SUPPLEMENT  DATED MARCH 3, 1997 TO PROXY  STATEMENT  DATED JANUARY 27, 1997

BRT  REALTY  TRUST 
60 CUTTER  MILL ROAD  
SUITE 303 
GREAT  NECK,  NEW YORK  11021
(516)466-3100 

On or about January 27, 1997 a Proxy  Statement was furnished in connection
with the  solicitation  of proxies by the Board of Trustees of BRT Realty  Trust
("BRT" or the "Trust") for use at the Annual Meeting of  Shareholders to be held
at the offices of the Trust,  60 Cutter Mill Road,  Great Neck, New York,  Suite
303, commencing at 9:00 A.M. on March 21, 1997. 

One of the items to be considered and voted upon at the Annual Meeting is a
proposal to adopt the  Trust's  1996 Stock  Option  Plan and to reserve  750,000
Beneficial  Shares,   $3.00  par  value   ("Beneficial   Shares")  for  issuance
thereunder.  This  supplement is being  distributed to  shareholders in order to
amend the proposal to provide for a reduction in the number of Beneficial Shares
which may be issued and sold under the Plan from  750,000  Beneficial  Shares to
450,000  Beneficial  Shares and to  provide  additional  information  concerning
options  which have been  granted by the Board of Trustees  under the 1996 Stock
Option Plan.

Except for the reduction in the number of Beneficial Shares being reserved under
the 1996  Stock  Option  Plan from  750,000  shares to  450,000  shares  and the
additional  disclosure set forth below,  the  information set forth in the Proxy
Statement is not changed. 

A form of Proxy is enclosed. If the enclosed proxy is properly executed and
returned,  Beneficial  Shares will be voted in accordance with the  instructions
thereon and any prior proxy given will be revoked. If a shareholder has provided
a prior  proxy and does not  execute  and return the  enclosed  proxy or a later
dated proxy,  the prior proxy will be voted as  submitted  and will be deemed to
relate to the 1996 Stock Option Plan, as amended, and the reservation of 450,000
Beneficial  Shares for issuance under the Plan,  rather than 750,000  Beneficial
Shares. In any event, any shareholder  giving a proxy has the power to revoke it
at anytime  before it is voted by giving  written  notice of  revocation  to the
Secretary of the Trust,  by attending the Annual Meeting and voting in person or
submitting a proxy bearing a later date.

If a shareholder provides a proxy and no instructions are included thereon
it will be voted (i) for the  election as Class I Trustees of the  nominees  set
forth under the caption  "Election  of  Trustees"  on pages 4 and 5 of the Proxy
Statement,  (ii) in favor of  adopting  the Trust's  1996 Stock  Option Plan (as


amended to reduce the number of shares from 750,000 shares to 450,000  shares)
and reserving 450,000 Beneficial Shares for issuance  thereunder,  and (iii) for
the approval of the appointment of Ernst & Young LLP as the Trust's  independent
auditors for the fiscal year ending  September  30,  1997.  If shares owned by a
shareholder  are held in street or nominee name and no voting  instructions  are
given by the  shareholder  to his broker with  respect to the 1996 Stock  Option
Plan, as amended, then based on New York Stock Exchange policies,  practices and
procedures  the broker will not vote the  customer's  shares as to such proposal
and the vote as to said proposal will be treated as an "abstention". Approval of
each of the matters to be  considered  at the meeting  requires the  affirmative
vote of the holders of a majority of the Beneficial Shares, present in person or
by proxy. If a shareholder present in person or by proxy abstains on any matter,
the shareholder's  shares will not be voted on such matter and if the shares are
held in street or nominee name and the shareholder has not given instructions to
his  broker as to the  proposal  relating  to the 1996  Stock  Option  Plan,  as
amended,  those shares will not be voted on that specific  issue.  An abstention
from  voting on any  matter has the same legal  effect as a vote  "against"  the
matter,  even though the  shareholder  may  interpret  such action  differently.

Requests for additional  copies of the Proxy Statement should be directed to BRT
Realty  Trust,  60 Cutter  Mill Road,  Suite 303,  Great  Neck,  New York 11021,
telephone  number (516)  466-3100,  attention of the Secretary.  


                           SUPPLEMENTARY INFORMATION

     All  references  to the maximum  number of  Beneficial  Shares which may be
optioned  and sold  under the 1996 Stock  Option  Plan,  as set forth  under the
caption  "Adoption of 1996 Stock Option Plan"  beginning on page 11 of the Proxy
Statement are hereby  amended to provide that 450,000  Beneficial  Shares is the
maximum  number of shares  which may be  optioned  and sold under the 1996 Stock
Option  Plan.  Except for the  reduction in the number of shares from 750,000 to
450,000 shares there have been no other amendments, changes or revisions to the
1996 Stock Option Plan as described in the Proxy Statement.

     The Board of Trustees  recommends a vote for the adoption of the 1996 Stock
Option Plan, as amended and the  reservation  of 450,000  Beneficial  Shares for
issuance thereunder.

     As set forth in the Proxy  Statement  under the caption  "Adoption  of 1996
Stock  Option  Plan",  as of  January  20,  1997  (and  as of the  date  of this
supplement)  options to purchase  82,500 shares have been granted under the Plan
and are  exercisable  at $6.00 per share,  the closing  price of the  Beneficial
Shares on December 6, 1996, the date the options were granted. These options are
not exercisable until June 6, 1997 and are only exercisable to the extent of 25%
of the options granted in any year commencing June 6th and ending June 5th, on a
cumulative basis.


