
ability to originate additional loans. 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," "apparent,"
"experiencing" or similar expressions or variations thereof. Forward
looking statements, including our ability to originate additional loans,
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
December 31,
2010 2009
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Revenues:
Interest and fees on loans $ 1,399 $ 897
Rental revenue from real estate properties 854 877
Other revenues 199 107
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Total revenues 2,452 1,881
Expenses:
Interest - borrowed funds 657 716
Provision for loan loss - 3,165
General and administrative expenses 1,431 1,428
Operating expenses on real estate properties 916 824
Other expenses 599 399
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Total expenses 3,603 6,532
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Total revenues less total expenses (1,151) (4,651)
Equity in earnings of unconsolidated ventures 49 75
Gain on sale of available-for-sale securities 421 1,586
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Loss from continuing operations (681) (2,990)
Discontinued operations:
Loss from operations - (406)
Impairment Charges - (745)
Gain on sale of real estate assets - 1,253
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Discontinued operations - 102
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Net loss (681) (2,888)
Less net loss attributable to noncontrolling
interest 173 367
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Net loss attributable to common shareholders $ (508) $ (2,521)
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Basic and diluted per share amounts attributable
to common shareholders:
Loss from continuing operations $ (0.04) $ (0.20)
Discontinued operations - 0.01
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Basic and diluted loss per share $ (0.04) $ (0.19)
========== ==========
Amounts attributable to BRT Realty Trust:
Loss from continuing operations $ (508) $ (2,623)
Discontinued operations - 102
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Net loss $ (508) $ (2,521)
========== ==========
Weighted average number of common shares outstanding:
Basic and diluted 13,977,706 13,214,700
========== ==========
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