0001213900-12-002370.txt : 20120510 0001213900-12-002370.hdr.sgml : 20120510 20120510161140 ACCESSION NUMBER: 0001213900-12-002370 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20120510 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20120510 DATE AS OF CHANGE: 20120510 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRT REALTY TRUST CENTRAL INDEX KEY: 0000014846 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 132755856 STATE OF INCORPORATION: MA FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-07172 FILM NUMBER: 12830439 BUSINESS ADDRESS: STREET 1: 60 CUTTER MILL RD STREET 2: SUITE 303 CITY: GREAT NECK STATE: NY ZIP: 11021-3190 BUSINESS PHONE: 5164663100 FORMER COMPANY: FORMER CONFORMED NAME: BERG ENTERPRISES REALTY GROUP DATE OF NAME CHANGE: 19750724 8-K 1 f8k051012_brtrealty.htm FORM 8-K f8k051012_brtrealty.htm
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.   20549

FORM 8-K
 
CURRENT REPORT
 
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report (Date of earliest event reported): May 10, 2012

BRT REALTY TRUST
(Exact name of Registrant as specified in charter)
                                                                                
 
 Massachusetts 001-07172  13-2755856
(State or other jurisdiction of incorporation) (Commission file No.) (IRS Employer I.D. No.)
     
 
 60 Cutter Mill Road, Suite 303, Great Neck, New York     11021
 (Address of principal executive offices)  (Zip code)
 
Registrant's telephone number, including area code     516-466-3100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

o           Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o           Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o           Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o           Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 
 
 
Item 2.02   Results of Operations and Financial Condition.

On May 10, 2012, BRT Realty Trust issued a press release (the “Press Release”) announcing its results of operations for the second quarter ended March 31, 2012.  The press release is attached as an exhibit to this Current Report on Form 8-K.

This information and the exhibit attached hereto are being furnished pursuant to Item 2.02 of Form 8-K and are not to be considered "filed" under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and shall not be incorporated by reference into any previous or future filing by registrant under the Securities Act of 1933, as amended, or the Exchange Act.

Item 9.01   Financial Statements and Exhibits.
 
(d)        Exhibits.
 
Exhibit No.
99.1
Description                      
Press release dated May 10, 2012.
 
 
 
 
 
SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BRT REALTY TRUST


Date:  May 10, 2012                                                                             By:  /s/ David W. Kalish
David W. Kalish
Senior Vice President - Finance



 EX-99.1 2 f8k051012ex99i_brtrealty.htm PRESS RELEASE f8k051012ex99i_brtrealty.htm
Exhibit 99.1
 
 
BRT REALTY TRUST REPORTS RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2012
 
Great Neck, New York – May 10, 2012 – BRT REALTY TRUST (NYSE:BRT), a real estate investment trust that originates and holds for investment short term, senior mortgage loans secured by commercial and multi-family real estate and participates as an equity investor in joint ventures which acquire multi-family residential properties and other real estate assets, today announced operating results for the three months ended March 31, 2012.

Jeffrey A. Gould, President and Chief Executive Officer of BRT commented that, “During the second quarter, BRT’s Newark Joint Venture was successful in obtaining approximately $48.0 million of financing (comprised of $31.8 million of mortgage debt that is non-recourse to BRT) and $16.2 million of New Market Tax Credits, (including $2.5 million of credits obtained after March 31, 2012), the proceeds of which were used to pay  transaction expenses and to pay down approximately $6.3 million of debt with the balance to be used to construct two buildings contemplated by the first phase of the Teachers Village project.  Construction of these buildings commenced in February 2012.”
 
Commenting further, he noted that “BRT also expanded its business activities in the second quarter by participating as an equity investor in joint ventures which acquired four multi-family residential properties.

The Trust’s consolidated joint ventures, to which the Trust contributed an aggregate of $17.6 million for 80% of the equity of each venture, acquired two multi-family residential properties in Florida, having a total of 750 units for a total purchase price of $68.7 million (inclusive of $52.9 million of mortgage debt, non-recourse to BRT, and exclusive of $1.79 million of acquisition costs).

The Trust’s newly formed unconsolidated joint ventures, in which the Trust invested an aggregate of $4.8 million (including funds for anticipated property improvements and cash needs) for an 80% equity interest in each such venture, acquired two multi-family residential properties in Georgia having a total of 377 units for a total purchase price of $14.4 million (inclusive of $11.2 million of mortgage debt, non-recourse to BRT, and exclusive  of $193,000 of acquisition costs).”

Mr. Gould also noted that, “As a result of the Newark Joint Venture financing completed in February 2012 (which is non-recourse to BRT) and the acquisitions by the Trust’s consolidated joint ventures, total assets at March 31, 2012 were $299.3 million, a $108.3 million increase from $191 million at September 30, 2011, and total liabilities at March 31, 2012 were $155.1 million, a $99.8 million increase from $55.3 million at September 30, 2011.  The acquired multi-family residential properties had, in the quarter ended March 31, 2012, a minimal impact on rental revenue from operating properties and operating expenses relating to real estate properties because the acquisitions were completed at quarter end, although the $1.79 million in property acquisition costs, which were expensed in the quarter, negatively impacted results of operations.”

