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) February 7, 2007
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BRT REALTY TRUST
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(Exact name of Registrant as specified in charter)
Massachusetts 001-07172 13-2755856
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(State or other (Commission file No.) (IRS Employer
jurisdiction of I.D. No.)
incorporation)
60 Cutter Mill Road, Suite 303, Great Neck, New York 11021
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(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):
Written communications pursuant to Rule 425 under the Securities Act
(17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act
(17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the
Exchange Act (17 CFR 240.13e-4(c))
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Item 2.02 Results of Operations and Financial Condition.
On February 7, 2007, registrant issued a press release announcing its results of
operations for the three months ended December 31, 2006. The press release is
attached as an exhibit to this Form 8-K.
Item 9.01 Financial Statements and Exhibits.
(a) Financial Statements of Businesses Acquired.
Not applicable.
(b) Pro Forma Financial Information.
Not applicable.
(c) Shell Company Transactions.
Not applicable.
(d) Exhibits.
99.1 Press release dated February 7, 2007.
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: February 7, 2007 By: /s/ David W. Kalish
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David W. Kalish
Senior Vice President-Finance
EXHIBIT 99.1
BRT REALTY TRUST
60 Cutter Mill Road, Suite 303
Great Neck, NY 11021
(516) 466-3100 - Telephone
(516) 466-3132 - Fax
www.BRTRealty.com
BRT REALTY TRUST
ANNOUNCES RESULTS OF OPERATIONS
FOR THE FIRST QUARTER OF THE FISCAL YEAR
Great Neck, New York, February 7, 2007 -- BRT Realty Trust (NYSE:BRT) today
announced that total revenues for the quarter ended December 31, 2006 (the first
quarter of its fiscal year) increased by 72% over the quarter ended December 31,
2005, and net income increased by 76% quarter over quarter. For the three months
ended December 31, 2006, BRT reported total revenues of $12,745,000 and net
income of $8,289,000, or $.95 per share on a diluted basis. Net income for the
three months ended December 31, 2006 includes income from discontinued
operations of $358,000, or $.04 per share on a diluted basis. For the three
months ended December 31, 2005, total revenues, net income and net income per
share on a diluted basis were $7,400,000, $4,715,000 and $.60 per share,
respectively. Net income for the three months ended December 31, 2005 includes a
loss from discontinued operations of $62,000, or a loss of $.01 per share on a
diluted basis. The weighted average number of common shares outstanding on a
diluted basis were 8,698,915 and 7,877,349 for the three months ended December
31, 2006 and December 31, 2005, respectively.
Commenting on the results of operations for the three months ended December 31,
2006, Jeffrey A. Gould, President and Chief Executive Officer of BRT, noted that
the primary reason for the increase in revenues quarter over quarter was the 74%
increase in the average balance of loans outstanding, from $173.9 million during
the three months ended December 31, 2005, to $302.2 million during the three
months ended December 31, 2006. Revenues in the current period also benefited
from an increase in the average interest rate earned on the loan portfolio, an
increase in origination fees directly related to the increase in the loan
portfolio and an increase in operating income on real estate owned. Mr. Gould
commented that a single loan of $10,250,000 has been categorized as non-earning
during the quarter due to a borrower's non-payment of interest on such loan. He
further commented that based on BRT's updated analysis of the collateral
securing such loan, BRT believes the value of the collateral continues to be
sufficient to satisfy the outstanding balance of such loan. Non-performing loans
constitute approximately 4% of the loan portfolio at December 31, 2006.
On the expense side, Mr. Gould noted that total expenses increased by 57% for
the quarter ended December 31, 2006, as compared to the quarter ended December
31, 2005. Of the increase, 85% was a result of interest expense from the
increase in the average balance of borrowings outstanding by BRT and an increase
in the overall rate paid by BRT on such borrowings under its revolving credit
facility. The borrowings were incurred to fund BRT's increased loan portfolio.
Mr. Gould commented that BRT's borrowings were reduced in early December 2006 by
58% when BRT applied $77,000,000 of the net proceeds it received from a public
offering of its common shares to pay off the outstanding balance on a margin
account and to reduce the outstanding balance under its credit facility. There
was also an increase in certain expense categories during the quarter ended
December 31, 2006, as compared to the prior year's comparable period, due to
BRT's increased level of business. Among other items, there was an increase in
the adviser's fee and in other taxes.
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 and Exchange Act of 1934, as amended, including statements regarding
the value of the collateral securing a loan. 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
loan, 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.
Contact: Mark Lundy -(516) 773-2703
BRT REALTY TRUST
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In Thousands except for Per Share Data)
Three Months Ended
December 31,
2006 2005
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Revenues $12,745 $ 7,400
Expenses 6,701 4,269
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Income before equity in earnings (loss) of unconsolidated
joint ventures, minority interest and discontinued operations 6,044 3,131
Equity in earnings (loss) of unconsolidated joint ventures 82 (877)
Gain on disposition of real estate related to unconsolidated
real estate venture 1,819 2,531
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Income before minority interest and discontinued operations 7,945 4,785
Minority interest (14) (8)
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Income from continuing operations 7,931 4,777
Discontinued operations
Income (loss) from operations 6 (62)
Gain on sale of real estate assets 352 -
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Income from discontinued operations 358 (62)
Net income $ 8,289 $ 4,715
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Income per share of beneficial interest:
Income from continuing operations $ .91 $ .61
Discontinued operations .04 (.01)
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Basic earnings per share $ .95 $ .60
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Income from continuing operations $ .91 $ .61
Discontinued operations .04 (.01)
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Diluted earnings per share $ .95 $ .60
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Cash distributions per common share $ .58 $ .52
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Weighted average number of common shares outstanding:
Basic 8,680,671 7,829,991
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Diluted 8,698,915 7,877,349
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