-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ehij+UqVBuO+n+7J0ueMH+U5eBe+erNwGL53QE0cVDaJyQ1NjMMvLPFTUCaNgx2L dg4ausuSMChdT3MOqCqIHA== 0000790817-96-000014.txt : 19961118 0000790817-96-000014.hdr.sgml : 19961118 ACCESSION NUMBER: 0000790817-96-000014 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961114 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: BANYAN STRATEGIC REALTY TRUST CENTRAL INDEX KEY: 0000790817 STANDARD INDUSTRIAL CLASSIFICATION: REAL ESTATE INVESTMENT TRUSTS [6798] IRS NUMBER: 363375345 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-15465 FILM NUMBER: 96664967 BUSINESS ADDRESS: STREET 1: 150 S WACKER DR STE 2900 STREET 2: SUITE 2900 CITY: CHICAGO STATE: IL ZIP: 60606 BUSINESS PHONE: 3125539800 FORMER COMPANY: FORMER CONFORMED NAME: BANYAN STRATEGIC LAND TRUST DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: VMS STRATEGIC LAND TRUST DATE OF NAME CHANGE: 19910325 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q ( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 1996 OR ( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to . Commission File Number 0-15465 Banyan Strategic Realty Trust (Exact name of Registrant as specified in its charter) Massachusetts 36-3375345 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 150 South Wacker Drive, Chicago, IL 60606 (Address of principal executive offices) (Zip Code) Registrant's telephone number including area code (312) 553-9800 Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES X . NO . Shares of beneficial interest outstanding as of November 14, 1996: 10,478,971 PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS BANYAN STRATEGIC REALTY TRUST CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 1996 AND DECEMBER 31, 1995 (UNAUDITED) ASSETS 1996 1995 Cash and Cash Equivalents $ 4,582,945 $ 5,500,215 Interest Receivable on Investments 14,783 70,352 Interest Receivable on Mortgage Loans --- 60,780 Accounts Receivable 1,036,596 528,029 ------------ ------------ 5,634,324 6,159,376 ------------ ------------ Mortgage Loans Receivable (Net of Unamortized Discount) --- 5,433,094 Investment in Real Estate, at cost: Land 15,206,094 12,809,994 Building 76,968,668 74,343,233 Building Improvements 4,485,390 3,046,838 ------------ ------------ 96,660,152 90,200,065 Less: Accumulated Depreciation (4,039,316) (2,337,095) ------------ ------------ 92,620,836 87,862,970 ------------ ------------ Investment in Real Estate Venture 8,969,801 8,895,678 Deferred Financing Costs (Net of Accumulated Amortization of $563,131 and $224,020, respectively) 1,486,046 1,188,174 Other Assets 1,536,886 1,225,480 ------------ ------------ Total Assets $110,247,893 $110,764,772 ============ ============ LIABILITIES AND SHAREHOLDERS' EQUITY 1996 1995 Liabilities Accounts Payable and Accrued Expenses $ 1,193,444 $1,346,708 Accrued Real Estate Taxes 1,177,327 703,919 Mortgage Loans Payable 43,885,005 43,522,181 Bond Payable 5,500,000 5,500,000 Accrued Interest Payable --- 93,325 Unearned Revenue 138,428 94,002 Security Deposit Liabilities 481,505 439,135 ------------ ------------ Total Liabilities 52,375,709 51,699,270 ------------ ------------ Minority Interest in Consolidated Partnerships 2,340,281 2,190,098 Shareholders' Equity Shares of Beneficial Inter- rest, No Par Value, Un- limited Authorization; 12,001,620 and 11,999,787 Shares Issued, respec- tively 106,694,912 106,687,212 Accumulated Deficit (43,797,060) (42,445,859) Treasury Shares at Cost, 1,522,649 Shares (7,365,949) (7,365,949) ------------ ------------ Total Shareholders' Equity 55,531,903 56,875,404 ------------ ------------ Total Liabilities and Share- holders' Equity $110,247,893 $110,764,772 ============ ============ Book Value Per Share of Beneficial Interest (10,478,971 and 10,477,138 Shares Number of Outstanding, respectively) $ 5.30 $ 5.43 ============ ============ The accompanying notes are an integral part of the consolidated financial statements. BANYAN STRATEGIC REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME AND EXPENSES FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 (UNAUDITED) 1996 1995 REVENUE Rental Income $ 13,742,193 $ 6,606,765 Operating Cost Reimbursement 1,446,692 565,219 Miscellaneous Tenant Income 166,095 139,938 Interest and Amortized Discount on Mortgage Loans 441,725 761,181 Income on Investments 105,667 548,092 ----------- ----------- Total Revenue 15,902,372 8,621,195 ----------- ----------- EXPENSES Operating Property Expenses 3,147,342 1,897,504 Repairs and Maintenance 1,636,915 866,604 Real Estate Taxes 1,272,835 745,134 Interest Expense 2,976,172 911,109 Ground Lease Expense 648,025 106,452 Depreciation and Amorti- zation 1,760,892 874,146 General and Administrative 1,903,225 1,467,700 Amortization of Deferred Loan Fees and Financing Costs 351,963 172,057 Recovery of Losses on Loans, Notes and Interest Receivable (14,059) (155,834) ----------- ----------- Total Expenses 13,683,310 6,884,872 ----------- ----------- Income Before Minority Interest and Income (Loss) from Operations of Real Estate Ventures 2,219,062 1,736,323 Minority Interest in Consolidated Partnerships (349,390) (80,359) Income (Loss) from Operations of Real Estate Ventures (77,365) 649,274 ----------- ----------- Net Income $ 1,792,307 $ 2,305,238 =========== =========== Earnings Per Share of Beneficial Interest (10,478,222 and 10,473,048 Weighted Average Number of Shares Outstanding, respectively) $ 0.17 $ 0.22 =========== =========== The accompanying notes are an integral part of the consolidated financial statements. BANYAN STRATEGIC REALTY TRUST CONSOLIDATED STATEMENTS OF INCOME AND EXPENSES FOR THE THREE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 (UNAUDITED) 1996 1995 REVENUE Rental Income $ 4,761,231 $ 2,731,001 Operating Cost Reimbursement 347,556 294,163 Miscellaneous Tenant Income 49,301 36,500 Interest and Amortized Discount on Mortgage Loans 85,824 260,104 Income on Investments 41,030 131,855 ----------- ----------- Total Revenue 5,284,942 3,453,623 ----------- ----------- EXPENSES Operating Property Expenses 1,138,109 674,734 Repairs and Maintenance 584,437 377,126 Real Estate Taxes 377,823 288,707 Interest Expense 996,667 453,266 Ground Lease Expense 218,286 106,452 Depreciation and Amortization 614,509 366,662 General and Administrative 606,779 475,516 Amortization of Deferred Loan Fees and Financing Costs 129,983 59,261 Recovery of Losses on Loans, Notes and Interest Receivable (14,059) --- ----------- ----------- Total Expenses 4,652,534 2,801,724 ----------- ----------- Income Before Minority Interest and Income from Operations of Real Estate Ventures 632,408 651,899 Minority Interest in Consolidated Partnerships (128,903) (55,896) Income from Operations of Real Estate Ventures 19,649 256,674 ----------- ----------- Net Income $ 523,154 $ 852,677 =========== =========== Earnings Per Share of Beneficial Interest (10,478,971 and 10,476,876 Weighted Average Number of Shares Outstanding, respectively) $ 0.05 $ 0.08 =========== =========== The accompanying notes are an integral part of the consolidated financial statements. BANYAN STRATEGIC REALTY TRUST CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 (UNAUDITED)
