BRT Realty Trust Reports First Quarter Results for December 31, 2012

BRT Realty Trust Reports First Quarter Results for December 31, 2012 
GREAT NECK, NY -- (Marketwire) -- 02/06/13 --  BRT REALTY TRUST
(NYSE: BRT), a real estate investment trust that originates and holds
senior mortgage loans secured by commercial and multi-family
properties, owns and operates multi-family properties with joint
venture partners, and owns and operates other commercial and mixed
use real estate assets, today announced operating results for the
three months ended December 31, 2012. 
Jeffrey A. Gould, President and Chief Executive Officer, stated that:
"Our results for the current quarter in comparison to the first
quarter of fiscal 2012 were adversely impacted by, among other
things, the inclusion of gains on the sales of loan and real property
in the first quarter of fiscal 2012 and the expenses incurred in the
first quarter of fiscal 2013 in growing our multi-family property
portfolio. 
In growing the multi-family property portfolio, BRT incurred property
acquisition costs of $878,000 primarily in connection with three
multi-family properties acquired in the first quarter of fiscal 2013
(which costs are expensed in full as incurred) and a $1.29 million
non-cash depreciation and amortization charge, which relates
primarily to multi-family activities. However, we believe that BRT's
participation in the acquisition, ownership and operation of
multi-family properties will, over time, be accretive to our cash
flow and net income." 
Operating Results: 
Total revenues for the three months ended December 31, 2012 were
approximately $8.25 million, an increase of 162% or $5.1 million from
the three months ended December 31, 2011. The increase was due
primarily to the increase in rental revenue from the eight
multi-family properties acquired during the past twelve months. 
Total expenses for the quarter ended December 31, 2012 increased by
approximately $7.2 million or 220%, from the quarter ended December
31, 2011. The increase is attributable primarily to increases in
interest expense, depreciation and amortization, operating expenses
relating to real estate properties and property acquisition costs.
Interest expense increased due to the Newark Joint Venture's
financing activities and mortgage debt associated with the
multi-family proper
ties -- the other items of expense increased due
to the multi-family properties acquired. 
Net loss attributable to common shareholders was $1.30 million or
$.09 per share for the current three months compared to net income of
$3.87 million or $.28 per share for the three months ended December
31, 2011. The change is due primarily to the inclusion (i) in the
quarter ended December 31, 2011 of a $3.2 million gain on sale of a
loan in BRT's loan and investment segment and a $490,000 gain on the
sale of a real property in BRT's other real estate segment and (ii)
in the quarter ended December 31, 2012, a $1.24 million loss
sustained in BRT's multi-family property segment. 
Funds from Operations ("FFO") in the first quarter of fiscal 2013
were nominal compared to $3.6 million or $.25 per diluted share in
the first quarter of 2012. A description and reconciliation of
non-GAAP financial measures to GAAP financial measures is presented
later in this release. 
Balance Sheet: 
At December 31, 2012, the Trust had $32.6 million of cash and cash
equivalents, total assets of $432.3 million, total debt of $252.2
million and total equity of $147.5 million. 
At January 31, 2012, BRT's available liquidity was approximately $30
million, including approximately $20 million of cash and cash
equivalents and $10 million available under its credit facility. 
Non-GAAP Financial Measures:  
In view of the equity investm
ents that BRT made in joint ventures
which have acquired multi-family properties, BRT is disclosing funds
from operations ("FFO") because it believes that FFO is a widely
recognized and appropriate measure of the performance of an equity
REIT. BRT believes FFO is frequently used by securities analysts,
investors and other interested parties in the evaluation of equity
REITs, many of which present FFO when reporting their results. FFO is
intended to exclude historical cost depreciation and amortization of
real estate and related assets, which assumes that the value of real
estate diminishes ratably over time. Historically, however, real
estate values have risen or fallen with market conditions. As a
result, FFO provides a performance measure that, when compared year
over year, reflects the impact to operations from trends in occupancy
rates, rental rates, operating costs, development activities,
interest costs and other matters without the inclusion of
depreciation and amortization, providing perspective that may not
necessarily be apparent from net income. Though BRT is not solely an
equity REIT, it is presenting FFO because a significant portion of
its revenues and expenses in fiscal 2012 and the first quarter of
fiscal 2013 were derived from its ownership of multi-family
properties. 
BRT has determined FFO in accordance with standards established by
the National Association of Real Estate Investment Trusts, Inc.
("NAREIT"). FFO is defined by NAREIT as net income (or loss) computed
in accordance with generally accepted accounting principles ("GAAP"),
excluding gains (or losses) from sales of property, plus depreciation
and amortization, plus impairment write-downs of depreciable real
estate, and after adjustments for unconsolidated partnerships and
joint ventures. FFO does not represent cash generated from operating
activities in accordance with GAAP and is not indicative of cash
available to fund cash needs. FFO should not be considered as an
alternative to net income as an indicator of BRT's operating
performance or as an alternative to cash flow as a measure of
liquidity. 
Additional Information: 
Interested parties are urged to review the Form 10-Q filed with the
Securities and Exchange Commission for the quarter ended December 31,
2012 for further details. The Form 10-Q can also be linked through
the "Investor Relations" section of BRT's website. For additional
information on BRT's operations, activities and properties, please
visit its website at www.brtrealty.com. 
Forward Looking Information:  
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 apparent improvement in the
economic environment and BRT's ability to originate additional loans.
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," "apparent", "experiencing" or similar expressions or
variations thereof. Forward looking statements, including statements
with respect to BRT's loan origination activities, the development
activities with respect to the Newark Joint Venture and multi-family
property acquisitions and ownership activities, 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 and to carefully
review the section entitled "Item 1A. Risk Factors" in our Annual
Report on Form 10-K for the year ended September 30, 2012. 


