Welcome!

News Feed Item

BRT Realty Trust Reports First Quarter Results for December 31, 2012

GREAT NECK, NY -- (Marketwire) -- 02/06/13 -- BRT REALTY TRUST (NYSE: BRT), a real estate investment trust that originates and holds senior mortgage loans secured by commercial and multi-family properties, owns and operates multi-family properties with joint venture partners, and owns and operates other commercial and mixed use real estate assets, today announced operating results for the three months ended December 31, 2012.

Jeffrey A. Gould, President and Chief Executive Officer, stated that: "Our results for the current quarter in comparison to the first quarter of fiscal 2012 were adversely impacted by, among other things, the inclusion of gains on the sales of loan and real property in the first quarter of fiscal 2012 and the expenses incurred in the first quarter of fiscal 2013 in growing our multi-family property portfolio.

In growing the multi-family property portfolio, BRT incurred property acquisition costs of $878,000 primarily in connection with three multi-family properties acquired in the first quarter of fiscal 2013 (which costs are expensed in full as incurred) and a $1.29 million non-cash depreciation and amortization charge, which relates primarily to multi-family activities. However, we believe that BRT's participation in the acquisition, ownership and operation of multi-family properties will, over time, be accretive to our cash flow and net income."

Operating Results:

Total revenues for the three months ended December 31, 2012 were approximately $8.25 million, an increase of 162% or $5.1 million from the three months ended December 31, 2011. The increase was due primarily to the increase in rental revenue from the eight multi-family properties acquired during the past twelve months.

Total expenses for the quarter ended December 31, 2012 increased by approximately $7.2 million or 220%, from the quarter ended December 31, 2011. The increase is attributable primarily to increases in interest expense, depreciation and amortization, operating expenses relating to real estate properties and property acquisition costs. Interest expense increased due to the Newark Joint Venture's financing activities and mortgage debt associated with the multi-family properties -- the other items of expense increased due to the multi-family properties acquired.

Net loss attributable to common shareholders was $1.30 million or $.09 per share for the current three months compared to net income of $3.87 million or $.28 per share for the three months ended December 31, 2011. The change is due primarily to the inclusion (i) in the quarter ended December 31, 2011 of a $3.2 million gain on sale of a loan in BRT's loan and investment segment and a $490,000 gain on the sale of a real property in BRT's other real estate segment and (ii) in the quarter ended December 31, 2012, a $1.24 million loss sustained in BRT's multi-family property segment.

Funds from Operations ("FFO") in the first quarter of fiscal 2013 were nominal compared to $3.6 million or $.25 per diluted share in the first quarter of 2012. A description and reconciliation of non-GAAP financial measures to GAAP financial measures is presented later in this release.

Balance Sheet:

At December 31, 2012, the Trust had $32.6 million of cash and cash equivalents, total assets of $432.3 million, total debt of $252.2 million and total equity of $147.5 million.

At January 31, 2012, BRT's available liquidity was approximately $30 million, including approximately $20 million of cash and cash equivalents and $10 million available under its credit facility.

Non-GAAP Financial Measures:

In view of the equity investments that BRT made in joint ventures which have acquired multi-family properties, BRT is disclosing funds from operations ("FFO") because it believes that FFO is a widely recognized and appropriate measure of the performance of an equity REIT. BRT believes FFO is frequently used by securities analysts, investors and other interested parties in the evaluation of equity REITs, many of which present FFO when reporting their results. FFO is intended to exclude historical cost depreciation and amortization of real estate and related assets, which assumes that the value of real estate diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. As a result, FFO provides a performance measure that, when compared year over year, reflects the impact to operations from trends in occupancy rates, rental rates, operating costs, development activities, interest costs and other matters without the inclusion of depreciation and amortization, providing perspective that may not necessarily be apparent from net income. Though BRT is not solely an equity REIT, it is presenting FFO because a significant portion of its revenues and expenses in fiscal 2012 and the first quarter of fiscal 2013 were derived from its ownership of multi-family properties.

BRT has determined FFO in accordance with standards established by the National Association of Real Estate Investment Trusts, Inc. ("NAREIT"). FFO is defined by NAREIT as net income (or loss) computed in accordance with generally accepted accounting principles ("GAAP"), excluding gains (or losses) from sales of property, plus depreciation and amortization, plus impairment write-downs of depreciable real estate, and after adjustments for unconsolidated partnerships and joint ventures. FFO does not represent cash generated from operating activities in accordance with GAAP and is not indicative of cash available to fund cash needs. FFO should not be considered as an alternative to net income as an indicator of BRT's operating performance or as an alternative to cash flow as a measure of liquidity.