Shares of Beneficial Interest Accumulated Treasury Shares Amount Deficit Shares Total Shareholders' Equity, December 31, 1995 11,999,787 $106,687,212 $(42,445,859) $(7,365,949) $56,875,404 Award Shares Issued 1,833 7,700 --- --- 7,700 Net Income --- --- 1,792,307 --- 1,792,307 Dividends Paid --- --- (3,143,508) --- (3,143,508) ----------- ------------ ------------ ----------- ----------- Shareholders' Equity, September 30, 1996 12,001,620 $106,694,912 $(43,797,060) $(7,365,949) $55,531,903 =========== ============ ============ =========== =========== The accompanying notes are an integral part of the consolidated financial statements.
BANYAN STRATEGIC REALTY TRUST CONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1996 AND 1995 (UNAUDITED) 1996 1995 CASH FLOWS FROM OPERATING ACTIVITIES: NET INCOME $ 1,792,307 $ 2,305,238 Adjustments to Reconcile Net Income to Net Cash Provided By Operating Activities: Amortization of Premium on Investment Securities --- 10,596 Recovery of Losses on Loans, Notes and Interest Receivable (14,059) (155,834) Depreciation and Amortization 2,112,855 1,046,203 Amortization of Discount on Mortgage Loans Receivable (34,547) (272,890) Net Loss (Income) From Operation of Real Estate Ventures 77,365 (649,274) Minority Interest Particip- ation in Consolidated Partnerships 349,390 80,359 Incentive Compensation Expense 50,887 --- Net Change In: Interest Receivable on Mortgage Loans and Investments 116,349 (11,291) Accounts Receivable (508,567) (226,630) Other Assets (316,427) 69,331 Accounts Payable and Accrued Expenses 102,482 313,931 Accrued Interest Payable (93,325) (26,005) Accrued Real Estate Tax Payable 468,356 180,464 Unearned Revenue 47,990 556 Security Deposit Liability 6,275 9,743 ----------- ----------- Net Cash Provided By Operating Activities 4,157,331 2,674,497 ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Acquisition of Real Estate Assets (5,021,535) (26,060,265) Investment In Real Estate Ventures, Net (151,488) (57,935) Proceeds From Sale of Investment in Real Estate Venture --- 1,931,467 Proceeds From Sale of Mortgage Loans Receivable 5,440,047 --- Additions to Investment in Real Estate (1,438,552) (531,214) Payment of Liabilities Assumed at Acquisition of Real Estate Assets (315,000) 51,408 Recovery of Losses on Loans, Notes and Interest Receivable 14,059 155,834 Purchase of Investment Securities (839,679) (1,493,360) Proceeds From Sale and Maturities of Investment Securities 817,314 2,500,000 Principal Payments on Investment Securities 22,365 --- Principal Collections on Mortgage Loans Receivable 14,742 32,610 Due from Affiliates --- 730,229 ----------- ----------- Net Cash Used In Investing Activities (1,457,727) (22,741,226) ----------- ----------- CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds From Mortgage Loans Payable 11,545,000 15,706,807 (Distributions To) Invest- ment From Minority Partners (199,207) 1,525,671 Deferred Financing Costs (636,983) (198,271) Principal Payments on Mortgage Loans Payable (11,182,176) (125,328) Dividends Paid to Shareholders (3,143,508) (3,142,538) ----------- ---------- Net Cash (Used In) Provided By Financing Activities (3,616,874) 13,766,341 ----------- ----------- Net Decrease In Cash and Cash Equivalents (917,270) (6,300,388) Cash and Cash Equivalents at Beginning of Period 5,500,215 14,769,170 ----------- ----------- Cash and Cash Equivalents at End of Period $ 4,582,945 $ 8,468,782 =========== =========== The accompanying notes are an integral part of the consolidated financial statements. BANYAN STRATEGIC REALTY TRUST NOTES TO CONSOLIDATED FINANCIAL STATEMENTS SEPTEMBER 30, 1996 (UNAUDITED) Readers of this quarterly report should refer to Banyan Strategic Realty Trust's (the "Trust") audited consolidated financial statements for the year ended December 31, 1995 which are included in the Trust's 1995 Annual Report and Form 10-K, as certain footnote disclosures which would substantially duplicate those contained in such audited statements have been omitted from this report. 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of the Trust, its wholly-owned subsidiaries and its controlled partnerships. All intercompany balances and transactions have been eliminated in consolidation. Investment in Real Estate Venture is accounted for on the equity method. FINANCIAL STATEMENT PRESENTATION Certain reclassifications have been made to the previously reported 1995 consolidated financial statements in order to provide comparability with the 1996 consolidated financial statements. In the opinion of management, all adjustments necessary for a fair presentation have been made to the accompanying consolidated financial statements as of September 30, 1996 and for the nine and three months ended September 30, 1996 and 1995. All adjustments made to the financial statements, as presented, are of a normal recurring nature to the Trust. Net income for the nine and three months ended September 30, 1995 have been reduced by $208,592 and $104,425, respectively, from amounts originally reported to reflect adjusted allocation of administration costs from Banyan Management Corp. This allocation adjustment had no effect on net income for the year ended December 31, 1995. No other allocation adjustments have been made to the 1995 operating results. 2. MORTGAGE LOANS PAYABLE FLORIDA POWER AND LIGHT On March 13, 1996, the Trust executed a nonrecourse first mortgage loan collateralized by the Florida Power and Light office building. The loan, in the amount of $6,200,000, bears interest at a fixed rate of 7.21% per annum, matures on April 1, 2003 and requires monthly payments of principal based upon a twenty- three year amortization schedule with a balloon payment of approximately $5,255,000 due upon maturity. The loan proceeds were utilized to reduce borrowings under the Trust's revolving line of credit with American National Bank in the amount of $6,200,000 as discussed below. WOODCREST OFFICE PARK On July 15, 1996, BSRT Woodcrest Office Park Limited Partnership ("BWOPLP"), a limited partnership between a subsidiary of the Trust, as general partner, and Mr. Daniel Smith as a limited partner, executed a nonrecourse first mortgage loan collateralized by the Woodcrest Office Park property. The loan, in the amount of $7,250,000, bears interest at a fixed rate of 8.25% per annum, matures on August 1, 2003 and requires monthly payments of principal based upon a twenty-five year