     The following  table sets forth the stock options that the  individuals and
groups referred to below were granted on December 6, 1996:

                                   NEW PLAN BENEFITS
                                   BRT REALTY TRUST
                         1996 STOCK OPTION PLAN, AS AMENDED



NAME AND POSITION                   DOLLAR VALUE ($)          NUMBER OF OPTIONS
- - -----------------                   ----------------          -----------------

Fredric H. Gould,
Chairman of the Board
and Chief Executive Officer               --                     None

Jeffrey A. Gould, President                (a)                    10,000

David W. Kalish,
Vice President and
Chief Financial Officer                   (a)                    10,000

Simeon Brinberg
Senior Vice President
and Secretary                             (a)                    10,000

Eugene Keely, Vice President              (a)                     5,000

Executive Group                           (a)                    65,000(b)

Non-Executive Trustee Group                --                    None

Non-Executive Officer
Employee Group                            (a)                    17,500


          (a) The dollar value is  dependent  upon the future share price of the
     Trust's  Beneficial  Shares and as stated  above none of these  options are
     exercisable  until  June  6,  1997.  The  closing  price  of the  Trust's
     Beneficial  Shares on the New York Stock  Exchange on February 26, 1997 was
     $6.75.

          (b) Includes options to purchase 35,000  Beneficial  Shares granted to
     the four above listed  officers and options to purchase  30,000  Beneficial
     Shares granted to four other officers.

     It is currently  anticipated  that additional  option grants under the 1996
Stock Option Plan will be considered annually by the Compensation  Committee and
the Board of Trustees. 


     At the present time 5  non-executive  trustees,  10 executive  officers,  2
non-executive  officers and 2 employees are eligible to  participate in the 1996
Stock Option Plan, as amended.

     Paragraph 4 of the 1996 Stock Option  Plan,  which is appended as Exhibit A
to the Proxy Statement, is amended to read as follows:

"4. Stock  Subject To Plan 

     The stock  subject  to  options  granted  under the Plan shall be shares of
authorized but unissued or reacquired  Beneficial Shares.  Subject to adjustment
as provided in Section 15 below, the maximum number of Beneficial  Shares of the
Trust  which may be issued  and sold  under the Plan is  450,000  shares.  If an
option  granted under the Plan shall  expire,  terminate or is cancelled for any
reason without having been exercised in full, the unpurchased  shares subject to
such option  shall again be available  for  subsequent  option  grants under the
Plan."
                                            By order of the Board of Trustees

                                            Simeon Brinberg, Secretary




Dated:            March 3, 1997



















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Proxy                           BRT REALTY TRUST
                 PROXY FOR THE ANNUAL MEETING OF SHAREHOLDERS
                                 March 21, 1997
           THIS PROXY IS SOLICITED ON BEHALF OF THE BOARD OF TRUSTEES

     The  undersigned  hereby  appoints  FREDRIC H. GOULD,  JEFFREY A. GOULD and
SIMEON BRINBERG,  as Proxies each with the power to appoint his substitute,  and
hereby  authorizes them to represent and to vote, as designated  below,  all the
shares of Beneficial  Interest,  $3.00 par value per share,  of BRT Realty Trust
held of record by the  undersigned  on January 20, 1997 at the Annual Meeting of
Shareholders to be held on March 21, 1997 or any adjournments thereof.

                         1. Election of Class I Trustees
                            __ FOR ALL NOMINEES __WITHHOLD ALL NOMINEES
                            Nominees; Patrick J. Callan, Jeffrey A. Gould
                            __INSTRUCTIONS: To withhold authority to vote for
                                            any individual nominee, place
                                            an "X" in the box on the left and
                                            strike a line through the nominee's
                                            name listed above.

For  Against  Abstain
___    ___       ___     2. Approval of the Trust's 1996 Stock Option Plan
                            and reservation of 450,000 shares of Beneficial
                            Interest for issuance thereunder.

For  Against  Abstain
___    ___       ___     3. Appointment of Ernst & Young LLP as independent
                            auditors for the fiscal year ending September 30,
                            1997.

                         4. In their discretion, the proxies are authorized
                            to vote upon such other business as may properly
                            come before the meeting.


     This Proxy when properly  executed will be voted in the manner  directed by
the undersigned shareholder.

PLEASE DATE, SIGN AND RETURN THIS PROXY IN THE ENCLOSED ENVELOPE.


                          Dated:_________________________, 1997

                           ______________________________   L.S.
                           ______________________________   L.S.

                          (NOTE: PLEASE SIGN EXACTLY AS YOUR NAME APPEARS
                           HEREON, EXECUTORS, ADMINISTRATORS, TRUSTEES, ETC.
                           SHOULD SO INDICATE WHEN SIGNING, GIVING FULL TITLE
                           AS SUCH, IF SIGNER IS A CORPORATION, EXECUTE IN 
                           FULL CORPORATE NAME BY AUTHORIZED OFFICER, IF
                           SHARES ARE IN THE NAME OF TWO OR MORE PERSONS, ALL
                           SHOULD SIGN.)