Massachusetts
|
13-2755856
|
|
(State
or other jurisdiction of
incorporation
or organization)
|
(I.R.S.
Employer
Identification
No.)
|
11021
|
||
(Address
of principal executive offices)
|
(Zip
Code)
|
December
31, 2007
(Unaudited)
|
September
30, 2007 (Audited)
|
||||||
ASSETS | |||||||
Real
estate loans
|
|||||||
Earning
interest
|
$
|
168,082
|
$
|
185,899
|
|||
Non-earning
interest
|
61,552
|
63,627
|
|||||
229,634
|
249,526
|
||||||
Deferred
fee income
|
(1,060
|
)
|
(1,268
|
)
|
|||
Allowance
for possible losses
|
(6,620
|
)
|
(8,917
|
)
|
|||
221,954
|
239,341
|
||||||
Real
estate properties net of accumulated depreciation of $811 and
$782
|
20,258
|
3,336
|
|||||
Investment
in unconsolidated ventures at equity
|
14,627
|
14,167
|
|||||
Cash
and cash equivalents
|
15,271
|
17,103
|
|||||
Available-for-sale
securities at market
|
32,377
|
34,936
|
|||||
Real
estate property held for sale
|
9,355
|
9,355
|
|||||
Other
assets
|
10,408
|
9,871
|
|||||
Total
Assets
|
$
|
324,250
|
$
|
328,109
|
|||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|||||||
Liabilities:
|
|||||||
Borrowed
funds
|
$
|
20,000
|
$
|
20,000
|
|||
Junior
subordinated notes
|
56,702
|
56,702
|
|||||
Mortgage
payable
|
2,376
|
2,395
|
|||||
Accounts
payable and accrued liabilities including deposits payable of $2,148
and $3,250
|
5,506
|
6,881
|
|||||
Dividends
payable
|
7,083
|
6,956
|
|||||
Total
liabilities
|
91,667
|
92,934
|
|||||
Commitments
and contingencies
|
-
|
-
|
|||||
Shareholders'
equity
|
|||||||
Preferred
shares, $1 par value:
|
|||||||
Authorized
10,000 shares, none issued
|
-
|
-
|
|||||
Shares
of beneficial interest, $3 par value:
|
|||||||
Authorized
number of shares, unlimited, issued
|
-
|
-
|
|||||
12,476
and 12,249 shares
|
37,428
|
36,746
|
|||||
Additional
paid-in capital
|
163,300
|
160,162
|
|||||
Accumulated
other comprehensive income – net unrealized gain on
available-for-sale securities
|
22,538
|
25,097
|
|||||
Retained
earnings
|
19,338
|
23,191
|
|||||
Cost
of 1,163 treasury shares of beneficial interest in both
periods
|
(10,021
|
)
|
(10,021
|
)
|
|||
Total
shareholders' equity
|
232,583
|
235,175
|
|||||
Total
Liabilities and Shareholders' Equity
|
$
|
324,250
|
$
|
328,109
|
Three
Months Ended
December
31,
|
|||||||
2007
|
2006
|
||||||
Revenues:
|
|||||||
Interest
on real estate loans, including $0 and $15 from related
parties
|
$
|
5,782
|
$
|
10,087
|
|||
Loan
fee income
|
675
|
1,500
|
|||||
Operating
income from real estate properties
|
445
|
365
|
|||||
Other,
primarily investment income
|
606
|
793
|
|||||
Total
Revenues
|
7,508
|
12,745
|
|||||
Expenses:
|
|||||||
Interest
- borrowed funds
|
1,735
|
3,855
|
|||||
Advisor's
fees, related party
|
464
|
824
|
|||||
Foreclosure
related professional fees
|
739
|
28
|
|||||
General
and administrative – including $259 and $258 to related
parties
|
1,765
|
1,532
|
|||||
Other
taxes
|
27
|
228
|
|||||
Operating
expenses relating to real estate properties including interest
on mortgage
payable of $38 and $39
|
398
|
201
|
|||||
Amortization
and depreciation
|
43
|
33
|
|||||
Total
Expenses
|
5,171
|
6,701
|
|||||
Income
