REAL ESTATE PROPERTIES

12 Months Ended

Sep. 30, 2015

A summary of activity in real estate properties(including a multi-family property held for sale), for the year ended September 30, 2015, follows (dollars in thousands):



	September 30, 2014 Balance		Additions		Capitalized Costs and Improvements		Sales			Depreciation, Amortization and other Reductions			September 30, 2015 Balance
Multi-family	$	511,866	$	129,425	$	33,399	$	(51,319	)	$	(18,331	)	$	605,040
Commercial/mixed use(a)	113,021		—		30,661		—			(2,241		)	141,441
Land (b)	7,972		—		—		—			—			7,972
Shopping centers/retail (c)	2,678		—		4		—			(108		)	2,574
Co-op/Condo Apts	75		—		—		(75		)	—			—

Total real estate properties	$	635,612	$	129,425	$	64,064	$	(51,394	)	$	(20,680	)	$	757,027

_______________________________________________________________________________

NOTE 2—REAL ESTATE PROPERTIES (continued)

(a)

Represents the real estate assets of RBH-TRB Newark Holdings LLC, a consolidated VIE, which owns operating and development properties in Newark, NJ. These properties contain a mix of office, retail, residential, charter schools and surface parking aggregating approximately 565,000 square feet of commercial space and 61 residential apartment units (excluding 16,000 square feet of commercial space and 62 residential apartment units currently under construction). Certain of these assets are subject to a mortgage in the aggregate principal balance of $19,500,000 held by the Trust, which is eliminated in consolidation. Several of the assets are also encumbered by other mortgages which are discussed in Note 5—Debt Obligations—Mortgages Payable. The Trust made net capital contributions of $1,836,000 and $4,972,000 to this venture in the years ended September 30, 2015 and 2014 , respectively, representing its proportionate share of capital required to fund the operations of the venture for its next fiscal year and, in the year ended September 30, 2014, to purchase additional land parcels. The 2014 contribution includes $2,489,000 for the payment of deferred interest on the loan held by the Trust.


(b)	Represents an 8.9 acre development parcel located in Daytona Beach, FL acquired in foreclosure.


(c)	The Trust, through a joint venture in which it has an 85% interest, owns a leasehold interest in a portion of a retail shopping center located in Yonkers, NY. The leasehold interest is for approximately 28,500 square feet and, including all option periods, expires in 2045.

The acquisitions completed in the year ended September 30, 2015 and described in Note 3-Acquisitions, Dispositions and Impairments, have been accounted for as business combinations. The purchase prices were allocated to the acquired assets and assumed liabilities based on management's estimate of fair value of these acquired assets and assumed liabilities at the dates of acquisition. The preliminary measurements of fair value reflected below are subject to change. The Trust expects to finalize the valuations and complete the purchase price allocations within one year from the date of the applicable acquisition.

The following table summarizes the preliminary allocations of the purchase prices of assets acquired and liabilities assumed during the year ended September 30, 2015 (dollars in thousands):



	Preliminary Purchase Price Allocation
Land	$	15,163
Buildings and Improvements	114,287
Total Consideration	$	129,450

NOTE 2—REAL ESTATE PROPERTIES (continued)

The following table summarizes the preliminary allocations of the purchase price of properties as recorded as of September 30, 2014, and the finalized allocation of the purchase price, as adjusted, as of September 30, 2015 (dollars in thousands):



	Preliminary Purchase Price Allocation		Adjustments			Finalized Purchase Price Allocation
Land	$	58,700	$	(10,052	)	$	48,648
Buildings and Improvements	172,500		8,692			181,192
Acquisition-related intangible assets (in acquired lease intangibles, net) (1)	—		1,360			1,360
Total Consideration	$	231,200	—			$	231,200

A summary of the Trust's multi-family properties by state as at and for the year ended September 30, 2015, is as follows (dollars in thousands):



Location	Number of Units	2015 Revenue		% of Revenue
Texas (a)	1,412	$	19,135	25	%
Tennessee	1,244	14,931		20
Georgia	1,312	14,334		19
Florida (a)	1,186	11,742		15
Kansas	496	3,405		5
Indiana	400	2,988		4
South Carolina	568	2,892		4
Alabama (a)	826	2,699		4
Ohio	264	2,331		3
Arkansas	172	1,122		1
Missouri (a)	420	64		—
	8,300	$	75,643	100	%

(a) Includes properties purchased during the year ended September 30, 2015.

