Great Neck, New York, December 13, 2004 -- BRT Realty Trust (NYSE:BRT) today announced that for the three months ended September 30, 2004 it had total revenues of $5,429,000 and net income of $3,148,000, or $0.40 per share on a diluted basis. Net income for the quarter ended September 30, 2004 includes a net gain on sale of real estate assets of $111,000 , or $.01 per share, and equity in earnings of unconsolidated joint ventures of $128,000 , or $.02 per share. This compares with total revenues, net income and net income per share on a diluted basis of $3,395,000, $3,888,000 and $.51 per share, respectively, for the three months ended September 30, 2003. Net income for the three months ended September 30, 2003 includes a net gain on sale of available for sale securities of $1,718,000, or $.22 per share, net gain on sale of real estate assets of $104,000, or $.01 per share, and equity in earnings of unconsolidated ventures of $392,000 , or $.05 per share. If the gain realized on the sale of available for sale securities and gain on sale of real estate assets are not taken into account in either three month period, net income and net income per share would be $3,037,000 and $.39 per share, respectively, for the three months ending September 30, 2004 and $2,066,000 and $.27 per share, respectively, for the three months ending September 30, 2003. The weighted average number of common shares outstanding on a diluted basis was 7,738,328 and 7,655,934 for the three months ended September 30, 2004 and 2003, respectively.
BRT also announced that for the fiscal year ended September 30, 2004 it had total revenues of $18,583,000 and net income of $12,002,000, or $1.55 per share on a diluted basis. Net income for the September 30, 2004 twelve month period includes a gain on sale of available-for- sale-securities of $1,641,000, or $.21 per share, a gain on sale of real estate assets of $1,261,000, or $.16 per share, and equity in earnings of unconsolidated real estate ventures of $202,000 or $.03 per share. For the prior fiscal year ended September 30, 2003, BRT reported total revenues of $14,804,000 and net income of $13,683,000, or $1.80 per share on a diluted basis. Net income for the September 30, 2003 twelve month period includes a gain on sale of available-for-sale securities of $4,332,000, or $.57 per share, a gain on sale of real estate assets of $499,000, or $.07 per share, and equity in earnings of unconsolidated real estate ventures of $479,000, or $0.06 per share. If the gain realized on the sale of available for sale securities and the gain from sale of real estate assets are not taken into account in either year net income and net income per share would be $9,100,000, or $1.18 per share, respectively, for the fiscal year ended September 30, 2004 and $8,852,000, or $1.17, respectively for the fiscal year ended September 30, 2003. The weighted average number of common shares outstanding on a diluted basis was 7,734,364 and 7,595,434 for the twelve months ended September 30, 2004 and September 30, 2003, respectively.
Commenting on the results of operations for the three months and year ended September 30, 2004 Jeffrey Gould, President and Chief Executive Officer of BRT stated that the increase in revenues quarter over quarter and year over year was due primarily to the increased volume of loan originations which caused an increase in the average balance of loans outstanding in each current period, offset to a limited extent by a decline in the average rate earned on the loan portfolio. Commenting further, Mr. Gould noted that interest expense, the advisor’s fee and general and administrative expenses each increased in both the 2004 quarter and the 2004 fiscal year as a result of the increased level of the company’s business activity. Real estate operating expenses decreased by a small amount quarter versus quarter, but increased by $856,000 year over year as a result of legal fees and expenses incurred in 2004 in defending a lawsuit relating to a property previously owned by the Company, which was satisfactorily resolved in 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 REALTY TRUST | ||||
| Three Months Ended September 30, | Six Months Ended September 30, | |||
2004 | 2003 | 2004 | 2003 | |
| Revenues | $ 5,429 | $ 3,395 | $ 18,583 | $ 14,804 |
| Expenses (1) | 2,509 | 1,713 | 9,642 | 6,388 |
Income from before equity in earnings of unconsolidated joint ventures, gain on sale of available-for-sale securities, minority interest and discontinued operations | 2,920 | 1,682 | 8,941 | 8,416 |
| Equity in earnings of unconsolidated joint ventures | 128 | 392 | 202 | 479 |
Income from before gain on sale of available-for-sale securities, minority interest and discontinued operations | 3,037 | 2,074 | 9,143 | 8,895 |
Gain on sale of available-for -sale securities | - | 1,718 | 1,641 | 4,332 |
| Minority interest | (11) | (8) | (43) | (43) |
Income before discontinued operations | 3,037 | 3,784 | 10,741 | 13,184 |
Discontinued operations Gain on sale of real estate assets | 111 | 104 | 1,261 | 499 |
| Net income | $ 3,148 | $ 3,888 | $ 12,002 | $ 13,683 |
Income per share of beneficial interest: | $ .40 | $ .50 | $ 1.41 | $ 1.76 |
| Discontinued operations | $ .01 | $ .02 | $ .17 | $ .07 |
| Basic earnings per share | $ .41 | $ .52 | $ 1.58 | $ 1.83 |
| Income from continuing operations | $ .39 | $ .49 | $ 1.39 | $ 1.73 |
| Discontinued operations | $ .01 | $ .02 | $ .16 | $ .07 |
| Diluted earnings per share | $ .40 | $ .51 | $ 1.55 | $ 1.80 |
| Cash distributions per common share | $ .48 | $ .36 | $ 1.79 | $ 1.30 |
Weighted average number of common shares outstanding: | ||||
| Basic | 7,652,108 | 7,527,173 | 7,617,116 | 7,470,608 |
| Diluted | 7,738,328 | 7,655,934 | 7,734,364 | 7,595,434 |
(1) Includes $779,000 and $19,000 of litigation costs and expenses in the three months ending June 30, 2004 and 2003, respectively. Includes $919,000 and $19,000 of litigation costs and expenses in the nine months ending June 30, 2004 and 2003, respectively. The litigation was concluded in June, 2004. | ||||
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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