BRT Realty Trust (BRT, Financial) filed Quarterly Report for the period ended 2010-06-30.
Brt Realty Trust has a market cap of $74.2 million; its shares were traded at around $5.2499 with and P/S ratio of 5.1. BRT is in the portfolios of Michael Price of MFP Investors LLC, Jim Simons of Renaissance Technologies LLC.
Interest on loans decreased by $5,840,000, or 77%, to $1,751,000 for the nine months ended June 30, 2010 from $7,591,000 for the nine months ended June 30, 2009. The average balance of earning loans outstanding decreased by approximately $67 million, accounting for a decrease in interest income of $6,140,000. This decrease is due to reduced originations combined with payoffs, foreclosures and an increase in non-performing loans. The interest rate earned on the performing portfolio decreased 88 basis points to 12.08% accounting for a decrease of $481,000. Offsetting this decrease was the receipt of $781,000 of interest income in the nine month period ended June 30, 2010 on non-performing and previously paid off loans.
Interest on Borrowed Funds - Interest on borrowed funds decreased to $527,000 for the three months ended June 30, 2010, from $923,000 for the three months ended June 30, 2009, a decline of $396,000, or 43%. The average outstanding balance of our junior subordinated notes declined from $55.6 million for the three months ended June 30, 2009 to $40.6 million, the result of our partial retirement of notes in September 2009. The retirement of these notes accounted for a decrease in interest expense of $197,000. The restructuring of the notes in June 2009, which included a reduction in the interest rate through July 31, 2012, also resulted in a decrease in interest expense of $154,000. Interest expense from our credit facility declined $40,000 as our credit facility was terminated in June 2009.
Interest on borrowed funds decreased to $1,572,000 for the nine months ended June 30, 2010, from $3,725,000 for the nine months ended June 30, 2009, a decline of $2,153,000, or 58%. The average outstanding balance of our junior subordinated notes declined from $56.3 million for the nine months ended June 30, 2009 to $40.4 million, the result of our partial retirement of notes. The retirement of these notes accounted for a decrease in interest expense of $590,000. The restructuring of the notes resulted in a decrease of interest expense of $1,106,000. Interest expense from our credit facility declined $148,000 as our credit facility was terminated in the prior fiscal year. The remaining decline of $309,000 is the result of a reduction in amortization of deferred borrowing costs resulting from the termination of our credit facility.
General and Administrative Expense - General and administrative expenses declined $363,000, or 19%, from $1,928,000 for the three months ended June 30, 2009 to $1,565,000 for the three months ended June 30, 2010, and declined $755,000, or 14%, from $5,336,000 for the nine months ended June 30, 2009 to $4,581,000 for the nine months ended June 30, 2010. The decline in both the three and nine month periods was primarily due to a reduction in professional fees. In the three and nine month periods ended June 30, 2009, the Trust incurred $325,000 of professional fees in connection with the workout and the resulting joint venture agreement that was entered into in June 2009 with respect to the Newark NJ properties. There was no comparable expense in the current three month period. In the nine month period ended June 30, 2010, there was also a decline in payroll related expenses the result of reduced bonus payments and a decline in allocated payroll due to a reduction in our level of workout and foreclosure activity.
Income from discontinued operations increased $27,602,000 from a loss of $27,025,000 for the nine months ended June 30, 2009 to income of $577,000 in the nine months ended June 30, 2010. This increase is primarily due to a $24,816,000 decline in impairment charges. The Trust recorded $745,000 of impairment charges in the nine month period ended June 30, 2010 and $25,561,000 of impairment charges in the nine month period ended June 30, 2009. Also attributing to this increase was a reduction in the loss from operations of $1,155,000 and an increase in gains on the sales of properties which were previously held for sale.
