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
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, will give users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion w...
WebSocket is effectively a persistent and fat pipe that is compatible with a standard web infrastructure; a "TCP for the Web." If you think of WebSocket in this light, there are other more hugely interesting applications of WebSocket than just simply sending data to a browser. In his session at 18th Cloud Expo, Frank Greco, Director of Technology for Kaazing Corporation, will compare other modern web connectivity methods such as HTTP/2, HTTP Streaming, Server-Sent Events and new W3C event APIs ...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, will discuss the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filte...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that Avere Systems, a leading provider of enterprise storage for the hybrid cloud, 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. Avere delivers a more modern architectural approach to storage that doesn’t require the overprovisioning of storage capacity to achieve performance, overspending on expensive storage media for inactive data or the overbuilding of data centers ...
In most cases, it is convenient to have some human interaction with a web (micro-)service, no matter how small it is. A traditional approach would be to create an HTTP interface, where user requests will be dispatched and HTML/CSS pages must be served. This approach is indeed very traditional for a web site, but not really convenient for a web service, which is not intended to be good looking, 24x7 up and running and UX-optimized. Instead, talking to a web service in a chat-bot mode would be muc...
SYS-CON Events announced today that (ISC)²® (“ISC-squared”) 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. Two leading non-profits focused on cloud and information security, (ISC)² and Cloud Security Alliance (CSA), developed the Certified Cloud Security Professional (CCSP) certification to address the increased demand for cloud security expertise due to rapid growth in cloud. Recently named “The Next...
SYS-CON Events announced today that AppNeta, the leader in performance insight for business-critical web applications, will exhibit and present at SYS-CON's @DevOpsSummit at Cloud Expo New York, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. AppNeta is the only application performance monitoring (APM) company to provide solutions for all applications – applications you develop internally, business-critical SaaS applications you use and the networks that deli...
Fortunately, meaningful and tangible business cases for IoT are plentiful in a broad array of industries and vertical markets. These range from simple warranty cost reduction for capital intensive assets, to minimizing downtime for vital business tools, to creating feedback loops improving product design, to improving and enhancing enterprise customer experiences. All of these business cases, which will be briefly explored in this session, hinge on cost effectively extracting relevant data from ...
More and more companies are looking to microservices as an architectural pattern for breaking apart applications into more manageable pieces so that agile teams can deliver new features quicker and more effectively. What this pattern has done more than anything to date is spark organizational transformations, setting the foundation for future application development. In practice, however, there are a number of considerations to make that go beyond simply “build, ship, and run,” which changes ho...
The Art of DevOps provides a fun overview to help teams understand DevOps. Written in the style of the famous 6th century Chinese manuscript “The Art of War,” this eBook describes DevOps in the form of a mission to continuously deliver assets to the operational battlegrounds safely, securely, and quickly. It’s a fun read with valuable insights.
Recognizing the need to identify and validate information security professionals’ competency in securing cloud services, the two leading membership organizations focused on cloud and information security, the Cloud Security Alliance (CSA) and (ISC)^2, joined together to develop an international cloud security credential that reflects the most current and comprehensive best practices for securing and optimizing cloud computing environments.
Companies can harness IoT and predictive analytics to sustain business continuity; predict and manage site performance during emergencies; minimize expensive reactive maintenance; and forecast equipment and maintenance budgets and expenditures. Providing cost-effective, uninterrupted service is challenging, particularly for organizations with geographically dispersed operations.
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
SYS-CON Events announced today that FalconStor Software® Inc., a 15-year innovator of software-defined storage 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. FalconStor Software®, Inc. (NASDAQ: FALC) is a leading software-defined storage company offering a converged, hardware-agnostic, software-defined storage and data services platform. Its flagship solution FreeStor®, utilizes a horizonta...