BRT Realty Trust (BRT, Financial) filed Quarterly Report for the period ended 2009-03-31.
BRT is a real estate investment trust. BRT's primary business activity is to originate and hold for investment for its own account senior real estate mortgage loans secured by income producing real property and to a lesser extent junior real estate mortgage loans secured by income producing real property and senior mortgage loans secured by undeveloped real property. BRT Realty Trust has a market cap of $66.6 million; its shares were traded at around $5.66 with and P/S ratio of 2.8. BRT Realty Trust had an annual average earning growth of 20.1% over the past 5 years.
Interest expense on borrowed funds decreased to $1,403,000 for the three months ended March 31, 2009, from $1,710,000 for the three months ended March 31, 2008, a decline of $307,000, or 18%. For the three month period ended March 31, 2009, the average outstanding balance of borrowed funds declined from $78.2 million for the three months ended March 31, 2008 to $62.7 million, the result of our paydown of the credit facility with funds from loan repayments. This decline accounted for a decrease in interest expense of $158,000. A decline of 313 basis points in the interest rate paid on the credit facility caused a decrease in interest expense of $118,000. The remaining decrease of $31,000 was the result of a decline in the amortization of deferred fees on our credit facility.
Interest expense on borrowed funds decreased to $2,802,000 for the six months ended March 31, 2009, from $3,445,000 for the six months ended March 31, 2008, a decline of $643,000, or 19%. For the six month period ended March 31, 2009, the average outstanding balance of borrowed funds declined from $75.6 million for the six months ended March 31, 2008 to $61.2 million, the result of our paydown of the credit facility with funds from loan repayments. This decline accounted for a decrease in interest expense of $332,000. A decline of 313 basis points in the interest rate paid on the credit facility caused a further decrease in interest expense of $211,000. The remaining decrease of $100,000 was the result of a decline in the amortization of deferred fees on our credit facility.
Amortization and depreciation increased $337,000, or 143%, from $235,000 in the three month period ended March 31, 2008 to $572,000 in the three month period ended March 31, 2009. For the six month period ended March 31, 2009, amortization and depreciation increased $573,000, or 206%, to $851,000 from $278,000 in the six months ended March 31, 2008. The increase in both periods is the result of depreciation expense relating to properties acquired in foreclosure and catch up depreciation taken on those properties reclassified from real estate properties held for sale.
Equity in (loss) earnings of unconsolidated ventures decreased $2,872,000 in the three months ended March 31, 2009 to a loss of $2,171,000 from earnings of $701,000 in the three months ended March 31, 2008. This category also decreased $3,239,000 in the six months ended March 31, 2009 to a loss of $2,087,000 from earnings of $1,152,000 in the six months ended March 31, 2008. This decrease in both periods is primarily the result of a loss recorded by our joint venture with the CIT Group. In the current three and six month period the venture recorded a loan loss provision to reflect a decrease in the value of a performing multi-family garden apartment complex which secured a non performing loan.
The discontinued operations in the quarter ended March 31, 2008 reflect income of $83,000 from the operations of a shopping center in Stuart, Florida and a gain of $154,000 from the sale of six condominium units, $632,000 from the sale of a cooperative apartment unit in New York, New York, and $266,000 from the sale of an industrial property located in South Plainfield, New Jersey. The discontinued operations in the six month period ended March 31, 2008 reflect income of $145,000 from the operations of a shopping center in Stuart, Florida and an industrial building in South Plainfield, New Jersey, a $1,180,000 gain from the sale of eight condominium and coop units, and a $266,000 gain from the sale of an industrial property located in South Plainfield, New Jersey.
Read the The complete ReportBRT is in the portfolios of Michael Price of MFP Investors LLC.