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Brt Realty Trust has a market cap of $74.2 million; its shares were traded at around $5.2499 with and P/S ratio of 5.1. BRT is in the portfolios of Michael Price of MFP Investors LLC, Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Interest on Real Estate Loans - Interest on loans decreased by $694,000, or 54%, to $592,000 for the three months ended June 30, 2010 from $1,286,000 for the three months ended June 30, 2009. The average balance of earning loans outstanding decreased by approximately $31 million, accounting for the decrease in interest income of $899,000. This decrease is due to reduced originations combined with payoffs, foreclosures and an increase in non-performing loans. Offsetting this decrease was the receipt of $144,000 of interest income in the current quarter on a non-performing loan. The interest rate earned on the performing loan portfolio increased 56 basis points to 11.62% accounting for the remaining change of $61,000.Interest on loans decreased by $5,840,000, or 77%, to $1,751,000 for the nine months ended June 30, 2010 from $7,591,000 for the nine months ended June 30, 2009. The average balance of earning loans outstanding decreased by approximately $67 million, accounting for a decrease in interest income of $6,140,000. This decrease is due to reduced originations combined with payoffs, foreclosures and an increase in non-performing loans. The interest rate earned on the performing portfolio decreased 88 basis points to 12.08% accounting for a decrease of $481,000. Offsetting this decrease was the receipt of $781,000 of interest income in the nine month period ended June 30, 2010 on non-performing and previously paid off loans.
Interest on Borrowed Funds - Interest on borrowed funds decreased to $527,000 for the three months ended June 30, 2010, from $923,000 for the three months ended June 30, 2009, a decline of $396,000, or 43%. The average outstanding balance of our junior subordinated notes declined from $55.6 million for the three months ended June 30, 2009 to $40.6 million, the result of our partial retirement of notes in September 2009. The retirement of these notes accounted for a decrease in interest expense of $197,000. The restructuring of the notes in June 2009, which included a reduction in the interest rate through July 31, 2012, also resulted in a decrease in interest expense of $154,000. Interest expense from our credit facility declined $40,000 as our credit facility was terminated in June 2009.
Interest on borrowed funds decreased to $1,572,000 for the nine months ended June 30, 2010, from $3,725,000 for the nine months ended June 30, 2009, a decline of $2,153,000, or 58%. The average outstanding balance of our junior subordinated notes declined from $56.3 million for the nine months ended June 30, 2009 to $40.4 million, the result of our partial retirement of notes. The retirement of these notes accounted for a decrease in interest expense of $590,000. The restructuring of the notes resulted in a decrease of interest expense of $1,106,000. Interest expense from our credit facility declined $148,000 as our credit facility was terminated in the prior fiscal year. The remaining decline of $309,000 is the result of a reduction in amortization of deferred borrowing costs resulting from the termination of our credit facility.
General and Administrative Expense - General and administrative expenses declined $363,000, or 19%, from $1,928,000 for the three months ended June 30, 2009 to $1,565,000 for the three months ended June 30, 2010, and declined $755,000, or 14%, from $5,336,000 for the nine months ended June 30, 2009 to $4,581,000 for the nine months ended June 30, 2010. The decline in both the three and nine month periods was primarily due to a reduction in professional fees. In the three and nine month periods ended June 30, 2009, the Trust incurred $325,000 of professional fees in connection with the workout and the resulting joint venture agreement that was entered into in June 2009 with respect to the Newark NJ properties. There was no comparable expense in the current three month period. In the nine month period ended June 30, 2010, there was also a decline in payroll related expenses the result of reduced bonus payments and a decline in allocated payroll due to a reduction in our level of workout and foreclosure activity.
Income from discontinued operations increased $27,602,000 from a loss of $27,025,000 for the nine months ended June 30, 2009 to income of $577,000 in the nine months ended June 30, 2010. This increase is primarily due to a $24,816,000 decline in impairment charges. The Trust recorded $745,000 of impairment charges in the nine month period ended June 30, 2010 and $25,561,000 of impairment charges in the nine month period ended June 30, 2009. Also attributing to this increase was a reduction in the loss from operations of $1,155,000 and an increase in gains on the sales of properties which were previously held for sale.
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