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) November 22, 2006
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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))
Item 2.02 Results of Operations and Financial Condition.
On November 22, 2006, registrant issued a press release announcing its results
of operations for the three and twelve months ended September 30, 2006. The
press release is annexed 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 November 22, 2006.
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: November 22, 2006 By: /s/ Simeon Brinberg
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Simeon Brinberg
Senior Vice President and 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 YEAR ENDED SEPTEMBER 30, 2006
Great Neck, New York, November 22, 2006 -- BRT Realty Trust (NYSE:BRT) today
announced that total revenues for the quarter ended September 30, 2006 increased
by 50% over the quarter ended September 30, 2005, and net income increased by
11% quarter over quarter. For the three months ended September 30, 2006, BRT
reported total revenues of $11,861,000 and net income of $6,287,000, or $.78 per
share on a diluted basis. Net income for the three months ended September 30,
2006 includes income from discontinued operations of $461,000, or $.06 per
diluted share. For the three months ended September 30, 2005, total revenues,
net income and net income per share on a diluted basis were $7,929,000,
$5,677,000 and $.72 per share, respectively. Net income for the three months
ended September 30, 2005 included income from discontinued operations of
$1,525,000, or $.19 per diluted share. The weighted average number of common
shares outstanding on a diluted basis were 8,027,074 and 7,856,101 for the three
months ended September 30, 2006 and September 30, 2005, respectively.
For the year ended September 30, 2006, BRT reported a 47% increase in total
revenues and a 24% increase in net income. For the year ended September 30,
2006, BRT reported total revenues of $37,488,000 and net income of $20,071,000,
or $2.52 per share on a diluted basis. Net income for the year ended September
30, 2006 included a gain of $2,531,000, or $.32 per diluted share, recognized by
an unconsolidated joint venture of BRT upon the sale of a property. Net income
for the year ended September 30, 2006 also included $792,000 of income from
discontinued operations, or $.10 per diluted share. For the year ended September
30, 2005, BRT reported total revenues of $25,491,000, net income of $16,214,000
and net income per share, on a diluted basis of $2.08. Net income for the year
ended September 30, 2005 included a gain on sale of available for sales
securities of $680,000, or $.09 per diluted shares and income from discontinued
operations of $1,773,000 or $.23 per diluted share. The weighted average number
of common shares outstanding on a diluted basis were 7,959,955 and 7,811,483 for
the year ended September 30, 2006 and 2005, respectively.
Commenting on the results of operations for the three months and year ended
September 30, 2006, Jeffrey Gould, President and Chief Executive Officer of BRT,
noted that the primary reason for the increase in revenues quarter over quarter
and year over year was the 39% increase in the average balance of loans
outstanding from $183.7 million in the three months ended September 30, 2005, to
$255.4 million in the three months ended September 30, 2006 and a 49% increase
year over year from $145.6 million in the year ended September 30, 2005 to
$216.4 million for the year ended September 30, 2006. Revenues in both current
periods 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.
On the expense side, Mr. Gould noted that total expenses increased by 56% three
months versus three months and 73% year versus year. 82% of the increase three
months versus three months and 73% year versus year was a result of the increase
in the average balance of borrowings outstanding and an increase in the overall
rate paid on such borrowings. The borrowings were incurred to fund the increased
level of BRT's loan portfolio. There was also an increase in both current
periods in most major expense categories due to the BRT's increased level of
business. Among other items, there was an increase in the adviser's fee and an
increase in general and administrative expenses, including payroll and payroll
related expenses, amortization of restricted stock awards, travel, advertising
and promotion and allocated expenses (including allocated payroll) under a
shared services agreement.
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 Twelve Months Ended
September 30, September 30,
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2006 2005 2006 2005
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Revenues $11,861 $ 7,929 $37,488 $25,491
Expenses 6,201 3,976 20,708 11,975
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Income before equity in earnings of unconsolidated real
estate joint ventures, gain on sale of available-for-
sale securities, minority interest and discontinued
operations 5,660 3,953 16,780 13,516
Equity in earnings (loss) of unconsolidated real estate
ventures 173 174 (7) 257
Gain on disposition of real estate related to
unconsolidated real estate ventures - - 2,531 -
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Income before gain on sale of available-for-sale
securities, minority interest and discontinued
operations 5,833 4,127 19,304 13,773
Gain on sale of available-for-sale securities - - - 680
Minority interest (7) 25 (25) (12)
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Income from continuing operations 5,826 4,152 19,279 14,441
Discontinued operations:
Income from operations 50 (44) 66 204
Gain on sale of real estate assets 411 1,569 726 1,569
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Income from discontinued operations 461 1,525 792 1,773
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Net income $ 6,287 $ 5,677 $20,071 $16,214
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Income per share of beneficial interest:
Income from continuing operations $ .73 $ .53 $ 2.43 $ 1.86
Discontinued operations .06 .20 .10 .23
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Basic earnings per share $ .79 $ .73 $ 2.53 $ 2.09
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Income from continuing operations $ .72 $ .53 $ 2.42 $ 1.85
Discontinued operations .06 .19 .10 .23
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Diluted earnings per share $ .78 $ .72 $ 2.52 $ 2.08
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Cash distributions per common share $ .56 $ .50 $ 2.14 $ 1.96
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Weighted average number of common shares outstanding:
Basic 8,007,358 7,801,674 7,931,734 7,747,804
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Diluted 8,027,704 7,856,101 7,959,955 7,811,483
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