BRT Realty Trust Announces Increases in Revenues, Operating Income and Per Share Income for the Quarter and Year Ended September 30, 2002.Business Editors GREAT NECK, N.Y.--(BUSINESS WIRE)--Dec. 16, 2002 BRT BRT Bus Rapid Transit BRT Business Roundtable BRT Brightness BRT Be Right There (chat) BRT Bruttoregistertonnen (German: Gross Register Tons) BRT Biratnagar (Nepal) Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Trust (NYSE NYSE See: New York Stock Exchange :BRT) today announced that for the three months ended September 30, 2002 it had total revenues of $5,119,000 and net income of $3,665,000, or $0.49 per share on a diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. basis. Net income for the quarter ended September 30, 2002 includes a net gain on sale of real estate assets of $200,0000, or $0.03 per share. This compares with total revenues, net income and income per share on a diluted basis of $3,551,000, $2,456,000 and $.33 per share, respectively, for the three months ended September 30, 2001. Net income for the quarter ended September 30, 2001 includes a net gain on sale of real estate assets and marketable securities Marketable Securities Very liquid securities that can be converted into cash quickly at a reasonable price. Notes: Marketable securities are very liquid as they tend to have maturities less than one year, and the rate at which these securities can be bought or sold has aggregating $202,000, or $.03 per share. The weighted average number of common shares outstanding on a diluted basis was 7,518,395 and 7,432,753 for the three months ended September 30, 2002 and 2001, respectively. BRT also announced that for the fiscal year ended September 30, 2002 it had total revenues of $17,972,000 and net income of $12,586,000, or $1.68 per share on a diluted basis. Net income for the September 30, 2002 twelve month period includes a net gain on sale of real estate assets of $807,000, or $.11 per share. For the prior fiscal year ended September 30, 2001, BRT reported total revenues of $14,805,000 and net income of $10,586,000, or $1.45 per share on a diluted basis. Net income for September 30, 2001 includes a gain on sale of real estate loans, real estate assets and available-for-sale securities aggregating $1,970,000, or $.27 per share. The weighted average number of common shares outstanding on a diluted basis was 7,503,065 and 7,327,174 for the twelve months ended September 30, 2002 and September 30, 2001, respectively. Commenting on the results of operations for the quarter and year ended September 30, 2002, Jeffrey Gould, President and Chief Executive Officer of BRT, noted that revenues increased by 44% quarter versus quarter and by 21% year over year, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. (net income excluding gain) increased by 53% quarter versus quarter and by 37% year over year and income per share on a diluted basis increased 49% quarter versus quarter and 19% year over year. Commenting further on the results of operations for the three months and year ended September 30, 2002 Mr. Gould, noted that 44% of the increase in revenues quarter over quarter and 66% of the increase year over year was due to an increase in interest and fees on real estate loans as a result of an increase in the average balance of loans outstanding and to an increase in loan originations The examples and perspective in this article or section may not represent a worldwide view of the subject. Please [ improve this article] or discuss the issue on the talk page. . A large portion of the remainder of the increase in the current periods resulted from receipt of increased additional interest and fees from participating loans and receipt of deferred interest, which are essentially non-recurring in nature. Revenues in the current quarterly period and in the current year were also favorably fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. impacted by an increase in operating income on real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most attributable to the purchase of a leasehold An estate, interest, in real property held under a rental agreement by which the owner gives another the right to occupy or use land for a period of time. leasehold n. interest in a commercial property in the last quarter of the fiscal year ended September 30, 2002 and increased rental income Noun 1. rental income - income received from rental properties income - the financial gain (earned or unearned) accruing over a given period of time recognized on a residential property. In the 2002 fiscal year the Company also recognized additional revenue of $500,000 as a result of the reversal of a previously provided allowance related to an impaired loan that was paid off in the current fiscal year. Equity in earnings of unconsolidated joint ventures declined in the current quarter and fiscal year primarily as a result of losses by one joint venture entered into in fiscal 2001 and reduced sales of cooperative apartment units at another joint venture. The decline for the year was partially offset by a gain recognized by a venture as a result of the sale of a parcel of land. Other revenues, primarily investment income, also declined in the current fiscal year since the Company received a significant payment in the prior fiscal year from a residual interest Residual Interest A type of interest payment received by investors in a real estate mortgage investment conduit (REMIC). Notes: Investors receive interest payments after all required regular interest has been paid to investors within higher priority tranches. it held in a venture. Other revenues also declined as a result of a decrease in the average balance of money market and treasury investments and a decrease in the average rate earned on these investments. On the expense side, Mr. Gould noted that for the current quarter total expenses increased by 28% over the comparable quarter in the prior fiscal year. The principal reason for the increase in expenses in the current quarter was an increase in interest on borrowed funds due to an increase in the average amount of borrowings outstanding. In addition there was an increase in the advisor's fee, which is calculated based on invested assets, an increase in other taxes, an increase in operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc real estate and a modest increase in general and administrative expenses. Expenses for the 2002 fiscal year were essentially flat, compared to the 2001 fiscal year. Although interest expense, the advisor's fee, real estate operating expenses and taxes all increased in the current year, the Trust did not incur in fiscal 2002 the non-recurring expenses related to a proxy solicitation solicitation In criminal law, the act of asking, inducing, or directing someone to commit a crime. The person soliciting another becomes an accomplice to the crime. The term also refers to the act of obtaining bribes, as well as to the crime of a prostitute who offers sexual or the write off of deferred fees resulting from termination of a revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility incurred in fiscal 2001. Mr. Gould further commented that he and the Trust's management were extremely satisfied with the Trust's operations in 2002. The favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. operating results in 2002 enabled the Trust to increase quarterly cash distributions to shareholders two times in 2002. 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 a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. , 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 Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions for forward looking statements contained in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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.
BRT REALTY TRUST
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
Three Months Ended Twelve Months Ended
September 30, September 30,
2002 2001 2002 2001
---------- ----------- ----------- ----------
Revenues $5,119 $3,551 $17,972 $14,805
Expenses 1,643 1,284 6,152 6,166
---------- ----------- ----------- ----------
Income before gain
on sale of real
estate assets and
foreclosed properties
and available-for-sale
investments 3,476 2,267 11,820 8,639
Net gain on sale
of real estate
assets and
real estate
properties 200 180 807 1,937
Net realized gain
on sale of
available-for-sale
securities - 22 0 33
---------- ----------- ----------- ----------
Income before
minority
interest 3,676 2,469 12,627 10,609
Minority interest (11) (13) (41) (23)
---------- ----------- ----------- ----------
Net income $ 3,665 $ 2,456 $ 12,586 $ 10,586
========== =========== =========== ==========
Income per share
of beneficial
interest:
Basic earnings
per share $ 0.50 $ 0.34 $ 1.71 $ 1.47
======= ======= ======= ======
Diluted earnings
per share $ 0.49 $ 0.33 $ 1.68 $ 1.45
======= ======= ======= ======
Cash distributions
per common share $ 0.30 $ 0.22 $ 1.04 $ 0.44
======= ======= ======= ======
Weighted average
number of common
shares outstanding:
Basic 7,390,139 7,331,014 7,373,627 7,221,373
========== ========== ========== ==========
Diluted 7,518,395 7,432,753 7,503,065 7,327,174
========== ========== ========== ==========
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