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Great Neck, New York, May 9, 2005 -- BRT Realty Trust (NYSE:BRT) today announced it had revenues for the three months ended March 31, 2005 of $6,043,000, and net income of $3,039,000, or $.39 per share on a diluted basis.  This compares with total revenues, net income and net income per share on a diluted basis of $4,599,000, $3,251,000, and $.42 per share, respectively, for the three months ended March 31, 2004.  Net income for the quarter ended March 31, 2005 includes a net loss on sale of available-for-sale securities of $49,000, or $.01 per share, and net income for the quarter ended March 31, 2004 includes a net gain on sale of available-for-sale securities of $917,000, or $.12 per share.  If the loss on the sale of available-for-sale securities in the three months ended March 31, 2005 and the gain on the sale of available-for-sale securities in the three months ended March 31, 2004 are not taken into account, BRT would have reported net income of $3,088,000, or $.40 per share on a diluted basis, for the three months ended March 31, 2005, and net income of $2,334,000, or $.30 per share on a diluted basis, for the three months ended March 31, 2004.  The weighted average number of common shares outstanding on a diluted basis was 7,806,385 and 7,696,940 for the three months ended March 31, 2005 and March 31, 2004, respectively.

BRT also announced that for the six months ended March 31, 2005 it had total revenues of $12,076,000 and net income of $7,350,000, or $.94 per share on a diluted basis.  Net income for the six months ended March 31, 2005 includes a net gain on sale of available-for-sale securities of $680,000, or $.09 per share.  For the six months ended March 31, 2004, BRT had total revenues of $8,268,000 and net income of $6,545,000, or $.85 per share on a diluted basis.  Net income for the six months ended March 31, 2004 includes a net gain on sale of available-for-sale securities of $1,637,000, or $.21 per share, and a net gain on sale of real estate assets of $591,000, or $.08 per share.  If the gain on the sale of available-for-sale securities in the six months ended March 31, 2005 and the gain on the sale of real estate assets and the gain on the sale of available-for-sale securities in the six months ended March 31, 2004 are not taken into account, BRT would have reported net income of $6,670,000, or $.86 per share on a diluted basis, for the six months ended March 31, 2005, and net income of $4,317,000, or $.56 per share on a diluted basis, for the six months ended March 31, 2004.  The weighted average number of common shares outstanding on a diluted basis was 7,777,400 and 7,684,184 for the six months ended March 31, 2005 and March 31, 2004, respectively.

Commenting on the results of operations for the three and six month periods ended March 31, 2005, Jeffrey Gould, President and Chief Executive Officer of BRT, noted that the increase in revenues was due primarily to a significant increase in the average balance of loans outstanding and an increase in the average interest rate earned on its outstanding loan portfolio.  Mr. Gould noted that the average balance of loans outstanding increased by approximately $26,300,000 for the three month period ended March 31, 2005 compared to the three month period ended March 31, 2004, and approximately $36,900,00 for the six month period ended March 31, 2005 compared to the six month period ended March 31, 2004.

Commenting further, Mr. Gould noted that total expenses increased by $635,000, or 28%, quarter over quarter, of which $552,000 is a result of increased interest expense, and by $1,412,000, or 35%, six months versus six months, of which $1,041,000 is a result of increased interest expense.  The increased interest expense was primarily due to borrowing under BRT’s credit facilities to fund its increased level of loan originations.  The increase in expenses was also attributable to an increase in the advisor’s fee of $75,000 quarter over quarter, and $162,000 six months versus six months, also due primarily to the increased loan portfolio.  General and administrative expenses increased by $49,000 quarter over quarter, and $218,000 six months versus six months, primarily due to fees resulting from Sarbanes-Oxley compliance activities, and increases in payroll and payroll related expenses and insurance costs.  The increases in expenses were offset by a decline in real estate operating expenses of $103,000 quarter versus quarter, and $109,000 six months versus six months, due primarily to a “non-recurring” litigation expense incurred in the prior three and six month periods in connection with a litigation which was resolved in June 2004.

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 these 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 - (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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