Welcome!

News Feed Item

BRT Realty Trust Reports Second Quarter 2014 Results

GREAT NECK, NY -- (Marketwired) -- 05/09/14 -- BRT REALTY TRUST (NYSE: BRT) today announced operating results for the three months ended March 31, 2014.

Jeffrey A. Gould, President and Chief Executive Officer, stated: "BRT continues to execute on its multi-family property acquisition strategy. In April 2014, we acquired, with a joint venture partner, three multi-family properties with a total of 968 units. As of May 8, 2014, we own 24 multi-family properties (excluding a multi-family development property), with a total of 6,988 units."

Operating Results:

Total revenues for the three months ended March 31, 2014 were approximately $15.78 million, an increase of approximately $5.63 million, or 55.5%, from $10.15 million in the corresponding quarter in the prior year. The increase is due primarily to the $7.30 million increase in rental revenue from multi-family properties acquired since April 2013, partially offset by a $2.34 million decrease in interest and fees on real estate loans.

Total expenses for the three months ended March 31, 2014 were approximately $19.30 million, an increase of approximately $9.28 million, or 92.6%, from $10.02 million in the quarter ended March 31, 2013. Contributing to the increase were increases of $4.98 million in real estate operating expenses, $2.36 million of interest expense, and $1.77 million in depreciation and amortization -- a significant portion of these increases are due to the multi-family properties acquired since April 2013.

Net loss attributable to common shareholders for the three months ended March 31, 2014 was $2.59 million, or $0.18 per share, compared to net income of $1.01 million, or $0.07 per share, for the three months ended March 31, 2013. The change in results between the 2014 and 2013 periods is due primarily to the changes in total revenues and total expenses described above and the inclusion, in the 2013 period, of a $482,000 gain on sale of available-for-sale securities.

Funds from Operations; Adjusted Funds from Operations:

Funds from Operations ("FFO") was $134,000, or $0.01 per diluted share, in the current quarter, compared to $2.37 million, or $0.16 per diluted share, in the second quarter of 2013.

Adjusted Funds from Operations ("AFFO") was $561,000, or $0.04 per diluted share, in the current quarter, compared to $2.73 million, or $0.19 per diluted share, in the second quarter of 2013.

The decrease in FFO and AFFO is attributable to the net loss attributable to common shareholders described above, including the $2.42 million decrease in net income from BRT's real estate lending activities.

A reconciliation of net income to FFO and AFFO as presented in accordance with GAAP is provided with the financial information included later in this release.

Balance Sheet:

At March 31, 2014, the Trust had $47.98 million of cash and cash equivalents, total assets of $633.99 million, total debt of $430.62 million and total BRT shareholders' equity of $133.87 million.

At April 30, 2014, after giving effect, among other things, to BRT's cash investment of approximately $17.7 million in acquiring three multi-family properties in April 2014, the Trust has approximately $26.7 million of cash and cash equivalents.

Non-GAAP Financial Measures:

In view of our equity investments in joint ventures which have acquired multi-family properties, BRT discloses FFO and AFFO because management believes that such metrics are a widely recognized and appropriate measure of the performance of an equity REIT.

BRT computes FFO in accordance with the "White Paper on Funds From Operations" issued by the National Association of Real Estate Investment Trusts ("NAREIT") and NAREIT's related guidance. FFO is defined in the White Paper as net income (computed in accordance with generally accepting accounting principles), 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. Adjustments for unconsolidated partnerships and joint ventures will be calculated to reflect funds from operations on the same basis. In computing FFO, BRT does not add back to net income the amortization of costs in connection with its financing activities or depreciation of non-real estate assets. Since the NAREIT White Paper only provides guidelines for computing FFO, the computation of FFO may vary from one REIT to another. BRT computes AFFO by deducting from FFO, straightline rent accruals and deferrals, adding back amortization of restricted stock compensation and amortization of costs in connection with financing activities, and adjusting for non-controlling interests.

Management believes that FFO and AFFO are useful and standard supplemental measures of the operating performance for equity REITs and are used frequently by securities analysts, investors and other interested parties in evaluating equity REITs, many of which present FFO and AFFO when reporting their operating results. FFO and AFFO are intended to exclude GAAP historical cost depreciation and amortization of real estate assets, which assumes that the value of real estate assets diminish predictability over time. In fact, real estate values have historically risen and fallen with market conditions. As a result, management believes that FFO and AFFO provide a performance measure that when compared year over year, should reflect the impact to operations from trends in occupancy rates, rental rates, operating costs, interest costs and other matters without the inclusion of depreciation and amortization, providing a perspective that may not be necessarily apparent from net income. Management also considers FFO and AFFO to be useful in evaluating potential property acquisitions.