amortization schedule with a balloon payment of approximately $6,435,000 due upon maturity. The loan proceeds were utilized to reduce borrowings under the Trust's revolving line of credit with American National Bank in the amount of $7,000,000 as discussed below. The loan contains a prepayment penalty of 7% of the outstanding principal balance in year one, decreasing by 1% thereafter through the loan's maturity date of August 1, 2003. LINE OF CREDIT On December 13, 1994, the Trust executed a Revolving Line of Credit (the "Original Line") with American National Bank of Chicago ("ANB") in the amount of $15,000,000. On December 15, 1995, the Trust and ANB entered into an agreement modifying the Original Line by increasing the amount the Trust can borrow from $15,000,000 to $30,000,000 (the "Modified Line"). As of December 31, 1995, the Trust had utilized approximately $25,725,000 of the $30,000,000 available under the Modified Line. On March 13 and July 15, 1996, in conjunction with obtaining mortgage loans collateralized by the Florida Power and Light and Woodcrest Office Park properties as discussed above, the Trust paid down the revolving line of credit in the amounts of $6,200,000 and $7,000,000, respectively. In addition, on April 15, 1996, the Trust replaced a $5,624,315 letter of credit previously issued by ANB which had been collateralized by the Modified Line with an irrevocable letter of credit in the like amount by Citizen's National Bank of Evansville (See Note 6, Letter of Credit, for details). The Trust borrowed $1,000,000 under the Modified Line for the acquisition of the Midwest Office Park property in April 1996. (See Note 4, Investment in Real Estate, for further details.) On June 28 and July 31, 1996, the Trust sold its interest in the Karfad loan portfolio (See Note 5, Mortgage Loans Receivable, for further details). On August 1, 1996, the Trust used a portion of the Karfad loan portfolio net sales proceeds to pay down $3,900,000 of the Modified Line. As a result of the above transactions, as of September 30, 1996, the Trust had an outstanding balance of $4,000,000 of the $30,000,000 available under the Modified Line. 3. TRANSACTIONS WITH AFFILIATES Administrative costs, primarily salaries and general and administrative expenses are incurred on the Trust's behalf by Banyan Management Corp. ("BMC"). These costs are allocated to the Trust and other entities to which BMC provides administrative services based upon the actual number of hours spent by BMC personnel on matters related to that particular entity in relation to the total number of BMC personnel hours. The Trust's allocable share of costs for the nine months ended September 30, 1996 and 1995 aggregated $985,820 and $832,074, respectively. As one of its administrative services, BMC serves as the paying agent for general and administrative costs of the Trust. As part of providing this payment service, BMC maintains a bank account on behalf of the Trust. As of September 30, 1996, the Trust had a net payable due to BMC of $2,395. The net payable is included in accounts payable and accrued expenses in the Trust's Consolidated Balance Sheet. 4. INVESTMENT IN REAL ESTATE On April 18, 1996, Banyan/Morgan Milwaukee Limited Partnership ("BMMLP"), a joint venture between a subsidiary of the Trust, which is a general partner of BMMLP, and an affiliate of Morgan Realty Partners ("Morgan"), a general partner of BMMLP, acquired the Midwest Office Center property (the "Midwest Property"), a single-story office building which consists of approximately 77,000 square feet of gross leasable area located in Oakbrook Terrace, Illinois (metropolitan Chicago) for a purchase price, including liabilities assumed at acquisition, of approximately $4,987,000. The Trust contributed capital in BMMLP upon acquisition of the property of approximately $1,692,000 of which the Trust borrowed $1,000,000 under its line of credit as discussed above. The Trust contributed an additional $147,000 for cash reserves which are held by BMMLP for improvements and lease-up at the property. The Trust is entitled to receive a cumulative preferred return of 12% compounded annually on its total capital contribution to BMMLP. After the Trust receives its preferred return, the excess cash, if any, from operations is distributed 85% to BSRT and 15% to Morgan. The acquisition was made subject to a nonrecourse first mortgage loan collateralized by the property in the principal amount of $3,295,000 which bears interest at a fixed rate of 7.13% per annum, matures on May 1, 2003, and requires monthly payments of principal based upon a twenty-two year amortization schedule. The loan requires a balloon payment for the remaining unpaid principal balance of approximately $2,733,000 at maturity. 5. MORTGAGE LOANS RECEIVABLE Karfad Associates (the "Borrower"), which was indebted to the Trust pursuant to its Karfad loan in the original principal amount of $5,849,266 (the "Loan"), failed to make the required interest payments due on the first of each month from January through May of 1996 with a foreclosure and a direct action against the grantors pending. On May 17, 1996, the Trust entered into a Settlement Agreement (the "Agreement") and two loan sale agreements with the Borrower and a party affiliated with the Borrower pursuant to which the Karfad Loan, as well as four related loans to parties affiliated with Karfad Associates (collectively the "Loan Portfolio"), were sold at an amount equal to the Trust's December 31, 1995 carrying values totalling approximately $5,440,000. On June 28 and July 31, 1996, the Trust completed the sale of these loans. In addition, the Agreement required the Borrower to make all interest payments due pursuant to the terms of the original remaining four loans in the Loan Portfolio and the Karfad Loan from January 1, 1996 through the date of sale in the amount of approximately $407,000. As a result of the Agreement, the Trust terminated the recognition of income from the amortization of the Loan's purchase discount effective January 1, 1996. As of July 31, 1996, the Trust has no further interest in the Loan Portfolio. 6. LETTER OF CREDIT On April 15, 1996, the Trust replaced a letter of credit issued by American National Bank and Trust Company in the face amount of $5,624,315 which served as collateral for the multi-family housing bonds issued by the County of Franklin, Ohio in the amount of $5,500,000 with an irrevocable letter of credit in the amount of $5,624,315 issued by Citizens National Bank of Evansville ("Replacement LOC"). The bonds are also secured by a first mortgage on the Colonial Courts Apartments property. The Replacement LOC is confirmed by an irrevocable direct pay letter of credit in the amount of $5,624,315 provided by the Federal Home Loan Bank of Indianapolis ("FHLB"). The Replacement LOC and the FHLB letter of credit have a term of five years with an option for an additional five year term. The annual fee for the Replacement LOC is equal to one percent (1%) of the letter of credit amount or $56,243. The annual fee for the FHLB letter of credit is approximately $2,800. In consideration of its assistance in obtaining the Replacement LOC and in accordance with the Trust's obligations under the partnership agreement, the Trust increased the limited partnership interest of PHC General Partnership in the BSRT Colonial Courts Limited Partnership from 10% to 25%. 