Attached files
| file | filename |
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| 8-K - BRT Apartments Corp. | v205393_8k.htm |
Exhibit
99.1
BRT
REALTY TRUST
60 Cutter
Mill Road
Suite
303
Great
Neck, New York11021
Telephone
(516) 466-3100
Telecopier
(516) 466-3132
www.BRTRealty.com
BRT
REALTY TRUST
REPORTS
RESULTS OF OPERATIONS
FOR THE
QUARTER AND YEAR ENDED SEPTEMBER 30, 2010
Great
Neck, New York – December 13, 2010 – BRT REALTY TRUST (NYSE:BRT) today announced
its results of operations for the quarter and year ended September 30, 2010. For
the three months ended September 30, 2010, BRT reported total revenues of $1.88
million and a net loss of $1.17 million, or $.08 per share. This
compares with total revenues of $2.89 million and net income of $3.47 million,
or $0.30 per share, for the three months ended September 30,
2009. The weighted average number of common shares outstanding for
the three months ended September 30, 2010 and 2009is 14,082,236 and 11,575,475,
respectively.
For the year ended September 30, 2010,
BRT reported total revenues of $8.14 million and a net loss of $8.02 million, or
a net loss of $.58 per share. For the year ended September 30, 2009,
BRT reported total revenues of $12.15 million and a net loss of $47.76 million,
or a net loss of $4.10 per share. The weighted average number of
common shares outstanding for the year ended September 30, 2010 and 2009 is
13,871,668 and 11,643, 972, respectively.
Commenting
on the operations, Jeffrey A. Gould, President and Chief Executive Officer
stated that the economic recession and the disruptions in real estate and credit
markets over the past two fiscal years materially and adversely affected our
business and our operating results. On the revenue side, he noted “we
were adversely affected primarily by a significant decrease in the average
balance of performing loans outstanding caused by an increase in non-performing
loans. On the expense side operating results were adversely affected primarily
by loan loss provisions, impairment charges and foreclosure related professional
fees.”
Further
commenting on operations, Mr. Gould stated as follows: “In the latter part of
our 2010 fiscal year and first two months of our 2011 fiscal year, we have
experienced a more positive lending environment. Comparing the
immediately preceding quarter ending June 30, 2010 to the quarter ending
September 30, 2010, the progress we have made in resolving our problems and
refocusing on our primary lending business is apparent. As compared
to the preceding quarter, the current quarter reflects an increase in interest
income, loan fee income and operating income from real estate owned, with no
additional loan loss provisions or impairment charges, although our foreclosure
related professional fees increased as we actively litigate in bankruptcy court
against the borrower of one defaulted loan. Our net loss decreased
from the June 30, 2010 quarter to the September 30, 2010 quarter by $1.8 million
to $1.17 million. In addition in the first two months of the 2011
fiscal year, we originated a total of $24.5 million of mortgage loans as
compared to $4.2 million and $2.6 million originated in the last two quarters of
fiscal 2010. “Our immediate challenge, Mr. Gould noted, is to
originate more quality loans and complete the court proceedings related to three
outstanding non-performing loans, which aggregate of $35.1 million.
Specifically
commenting on the results of operations for the three months and year end
September 30, 2010, Mr. Gould pointed out the following:
Three Month Ended September
30, 2010 Compared to Three Month Ended September 30, 2009.
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·
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Total
revenues decreased by $1 million, or 36%, quarter-over-quarter primarily
due to a $30.3 million decline in the average balance of outstanding
performing loans and a decline in the outstanding balance of purchase
mortgages due to payoffs. Offsetting this decrease is a
$177,000 increase in operating income on real estate owned, primarily the
result of increased rental revenues derived from our Newark
properties.
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·
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Total
expenses decreased by $454,000, or 12%, quarter-over-quarter reflecting
decreases in interest on borrowed funds, the advisor’s fee, loan loss
provisions, general and administrative expenses and operating expenses
relating to real estate owned. The quarter, however, reflects a
$146,000 increase in foreclosure related professional fees due to a
litigation involving a bankruptcy filing by one of our
borrowers.
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·
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Discontinued
operations, which represents the operations, impairment charges and gains
on the sale of assets held for sale, decreased from a loss of $2,736,000
in the three months ended September 30, 2009 to income of $13,000 in the
three months ending September 30, 2010. The loss in the three
months ended September 30, 2009 is primarily attributable to impairment
charges of $4,213,000 and a loss from operations of $435,000, offset by a
gain on sale of real estate assets of
$1,912,000.
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Year Ended September 30,
2010 Compared to the Year Ended September 30, 2009.
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·
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Revenues
declined $4,019,000, or 33%, primarily the result of a decline of $57.6
million in the average balance of performing loans
outstanding. Offsetting this decline was an increase of $1.7
million in rental revenues from real estate properties, primarily from our
Newark properties, and a $365,000 recovery on previously provided loan
loss allowances.
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·
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Total
expenses declined by $16.5 million, or 45%, due primarily to a $13.9
million decrease in loan loss provisions. The Trust also
benefited from declines in interest expense, the advisor’s fee,
foreclosure related professional fees and general and administrative
expenses. The year ending September 30, 2009 included an
expense of $685,000 for fees related to restructuring our outstanding
junior subordinated notes. Partially offsetting these expense
declines year-over-year was an increase in impairment charges resulting
primarily from an additional reserve taken against an undeveloped parcel
owned by the Trust.