FFO and AFFO do not represent net income or cash flows from operations as defined by GAAP. FFO and AFFO should not be considered to be an alternative to net income as a reliable measure of our operating performance; nor should FFO and AFFO be considered an alternative to cash flows from operating, investing or financing activities (as defined by GAAP) as measures of liquidity.

FFO and AFFO do not measure whether cash flow is sufficient to fund all of BRT's cash needs, including principal amortization and capital improvements. FFO and AFFO do not represent cash flows from operating, investing or financing activities as defined by GAAP.

Management recognizes that there are limitations in the use of FFO and AFFO. In evaluating BRT's performance, management examines GAAP measures such as net income and cash flows from operating, investing and financing activities. Management also reviews the reconciliation of net income to FFO and AFFO.

Forward Looking Statements:

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 lending activities and other positive business activities. 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," or similar expressions or variations thereof. Forward looking statements, including our loan origination and property acquisition 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 BRT's Annual Report on Form 10-K for the year ended September 30, 2013.

About BRT Realty Trust:

BRT is a real estate investment trust that participates as an equity investor in joint ventures which own and operate multi-family properties, owns, operates and develops commercial, mixed use and other real estate assets, and originates and holds senior mortgage loans secured by commercial and multi-family real estate. Additional financial and descriptive information on BRT, its operations and its portfolio, is available at BRT's website at: www.BRTRealty.com. Interested parties are encouraged to review the Form 10-Q for the quarter ended March 31, 2014 to be filed with the Securities and Exchange Commission for additional information.



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

                            Three months ended         Six months ended
                                 March 31,                 March 31,
                             2014         2013         2014         2013
                         -----------  -----------  -----------  -----------

Revenues:
  Rental and other
   revenue from real
   estate properties     $    14,877  $     6,866  $    28,684  $    12,506
  Interest and fees on
   real estate loans             631        2,966        1,769        4,845
  Other income                   276          314          547        1,046
                         -----------  -----------  -----------  -----------
    Total revenues            15,784       10,146       31,000       18,397

Expenses:
  Operating expenses
   relating to real
   estate properties           8,395        3,417       16,029        6,563
  Interest expense             5,022        2,661        9,778        5,607
  Advisor's fee, related
   party                         481          443          930          817
  Property acquisition
   costs                         292          160        1,528        1,065
  General and
   administrative
   expenses                    1,726        1,721        3,427        3,557
  Depreciation and
   amortization                3,383        1,618        6,574        2,905
                         -----------  -----------  -----------  -----------
    Total expenses            19,299       10,020       38,266       20,514

                         -----------  -----------  -----------  -----------
    Total revenues less
     total expenses           (3,515)         126       (7,266)      (2,117)

Equity in earnings of
 unconsolidated ventures           4           68            4          129
Gain on the sale of
 available-for-sale
 securities                        -          482            -          482
                         -----------  -----------  -----------  -----------
Net (loss) income             (3,511)         676       (7,262)      (1,506)

Plus: net loss
 attributable to non-
 controlling interests           919          334        1,937        1,212

                         -----------  -----------  -----------  -----------
Net (loss) income
 attributable to common
 shareholders            $    (2,592) $     1,010  $    (5,325) $      (294)
                         ===========  ===========  ===========  ===========


Basic and diltued per
 share amounts
 attributable to common
 shareholders:

                         -----------  -----------  -----------  -----------
  Basic and diluted
   (loss) income per
   share                 $     (0.18) $      0.07  $     (0.37) $     (0.02)
                         ===========  ===========  ===========  ===========


Funds from operations -
 Note 1                  $       134  $     2,370  $       (37) $     2,366
                         ===========  ===========  ===========  ===========
Funds from operations
 per common share -
 diluted - Note 2        $      0.01  $      0.16  $         -  $      0.17
                         ===========  ===========  ===========  ===========

Adjusted funds from
 operations - Note 1     $       561  $     2,729  $       755  $     3,127
                         ===========  ===========  ===========  ===========
Adjusted funds from
 operations per common
 share - diluted -Note 2 $      0.04  $      0.19  $      0.05  $      0.22
                         ===========  ===========  ===========  ===========