7. AWARD SHARES AND WEIGHTED AVERAGE SHARES OUTSTANDING Pursuant to the amended employment agreement of the Trust's president, Leonard G. Levine, all incentive amounts earned by Mr. Levine subsequent to January 1, 1993 are paid 80% in cash in the year following the period for which the incentive is earned and 20% in shares of beneficial interest of the Trust ("Award Shares"). During the nine months ended September 30, 1996, Mr. Levine was paid $66,985 representing 80% of the incentive earned for the fiscal year ended December 31, 1995. In addition, on April 22, 1996, the Trust issued 1,833 Award Shares to Mr. Levine, valued at $4.20 per share or $7,700, representing 20% of Mr. Levine's 1995 incentive compensation. All incentive amounts are due Mr. Levine on or before March 15, of the year following the period for which the incentive is earned. The Award Shares are restricted as to transfer and held in escrow by the Trust, pending satisfaction of the vesting requirements, for the benefit of Mr. Levine until the earlier of: (i) December 31, 1997; (ii) the termination of Mr. Levine's employment by the Trust without just cause; or (iii) the permanent disability or death of Mr. Levine. The issue price of any Award Shares is based upon the average closing price of the Trust's shares for the five business days ended prior to December 31 of the year in question. All Award Shares issued to Mr. Levine are included in the total shares outstanding of the Trust when calculating Net Income Per Share of Beneficial Interest Based on Weighted Average Number of Shares Outstanding. All Award Shares issued to Mr. Levine will be forfeited by Mr. Levine if he fails to be employed by the Trust on December 31, 1997, unless such failure is due to death or permanent disability or termination without just cause. Mr. Levine is entitled to receive his share (represented by the Award Shares) of any cash distributions paid by the Trust in consideration of outstanding shares. 8. SUBSEQUENT EVENTS DIVIDEND AND DISTRIBUTIONS PAID On October 4, 1996, the Trust declared a cash distribution for the quarter ended September 30, 1996 of $0.10 per share payable November 20, 1996 to shareholders of record on October 21, 1996. DISPOSITION OF INVESTMENT IN REAL ESTATE VENTURE On October 4, 1996, the H Street Venture and the United States General Services Administration ("GSA") entered into an agreement whereby GSA agreed to purchase approximately 3,500 square feet of the Venture's land for a purchase price of $1,680,000. GSA has also agreed to pay the Venture $150,000 in consideration of the Venture's expenses in connection with this transaction. The agreement is subject to certain contingencies including the Venture obtaining appropriate approvals from various government agencies for the modifications necessary to the existing approved design for the proposed building on the Venture's remaining property that will be required as a result of this sale. In the event the aforesaid approvals are not obtained, the Venture is not obligated to complete the sale to GSA. The closing is scheduled to take place no later than March 15, 1997. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS GENERAL Banyan Strategic Realty Trust (the "Trust") is a Massachusetts business trust which owns, through various subsidiaries or partnerships which it controls, interests in industrial, residential, commercial and retail real estate assets located throughout the Midwestern and Southeastern portion of the United States. The current business plan of the Trust is to invest its remaining cash and cash equivalents and cash proceeds generated from the financing of certain current property interests into additional real estate assets and to manage these real estate assets in a manner which will increase the Trust's cash flow over time. Some of the statements contained in this quarterly report are forward looking and actual results may differ materially from those stated. In addition to the factors discussed, among the other factors that may affect liquidity and capital resources as well as results of operations are: (i) the Trust's ability to secure mortgage financing for its Lexington and Newtown properties at terms consistent with its permanent financing on other of its properties; (ii) the Trust's ability, in respect of its interest in the H Street Venture, to sell the property to a real estate developer or end user for end use as an office building; (iii) the Trust's ability to invest the proceeds from either of the aforementioned sources into operating properties at yields greater than the Trust's weighted average interest rate on its mortgage loans and bonds payable of 7.4% at September 30, 1996; (iv) the continued occupancy by and the financial solvency of the major tenants at the Trust's Colonial Penn and Florida Power and Light properties; (v) leasing and occupancy risks in light of the 26% of the tenant leases that are scheduled for renewal during 1997 at the Trust's properties; (vi) market conditions and rental rates where the Trust's properties are located. LIQUIDITY AND CAPITAL RESOURCES Cash and cash equivalents consist of cash and short-term investments. The Trust's cash and cash equivalents balance at September 30, 1996 and December 31, 1995 was $4,582,945 and $5,500,215, respectively. The decrease in total cash and cash equivalents of $917,270 is due to $4,157,331 cash provided from operating activities, less $1,457,727 cash used in investing activities, less $3,616,874 cash used in financing activities. Cash Flows From Operating Activities: Net cash provided by operating activities increased by approximately $1.5 million for the nine months ended September 30, 1996 to approximately $4.2 million from approximately $2.7 million for the same period in 1995. Primarily contributing to this increase was the net operating income provided by the property acquisition in 1996 and the six properties acquired in the final seven months of 1995. Cash Flow From Investing Activities: During the nine months ended September 30, 1996, the Trust utilized approximately $1.5 million in investing activities compared to approximately $22.7 million for the same period in 1995. The cash flow utilized in