before equity in earnings of unconsolidated joint ventures,
minority
interest and discontinued operations
|
2,337
|
6,044
|
|||||
Equity
in earnings of unconsolidated joint ventures
|
451
|
82
|
|||||
Gain
on disposition of real estate related to unconsolidated
ventures
|
-
|
1,819
|
|||||
Income
before minority interest and discontinued operations
|
2,788
|
7,945
|
|||||
Minority
interest
|
(15
|
)
|
(14
|
)
|
|||
Income
from continuing operations
|
2,773
|
7,931
|
|||||
Discontinued
Operations
|
|||||||
Income
from operations
|
63
|
6
|
|||||
Gain
on sale of real estate assets
|
394
|
352
|
|||||
Income
from discontinued operations
|
457
|
358
|
|||||
Net
income
|
$
|
3,230
|
$
|
8,289
|
|||
Earnings
per share of beneficial interest:
|
|||||||
Income
from continuing operations
|
$
|
.24
|
$
|
.91
|
|||
Income
from discontinued operations
|
.04
|
.04
|
|||||
Basic
earnings per share
|
$
|
.28
|
$
|
.95
|
|||
Income
from continuing operations
|
$
|
.24
|
$
|
.91
|
|||
Income
from discontinued operations
|
.04
|
.04
|
|||||
Diluted
earnings per share
|
$
|
.28
|
$
|
.95
|
|||
Cash
distributions per common share
|
$
|
.62
|
$
|
.58
|
|||
Weighted
average number of common shares outstanding:
|
|||||||
Basic
|
11,369,933
|
8,680,671
|
|||||
Diluted
|
11,380,561
|
8,698,915
|
Shares
of Beneficial
Interest
|
|
Additional
Paid-In
Capital
|
|
Accumulated
Other
Comprehensive Income
|
|
Retained
Earnings
|
|
Treasury
Shares
|
|
Total
|
|||||||||
Balances,
September 30, 2007
|
$
|
36,746
|
$
|
160,162
|
$
|
25,097
|
$
|
23,191
|
$
|
(10,021
|
)
|
$
|
235,175
|
||||||
Shares
issued – dividend reinvestment and stock purchase plan (227,185
shares)
|
682
|
2,951
|
-
|
-
|
-
|
3,633
|
|||||||||||||
Distributions
– common share ($.62 per share)
|
-
|
-
|
-
|
(7,083
|
)
|
-
|
(7,083
|
)
|
|||||||||||
Compensation
expense – restricted stock
|
-
|
187
|
-
|
-
|
-
|
187
|
|||||||||||||
Net
income
|
-
|
-
|
-
|
3,230
|
-
|
3,230
|
|||||||||||||
Other
comprehensive Loss - net unrealized
loss on
available-for-sale securities
|
-
|
-
|
(2,559
|
)
|
-
|
-
|
(2,559
|
)
|
|||||||||||
Comprehensive
income
|
-
|
-
|
-
|
-
|
-
|
671
|
|||||||||||||
Balances,
December 31, 2007
|
$
|
37,428
|
$
|
163,300
|
$
|
22,538
|
$
|
19,338
|
$
|
(10,021
|
)
|
$
|
232,583
|
Three
Months Ended
December
31,
|
|||||||
2007
|
2006
|
||||||
Cash flows from operating activities: | |||||||
Net
income
|
$
|
3,230
|
$
|
8,289
|
|||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
|||||||
Amortization
and depreciation
|
258
|
253
|
|||||
Amortization
of deferred fee income
|
(644
|
)
|
(1,469
|
)
|
|||
Amortization
of restricted stock and stock options
|
187
|
140
|
|||||
Net
gain on sale of real estate assets from discontinued
operations
|
(394
|
)
|
(352
|
)
|
|||
Equity
in earnings of unconsolidated joint ventures
|
(451
|
)
|
(82
|
)
|
|||
Gain
on disposition of real estate related to unconsolidated real estate
venture
|
-
|
(1,819
|
)
|
||||
Distribution
of earnings of unconsolidated joint ventures
|
446
|
4,482
|
|||||
Increase
in straight line rent
|
(4
|
)
|
(60
|
)
|
|||
Increases
and decreases from changes in other assets and liabilities
|
|||||||
Decrease