Weighted average number
 of common shares
 outstanding:
  Basic and diluted       14,294,022   14,170,229   14,227,734   14,111,153
                         ===========  ===========  ===========  ===========

Note 1:
Funds from operations is
 summarized in the
 following table:
Net (loss) income
 attributable to common
 shareholders            $    (2,592) $     1,010  $    (5,325) $      (294)
Add: depreciation of
 properties                    3,377        1,613        6,565        2,895
Add: our share of
 depreciation in
 unconsolidated joint
 ventures                          5           10           10           20
Add: amortization of
 deferred leasing costs           16           13           31           26
Adjustments for non-
 controlling interests          (672)        (276)      (1,318)        (281)

                         -----------  -----------  -----------  -----------
  Funds from operations          134        2,370          (37)       2,366

Adjust for straight line
 rents accruals and
 deferrals                      (133)           4         (268)           8
Add: amortization of
 restricted stock
 compensation                    214          137          394          331
Add: amortization of
 deferred financing
 costs                           457          383          869          737
Adjustments for non-
 controlling interests          (111)        (165)        (203)        (315)

                         -----------  -----------  -----------  -----------
  Adjusted funds from
   operations            $       561  $     2,729  $       755  $     3,127
                         ===========  ===========  ===========  ===========


Note 2:
Funds from operations
 per share is summarized
 in the following table:
Net (loss) income
 attributable to common
 shareholders            $     (0.18) $      0.07  $     (0.37) $     (0.02)
Add: depreciation of
 properties                     0.24         0.11         0.46         0.21
Add: our share of
 depreciation in
 unconsolidated joint
 ventures                          -            -            -            -
Add: amortization of
 deferred leasing costs            -            -            -            -
Adjustments for non-
 controlling interests         (0.05)       (0.02)       (0.09)       (0.02)
                         -----------  -----------  -----------  -----------

  Funds from operations
   per common share
   basic and diluted            0.01         0.16            -         0.17

Adjust for straight line
 rents accruals and
 deferrals                     (0.01)           -        (0.02)           -
Add: amortization of
 restricted stock
 compensation                   0.01         0.01         0.03         0.02
Add: amortization of
 deferred financing
 costs                          0.03         0.03         0.06         0.05
Adjustments for non-
 controlling interests             -        (0.01)       (0.02)       (0.02)
                         -----------  -----------  -----------  -----------

  Adjusted funds from
   operations per common
   share basic and
   diluted               $      0.04  $      0.19  $      0.05  $      0.22
                         ===========  ===========  ===========  ===========

Contact:
Investor Relations
(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
Customer experience has become a competitive differentiator for companies, and it’s imperative that brands seamlessly connect the customer journey across all platforms. With the continued explosion of IoT, join us for a look at how to build a winning digital foundation in the connected era – today and in the future. In his session at @ThingsExpo, Chris Nguyen, Group Product Marketing Manager at Adobe, will discuss how to successfully leverage mobile, rapidly deploy content, capture real-time d...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
18th Cloud Expo, taking place June 7-9, 2016, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy. Meanwhile, 94% of enterprises are using some...
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
What a difference a year makes. Organizations aren’t just talking about IoT possibilities, it is now baked into their core business strategy. With IoT, billions of devices generating data from different companies on different networks around the globe need to interact. From efficiency to better customer insights to completely new business models, IoT will turn traditional business models upside down. In the new customer-centric age, the key to success is delivering critical services and apps wit...
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
SYS-CON Events announced today that Hanu Software will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Leveraging best-in-class people, processes, and technologies, Hanu provides high-quality, high-value software development and business process outsourcing services to independent software vendors (ISVs) and enterprises.
As cloud and storage projections continue to rise, the number of organizations moving to the cloud is escalating and it is clear cloud storage is here to stay. However, is it secure? Data is the lifeblood for government entities, countries, cloud service providers and enterprises alike and losing or exposing that data can have disastrous results. There are new concepts for data storage on the horizon that will deliver secure solutions for storing and moving sensitive data around the world. ...
Join us at Cloud Expo | @ThingsExpo 2016 – June 7-9 at the Javits Center in New York City and November 1-3 at the Santa Clara Convention Center in Santa Clara, CA – and deliver your unique message in a way that is striking and unforgettable by taking advantage of SYS-CON's unmatched high-impact, result-driven event / media packages.
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, will provide an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life ...
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...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
SYS-CON Events announced today that MobiDev will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business managers to a full-scale mobile software company with over 200 develope...