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·
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Discontinued
operations, which represents the operations, impairment charges and gains
on sale of assets held for sale, increased from a loss of $29.1 million in
the year ended September 30, 2009 to income of $590,000 in the year ended
September 30, 2010. The change is primarily attributable to the
inclusion in the year ending September 30, 2009 of impairment charges of
$29.8 million and a loss from operations of $1.5 million, offset by a net
gain on asset sales of $2.2 million. For the year ended
September 30, 2010, the Trust reported impairment charges of $745,000 and
a loss from operations of $602,000, offset by a gain of $1.9 million from
the sale of real estate assets.
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In
conclusion, Mr. Gould commented that “although in the current economic
environment there are no assurances that our business will continue the recent
positive trend, we are somewhat optimistic based upon the current level of
interest in our short-term lending product.”
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 relating to a more
positive lending environment and the recent positive trend in, and optimism
concerning, BRT’s business. 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
reengagement in originating senior short-term loans and our activity in lending
in the New Year, 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.
Contact:
Simeon Brinberg – (516) 466-3100
BRT
REALTY TRUST
CONDENSED
CONSOLIDATED STATEMENT OF OPERATIONS
(In
thousands, except per share data)
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(Unaudited)
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(Audited)
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Three Months Ended
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Twelve Months Ended
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September 30,
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September 30,
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2010
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2009
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2010
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2009
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Interest
and fees on loans
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$ | 933 | $ | 2,070 | $ | 3,877 | $ | 9,710 | ||||||||
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Rental
revenue from real estate properties
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812 | 635 | 3,422 | 1,718 | ||||||||||||
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Other
revenues
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137 | 189 | 836 | 726 | ||||||||||||
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Total
revenues
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1,882 | 2,894 | 8,135 | 12,154 | ||||||||||||
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Interest
- borrowed funds
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201 | 710 | 1,773 | 4,435 | ||||||||||||
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Provision
for loan loss
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- | (420 | ) | 3,165 | 17,110 | |||||||||||
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Impairment
Charges
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- | - | 2,625 | 1,272 | ||||||||||||
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General
and administrative expenses
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1,482 | 1,712 | 6,063 | 7,045 | ||||||||||||
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Operating
expenses on real estate properties
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804 | 997 | 3,866 | 2,361 | ||||||||||||
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Other
expenses
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783 | 725 | 2,352 | 4,106 | ||||||||||||
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Total
expenses
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3,270 | 3,724 | 19,844 | 36,329 | ||||||||||||
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Total
revenues less total expenses
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(1,388 | ) | (830 | ) | (11,709 | ) | (24,175 | ) | ||||||||
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Equity
in earnings (loss) of unconsolidated ventures
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53 | (808 | ) | 196 | (2,791 | ) | ||||||||||
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Gain
on sale of joint venture interests
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- | - | - | 271 | ||||||||||||
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Gain
on sale of available-for-sale securities
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- | 924 | 1,586 | 1,016 | ||||||||||||
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Gain
on early extinguishment of debt
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- | 6,443 | - | 6,443 | ||||||||||||
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Loss
from continuing operations
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(1,335 | ) | 5,729 | (9,927 | ) | (19,236 | ) | |||||||||
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Discontinued operations:
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Loss
from operations
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(7 | ) | (435 | ) | (602 | ) | (1,549 | ) | ||||||||
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Impairment
Charges
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- | (4,213 | ) | (745 | ) | (29,774 | ) | |||||||||
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Gain
on sale of real estate assets
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20 | 1,912 | 1,937 | 2,199 | ||||||||||||
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Income
(loss) from discontinued operations
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13 | (2,736 | ) | 590 | (29,124 | ) | ||||||||||
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Net
loss
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(1,322 | ) | 2,993 | (9,337 | ) | (48,360 | ) | |||||||||
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Less:
net loss attributable to noncontrolling interest
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156 | 474 | 1,322 | 605 | ||||||||||||
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Net
loss attributable to common shareholders
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$ | (1,166 | ) | $ | 3,467 | $ | (8,015 | ) | $ | (47,755 | ) | |||||
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Basic
and diltued per share amounts attributable to common
shareholders:
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Loss
from continuing operations
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$ | (0.08 | ) | $ | 0.54 | $ | (0.62 | ) | $ | (1.60 | ) | |||||
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Income
(loss) from discontinued operations
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0.00 | (0.24 | ) | 0.04 | (2.50 | ) | ||||||||||
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Basic and
diluted loss per share
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$ | (0.08 | ) | $ | 0.30 | $ | (0.58 | ) | $ | (4.10 | ) | |||||
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Amounts
attributable to BRT Realty Trust
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Loss
from continuing operations
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$ | (1,179 | ) | $ | 6,203 | $ | (8,605 | ) | $ | (18,631 | ) | |||||
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Income
(loss) from discontinued operations
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13 | (2,736 | ) | 590 | (29,124 | ) | ||||||||||
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Net
loss
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$ | (1,166 | ) | $ | 3,467 | $ | (8,015 | ) | $ | (47,755 | ) | |||||
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Cash
distribution per share
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$ | - | $ | 0.12 | $ | - | $ | 0.12 | ||||||||
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Stock
distribution per share
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- | 1.03 | - | 1.03 | ||||||||||||
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Total
distribution per common share
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$ | - | $ | 1.15 | $ | - | $ | 1.15 | ||||||||
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Weighted
average number of common shares outstanding:
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Basic
and diluted
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14,082,236 | 11,575,475 | 13,871,668 | 11,643,972 | ||||||||||||
#####