investing activities for the nine months ended September 30, 1996 was due to the acquisition of the Midwest Office Center property for approximately $5 million (the "Midwest Property") (see below for further detail), $315,000 in payment of liabilities assumed at acquisition of real estate and capital improvements at its various properties in the amount of approximately $1,439,000 offset by proceeds from the sale of mortgage loans receivable in the amount of approximately $5,440,000. (See below for further discussion regarding the 1996 sale of the Trust's interest in the Karfad Loan Portfolio). During the same period in 1995, the Trust paid approximately $26 million to complete the acquisitions of the Willowbrook, Northlake and Bluegrass properties and approximately $531,000 for capital improvements at its properties offset by approximately $1.9 million of proceeds from the sale of the Plaza at Westminster property (proceeds from the sale of investment in real estate venture), approximately $1 million in net proceeds from the sale of investment securities, $730,229 in repayment of amounts due from affiliates and $155,834 received in respect of its interest in a liquidating trust. Cash Flow From Financing Activities: For the nine months ended September 30, 1996, the Trust utilized cash flow from financing activities of approximately $3.6 million compared to generating approximately $13.8 million for the same period in 1995. The cash flow used for financing activities for the nine months ended September 30, 1996 was primarily for principal payments on mortgage loans in the amount of approximately $11.2 million, $10.9 million of which represents a paydown of the Trust's line of credit and the balance represented principal payments of other mortgage loans. In addition, the Trust paid $636,983 of deferred financing costs, paid dividends to shareholders of approximately $3.1 million and received contributions by minority partners of approximately $1.5 million in connection with the July 1995 acquisition of the Northlake property. Offsetting these uses was the receipt of approximately $11.5 million of proceeds from mortgage loans payable, approximately $7.3 million which consisted of proceeds from a first mortgage loan on the Woodcrest property, approximately $3.3 million of which consisted of proceeds from a first mortgage loan on the Midwest property and the balance of which was drawn on the Trust's line of credit (see below). During the period, the Trust also executed a first mortgage loan collateralized by the Florida Power and Light building in the amount of $6.2 million and utilized these proceeds to reduce its borrowing on its line of credit. (See below for details). For the nine months ended September 30, 1995, the Trust received approximately $15.7 million of proceeds from mortgage loans payable which were utilized to acquire the Willowbrook, Northlake and Bluegrass properties. Primarily offsetting these proceeds were dividends paid to shareholders in the amount of approximately $3.1 million. An objective of the Trust is to provide cash distributions to its shareholders from cash generated from the Trust's operations as discussed above. Cash generated from operations is not equivalent to the Trust's net operating income as determined under generally accepted accounting principles. Due to certain unique operating characteristics of real estate companies, the real estate investment trust ("REIT") industry has adopted a standard which it believes better reflects operating property performance. Funds From Operations ("FFO") is defined by the National Association of Real Estate Investment Trusts as net income computed in accordance with generally accepted accounting principles, excluding extraordinary, unusual and nonrecurring items, excluding gains (or losses) from debt restructuring and sales of property plus depreciation and amortization from real property and after adjustments for unconsolidated partnerships and joint ventures in which the REIT holds an interest. The Trust cautions that the calculation of FFO may vary from entity to entity and as such the presentation of FFO by the Trust may not be comparable to other similarly titled measures of other reporting companies. FFO is not intended to be a measure of the cash generated by a REIT nor its distribution paying capacity. However, a REIT's distribution can be analyzed in comparison to FFO in a similar manner as a company that is not a REIT would compare its distribution to net operating income. For the nine months ended September 30, 1996 and 1995, the Trust's operations generated FFO of $3,390,766 and $2,587,775, respectively. For the quarter ended September 30, 1996 and 1995, the Trust's operations generated FFO of $1,067,259 and $1,198,126, respectively. FFO increased for the nine and three months ended September 30, 1996 as a result of the Trust's 1995 and 1996 property acquisitions. FFO for the nine months ended September 30, 1996 and 1995 is calculated as follows: 1996 1995 Net Income $1,792,307 $2,305,238 Plus: Depreciation expense 1,702,221 851,475 Depreciation included in Operations of Real Estate Ventures 22,856 42,763 Lease Commission Amortization 58,671 22,671 Less: Minority Interest Share of Depreci- ation Expense (163,491) (66,610) Minority Interest Share of Lease Commission Amortization (7,739) (2,638) Recovery of Losses on Loans, Notes and Interest Receivable (14,059) (155,834) Gain on Disposition of Investment in Real Estate Venture --- (409,290) ----------- ----------- Funds From Operations $3,390,766 $2,587,775 ========== ========== On April 18, 1996, Banyan/Morgan Milwaukee Limited Partnership ("BMMLP"), a joint venture between a subsidiary of the Trust, which is a general partner of BMMLP, and an affiliate of Morgan Realty Partners ("Morgan"), a general partner of BMMLP, acquired the Midwest Property, a single-story office building which consists of approximately 77,000 square feet of gross leasable area located in Oakbrook Terrace, Illinois (metropolitan Chicago) for a purchase price, including liabilities assumed at acquisition, of approximately $4,987,000. The Trust contributed capital in BMMLP upon acquisition of the property of approximately $1,692,000, of which the Trust borrowed $1,000,000 under its line of credit. The Trust contributed an additional $147,000 for cash reserves which are held by BMMLP for improvements and lease-up at the property. The Trust is entitled to receive a cumulative preferred return of 12% compounded annually on its total capital contribution to BMMLP. After the Trust receives its preferred return, the excess cash, if any, from operations is distributed 85% to BSRT and 15% to Morgan. The acquisition was made subject to a nonrecourse first mortgage loan collateralized by the property in the principal amount of $3,295,000 which bears interest at a fixed rate of 7.13% per annum, matures on May 1, 2003, and requires monthly payments of principal based upon a twenty-two year amortization schedule. The loan requires a balloon payment for the remaining unpaid principal balance of approximately $2,733,000 at maturity. The Trust did not have any mortgage loans receivable outstanding as of September 30, 1996. As of December 31, 1995, the Trust's mortgage loan portfolio consisted of five mortgage loans receivable with an aggregate carrying value totaling $5,433,094. During the nine months ended September 30, 1996, the Trust received principal and interest payments totalling $14,742 and $467,958, respectively. During the nine months ended September 30, 1995, the Trust received principal and interest payments totalling $32,610 and $487,493, respectively. Karfad Associates (the "Borrower"), which was indebted to the Trust pursuant to its Karfad loan in the original principal amount of $5,849,266 (the "Loan"), failed to make the required interest payments due on the first of each month from January through May of 1996 with a foreclosure and a direct action against the grantors pending. On May 17, 1996, the Trust entered into a Settlement Agreement (the "Agreement") and two loan sale agreements with the Borrower and a party affiliated with the Borrower pursuant to which the Karfad Loan, as well as four related loans to parties affiliated with Karfad Associates (collectively the "Loan Portfolio"), were sold at an amount equal to the Trust's December 31, 1995 carrying values totalling approximately $5,440,000. On June 28 and July 31, 1996, the Trust completed the sale of these loans. In addition, the Agreement required the Borrower to make all interest payments due pursuant to the terms of the original remaining four loans in the Loan Portfolio and the Karfad Loan from January 1, 1996 through the date of sale in the amount of approximately $407,000. As of July 31, 1996, the Trust has no further interest in the Loan Portfolio. On March 13, 1996, the Trust executed a nonrecourse first mortgage loan collateralized by the Florida Power and Light office building. The loan, in the amount of $6,200,000, bears interest at a fixed rate of 7.21% per annum, matures on April 1, 2003 and requires monthly payments of principal based upon a twenty- three year amortization schedule with a balloon payment of approximately $5,255,000 due upon maturity. The loan proceeds were utilized to reduce borrowings under the Trust's revolving line of credit with American National Bank in the amount of $6,200,000 as discussed below. On July 15, 1996, BSRT Woodcrest Office Park Limited Partnership ("BWOPLP"), a limited partnership between a subsidiary of the Trust, as general partner, and Mr. Daniel Smith as a limited partner, executed a nonrecourse first mortgage loan collateralized by the Woodcrest Office Park property. The loan, in the amount of $7,250,000, bears interest at a fixed rate of 8.25% per annum, matures on August 1, 2003 and requires monthly payments of principal based upon a twenty-five year amortization schedule with a balloon payment of approximately $6,435,000 due upon maturity. The loan proceeds were utilized to reduce borrowings under the Trust's revolving line of credit with American National Bank in the amount of $7,000,000 as discussed below. The loan contains a prepayment penalty of 7% of the outstanding principal balance in year one, decreasing by 1% thereafter through the loan's maturity date of August 1, 2003. On December 13, 1994, the Trust executed a Revolving Line of Credit (the "Original Line") with American National Bank of Chicago ("ANB") in the amount of $15,000,000. On December 15, 1995, the Trust and ANB entered into an agreement modifying the Original Line by increasing the amount the Trust can borrow from $15,000,000 to $30,000,000 (the "Modified Line"). During the initial term and any extension, the Trust must pay interest only at the rate of LIBOR plus 2.25% or Prime plus .25% at the election of the Trust. In addition, the Trust is required to pay the Bank an unused facility fee of one-half of one percent per annum multiplied by the average portion of the Modified Line's maximum commitment that is undrawn from time to time. As of December 31, 1995, the Trust had utilized approximately $25,725,000 of the $30,000,000 available under the Modified Line. On March 13, 1996, the Trust reduced its borrowing under the Modified Line in the amount of $6,200,000. In addition, on April 15, 1996, the Trust replaced a $5,624,315 letter of credit previously issued by ANB which had been collateralized by the Modified Line with an irrevocable letter of credit in the like amount issued by Citizen's National Bank of Evansville. The Trust borrowed $1,000,000 under the Modified Line for the acquisition of the Midwest Office Park property in April 1996. On July 15, 1996, the Trust reduced its borrowing under the Modified Line in the amount of $7,000,000. On August 1, 1996, the Trust used a portion of the Karfad loan portfolio net sales proceeds to pay down $3,900,000 of the Modified Line. As a result of the above transactions, as of September 30, 1996, the Trust had an outstanding balance of $4,000,000 under the Modified Line. The Trust's future liquidity needs are expected to be funded from cash flow from its operating properties, cash proceeds derived from the mortgage financing of certain property interests, borrowings pursuant to its Modified Line with American National Bank, the sale of the H Street Assemblage property and interest earned on the Trust's short-term investments. These sources, as well as the Trust's cash and cash equivalents, are expected to be sufficient to meet its reasonably anticipated needs for liquidity and capital resources in the near future and to provide cash proceeds for distributions to shareholders. The Trust currently plans to continue making additional investments in operating properties utilizing cash proceeds to be provided from the financing sources described above. In the event additional financing cannot be obtained, the Trust's ability to make future real estate acquisitions would be impaired. The other sources of cash described above are expected to provide the Trust with the cash necessary to meet its operating expenses and other general corporate needs and to continue the $0.10 per share quarterly distribution for the remainder of 1996 and throughout 1997. The Trust's ability to make distributions to its shareholders is dependent upon, among other things: (i) the improvement in operating performance of its existing real estate investments through scheduled increases in base rents under existing leases and through general improvement in the real estate markets where the Trust's properties are located reflected in changes