BRT Realty Trust announces result of operations for the quarter and six months ended March 31, 2010.
Great Neck, New York, May 6, 2010 -- BRT Realty Trust (NYSE:BRT) today announced its results of operations for the three and six months ended March 31, 2010. For the three months ended March 31, 2010, BRT reported total revenues of $2,027,000 and a net loss of $1,357,000, or a per share net loss of $.10 on a diluted basis. This compares with total revenues of $3,100,000 and a net loss of $42,336,000, or a per share net loss of $3.62 on a diluted basis for the three months ended March 31, 2009. The prior year’s quarter gives effect to $17,530,000 of provisions for loan losses ($1.50 per share) and total impairment charges of $20,750,000 ($1.78 per share). The weighted average number of common shares outstanding on a diluted basis for the quarters ended March 31, 2010 and 2009 is 14,090,229 and 11,682,037, respectively.
For the six months ended March 31, 2010, BRT reported total revenues of $3,908,000 and a net loss of $3,878,000, or a per share net loss of $.28 on a diluted basis. In the six months ended March 31, 2009, BRT reported total revenues of $ 8,002,000 and a net loss of $45,959,000, or a per share net loss of $3.93 on a diluted basis. The prior year six month period gives effect to $17,530,000 of provisions for loan losses ($1.50 per share) and total impairment charges of $24,250,000 ($2.07 per share). The weighted average number of common shares outstanding on a diluted basis for the six months ended March 31, 2010 and 2009 is 13,647,654 and 11,688,473, respectively.
Commenting on the results of operations for the three month period ended March 31, 2010 as compared with the three month period ended March 31, 2009, Jeffrey Gould, President and Chief Executive Officer of BRT noted the following:
Revenues declined by $1,073,000, or 35%, the result of a $75.7 million decline in the average balance of performing loans outstanding. This decline is due to reduced loan originations caused by a reduced demand for our short term bridge loans and our conservatism in originating loans due to concerns about the ability of borrowers to repay loans in the current economic and credit environment. Offsetting this decline in part was a $504,000 increase in rental revenues from real estate properties, due primarily to revenues derived from our Newark Joint Venture.
Total expenses declined $19,604,000, or 84%, due to the fact that no loan loss provisions or impairment charges were required in the current quarter. The Trust also benefited from a decline in interest expense due to the restructuring and partial redemption of its junior subordinated notes in the prior fiscal year. Offsetting these declines was an increase in real estate operating expenses, due primarily to expenses incurred at our Newark Joint Venture.
Discontinued operations, which represent the operations, impairment charges and gains on sale of assets held for sale increased from a loss of $ 20,215,000 in the prior three month period to a loss of $114,000 in the current three month period. The prior three month period contained impairment charges of $19,600,000. There were no impairment charges required in the current quarter.
For the six month period ended March 31, 2010, as compared to the six month period ended March 31, 2009, Mr. Gould commented that:
Revenues declined $4,094,000, or 51%, the result of a $97 million decline in the average balance of performing loans outstanding. Offsetting this decline in part was a $1,012,000 increase in rental revenues from real estate properties, due primarily to revenues derived from our Newark Joint Venture.
Total expenses declined $17,554,000, or 63%, due to the fact that loan loss provisions declined $14,365,000 and no real estate impairment charges were required in the current six month period. The Trust also benefited from a decline in interest expense due to the restructuring of its subordinated junior notes in the prior fiscal year. Offsetting these declines, in part, was an increase in real estate operating expenses, due primarily to expenses incurred at our Newark Joint Venture.
Discontinued operations, which represent the operations, impairment charges and gains on sale of assets held for sale, increased from a loss of $ 24,298,000 in the six months ended March 31, 2009, to a loss of $12,000 in the six months ended March 31, 2010. The prior six month period contained impairment charges of $23,100,000 while the current six month period contained only $745,000 of impairment charges.
Mr. Gould commented that, “the activities of BRT over approximately the past two years have concentrated on the resolution of our problem loans, and since most of our problems appear to be behind us, we are now refocusing our efforts on our primary business of short-term bridge lending.” He commented further that “we are seeing an increased level of interest in our lending products but are moving conservatively in our origination activities. In the current six month period we originated $10,525,000 of new loans. At March 31, 2010, we have cash on hand and available-for-sale securities of $57,271,000, which allows us to take advantage of lending opportunities that present themselves as the general economy improves and as the level of real estate transactions and real estate development picks up.”
BRT is a New York-based Real Estate Investment Trust that specializes in the origination and holding for investment of senior and
junior commercial mortgage loans secured by real property in the United States. For more information on BRT, please visit our
Home Page.
Caution Concerning Forward-Looking Statements: Materials included in this filing may contain "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks,
uncertainties and other factors that could cause actual results to be materially different from historical results or from any future
results expressed or implied by such forward-looking statements. Statements that include the words "may," "will,"
"would," "could," "should," "believes," "estimates," "projects,"
"potential," "expects," "plans," "anticipates," "intends," "continues,"
"forecast," "designed," "goal," or the negative of those words or other comparable words should be considered
uncertain and forward-looking.
Contact: Simeon Brinberg, Senior Vice President - (516) 466-3100
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