Great Neck, New York, December 18, 2000 -- BRT Realty Trust (NYSE:BRT) today announced that for the three months ended September 30, 2000, the final quarter of the fiscal year, it had total revenues of $2,925,000 and net income of $1,721,000, or $0.24 per share on a diluted basis (including a gain of $137,000, or $.02 per share, on sale of real estate assets and marketable securities). This compares with total revenues of $3,054,000 and net income of $4,764,400, or $0.66 per share on a diluted basis (including a $3,616,000 gain on sale of real estate assets, or $0.50 per share) for the quarter ended September 30, 1999. The weighted average number of shares outstanding on a diluted basis was 7,262,417 and 7,258,976 for the three months ended September 30, 2000 and 1999, respectively. If the gain on sale of real estate assets and securities is not taken into account, BRT's income for the three months ended September 30, 2000 is $1,584,000 , or $.22 per share, as compared to $1,148,000, or $.16 per share, for the three months ended September 30, 1999.
For the year ended September 30, 2000, BRT had total revenues of $10,886,000 and net income of $7,635,000, or $1.05 per share on a diluted basis (including a net gain on sale of real estate loans, real estate properties and available-for-sale securities of $1,945,000, or $0.26 per share). For the year ended September 30, 1999, BRT reported total revenues of $12,173,000 and net income of $11,646,000, or $1.61 per share on a diluted basis (including a net gain on sale of real estate loans, real estate assets and available-for-sale securities of $6,558,000, or $.91 per share). The weighted average number of shares outstanding on a diluted basis was 7,253,227 and 7,220,505 shares for the year ended September 30, 2000 and 1999, respectively. If the gain on sale of real estate loans, real estate properties and available for sale securities is not taken into account, BRT's income for fiscal 2000 is $5,690,000, or $.78 per share, as compared to $5,058,000, or $.70 per share for fiscal 1999.
Commenting on the results of operations for the quarter and year ended September 30, 2000, Jeffrey Gould, President of the Trust noted that on an operating basis income increased by 38% in the quarter ended September 30, 2000 as compared to the quarter ended September 30, 1999 and by 12% year over year.
Commenting further, Mr. Gould stated that interest and fees on real estate loans increased modestly in the fourth quarter of the current fiscal year as compared to the fourth quarter of the prior fiscal year and decreased modestly in the 2000 fiscal year, as compared to the prior fiscal year. The increase quarter over quarter was primarily due to an increase in rate. The decrease year over year is a result of a decrease in the average balance of loans outstanding and the classification of two loans in the current year as non-earning. Mr. Gould noted that BRT expects to recover at least the full principal amount, net of allowances, plus accrued interest, on these two non-earning loans. The decline in the average loan balances during the year was partially offset by an increase in rate. Operating income on real estate assets decreased in both the three months and the year ended September 30, 2000, as a result of the disposition of real estate previously acquired in foreclosure and the results of operations for the 1999 fiscal year and fourth quarter of the 1999 fiscal year benefited to the extent of $660,000 from the reversal of an allowance on a loan that was paid in full in the fourth quarter of the 1999 fiscal year.
Mr. Gould pointed out that partially offsetting the modest decrease in interest and fees on real estate loans and the decrease in operating income from real estate properties was an increase in BRT's equity in earnings of unconsolidated ventures and an increase in investment income due to the investment by BRT of its significant cash balances in higher yielding REIT securities and treasury securities.
On the expense side, Mr. Gould noted that there was a decrease in total expenses in both the quarter and year ended September 30, 2000, as compared to the prior comparable periods, as a result of a decrease in interest expense, the advisor's fee, operating expenses relating to real estate properties, and general and administrative expenses. Mr. Gould noted that operating expenses relating to real estate properties includes funds expended for professional expenses incurred in defending a litigation involving a property previously sold by BRT. BRT was granted summary judgment in the litigation and was awarded reimbursement of its legal fees. The plaintiff has moved for reconsideration of the summary judgment decision and the amount of reimbursement of legal fees is subject to the ultimate determination by the court. There can be no estimate given as to the amount of any such reimbursement.
Mr. Gould stated that the available tax loss carry-forward, which was approximately $9,486,000 at December 31, 1999, is projected to be approximately $2,200,000 at December 31, 2000.
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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