Additional Information:

Interested parties are urged to review the Form 10-Q filed with the Securities and Exchange Commission for the quarter ended December 31, 2012 for further details. The Form 10-Q can also be linked through the "Investor Relations" section of BRT's website. For additional information on BRT's operations, activities and properties, please visit its website at www.brtrealty.com.

Forward Looking Information:

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 Exchange Act of 1934, as amended, including statements regarding the apparent improvement in the economic environment and BRT's ability to originate additional loans. 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. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words "may," "will," "believe," "expect," "intend," "anticipate," "estimate," "project," "apparent", "experiencing" or similar expressions or variations thereof. Forward looking statements, including statements with respect to BRT's loan origination activities, the development activities with respect to the Newark Joint Venture and multi-family property acquisitions and ownership activities, 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. Investors are cautioned not to place undue reliance on any forward-looking statements and to carefully review the section entitled "Item 1A. Risk Factors" in our Annual Report on Form 10-K for the year ended September 30, 2012.

               BRT REALTY TRUST AND SUBSIDIARIES
        CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
         (Dollars in thousands, except per share data)

                                                      Three months ended
                                                         December 31,
                                                       2012         2011
                                                   -----------  -----------

Revenues:
  Rental and other revenue from real estate
   properties                                      $     5,640  $       768
  Interest and fees on real estate loans                 1,879        2,252
  Recovery of previously provided allowances               422            7
  Other income                                             310          127
                                                   -----------  -----------
    Total revenues                                       8,251        3,154

Expenses:
  Interest expense                                       2,946          467
  Advisor's fees, related party                            374          171
  General and administrative expenses                    1,863        1,674
  Property acquisition costs                               878            -
  Operating expenses relating to real estate
   properties                                            3,146          786
  Depreciation and amortization                          1,287          184
                                                   -----------  -----------
    Total expenses                                      10,494        3,282

                                                   -----------  -----------
    Total revenues less total expenses                  (2,243)        (128)

Equity in earnings (loss) of unconsolidated
 ventures                                                   61          (75)
Loss on sale of available-for-sale securities                -          (18)
Gain on sale of loan                                         -        3,192
                                                   -----------  -----------
    (Loss) income from continuing operations            (2,182)       2,971

Discontinued operations:
  Gain on sale of real estate assets                         -          490
                                                   -----------  -----------
    Discontinued operations                                  -          490

                                                   -----------  -----------
Net (loss) income                                       (2,182)       3,461

Plus: net loss attributable to non-controlling
 interests                                                 878          413

                                                   -----------  -----------
Net (loss) income attributable to common
 shareholders                                      $    (1,304) $     3,874
                                                   ===========  ===========



Basic and diltued per share amounts attributable
 to common shareholders:

(Loss) income from continuing operations           $     (0.09) $      0.24
Discontinued operations                                      -         0.04
                                                   -----------  -----------
  Basic and diluted (loss) income per share        $     (0.09) $      0.28
                                                   ===========  ===========

Amounts attributable to BRT Realty Trust:
  (Loss) Income from continuing operations         $    (1,304) $     3,384
  Discontinued operations                                    -          490
                                                   -----------  -----------
    Net (loss) income                              $    (1,304) $     3,874
                                                   ===========  ===========

                                                   -----------  -----------
Funds from operations - Note 1                     $         2  $     3,591
                                                   ===========  ===========

                                                   -----------  -----------
Funds from operations per share - basic and
 diluted - Note 2                                  $         -  $      0.25
                                                   ===========  ===========

Weighted average number of
common shares outstanding:
  Basic and diluted                                 14,053,362   13,982,164
                                                   ===========  ===========


Note 1:
Funds from operations is summarized in the
 following table:
Net income (loss) attributable to common
 shareholders                                      $    (1,304) $     3,874
Add: depreciation of properties                          1,283          177
Add: our share of depreciation in unconsolidated
 joint ventures                                             10           10
Add: amortization of capitalized leasing expenses           13           20
Deduct: net gain on sales of real estate                     0         (490)
                                                   -----------  -----------
Funds from operations                              $         2  $     3,591
                                                   ===========  ===========

