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