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Great Neck, New York, May 9, 2006 -- BRT Realty Trust (NYSE:BRT) today announced that total revenues for the quarter ended March 31, 2006 increased by 42% over the quarter ended March 31, 2005, and net income increased by 36% quarter over quarter.  For the three months ended March 31, 2006, BRT reported total revenues of $8,121,000 and net income of $4,119,000, or $.52 per share on a diluted basis.  Net income for the three months ended March 31, 2006 includes income from discontinued operations of $345,000, or $.04 per diluted share.  For the three months ended March 31, 2005, total revenues, net income and net income per share on a diluted basis were $5,735,000, $3,039,000 and $.39 per share, respectively.  Net income for the three months ended March 31, 2005 includes income from discontinued operations of $81,000, or $.01 per diluted share.  The weighted average number of common shares outstanding on a diluted basis was 7,945,242 and 7,806,385 for the three months ended March 31, 2006 and 2005, respectively.

For the six months ended March 31, 2006, BRT reported a 34% increase in total revenues and a 20% increase in net income.  For the six months ended March 31, 2006, BRT reported revenues of $15,521,000 and net income of $8,834,000, or $1.12 per share on a diluted basis.  Net income for the six months ended March 31, 2006 includes $2,531,000, or $.32 per diluted share, representing gain on disposition of real estate related to unconsolidated real estate ventures, offset by $750,000 representing BRT’s share of the loss of unconsolidated joint ventures, primarily related to the prepayment by a joint venture of the mortgage related to the same property.  The net income for the six months ended March 31, 2006 also includes $283,000 of income from discontinued operations, or $.03 per diluted share.  For the six months ended March 31, 2005, BRT reported total revenues of $11,541,000 and net income of $7,350,000, or $.94 per diluted share.  Net income for the six months ended March 31, 2005 includes gain on sale of available-for-sale securities of $680,000, or $.09 per share, and $190,000 of income from discontinued operations, or $.02 per diluted share.  The weighted average number of common shares outstanding on a diluted basis was 7,910,922 and 7,777,400 for the six months ended March 31, 2006 and 2005, respectively.

Commenting on the results of operations for the three and six months ended March 31, 2006, Jeffrey Gould, President and Chief Executive Officer of BRT, noted that the primary reason for the increase in revenues was the significant increase in the average balance of loans outstanding from $130 million in the three months ended March 31, 2005 to $191.5 million in the three months ended March 31, 2006 and from $128.9 million in the six months ended March 31, 2005 to $182.7 million in  the six months ended March 31, 2006.  Revenues in the current periods also benefited from an increase in the average interest rate earned on the loan portfolio and increases in fee income related to the increased loan portfolio.

On the expense side, Mr. Gould noted that interest expense increased significantly in both current periods as the average balance of borrowings increased as a direct result of borrowings under BRT’s credit facilities to fund the increase in loan originations.  Also contributing to the increased interest expense was an increase in the interest rate paid on borrowed funds in both current periods.  There was also an increase in both current periods in all significant expense categories due to the increased level of business and the increase in loan originations.  Among other items, there was an increase in the adviser’s fee, in payroll and payroll related expenses due to increased staffing, increased bonuses, higher commissions to loan originators, an increase in restricted stock amortization, an increase in allocated expenses under a shared services agreement, an increase in accounting and auditing fees, and an increase in advertising.

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 and Exchange Act of 1934, as amended.  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 theses safe harbor provisions.  The forward looking statements should not be relied upon since they 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.

Contact: Simeon Brinberg, BRT Realty Trust (516) 466-3100

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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