in base rents attributable to new or replacement leases; (ii) the operating performance of future acquisitions funded by the redeployment of financing and cash proceeds derived from the sale of its interest in the H Street Venture and (iii) the Trust's level of operating expenses. RESULTS OF OPERATIONS At September 30, 1996, the Trust owned six industrial complexes aggregating 1,046,400 square feet of gross leasable area, two apartment complexes consisting of a total of 822 units, five commercial office properties consisting of 561,100 square feet of gross leasable area and one retail center which contains 321,800 square feet of gross leasable area. During 1995, the Trust acquired six of these assets including Willowbrook Industrial Court, Northlake Tower Shopping Center, Quantum Business Center, Lexington Distribution Center, Newtown Distribution Center and the Woodcrest Office Park property. During 1996, the Trust acquired an interest in the Midwest Office Center property and sold its interest in the Karfad loan portfolio to an unaffiliated third party. For further discussion regarding the asset purchased or sold during 1996 see Liquidity and Capital Resources above. COMPARISON OF NINE MONTHS ENDED SEPTEMBER 30, 1996 TO NINE MONTHS ENDED SEPTEMBER 30, 1995 Real estate operating income before interest expense (herein defined as total revenue excluding income on investments less operating property expenses, repairs and maintenance, real estate taxes, ground lease expense and depreciation and amortization) increased from $3,583,263 in 1995 to $7,330,696 in 1996. The Trust's acquisitions during 1995 and 1996 mentioned above, accounted for approximately $4,138,000 of this increase during 1996. Negatively impacting this increase was a decrease of approximately $320,000 in interest and amortized discount on mortgage loans which resulted from the sale of the Karfad loans described above. See below for further discussions of the changes in revenues and expenses for the period. Total revenues increased by approximately $7.3 million to $15,902,372 from $8,621,195 due primarily to the properties acquired after January 1, 1995 accounting for approximately $7.7 million of this increase. On a "same-store" basis (comparing the results of operations of the properties owned during the nine months ended September 30, 1996, with the results of operations of the same properties owned during the nine months ended September 30, 1995), property revenues increased by approximately $321,000, a 5% increase. This increase in revenue was due primarily to an increase in average occupancy at the Colonial Courts of Westland apartments to 93% for the nine months ended September 30, 1996 as compared to an average occupancy of 89% for the same period one year ago and additional tenant recovery income charges related to increased property expenses during 1996. Partially offsetting these improvements was a decrease in interest and amortized discount on mortgage loans of approximately $320,000 and a decrease in income on investments of approximately $442,000. Interest and amortized discount on mortgage loans decreased due to the Trust's termination of the amortization of the purchase discount as of January 1, 1996 on the Karfad Loan and sale of the loan portfolio as discussed above. Interest income on investments decreased due to the reduction in cash available for investment resulting primarily from the investment of cash in the assets acquired in 1996 and during the last seven months of 1995 and the paydown of the Modified Line. See Liquidity and Capital Resources for further discussion regarding the Trust's April 1996 acquisition of the Midwest Office Center property and the sale of the Trust's interest in the Karfad Loan Portfolio. Total expenses increased by approximately $6.8 million to $13,683,310 from $6,884,872 due primarily to the 1995 and 1996 acquisitions mentioned above which accounted for approximately $5.4 million of this increase. On a "same-store" basis interest expense increased by approximately $246,000 as a result of the Trust's execution of a mortgage loan in the amount of $6,200,000 collateralized by the Florida Power and Light property in March 1996. General and administrative expenses increased due to an increase in expenses incurred on the Trust's behalf by Banyan Management Corp. in connection with supervising the newly acquired assets and an increase in executive incentive compensation earned on the performance of the Trust's investment activities. Amortization of deferred loan fees and financing costs increased primarily due to costs associated with the Modified Line of credit during the fourth quarter of 1995 and with the replacement of a letter of credit collateralized by the Colonial Courts property in April 1996. Further contributing to the increase in total expenses was a decrease in charges against recovery of losses on loans, notes, and interest receivable of $155,834 during 1995 as compared to $14,059 during 1996 which resulted from distributions in respect of the Trust's interest in the liquidating trust. The remaining increase in total expenses on a "same-store" basis resulted from increases in repairs and maintenance and depreciation expense for the properties owned by the Trust prior to January 1, 1995. During the nine months ended September 30, 1996, the Trust realized a net loss from the operation of real estate ventures of ($77,365) compared to income of $649,274 for the same period in 1995. The net loss from operations of real estate ventures for the nine months ended September 30, 1996 of $77,365 represents the losses incurred from the Trust's 53% interest in the real estate venture known as the H Street Venture. The H Street Venture owns an approximately 55,900 square foot office building (the "Victor Building") and an adjacent land parcel consisting of 17,000 square feet (the "H Street Assemblage") located in Washington, D.C. The net income from operations of real estate ventures of $649,274 for the nine months ended September 30, 1995 resulted from the income from operations and gain on the sale of the Plaza at Westminster property of $451,966 and income from operations of $197,308 on the H Street Assemblage. The Plaza at Westminster property was sold in June 1995 to an unaffiliated third party. During the nine months ended September 30, 1996 and 1995, the Venture recorded a reduction in real estate tax expense of approximately $200,000 and $459,000, respectively, for real estate tax refunds, and interest thereon, relating to 1992, 1993 and 1994 tax years. In addition, real estate tax expense increased by approximately $159,000 for the nine months ended September 30, 1996 as compared to the same period in 1995 resulting from a property reassessment during 1996 of the H Street Assemblage. The Venture is currently