Future minimum rentals to be received by the Trust pursuant to non-cancellable operating leases with terms in excess of one year, from commercial properties owned by the Trust at September 30, 2015, are as follows (dollars in thousands):



Year Ending September 30,	Amount
2016	$	3,945
2017	3,575
2018	3,360
2019	3,397
2020	3,489
Thereafter	37,096
Total	$	54,862

Leases at the Trust's multi-family properties are generally for a term of one year or less and are not reflected in the above table.

ACQUISITIONS, DISPOSITIONS AND IMPAIRMENT CHARGES

Property Acquisitions

Set forth below is information for the year ended September 30, 2015 regarding the Trust's purchases of multi-family properties through joint ventures. The Trust has an 80% equity interest in each venture, except for the Pensacola, FL and Valley, AL ventures in each of which it has a 97.5% interest (dollars in thousands):



Location	Purchase Date	No. of Units	Contract Purchase Price		Acquisition Mortgage Debt		Initial BRT Equity		Property Acquisition Costs
Pensacola, FL	12/22/2014	276	$	27,950	$	17,173	$	11,380	$	258
Valley, AL	7/27/2015	618	43,750		28,990		10,351		629
San Marco, TX	09/08/2015	192	21,725		17,158		4,720		535
Lake St. Louis, MO	09/25/2015	420	36,000		27,957		8,500		447
Other		—	—		—		—		16
		1,506	$	129,425	$	91,278	$	34,951	$	1,885

Subsequent to September 30, 2015, the Trust purchased two properties. The Trust has an 65% equity interest in the venture that purchased the Charleston, SC property and the LaGrange, GA property is wholly owned. Information regarding these purchases is set forth below:



Location	Purchase Date	No. of Units	Contract Purchase Price		Acquisition Mortgage Debt		Initial BRT Equity		Property Acquisition Costs
Charleston, SC ( a)	12/22/2014	271	$	27,950	$	—	$	11,380	$	—
LaGrange, GA	7/24/2015	236	22,800		16,052		6,558		57,000
		507	$	50,750	$	16,052	$	17,938	$	57,000

During the three months ended December 31, 2014, the Trust increased its ownership interest in a (i) joint venture that owns two multi -family properties in Houston, TX from 80% to 91% by purchasing a partner's interest in the venture for $2,036,000; and (ii) joint venture that owns a multi family property in Decatur, GA from 80% to 100% by purchasing its partner's interest in the venture for $ 1,850,000. The Trust incurred $153,000 in professional fees related to these transactions.

On April 1, 2015, the Trust increased its ownership interest in a joint venture that owns a multi-family property in North Charleston, SC from 90% to 100% by purchasing its partner's interest for $790,000.

NOTE 3—ACQUISITIONS, DISPOSITIONS AND IMPAIRMENT CHARGES - (continued)

Property Dispositions

Set forth below is a summary of the real estate properties disposed of by the Trust in the year ended September 30, 2015(dollars in thousands):



Location	Sale Date	No. of Units	Sales Price		Gain on Sale		Non-controlling partner portion of gain
Lawrenceville, GA	2/5/2015	170	$	9,700	$	2,655	$	1,141
Marietta, GA	7/7/2015	207	17,600		7,781		3,179
Houston, TX	7/24/2015	236	39,848		3,846		769
New York, NY	9/30/2015	1	635		601		—
Misc.		—	—		122		—
		614	$	67,783	$	15,005	$	5,089

Impairment Charges

The Trust reviews each real estate asset, including those held through investments in unconsolidated joint ventures, for impairment when there is an event or a change in circumstances indicating that the carrying amount may not be recoverable. The Trust measures and records impairment losses, and reduces the carrying value of properties, when indicators of impairment are present and the expected undiscounted cash flows related to those properties are less than their carrying amounts. In cases where the Trust does not expect to recover its carrying costs on properties held for use, the Trust reduces its carrying costs to fair value, and for properties held for sale, the Trust reduces its carrying value to the fair value less costs to sell. During the years ended September 30, 2015, 2014, and 2013, no impairment charges were recorded. Management does not believe that the values of any properties are impaired as of September 30, 2015.

REAL ESTATE PROPERTY HELD FOR SALE

At September 30, 2015, The Grove at Trinity Point property in Cordova, TN was held for sale. The property which has a book value of $23,859,000, is under contract for sale.