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 13, 2003
BRT REALTY TRUST
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(Exact name of Registrant as specified in charter)
Maryland 1-7172 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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Item 9. Regulation FD Disclosure. (The information provided herein is being
provided under Item 12 of Form 8-K, Results of Operations and Financial
Condition).
Attached hereto as an exhibit is a copy of a Press Release issued by
the registrant on May 13, 2003. The Release which is being furnished to the
Securities and Exchange Commission, discloses information regarding the
registrant's results of operations for the three and six months ended March 31,
2003 and its financial condition at March 31, 2003.
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 14, 2003 By: /s/ Simeon Brinberg
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Simeon Brinberg
Secretary
BRT REALTY TRUST
60 Cutter Mill Road, Suite 303
Great Neck, NY 11021
Telephone (516) 466-3100
Fax (516) 466-3132
BRT REALTY TRUST
ANNOUNCES RESULTS OF OPERATIONS
FOR THE QUARTER AND SIX MONTHS ENDED MARCH 31, 2003
Great Neck, New York, May 13, 2003 -- BRT Realty Trust (NYSE:BRT) today
announced that for the three months ended March 31, 2003 it had total revenues
of $3,514,000 and net income of $2,205,000, or $0.29 per share on a diluted
basis. Net income for the three months ended March 31, 2003 includes a net
realized gain on sale of available-for-sale securities of $146,000, or $.02 per
share. This compares with total revenues, net income and net income per share on
a diluted basis of $3,931,000, $3,343,000 and $.44 per share, respectively, for
the three months ended March 31, 2002. Net income for the three months ended
March 31, 2002 includes $500,000 of revenues, $.07 per share, from the reversal
of a previously provided provision and a net gain on sale of real estate assets
of $607,000, or $.08 per share. If the net gains on sale of available-for-sale
securities in the 2003 quarter and the reversal of the previously provided
provision and the net gain on sale of real estate assets in the 2002 quarter are
not taken into account, revenues, net income and net income per share for the
quarter ended March 31, 2003 would be $3,514,000, $2,059,000 and $.27,
respectively, and for the quarter ended March 31, 2002, $3,431,000, and
$2,236,000, and $.29, respectively. The weighted average number of common shares
outstanding on a diluted basis was 7,571,689 and 7,581,711 for the three months
ended March 31, 2003 and 2002, respectively.
BRT also announced that for the six months ended March 31, 2003 it had total
revenues of $7,644,000 and net income of $5,041,000, or $.67 per share on a
diluted basis. Net income for the six months ended March 31, 2003 includes a net
gain on sale of real estate assets and gain on sale of available-for-sale
securities of $341,000, or $.04 per share. For the six months ended March 31,
2002, BRT reported total revenues of $8,624,000 and net income of $6,799,000, or
$.91 per share on a diluted basis. The six months ended March 31, 2002 includes
$500,000 of revenues, or $.07 per share, from the reversal of a previously
provided provision and a net gain on sale of real estate assets of $607,000, or
$.08 per share. If the gains from sale of securities and real estate assets in
the 2003 six month period and the reversal of the previously provided provision
and the net gain on sale of real estate assets in the 2002 six month period are
not taken into account revenues, net income and net income per share for the six
months ended March 31, 2003 would be $7,644,000, $4,700,000 and $.63,
respectively, and for the six months ended March 31, 2002 $8,124,000,
$5,692,000, and $.76, respectively. The weighted average number of common shares
outstanding on a diluted basis was 7,553,921 and 7,481,471 for the six months
ended March 31, 2003 and March 31, 2002, respectively.
Commenting on the results of operations, Jeffrey Gould, President and Chief
Executive Officer of BRT noted that interest and fees on real estate loans
increased by $90,000, or 4%, quarter versus quarter. A decline in the average
balance of loans outstanding quarter versus quarter, was more than offset by an
increase in the average interest rate earned on the loan portfolio and an
increase in fees on real estate loans.
Commenting further, Mr. Gould noted that for the six months ended March 31,
2003, interest and fees on loans decreased by $515,000, or 9%, primarily because
of $1,182,000 of "additional" interest income generated from participating loans
in the six months ending March 31, 2002. Mr. Gould noted that "additional"
interest on participating loans is "non recurring" in nature. The 2003 six month
period benefited from interest of $105,000 upon the payoff in full of a
non-earning loan, an increase in the average balance of loans outstanding and an
increase in the average interest rate earned on the loan portfolio.
Referring to expenses, Mr. Gould pointed out that total expenses were up
modestly in both the three and six months ended March 31, 2003 as compared to
the comparable periods in the prior fiscal year. For the three months ended
March 31, 2003 BRT's total expenses were $1,476,000 as compared to $1,406,000 in
the March 31, 2002 quarter, an increase of 5%. For the six months ended March
31, 2003 expenses totaled $3,018,000, an increase of 3%, over the $2,925,000 of
expenses for the six months ended March 31, 2002. Interest expense increased
$4,000, or 18%, quarter versus quarter and $91,000, or 210%, six months versus
six months due to increased fees in the March 31, 2003 quarter on BRT's margin
account and an increase in outstanding borrowings for the six months ending
March 31, 2003. At March 31, 2003 all borrowings had been paid down to zero. BRT
also incurred increased taxes in the March 31, 2003 quarter ($58,000 or 101%)
and in the March 31, 2003 six month period ($37,000 or 18%), representing
payment of federal excise taxes based on income generated but not yet
distributed. There were increases and decreases in various other expense items,
none of which, individually, is significant.
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 for Per Share Data)
Three Months Ended Six Months Ended
March 31, March 31,
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2003 2002 2003 2002
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Revenues $3,514 $3,931 $7,644 $8,624
Expenses 1,476 1,406 3,018 2,925
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Income before gain on sale of real estate
assets and available-for-sale securities 2,038 2,525 4,626 5,699
Equity in earnings of unconsolidated entities 31 221 94 513
Net gain on sale of real estates assets - 607 195 607
Net realized gain on sale of available-for
-sale securities 146 - 146 -
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Income before minority interest 2,215 3,353 5,061 6,819
Minority interest (10) (10) (20) (20)
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Net income $2,205 $3,343 $5,041 $6,799
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Income per share of beneficial interest:
Basic earnings per share $ .30 $ .45 $ .68 $ .92
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Diluted earnings per share $ .29 $ .44 $ .67 $ .91
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Cash distributions per common share $ .30 $ .26 $ .60 $ .50
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Weighted average number of common shares outstanding:
Basic 7,460,282 7,380,000 7,433,444 7,360,454
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Diluted 7,571,689 7,581,711 7,553,921 7,481,471
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