Great Neck, New York, February 9, 2006 -- BRT Realty Trust (NYSE:BRT) today announced that total revenues for the three months ended December 31, 2005, the first quarter of its fiscal year, increased 27% over the three months ended December 31, 2004, and that net income increased 9% quarter over quarter. For the three months ended December 31, 2005, BRT reported revenues of $7,400,000 and net income of $4,715,000, or $.60 per share on a diluted basis. Net income for the three months ended December 31, 2005 includes gain on disposition of real estate related to unconsolidated joint ventures of $2,531,000, or $.32 per share, resulting from a property sale by one of BRT’s joint ventures. For the three months ended December 31, 2004, total revenues, net income and net income per share on a diluted basis were $5,806,000, $4,311,000, and $.55 per share, respectively. Net income for the three months ended December 31, 2004 includes a net gain on sale of available-for-sale securities of $729,000, or $.09 per share. The weighted average number of common shares outstanding on a diluted basis was 7,877,349 and 7,774,303 for the three months ended December 31, 2005 and 2004, respectively.
Commenting on the results of operations for the three months ended December 31, 2005, Jeffrey A. 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 for the December 31, 2005 quarter versus the December 31, 2004 quarter, to $173.9 million in the 2005 quarter from $127.7 million in the December 31, 2004 quarter. Revenues also benefited in the current quarter from a 194 basis point increase in the average interest rate earned on the loan portfolio.
On the expense side, Mr. Gould noted that total expenses increased by $1,892,000, or 80%, quarter versus quarter, of which $1,103,000 was a result of increased interest expense, as BRT borrowed under its credit facilities to fund its increased level of loan originations. There was also a 184 basis point increase in the interest rate paid on borrowed funds. The increase in expenses was also attributable to a $151,000, or 39%, increase in the adviser’s fee, a direct result of the increased loan portfolio. General and administrative expenses increased by $637,000, or 66%, quarter versus quarter, due primarily to fees and expenses related to a proposed preferred stock offering which was cancelled due to adverse market conditions, fees resulting from compliance with the Sarbanes-Oxley Act, increased commissions due to the increased loan portfolio, increased payroll and payroll related expenses due to increased staffing and an increase in allocated expenses under a shared services agreement resulting from additional legal and accounting services related primarily to consummation of a new credit facility and the cancelled offering.
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 REALTY TRUST | |||
Three Months Ended December 31, | |||
| 2005 | 2004 | ||
| Revenues | $7,400 | $5,806 | |
| Expenses | 4,269 | 2,377 | |
Income before equity in earnings (loss) of unconsolidated joint ventures, minority interest and discontinued operations | 3,131 | 3,429 | |
| Equity in earnings (loss) of unconsolidated joint ventures | (877) | 54 | |
Gain on disposition of real estate related to unconsolidated real estate venture | 2,531 | - | |
| Income before minority interest and discontinued operations | 4,785 | 3,484 | |
| Gain on sale of available-for -sale securities | - | 729 | |
| Minority interest | (8) | (11) | |
| Income from continuing operations | 4,777 | 4,202 | |
Discontinued operations | |||
| (Loss) income from operations | (62) | 109 | |
| (Loss) from discontinued operations | (62) | 109 | |
| Net income | $ 4,715 | $ 4,311 | |
Income per share of beneficial interest: | |||
| Income from continuing operations | $ .61 | $ .55 | |
(Loss) income from discontinued operations | (.01) | .01 | |
| Basic earnings per share | $ .60 | $ .56 | |
| Income from continuing operations | $ .61 | $ .54 | |
| (Loss) income from discontinued operations | (.01) | .01 | |
| Diluted earnings per share | $ .60 | $ .55 | |
| Cash distributions per common share | $ .52 | $ .48 | |
Weighted average number of common shares outstanding: | |||
| Basic | 7,829,991 | 7,662,372 | |
| Diluted | 7,877,349 | 7,774,303 | |
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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