BRT is a real estate investment trust. BRT's primary business activity is to originate and hold for investment for its own account senior real estate mortgage loans secured by income producing real property and to a lesser extent junior real estate mortgage loans secured by income producing real property and senior mortgage loans secured by undeveloped real property. BRT Realty Trust has a market cap of $66.6 million; its shares were traded at around $5.66 with and P/S ratio of 2.8. BRT Realty Trust had an annual average earning growth of 20.1% over the past 5 years.
Highlight of Business Operations:
During the six months ended March 31, 2009, we generated cash of $6,074,000 from real estate loan collections, and $3,000,000 from net advances from our credit facility. The cash, along with our cash on hand of $35,765,000 at September 30, 2008, was used primarily to fund real estate loan originations of $12,726,000, pay shareholder dividends in October 2008 of $15,565,000 and fund an operating loss of $2,464,000. If we continue to incur losses, we may be required to draw down additional amounts under our credit facility to fund our operations.Interest expense on borrowed funds decreased to $1,403,000 for the three months ended March 31, 2009, from $1,710,000 for the three months ended March 31, 2008, a decline of $307,000, or 18%. For the three month period ended March 31, 2009, the average outstanding balance of borrowed funds declined from $78.2 million for the three months ended March 31, 2008 to $62.7 million, the result of our paydown of the credit facility with funds from loan repayments. This decline accounted for a decrease in interest expense of $158,000. A decline of 313 basis points in the interest rate paid on the credit facility caused a decrease in interest expense of $118,000. The remaining decrease of $31,000 was the result of a decline in the amortization of deferred fees on our credit facility.
Interest expense on borrowed funds decreased to $2,802,000 for the six months ended March 31, 2009, from $3,445,000 for the six months ended March 31, 2008, a decline of $643,000, or 19%. For the six month period ended March 31, 2009, the average outstanding balance of borrowed funds declined from $75.6 million for the six months ended March 31, 2008 to $61.2 million, the result of our paydown of the credit facility with funds from loan repayments. This decline accounted for a decrease in interest expense of $332,000. A decline of 313 basis points in the interest rate paid on the credit facility caused a further decrease in interest expense of $211,000. The remaining decrease of $100,000 was the result of a decline in the amortization of deferred fees on our credit facility.
Amortization and depreciation increased $337,000, or 143%, from $235,000 in the three month period ended March 31, 2008 to $572,000 in the three month period ended March 31, 2009. For the six month period ended March 31, 2009, amortization and depreciation increased $573,000, or 206%, to $851,000 from $278,000 in the six months ended March 31, 2008. The increase in both periods is the result of depreciation expense relating to properties acquired in foreclosure and catch up depreciation taken on those properties reclassified from real estate properties held for sale.
Equity in (loss) earnings of unconsolidated ventures decreased $2,872,000 in the three months ended March 31, 2009 to a loss of $2,171,000 from earnings of $701,000 in the three months ended March 31, 2008. This category also decreased $3,239,000 in the six months ended March 31, 2009 to a loss of $2,087,000 from earnings of $1,152,000 in the six months ended March 31, 2008. This decrease in both periods is primarily the result of a loss recorded by our joint venture with the CIT Group. In the current three and six month period the venture recorded a loan loss provision to reflect a decrease in the value of a performing multi-family garden apartment complex which secured a non performing loan.
The discontinued operations in the quarter ended March 31, 2008 reflect income of $83,000 from the operations of a shopping center in Stuart, Florida and a gain of $154,000 from the sale of six condominium units, $632,000 from the sale of a cooperative apartment unit in New York, New York, and $266,000 from the sale of an industrial property located in South Plainfield, New Jersey. The discontinued operations in the six month period ended March 31, 2008 reflect income of $145,000 from the operations of a shopping center in Stuart, Florida and an industrial building in South Plainfield, New Jersey, a $1,180,000 gain from the sale of eight condominium and coop units, and a $266,000 gain from the sale of an industrial property located in South Plainfield, New Jersey.
Read the The complete ReportBRT is in the portfolios of Michael Price of MFP Investors LLC.
