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 9, 2005
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
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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):
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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))
Item 2.02. Results of Operations and Financial Condition
Attached hereto as an exhibit is a copy of a Press Release issued by
the registrant on May 9, 2005. The Press Release which is being furnished to the
Securities and Exchange Commission, discloses information regarding the
registrant's results of operations for the quarter and six months ended March
31, 2005.
Item 9.01 Financial Statements and Exhibits
(a) Financial Statements of Businesses Acquired. Not Applicable.
(b) Pro Forma Financial Information. Not Applicable.
(c) Exhibits.
99.1 Press release issued May 9, 2005.
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned officer thereunto duly authorized.
BRT REALTY TRUST
Date: May 11, 2005 By: /s/ Simeon Brinberg
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Simeon Brinberg
Secretary
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 QUARTER AND SIX MONTH ENDED MARCH 31, 2005
Great Neck, New York - May 9, 2005 - BRT Realty Trust (NYSE: BRT) today
announced it had revenues for the three months ended March 31, 2005 of
$6,043,000, and net income of $3,039,000, or $.39 per share on a diluted basis.
This compares with total revenues, net income and net income per share on a
diluted basis of $4,599,000, $3,251,000, and $.42 per share, respectively, for
the three months ended March 31, 2004. Net income for the quarter ended March
31, 2005 includes a net loss on sale of available-for-sale securities of
$49,000, or $.01 per share, and net income for the quarter ended March 31, 2004
includes a net gain on sale of available-for-sale securities of $917,000, or
$.12 per share. If the loss on the sale of available-for-sale securities in the
three months ended March 31, 2005 and the gain on the sale of available-for-sale
securities in the three months ended March 31, 2004 are not taken into account,
BRT would have reported net income of $3,088,000, or $.40 per share on a diluted
basis, for the three months ended March 31, 2005, and net income of $2,334,000,
or $.30 per share on a diluted basis, for the three months ended March 31, 2004.
The weighted average number of common shares outstanding on a diluted basis was
7,806,385 and 7,696,940 for the three months ended March 31, 2005 and March 31,
2004, respectively.
BRT also announced that for the six months ended March 31, 2005 it had total
revenues of $12,076,000 and net income of $7,350,000, or $.94 per share on a
diluted basis. Net income for the six months ended March 31, 2005 includes a net
gain on sale of available-for-sale securities of $680,000, or $.09 per share.
For the six months ended March 31, 2004, BRT had total revenues of $8,268,000
and net income of $6,545,000, or $.85 per share on a diluted basis. Net income
for the six months ended March 31, 2004 includes a net gain on sale of
available-for-sale securities of $1,637,000, or $.21 per share, and a net gain
on sale of real estate assets of $591,000, or $.08 per share. If the gain on the
sale of available-for-sale securities in the six months ended March 31, 2005 and
the gain on the sale of real estate assets and the gain on the sale of
available-for-sale securities in the six months ended March 31, 2004 are not
taken into account, BRT would have reported net income of $6,670,000, or $.86
per share on a diluted basis, for the six months ended March 31, 2005, and net
income of $4,317,000, or $.56 per share on a diluted basis, for the six months
ended March 31, 2004. The weighted average number of common shares outstanding
on a diluted basis was 7,777,400 and 7,684,184 for the six months ended March
31, 2005 and March 31, 2004, respectively.
Commenting on the results of operations for the three and six month periods
ended March 31, 2005, Jeffrey Gould, President and Chief Executive Officer of
BRT, noted that the increase in revenues was due primarily to a significant
increase in the average balance of loans outstanding and an increase in the
average interest rate earned on its outstanding loan portfolio. Mr. Gould noted
that the average balance of loans outstanding increased by approximately
$26,300,000 for the three month period ended March 31, 2005 compared to the
three month period ended March 31, 2004, and approximately $36,900,00 for the
six month period ended March 31, 2005 compared to the six month period ended
March 31, 2004.
Commenting further, Mr. Gould noted that total expenses increased by $635,000,
or 28%, quarter over quarter, of which $552,000 is a result of increased
interest expense, and by $1,412,000, or 35%, six months versus six months, of
which $1,041,000 is a result of increased interest expense. The increased
interest expense was primarily due to borrowing under BRT's credit facilities to
fund its increased level of loan originations. The increase in expenses was also
attributable to an increase in the advisor's fee of $75,000 quarter over
quarter, and $162,000 six months versus six months, also due primarily to the
increased loan portfolio. General and administrative expenses increased by
$49,000 quarter over quarter, and $218,000 six months versus six months,
primarily due to fees resulting from Sarbanes-Oxley compliance activities, and
increases in payroll and payroll related expenses and insurance costs. The
increases in expenses were offset by a decline in real estate operating expenses
of $103,000 quarter versus quarter, and $109,000 six months versus six months,
due primarily to a "non-recurring" litigation expense incurred in the prior
three and six month periods in connection with a litigation which was resolved
in June 2004.
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. 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. The forward looking statements should not be relied upon
since they 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.
Contact: Simeon Brinberg - (516) 466-3100
BRT REALTY TRUST
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended Six Months Ended
March 31, March 31,
2005 2004 2005 2004
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Revenues $6,043 $4,599 $12,076 $8,268
Expenses 2,888 2,253 5,383 3,971
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Income before equity in earnings of
unconsolidated joint ventures and gain on sale 3,155 2,346 6,693 4,297
Equity in (loss) earnings of unconsolidated joint ventures (54) (2) 1 41
Net gain on sale of real estates assets - - - 591
Net realized (loss) gain on available-for
-sale securities (49) 917 680 1,637
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Income before minority interest 3,052 3,261 7,374 6,566
Minority interest (13) (10) (24) (21)
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Net income $3,039 $3,251 $7,350 $6,545
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Income per share of beneficial interest:
Basic earnings per share $ 0.39 $ 0.43 $ 0.95 $ 0.87
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Diluted earnings per share $ 0.39 $ 0.42 $ 0.94 $ 0.85
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Cash distributions per common share $ 0.48 $ 0.45 $ 0.96 $ 0.83
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Weighted average number of common shares outstanding:
Basic 7,748,340 7,579,806 7,704,884 7,546,413
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Diluted 7,806,385 7,696,940 7,777,400 7,684,184
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