 
                                                                            
               BRT REALTY TRUST AND SUBSIDIARIES                            
        CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS                     
         (Dollars in thousands, except per share data)                      
                                                                            
                                                      Three months ended    
                                                         December 31,       
                                                       2012         2011    
                                                   -----------  ----------- 
                                                                            
Revenues:                                                                   
  Rental and other revenue from real estate                                 
   properties                                      $     5,640  $       768 
  Interest and fees on real estate loans                 1,879        2,252 
  Recovery of previously provided allowances               422            7 
  Other income                                             310          127 
                                                   -----------  ----------- 
    Total revenues                                       8,251        3,154 
                                                                            
Expenses:                                                                   
  Interest expense                                       2,946          467 
  Advisor's fees, related party                            374          171 
  General and administrative expenses                    1,863        1,674 
  Property acquisition costs                               878            - 
  Operating expenses relating to real estate                                
   properties                                            3,146          786 
  Depreciation and amortization                          1,287          184 
                                                   -----------  ----------- 
    Total expenses                                      10,494        3,282 
                                                                            
                                                   -----------  ----------- 
    Total revenues less total expenses                  (2,243)        (128)
                                                                            
Equity in earnings (loss) of unconsolidated                                 
 ventures                                                   61          (75)
Loss on sale of available-for-sale securities                -          (18)
Gain on sale of loan                                         -        3,192 
                                                   -----------  ----------- 
    (Loss) income from continuing operations            (2,182)       2,971 
                                                                            
Discontinued operations:                                                    
  Gain on sale of real estate assets                         -          490 
                                                   -----------  ----------- 
    Discontinued operations                                  -          490 
                                                                            
                                                   -----------  ----------- 
Net (loss) income                                       (2,182)       3,461 
                                                                            
Plus: net loss attributable to non-controlling                              
 interests                                                 878          413 
                                           
                                 
                                                   -----------  ----------- 
Net (loss) income attributable to common                                    
 shareholders                                      $    (1,304) $     3,874 
                                                   ===========  =========== 
                                                                            
                                                                            
                                                                            
Basic and diltued per share amounts attributable                            
 to common shareholders:                                                    
                                                                            
(Loss) income from continuing operations           $     (0.09) $      0.24 
Discontinued operations                                      -         0.04 
                                                   -----------  ----------- 
  Basic and diluted (loss) income per share        $     (0.09) $      0.28 
                                                   ===========  =========== 
                                                                            
Amounts attributable to BRT Realty Trust:                                   
  (Loss) Income from continuing operations         $    (1,304) $     3,384 
  Discontinued operations                                    -          490 
                                                   -----------  ----------- 
    Net (loss) income                              $    (1,304) $     3,874 
                                                   ===========  =========== 
                                                                            
                                                   -----------  ----------- 
Funds from operations - Note 1                     $         2  $     3,591 
                                                   ===========  =========== 
                                                                            
                                                   -----------  ----------- 
Funds from operations per share - basic and                                 
 diluted - Note 2                                  $         -  $      0.25 
                                                   ===========  =========== 
                                                                            
Weighted average number of                                                  
common shares outstanding:                                                  
  Basic and diluted                                 14,053,362   13,982,164 
                                                   ===========  =========== 
                                                                            
                                                                            
Note 1:                                                                     
Funds from operations is summarized in the                                  
 following table:                                                           
Net income (loss) attributable to common                                    
 shareholders                                      $    (1,304) $     3,874 
Add: depreciation of properties                          1,283          177 
Add: our share of depreciation in unconsolidated                            
 joint ventures                                             10           10 
Add: amortization of capitalized leasing expenses           13           20 
Deduct: net gain on sales of real estate                     0         (490)
                                                   -----------  ----------- 
Funds from operations                              $         2  $     3,591 
                                                   ===========  =========== 
                                                                            
Note 2:                                                                     
Funds from operations is summarized in the                                  
 following table:                                                           
Net income (loss) attributable to common                                    
 shareholders                                      $     (0.09) $      0.28 
Add: depreciation of properties                           0.09         0.01 
Add: our share of depreciation in unconsolidated                            
 joint ventures                                              -            - 
Add: amortization of capitalized leasing expenses            -            - 
Deduct: net gain on sales of real estate                     -        (0.04)
                                                   -----------  ----------- 
Funds from operations per common share basic and                            
 diluted                                           $         -  $      0.25 
                                                   ===========  =========== 

  
Contact:
David W. Kalish
(516) 466-3100
BRT REALTY TRUST
60 Cutter Mill Road
Suite 303
Great Neck, New York 11021
Telephone (516) 466-3100
Telecopier (516) 466-3132
www.BRTRealty.com