appealing this reassessment. The H Street Venture is currently marketing the H Street Assemblage for sale. The Venture will continue to try to find ways to limit holding costs at the H Street Assemblage while attempting to sell the property. Upon the sale of the H Street Assemblage, it is the Trust's intent to redeploy its portion of all cash proceeds derived from this sale into new real estate investments. The factors discussed above resulted in consolidated net income of $1,792,307 or $0.17 per share for the nine months ended September 30, 1996 as compared to consolidated net income of $2,305,238 or $0.22 per share for the nine months ended September 30, 1995. COMPARISON OF THREE MONTHS ENDED SEPTEMBER 30, 1996 TO THREE MONTHS ENDED SEPTEMBER 30, 1995 Total revenues increased approximately $1.8 million from $3,453,623 to $5,284,942 due to the Trust's acquisitions since January 1, 1995. Total expenses increased approximately $1.9 million to $4,652,534 from $2,801,724 due to the Trust's 1995 and 1996 acquisition activity which accounted for approximately $1.5 million of this increase. The remaining $400,000 increase in total expenses is primarily due to increases in interest expense, general and administrative expenses and amortization of deferred loan fees and financing costs as discussed in the comparison of the nine month results discussed above. For the three months ended September 30, 1996, the Trust recorded net income from operations of real estate ventures of $19,649 as compared to net income of $256,674 for the same period in 1995. The above comparison and description of the operations of the H Street Venture for the nine months ended September 30, 1996 compared to the same period in 1995 applies to the three month periods ended September 30, 1996 and September 30, 1995. The factors discussed above resulted in consolidated net income of $523,154 or $0.05 per share for the three months ended September 30, 1996 as compared to consolidated net income of $852,677 or $0.08 per share for the three months ended September 30, 1995. The Trust paid distributions equal to $0.10 per share on August 20, 1996 and August 18, 1995 for the second quarter of 1996 and 1995, respectively. On October 4, 1996, the Trust declared a cash distribution for the third quarter of 1996 of $0.10 per share payable November 20, 1996 to shareholders of record on October 21, 1996. SUPPLEMENTAL INFORMATION Effective January 1, 1993, the Trust began providing supplemental financial information in order to highlight the impact that a future sale of the Trust's interests in the H Street Venture and other assets acquired through foreclosure might have on the liquidity and results of operations of the Trust. This presentation is not intended to provide a better measure of the Trust's historical economic performance than the financial statements included in the report. It is intended only to provide a pro-forma view of how the Company would perform if it were able to sell the H Street Property and invest the net proceeds into operating real estate assets similar to those currently held by the Trust. Although the format with which this information has been presented over the past periods has changed, the objective of the presentation has not. The Trust's new real estate opportunities (the "Investment Activities") include the net operations of the Trust's interest in real estate assets comprised of six industrial buildings, two apartment complexes, five commercial office buildings, a retail center and a portfolio of mortgage loans, income from the Trust's investment securities and other expenses representing the incremental costs of managing these assets. Excluded from Investment Activities are the operations of the Trust's interest in the H Street Venture, income generated on the allocated portion of cash and cash equivalents considered sufficient for costs associated with the ongoing operations of the H Street Venture and expenses required with maintaining the Trust which are not allocated to Investment Activities. For the nine months ended September 30, 1996, the Trust's Investment Activities generated net income of approximately $2.5 million or $0.24 per share compared to approximately $2.1 million or $0.20 per share for the same period in 1995. For the same period, the Trust's Investment Activities generated Funds from Operations of approximately $4.1 million in 1996 compared to approximately $2.9 million in 1995. For the quarter ended September 30, 1996, the Trust's Investment Activities generated net income of approximately $683,000 or $0.07 per share compared to approximately $760,000 or $0.07 per share for the same period in 1995. For the same period, the Trust's Investment Activities generated Funds from Operations of approximately $1.2 million in 1996 compared to approximately $1.1 in 1995. PART II - OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) The following exhibits are incorporated by reference from the Trust's Annual Report on Form 10K for the year ended December 31, 1995: Exhibits The following exhibits are incorporated by reference from the Trust's Registration Statement on Form S-11 (file number 33-4169), referencing the exhibit number used in such Registration Statement. Exhibit Number Description (3)(b) By-Laws (3)(c) Amended and Restated Declaration of Trust (10) Material Contracts (i) Second Amendment of Leonard G. Levine's Employment Contract dated December 31, 1992. (ii) Amendment to Loan Agreement dated December 1, 1994; Second Amendment to Loan Agreement dated December 21, 1994; and Third Amendment to Loan Agreement dated December 18, 1995 regarding the Registrant's $30,000,000 Revolving Line of Credit with American National Bank of Chicago. (iii) First Amendment to Note dated December 18, 1995 regarding the Registrant's $30,000,000 Revolving Line of Credit with American National Bank of Chicago. (21) Subsidiaries of the Trust (b) No current reports on Form 8-K were filed during the quarter ended September 30, 1996. SIGNATURES 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 thereunto duly authorized. BANYAN STRATEGIC REALTY TRUST By: /s/ Leonard G. Levine Date: November 14, 1996 Leonard G. Levine, President By: /s/ Joel L. Teglia Date: November 14, 1996 Joel L. Teglia, Vice President and Chief Financial Officer EX-27 2
5 "This schedule contains summary financial information extracted from Banyan Strategic Realty Trust Form 10-Q for the period ended September 30, 1996 and is qualified in its entirety by reference to such 10-Q." 9-MOS DEC-31-1996 SEP-30-1996 4,582,945 0 1,051,379 0 0 5,634,324 96,660,152 4,039,316 110,247,893 2,509,199 5,500,000 0 0 55,531,903 0 110,247,893 0 15,902,372 0 0 10,707,138 0 2,976,172 1,792,307 0 1,792,307 0 0 0 1,792,307 0.17 0.17
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