|By Marketwired .||
|February 6, 2013 04:15 PM EST||
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."
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.
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.
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 =========== ===========
David W. Kalish
BRT REALTY TRUST
60 Cutter Mill Road
Great Neck, New York 11021
Telephone (516) 466-3100
Telecopier (516) 466-3132
Providing the needed data for application development and testing is a huge headache for most organizations. The problems are often the same across companies - speed, quality, cost, and control. Provisioning data can take days or weeks, every time a refresh is required. Using dummy data leads to quality problems. Creating physical copies of large data sets and sending them to distributed teams of developers eats up expensive storage and bandwidth resources. And, all of these copies proliferating...
Mar. 25, 2017 03:15 PM EDT Reads: 6,388
DevOps is often described as a combination of technology and culture. Without both, DevOps isn't complete. However, applying the culture to outdated technology is a recipe for disaster; as response times grow and connections between teams are delayed by technology, the culture will die. A Nutanix Enterprise Cloud has many benefits that provide the needed base for a true DevOps paradigm. In his Day 3 Keynote at 20th Cloud Expo, Chris Brown, a Solutions Marketing Manager at Nutanix, will explore t...
Mar. 25, 2017 03:00 PM EDT Reads: 2,679
SYS-CON Events announced today that Technologic Systems Inc., an embedded systems solutions company, will exhibit at SYS-CON's @ThingsExpo, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Technologic Systems is an embedded systems company with headquarters in Fountain Hills, Arizona. They have been in business for 32 years, helping more than 8,000 OEM customers and building over a hundred COTS products that have never been discontinued. Technologic Systems’ pr...
Mar. 25, 2017 01:45 PM EDT Reads: 3,241
SYS-CON Events announced today that CA Technologies has been named “Platinum Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY, and the 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business – from apparel to energy – is being rewritten by software. From ...
Mar. 25, 2017 01:30 PM EDT Reads: 1,624
The taxi industry never saw Uber coming. Startups are a threat to incumbents like never before, and a major enabler for startups is that they are instantly “cloud ready.” If innovation moves at the pace of IT, then your company is in trouble. Why? Because your data center will not keep up with frenetic pace AWS, Microsoft and Google are rolling out new capabilities In his session at 20th Cloud Expo, Don Browning, VP of Cloud Architecture at Turner, will posit that disruption is inevitable for c...
Mar. 25, 2017 01:15 PM EDT Reads: 1,996
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Mar. 25, 2017 12:45 PM EDT Reads: 1,826
Deep learning has been very successful in social sciences and specially areas where there is a lot of data. Trading is another field that can be viewed as social science with a lot of data. With the advent of Deep Learning and Big Data technologies for efficient computation, we are finally able to use the same methods in investment management as we would in face recognition or in making chat-bots. In his session at 20th Cloud Expo, Gaurav Chakravorty, co-founder and Head of Strategy Development ...
Mar. 25, 2017 12:45 PM EDT Reads: 3,443
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Mar. 25, 2017 12:45 PM EDT Reads: 1,613
The explosion of new web/cloud/IoT-based applications and the data they generate are transforming our world right before our eyes. In this rush to adopt these new technologies, organizations are often ignoring fundamental questions concerning who owns the data and failing to ask for permission to conduct invasive surveillance of their customers. Organizations that are not transparent about how their systems gather data telemetry without offering shared data ownership risk product rejection, regu...
Mar. 25, 2017 12:30 PM EDT Reads: 5,024
SYS-CON Events announced today that Loom Systems will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Founded in 2015, Loom Systems delivers an advanced AI solution to predict and prevent problems in the digital business. Loom stands alone in the industry as an AI analysis platform requiring no prior math knowledge from operators, leveraging the existing staff to succeed in the digital era. With offices in S...
Mar. 25, 2017 12:30 PM EDT Reads: 1,120
What if you could build a web application that could support true web-scale traffic without having to ever provision or manage a single server? Sounds magical, and it is! In his session at 20th Cloud Expo, Chris Munns, Senior Developer Advocate for Serverless Applications at Amazon Web Services, will show how to build a serverless website that scales automatically using services like AWS Lambda, Amazon API Gateway, and Amazon S3. We will review several frameworks that can help you build serverle...
Mar. 25, 2017 12:30 PM EDT Reads: 1,744
SYS-CON Events announced today that Interoute, owner-operator of one of Europe's largest networks and a global cloud services platform, has been named “Bronze Sponsor” of SYS-CON's 20th Cloud Expo, which will take place on June 6-8, 2017 at the Javits Center in New York, New York. Interoute is the owner-operator of one of Europe's largest networks and a global cloud services platform which encompasses 12 data centers, 14 virtual data centers and 31 colocation centers, with connections to 195 add...
Mar. 25, 2017 12:00 PM EDT Reads: 865
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Mar. 25, 2017 11:15 AM EDT Reads: 1,488
Interoute has announced the integration of its Global Cloud Infrastructure platform with Rancher Labs’ container management platform, Rancher. This approach enables enterprises to accelerate their digital transformation and infrastructure investments. Matthew Finnie, Interoute CTO commented “Enterprises developing and building apps in the cloud and those on a path to Digital Transformation need Digital ICT Infrastructure that allows them to build, test and deploy faster than ever before. The int...
Mar. 25, 2017 11:15 AM EDT Reads: 772
SYS-CON Events announced today that CrowdReviews.com has been named “Media Sponsor” of SYS-CON's 20th International Cloud Expo, which will take place on June 6–8, 2017, at the Javits Center in New York City, NY. CrowdReviews.com is a transparent online platform for determining which products and services are the best based on the opinion of the crowd. The crowd consists of Internet users that have experienced products and services first-hand and have an interest in letting other potential buyers...
Mar. 25, 2017 11:00 AM EDT Reads: 3,507