Mr. Gould further noted that, “BRT fully intends to continue its short-term lending business; and expects that this business will be more active as the economy improves.  The acquisition of multi-family residential properties and other real estate assets with experienced venture partners, is an opportunity for BRT in the current economic climate.  BRT believes that the transactions it concluded in the current quarter, plus future acquisitions, if any, will provide it with a steady revenue stream for the foreseeable future and the possibility of incremental values.”

Operating Results:

Total revenues for the three months ended March 31, 2012 were approximately $3.69 million, a decrease of 35.3% from $5.7 million in the corresponding prior year period.  The decrease is attributable to the inclusion in the three months ended March 31, 2011 of recoveries of $2.6 million with respect to previously provided allowances.  By comparison, the current quarter only reflected a nominal recovery of previously provided allowances.  Without giving effect to the $2.6 million of recoveries in the 2011 quarter, total revenues in the current quarter would have increased 17.8% over total revenues for the 2011 quarter.
 
 
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During the current quarter, the Trust originated approximately $40.6 million in loans compared to $60.6 million in loan originations in the corresponding quarter of the prior year.  At March 31, 2012, the Trust had a $72 million loan portfolio and all loans are performing.

Total expenses for the three months ended March 31, 2012 were approximately $6.09 million, an increase of approximately $2.47 million, or 68.4%, from $3.61 million in the quarter ended March 31, 2011.  The increase is primarily due to property acquisition costs (i.e. acquisition, brokerage, legal, due diligence and transactional fees and expenses) related to our consolidated joint ventures’ acquisitions of multi-family residential properties, and to a lesser extent, increases in interest on borrowed funds and general and administrative expense.  The increase in interest on borrowed funds relating to the additional debt incurred in the quarter does not reflect a full quarter of increased interest expense because of the timing of the incurrence of such debt.

Net loss attributable to common shareholders was $1.03 million, or $0.07 per share in the current quarter, compared to net income of $1.85 million or $0.13 per share in the corresponding prior year period.

About BRT Realty Trust:

BRT Realty Trust is a business trust organized in Massachusetts. BRT’s originates and holds for investment senior mortgage loans secured by commercial and multi-family real estate property in the United States. Beginning the quarter ended March 31, 2012, BRT expanded its activities by acquiring for investment, with venture partners, multi-family residential properties.  Interested parties are encouraged to review the Form 10-Q for the quarter ended March 31, 2012 filed with the Securities and Exchange Commission for additional information.  The Form 10-Q, as well as additional financial and descriptive information on BRT, its operations and its portfolio, is available at BRT’s 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 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 “possibility” 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 sections entitled “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended September 30, 2011 and our Quarterly Report on Form 10-Q for the period ended March 31, 2012.

Contact:  David W. Kalish – (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
 
 
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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,
  
   
2012
    
2011
    
2012
    
2011
  
                         
Revenues:
                        
 Interest and fees on loans
   $ 2,202     $ 2,021     $ 4,454     $ 3,420  
 Rental revenue from real estate properties
     1,019       959       1,787       1,813  
 Recovery of previously provided allowance
     3       2,566       10       2,566  
 Other income
     463       151       590       350  
  Total revenues
     3,687       5,697       6,841       8,149  
                                 
Expenses:
                                
 Interest on borrowed funds
     875       542       1,342       1,199  
 Property acquisition costs
     1,793       -       1,793       -  
 General and administrative expenses
     2,006       1,629       3,680       3,060  
 Operating expenses relating to real estate properties
     959       850       1,745       1,766  
 Other expenses
     453       592       808       1,191  
  Total expenses
     6,086       3,613       9,368       7,216  
                                 
  Total revenues less total expenses
     (2,399 )     2,084       (2,527 )     933  
                                 
Equity in (loss) earnings of unconsolidated ventures
     (40 )     86       (115 )     135  
Gain on sale of available-for-sale securities
     342       593       324       1,014  
Gain on sale of loan
     -       -       3,192       -  
Loss on extinguishment of debt
     -       (2,138 )     -       (2,138 )
  (Loss) income from continuing operations
     (2,097 )     625       874       (56 )
                                 
Discontinued operations:
                                
  Gain on sale of real estate assets
     -       697       490       697  
    Discontinued operations
     -       697       490       697  
                                 
Net (loss) income
     (2,097 )     1,322       1,364       641  
                                 
Plus: net loss attributable to non-controlling interests
     1,069       525       1,482       698  
                                 
Net (loss) income attributable to common shareholders
   $ (1,028 )   $ 1,847     $ 2,846     $ 1,339  
                                 
                                 
                                 
Basic and diltued per share amounts attributable to common shareholders:
                  
                                 
(Loss) Income from continuing operations
   $ (0.07 )   $ 0.08     $ 0.17     $ 0.05  
Discontinued operations
     -       0.05       0.03       0.05  
 Basic  and diluted (loss) income per share
   $ (0.07 )   $ 0.13     $ 0.20     $ 0.10  
                                 
Amounts attributable to BRT Realty Trust:
                                
   (Loss) Income from continuing operations
   $ (1,028 )   $ 1,150     $ 2,356     $ 642  
   Discontinued operations
     -       697       490       697  
     Net (loss) income
   $ (1,028 )   $ 1,847     $ 2,846     $ 1,339  
                                 
Weighted average number of
                                
  common shares outstanding:
                                
   Basic and diluted
     14,050,088       14,047,924       14,015,940       14,012,404  
                                 
                                 
 
 
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