Note 2:
Funds from operations is summarized in the
 following table:
Net income (loss) attributable to common
 shareholders                                      $     (0.09) $      0.28
Add: depreciation of properties                           0.09         0.01
Add: our share of depreciation in unconsolidated
 joint ventures                                              -            -
Add: amortization of capitalized leasing expenses            -            -
Deduct: net gain on sales of real estate                     -        (0.04)
                                                   -----------  -----------
Funds from operations per common share basic and
 diluted                                           $         -  $      0.25
                                                   ===========  ===========

Contact:
David W. Kalish
(516) 466-3100
BRT REALTY TRUST
60 Cutter Mill Road
Suite 303
Great Neck, New York 11021
Telephone (516) 466-3100
Telecopier (516) 466-3132
www.BRTRealty.com

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Kubernetes is a new and revolutionary open-sourced system for managing containers across multiple hosts in a cluster. Ansible is a simple IT automation tool for just about any requirement for reproducible environments. In his session at @DevOpsSummit at 18th Cloud Expo, Patrick Galbraith, a principal engineer at HPE, discussed how to build a fully functional Kubernetes cluster on a number of virtual machines or bare-metal hosts. Also included will be a brief demonstration of running a Galera MyS...
It is of utmost importance for the future success of WebRTC to ensure that interoperability is operational between web browsers and any WebRTC-compliant client. To be guaranteed as operational and effective, interoperability must be tested extensively by establishing WebRTC data and media connections between different web browsers running on different devices and operating systems. In his session at WebRTC Summit at @ThingsExpo, Dr. Alex Gouaillard, CEO and Founder of CoSMo Software, presented ...
Enterprises are universally struggling to understand where the new tools and methodologies of DevOps fit into their organizations, and are universally making the same mistakes. These mistakes are not unavoidable, and in fact, avoiding them gifts an organization with sustained competitive advantage, just like it did for Japanese Manufacturing Post WWII.
DXWorldEXPO LLC, the producer of the world's most influential technology conferences and trade shows has announced the 22nd International CloudEXPO | DXWorldEXPO "Early Bird Registration" is now open. Register for Full Conference "Gold Pass" ▸ Here (Expo Hall ▸ Here)
In his session at @DevOpsSummit at 20th Cloud Expo, Kelly Looney, director of DevOps consulting for Skytap, showed how an incremental approach to introducing containers into complex, distributed applications results in modernization with less risk and more reward. He also shared the story of how Skytap used Docker to get out of the business of managing infrastructure, and into the business of delivering innovation and business value. Attendees learned how up-front planning allows for a clean sep...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
"Our strategy is to focus on the hyperscale providers - AWS, Azure, and Google. Over the last year we saw that a lot of developers need to learn how to do their job in the cloud and we see this DevOps movement that we are catering to with our content," stated Alessandro Fasan, Head of Global Sales at Cloud Academy, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
As ridesharing competitors and enhanced services increase, notable changes are occurring in the transportation model. Despite the cost-effective means and flexibility of ridesharing, both drivers and users will need to be aware of the connected environment and how it will impact the ridesharing experience. In his session at @ThingsExpo, Timothy Evavold, Executive Director Automotive at Covisint, discussed key challenges and solutions to powering a ride sharing and/or multimodal model in the age ...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.
When shopping for a new data processing platform for IoT solutions, many development teams want to be able to test-drive options before making a choice. Yet when evaluating an IoT solution, it’s simply not feasible to do so at scale with physical devices. Building a sensor simulator is the next best choice; however, generating a realistic simulation at very high TPS with ease of configurability is a formidable challenge. When dealing with multiple application or transport protocols, you would be...
As organizations shift towards IT-as-a-service models, the need for managing and protecting data residing across physical, virtual, and now cloud environments grows with it. Commvault can ensure protection, access and E-Discovery of your data – whether in a private cloud, a Service Provider delivered public cloud, or a hybrid cloud environment – across the heterogeneous enterprise. In his general session at 18th Cloud Expo, Randy De Meno, Chief Technologist - Windows Products and Microsoft Part...
"Venafi has a platform that allows you to manage, centralize and automate the complete life cycle of keys and certificates within the organization," explained Gina Osmond, Sr. Field Marketing Manager at Venafi, in this SYS-CON.tv interview at DevOps at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Data is the fuel that drives the machine learning algorithmic engines and ultimately provides the business value. In his session at Cloud Expo, Ed Featherston, a director and senior enterprise architect at Collaborative Consulting, discussed the key considerations around quality, volume, timeliness, and pedigree that must be dealt with in order to properly fuel that engine.