(increase) in interest and dividends receivable
|
158
|
(494
|
)
|
||||
Increase
in prepaid expenses
|
(90
|
)
|
(124
|
)
|
|||
(Decrease)
increase in accounts payable and accrued liabilities
|
(1,375
|
)
|
323
|
||||
Increase
in deferred costs
|
(462
|
)
|
(301
|
)
|
|||
Other
|
(271
|
)
|
(152
|
)
|
|||
Net
cash provided by operating activities
|
588
|
8,634
|
|||||
Cash
flows from investing activities:
|
|||||||
Collections
from real estate loans
|
11,832
|
18,301
|
|||||
Sale
or additions of participation interests
|
-
|
36
|
|||||
Additions
to real estate loans
|
(11,362
|
)
|
(23,537
|
)
|
|||
Net
costs capitalized to real estate owned
|
(27
|
)
|
-
|
||||
Collection
of loan fees
|
436
|
277
|
|||||
Proceeds
from sale of real estate owned
|
421
|
625
|
|||||
Contributions
to unconsolidated ventures
|
(532
|
)
|
(2,080
|
)
|
|||
Distributions
of capital of unconsolidated ventures
|
154
|
4,612
|
|||||
Net
cash provided by (used in) investing activities
|
922
|
(1,766
|
)
|
||||
Cash
flows from financing activities:
|
|||||||
Proceeds
from borrowed funds
|
16,000
|
22,000
|
|||||
Repayment
of borrowed funds
|
(16,000
|
)
|
(103,464
|
)
|
|||
Mortgage
amortization
|
(19
|
)
|
(19
|
)
|
|||
Cash
distribution – common shares
|
(6,956
|
)
|
(4,491
|
)
|
|||
Issuance
of shares – dividend reinvestment and stock purchase plan
|
3,633
|
1,135
|
|||||
Net
proceeds from secondary offering
|
-
|
77,165
|
|||||
Net
cash used in financing activities
|
(3,342
|
)
|
(7,674
|
)
|
|||
Net
decrease in cash and cash equivalents
|
(1,832
|
)
|
(806
|
)
|
|||
Cash
and cash equivalents at beginning of period
|
17,103
|
8,393
|
|||||
Cash
and cash equivalents at end of period
|
15,271
|
$
|
7,587
|
||||
Supplemental
disclosure of cash flow information:
|
|||||||
Cash
paid during the period for interest
|
1,601
|
$
|
3,959
|
||||
Non
cash investing and financing activity:
|
|||||||
Seller
financing provided for sale of real estate
|
-
|
$
|
2,560
|
||||
Reclassification
of loan to real estate upon foreclosure
|
28,745
|
-
|
|||||
Accrued
distributions
|
7,083
|
4,674
|
Three
Months Ended
December
31,
|
|||||||
2007
|
2006
|
||||||
Basic
|
11,369,933
|
8,680,671
|
|||||
Effect
of dilutive securities
|
10,628
|
18,244
|
|||||
Diluted
|
11,380,561
|
8,698,915
|
Balance
|
|
#
of
Loans
|
|
% of Gross
Loans
|
|
%
of
Assets
|
|
Type
/ Number
|
|
State
/
(Number)
|
$
64,497,000
|
6
|
28.09
|
19.89
|
Multi
family (5)
/
residential (1)
|
TN
(5)
NY
(1)
|
|||||
35,301,000
|
18
|
15.37
|
10.89
|
Existing
office with retail/assemblage
|
NJ
|
|||||
26,075,000
|
1
|
11.36
|
8.04
|
Multi
family, condo redevelopment
|
NY
|
|||||
16,000,000
|
1
|
6.97
|
4.93
|
Land
|
FL
|
|||||
13,679,000
|
1
|
5.96
|
4.22
|
Multi
family
|
IN
|
|
Total
|
Earning
Interest
|
Not Earning
Interest
|
|||||||
First
mortgage loans
|
||||||||||
Multi
family residential
|
$
|
84,095
|
$
|
70,416
|
$
|
13,679
|
||||
Condominium
units (Existing Rental Multi Family Units)
|
48,877
|
30,760
|
18,117
|
|||||||
Hotel
condominium units
|
4,788
|
4,788
|
-
|
|||||||
Land
|
46,693
|
24,530
|
22,163
|
|||||||
Shopping
center/retail
|
31,073
|
29,935
|
1,138
|
|||||||
Office
|
1,500
|
1,500
|
-
|
