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BRT REALTY TRUST Reports Results of Operations for the First Quarter of Its Fiscal Year

^{Published on 2009-02-06 13:19:30, Last Modified on 2009-02-06 13:21:14 - Market Wire}
 

GREAT NECK, N.Y.--([ BUSINESS WIRE ])--BRT REALTY TRUST (NYSE:BRT) today reported its results of operations for the quarter ended December 31, 2008. BRT reported that for the three months ended December 31, 2008, it had total revenues of $5,534,000 and a net loss of $3,623,000, or a per share net loss on a diluted basis of $.31. The net loss for the quarter ended December 31, 2008 takes into effect an impairment charge of $3,500,000 or $.30 per share on a diluted basis. For the three months ended December 31, 2007, BRT reported total revenues of $7,508,000 and net income of $3,230,000, or $.28 per share on a diluted basis. Net income for the three months ended December 31, 2007 includes income from discontinued operations of $457,000, or $.04 per diluted share. The weighted average number of common shares outstanding on a diluted basis for the quarters ended December 31, 2008 and December 31, 2007 was 11,694,769 and 11,380,561, respectively.

Commenting on the results of operations, Jeffrey A. Gould, President and Chief Executive Officer of BRT, noted that during the quarter ended December 31, 2008, the average balance of earning loans outstanding decreased $41.7 million, or 25%, compared to the quarter ended December 31, 2007, due to our limited loan origination activity and our acquiring title to properties which previously secured earning loans. Mr. Gould stated, "As with all other businesses involved in the real estate lending industry, BRT has been acutely affected by the current economic crisis." Mr. Gould added, "We have acted quickly to foreclose on defaulted loans and acquire the underlying real estate collateral. As a result, we are devoting substantial resources to the operation of our properties as we continue to seek to minimize the adverse effects of our loan defaults." Mr. Gould reported, "substantially all our mortgage loans are secured by first liens, and our short-term debt at December 31, 2008 was $6,000,000, or 3% of our shareholders' equity, and 2% of our total assets." More specifically, Mr. Gould advised as follows with respect to the quarter ended December 31, 2008:

• At December 31, 2008, BRT owned $78,740,000 of real estate assets acquired by foreclosure and deed in lieu of foreclosure, including real estate assets held for sale, and had $5,384,000 of non-performing loans, compared with $26,370,000 of real estate assets acquired by foreclosure and deed in lieu of foreclosure, including real estate assets held for sale and $61,552,000 of non-performing loans at December 31, 2007.
• Total revenues for the three months ended December 31, 2008 declined by 26%, compared to total revenues for the three months ended December 31, 2007. Interest income, the largest component of revenues, declined by 33% quarter versus quarter due primarily to a significant decline in the average balance of loans outstanding. However, as our business focus has temporarily shifted to the operation of our real estate assets, due to the acquisition of real estate securing non-performing loans, revenues relating to real estate owned (excluding real estate held for sale) increased from $445,000 for the quarter ended December 31, 2007 to $1,001,000 for the quarter ended December 31, 2008.
• Expenses directly related to properties acquired in foreclosure and deed in lieu of foreclosure, including impairment charges, had a significant effect on BRT's results of operations quarter versus quarter. Due to the increase in real estate properties owned quarter versus quarter, expenses related to real estate properties, excluding real estate held for sale, increased from $398,000 for the quarter ended December 31, 2007 to $1,688,000 for the quarter ended December 31, 2008. A significant portion of this increase is due to deferred repairs and maintenance on these properties.

BRT REALTY TRUST is a mortgage-oriented real estate investment trust.

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 the value of the collateral securing loans, potential property sales, property management, foreclosure activities and dividend payments. BRT intends such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions. Forward-looking statements, which are based on certain assumptions and describe our future plans, strategies and expectations, are generally identifiable by use of the words "may," "will," "believe," "expect," "intend," "anticipate," "estimate," "project," or similar expressions or variations thereof. Forward looking statements, including, with respect to a non-performing loans, 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.