Great Neck, New York, August 10, 2004 -- BRT Realty Trust (NYSE:BRT) today announced its results of operations for the three and nine months ended June 30, 2004. For the three months ended June 30, 2004 BRT reported total revenues of $4,886,000 and net income of $2,309,000, or $0.30 per share on a diluted basis, including gains from the sale of securities and gains from the sale of real estate assets totaling $563,000, or $.07 per share. This compares with total revenues, net income and net income per share on a diluted basis of $3,765,000, $4,754,000, and $.62 per share, respectively, for the three months ended June 30, 2003, including gains from the sale of securities and gains from the sale of real estate assets totaling $2,668,000, or $.35 per share. The weighted average number of common shares outstanding on a diluted basis was 7,738,076 and 7,617,296 for the three months ended June 30, 2004 and 2003, respectively.
BRT also reported that for the nine months ended June 30, 2004 it had total revenues of $13,154,000 and net income of $8,854,000, or $1.14 per share, on a diluted basis, including gains from the sale of securities and gains from the sale of real estate assets totaling $2,791,000, or $.36 per share. For the nine months ended June 30, 2003, BRT reported total revenues of $11,409,000 and net income of $9,795,000, or $1.29 per share on a diluted basis, including gains from the sale of securities and gains from the sale of real estate assets totaling $3,009,000, or $.40 per share. The weighted average number of common shares outstanding on a diluted basis was 7,733,032 and 7,575,045 for the nine months ended June 30, 2004 and 2003, respectively.
Jeffrey A. Gould, President and Chief Executive Officer of BRT commented that the results in both current periods reflect the strength of BRT’s core lending business, as revenues increased quarter versus quarter and nine months versus nine months by 30% and 15%, respectively, due to a significant increase in loan originations resulting in an increase in the average balance of loans outstanding in each of the current periods. Mr. Gould noted that the gains from the sale of securities were greater in the 2003 periods then in the 2004 periods. For the three months ended June 30, 2004, gains from the sale of securities was $4,000, as compared to $2,468,000, or $.32 per share, for the three months ended June 30, 2003. For the nine months ended June 30, 2004 gains from the sale of securities was $1,641,000, or $.21 per share, compared to $2,614,000, or $.35 per share, for the nine months ended June 30, 2003. Net income was positively affected in the 2004 periods as a result of a gain on the sale of real estate assets of $559,000, or $.07 per share for the 2004 quarter versus $200,000, or $.03 per share, for the 2003 quarter and $1,150,000, or $.15 per share, for the 2004 nine month period, versus $395,000, or $.05 per share, for the 2003 nine month period. Timing of gains from securities sales and real estate asset sales, Mr. Gould noted, is not predictable.
Commenting further, Mr. Gould noted that interest expense, the advisor’s fee and general and administrative expenses increased in the 2004 periods in line with the increased level of the Trust’s loan originations. However, real estate operating expenses increased $752,000 quarter versus quarter and $905,000 nine months versus nine months as a result of “non-recurring” legal fees and other costs incurred by the Trust in defending a lawsuit which was concluded in June 2004. It is not anticipated that any significant additional expenses will be incurred with respect to this litigation in future periods.
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 June 30, | Nine Months Ended June 30, | |||
2004 | 2003 | 2004 | 2003 | |
| Revenues | $ 4,886 | $ 3,765 | $ 13,154 | $ 11,409 |
| Expenses (1) | 3,162 | 1,657 | 7,133 | 4,675 |
Income from before equity in earnings of unconsolidated joint ventures, gain on sale of available-for-sale securities, minority interest and discontinued operations | 1,724 | 2,108 | 6,021 | 6,734 |
| Equity in earnings of unconsolidated joint ventures | 33 | (7) | 74 | 87 |
Income from before gain on sale of available-for-sale securities, minority interest and gain on sale of real estate assets | 1,750 | 2,101 | 6,095 | 6,821 |
Gain on sale of available-for -sale securities | 4 | 2,468 | 1,641 | 2,614 |
| Minority interest | (11) | (15) | (32) | (35) |
Income before discontinued operations | 1,750 | 4,554 | 7,704 | 9,400 |
Gain on sale of real estate assets | 559 | 200 | 1,150 | 395 |
| Net income | $ 2,309 | $ 4,754 | $ 8,854 | $ 9,795 |
Income per share of beneficial interest: | ||||
| Income before gain on sale of real estate assets | $ .23 | $ .60 | $ 1.01 | $ 1.26 |
| Gain on sale of real estate assets | $ .07 | $ .03 | $ .15 | $ .05 |
| Basic earnings per share | $ .30 | $ .63 | $ 1.16 | $ 1.31 |
| Income before gain on sale of real estate assets | $ .23 | $ .59 | $ .99 | $ 1.24 |
| Gain on sale of real estate assets | $ .07 | $ .03 | $ .15 | $ .05 |
| Diluted earnings per share | $ .30 | $ .62 | $ 1.14 | $ 1.29 |
| Cash distributions per common share | $ .48 | $ .34 | $ 1.31 | $ .94 |
Weighted average number of common shares outstanding: | ||||
| Basic | 7,650,471 | 7,487,751 | 7,605,366 | 7,451,546 |
| Diluted | 7,738,076 | 7,617,296 | 7,733,032 | 7,575,045 |
(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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