|||||||
Residential
|
2,727
|
27
|
2,700
|
|||||||
Second
mortgage loans
|
||||||||||
Multi
family residential
|
6,126
|
6,126
|
-
|
|||||||
Shopping
center/retail
|
3,755
|
-
|
3,755
|
|||||||
229,634
|
168,082
|
61,552
|
||||||||
Deferred
fee income
|
(1,060
|
)
|
(816
|
)
|
(244
|
)
|
||||
Allowance
for possible losses
|
(6,620
|
)
|
-
|
(6,620
|
)
|
|||||
Real
estate loans, net
|
$
|
221,954
|
$
|
167,266
|
$
|
54,688
|
Condensed
Balance Sheet
|
(Dollar Amounts in Thousands)
December
31, 2007
|
|||
Cash
|
$
|
2,156
|
||
Real
estate loans, net of deferred fees
|
49,437
|
|||
Accrued
interest receivable
|
533
|
|||
Other
assets
|
61
|
|||
Total
assets
|
$
|
52,187
|
||
Escrow
and deposits payable
|
$
|
391
|
||
Other
liabilities
|
93
|
|||
Equity
|
51,703
|
|||
Total
liabilities and equity
|
$
|
52,187
|
Three Months Ended
December
31, 2007
|
Three Months Ended
December
31, 2006
|
||||||
Condensed
Statement of Operations
|
|||||||
Interest
and fees on loan
|
$
|
1,852
|
$
|
14
|
|||
Operating
expenses
|
137
|
-
|
|||||
Net
income attributable to members
|
$
|
1,715
|
$
|
14
|
|||
Company
share of net income
|
523
|
9
|
|||||
Amount
recorded in income statement
|
447
|
9
|
(1)
|
The
amount recorded in the income statement is net of $76,000 in the
three
months ended December 31, 2007 of
|
amortization
of the fee that the Trust paid to a merchant bank for arranging the
transaction and securing the capital from the CIT member. The amount
paid
to the Merchant Bank is being amortized over five years.
|
First
mortgage loans
|
Total
|
Earning
Interest
|
Not Earning
Interest
|
|||||||
Multi
family residential
|
$
|
37,762
|
$
|
37,762
|
-
|
|||||
Hotel/motel
|
1,350
|
-
|
$
|
1,350
|
||||||
Land
|
9,437
|
9,437
|
-
|
|||||||
Retail
|
1,138
|
-
|
1,138
|
|||||||
49,687
|
47,199
|
2,488
|
||||||||
Deferred
fee income
|
(250
|
)
|
(218
|
)
|
(32
|
)
|
||||
Real
estate loans, net
|
$
|
49,437
|
$
|
46,981
|
$
|
2,456
|
For the three months Ended December 31,
|
|||||||
2007
|
2006
|
||||||
Average
balance
|
$
|
16,326,000
|
$
|
111,054,000
|
|||
Outstanding
balance at period end
|
$
|
20,000,000
|
$
|
116,702,000
|
|||
Weighted
average interest rate during the period
|
7.28
|
%
|
7.58
|
%
|
|||
Weighted
average interest rate at period end
|
7.37
|
%
|
7.60
|
%
|
For the three months Ended December 31,
|
|||||||
2007
|
2006
|
||||||
Average
balance
|
-
|
$
|
14,643,000
|
||||
Outstanding
balance at period end
|
-
|
-
|
|||||
Weighted
average interest rate during the period
|
-
|
7.51
|
%
|
||||
Weighted
average interest rate at period end
|
-
|
-
|
(Dollar Amounts in Thousands)
Three Months Ended
December 31,
|
|||||||
2007
|
2006
|
||||||
Net
income
|
$
|
3,230
|
$
|
8,289
|
|||
Other
comprehensive income –
Unrealized
gain (loss) on available for-sale securities
|
(2,559
|
)
|
9,228
|
||||
Comprehensive
income
|
$
|
671
|
$
|
17,517
|
BRT
REALTY TRUST
|
|
(Registrant)
|
|
February
7, 2008
|
/s/
Jeffrey A. Gould
|
Date
|
Jeffrey
A. Gould, President and
|
Chief
Executive Officer
|
|
February
7, 2008
|
/s/
George Zweier
|
Date
|
George
Zweier, Vice President
|
and
Chief Financial Officer
|
|
(principal
financial officer)
|