Banyan Strategic Realty Trust Fourth Quarter/Fiscal 1999 Highlights*
-- Fourth Quarter FFO of $2.5 million, or $0.19 per share; full year 1999
FFO of $0.81 per share
-- Annual cash distribution of $0.48 per share, with quarterly cash
distribution of $0.12 per share declared January 10, 2000
-- Fourth Quarter Revenues of $10.3 million
-- Fourth quarter EBITDA of $5.7 million/full year EBITDA of $23.6 million
-- Disposition of assets during the year nets company $10.8 million in
cash proceeds
-- Average occupancy rate of portfolio 88 percent at December 31, 1999
-- Total debt and equity market capitalization of $214 million at
December 31, 1999
*Per share data presented on diluted basis
CHICAGO, Feb. 23 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS), a real estate investment trust, today announced 1999 funds
from operations of $10.9 million, or $0.81 per share. Fourth quarter FFO was
$2.5 million, or $0.19 per share. The portfolio-wide occupancy rate for the
Trust's properties as of December 31, 1999 was 88 percent.
Consolidated Financial Results
For the fourth quarter 1999 Banyan reported net income of $4.8 million, or
$0.36 per share, on revenues of $10.3 million, and FFO of $2.5 million, or
$0.19 per share. Fourth Quarter 1999 income before net gains and
extraordinary items was $913,000, or $0.07 per share. This compared to net
income of $1.4 million, or $0.10 per share, on revenues of $10.6 million, and
FFO of $2.8 million, or $0.21 per share during the fourth quarter the previous
year. EBITDA (earnings before interest, tax, depreciation and amortization)
in the recent quarter was $5.7 million.
For the twelve months ended December 31, 1999, the company reported net
income of $8.5 million, or $0.63 per share, on revenues of $41.7 million and
FFO of $10.9 million, or $0.81 per share. Income before net gains and
extraordinary items for the twelve months ended December 31, 1999 was
$4.6 million, or $0.34 per share. During the same period the previous year,
the company reported income before extraordinary item of $5.5 million, or
$0.40 per share, on revenues of $39.4 million and FFO of $10.4 million, or
$0.75 per share. EBITDA in the recent 12-month period was $23.6 million, an
increase of 10 percent from the $21.3 million during the previous year.
"We are pleased we were able to continue our FFO growth, as well as grow
EBITDA year over year," said Leonard G. Levine, President and CEO of Banyan.
"Overall, our general and administrative costs as a percent of total revenue
declined a full percentage point to 10.8 percent during the year from the
previous year. Meanwhile, the office and flex-industrial markets we serve
continue to exhibit strong real estate fundamentals, with rents in our
portfolio below average market rents in each market, which bodes well for both
occupancy and same store growth going forward."
Portfolio Performance -- Revenue up 6 Percent
Total revenue for twelve-month period increased 6 percent to $41.7 million
from $39.4 million during the previous year. As of December 31, 1999, the
company's portfolio of 27 properties was 88 percent occupied.
Sale of Kentucky and Oklahoma Properties Concluded
The company realized a gain of $4.1 million during the fourth quarter from
the sale of two properties, the Quantum Business Centre, a multi-tenant
office/warehouse property located in Jefferson County (suburban Louisville),
Kentucky, and its Oklahoma Apartment Portfolio, four separate apartment
complexes totaling 864 units. The company realized total net cash proceeds of
approximately $10.8 million from these transactions.
"The dispositions of our Oklahoma Apartment Portfolio and Quantum Business
Centre are consistent with our strategy of selling certain non-core assets, as
well as maximizing returns to shareholders from properties that have reached
their maximum potential," said Mr. Levine.
Balance Sheet, Market Value and Liquidity
At the end of the fourth quarter 1999, total debt and equity market
capitalization was approximately $214 million. EBITDA coverage ratio for the
twelve-month period ended December 31, 1999 was 2.0 to 1. The Trust had
$132.7 million of total debt outstanding as of December 31, 1999.
On January 20, 2000, $6.2 million of the Trust's $7.4 million unsecured
convertible loan payable was converted into 61,572 Series A convertible
preferred shares at a conversion price of $100 per share. These shares may be
further converted into common shares at a conversion price of $5.15 per share.
The balance of the loan along with accrued interest and a $37,000
conversion/repayment fee was repaid as of that date using the Trust's cash
reserves.
Quarterly Cash Distribution and Funds Available for Distribution (FAD)
On January 10, 2000, the Trust declared a quarterly cash distribution of
$0.12 per share for the fourth quarter ended December 31, 1999. The
distribution was paid February 22, 2000 to shareholders of record as of
January 21, 2000.
Funds Available for Distribution (FAD) totaled $2.1 million for the three
months ended December 31, 1999, or $0.16 per share, and $9.0 million, or
$0.67 per share for the twelve months ended December 31, 1999. This compared
to FAD of $2.3 million or $0.17 per share, and $8.6 million or $0.62 per
share, for the same periods in the previous year.
Cohen Financial Engaged
The Trust's Board has recently formed a special committee comprised
entirely of its Independent Trustees to begin the process of evaluating
strategic alternatives. To assist in this process, the committee has engaged
Cohen Financial to, among other things, evaluate the Trust's properties.
Cohen Financial is a Chicago-based real estate investment banking firm.
Banyan Strategic Realty Trust is an equity Real Estate Investment Trust
(REIT) that owns and acquires primarily office and flex/industrial properties.
The properties are located in certain major metropolitan areas of the Midwest
and Southeastern United States, including Atlanta, Georgia and Chicago,
Illinois and smaller markets such as Huntsville, Alabama; Louisville,
Kentucky; Memphis, Tennessee; and Orlando, Florida located in the Midwestern
and Southeastern United States. The Trust's current portfolio consists of 27
properties totaling 3.5 million rentable square feet. As of this date, the
Trust has 14,126,605 shares of beneficial interest outstanding.
Except for the historical information contained herein, certain matters
discussed in this release are forward-looking statements, the achievement of
which involve risks and uncertainties that are detailed from time to time in
our reports filed with the Securities and Exchange Commission, including the
report on Form 10-K for the year ended December 31, 1998. The "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
section will be included in our Form 10-K for the year ended December 31, 1999
filed with the Securities and Exchange Commission by March 31, 2000. Without
limitation, the foregoing words such as "anticipates," "expects," "intends,"
"plans," and similar expressions are intended to identify forward-looking
statements.
See Banyan's Website at http://www.banyanreit.com.
For further information regarding Banyan free of charge via fax,
dial 1-800-PRO-INFO and enter "BSRTS."
BANYAN STRATEGIC REALTY TRUST
SELECTED FINANCIAL DATA
(Dollars in thousands, except per share data)
Three Months Ended Year Ended
Dec. 31 Dec. 31 Dec. 31 Dec. 31
1999 1998 1999 1998
Total revenue $10,296 $10,643 $41,716 $39,416
Operating expenses (9,226) (9,133) (36,597) (33,325)
Operating income 1,070 1,510 5,119 6,091
Minority interest in consolidated
partnerships (157) (123) (538) (572)
Net gains on disposition of
investments in real estate 4,089 -- 4,089 --
Extraordinary item, net of
minority interest (183) -- (183) (141)
Net income $4,819 $1,387 $8,487 $5,378
Earnings per share of Beneficial
Interest -- Basic:
Income before Net Gains and
Extraordinary Item $0.07 $0.10 $0.34 $0.41
Net Income $0.36 $0.10 $0.63 $0.40
Earnings per share of Beneficial
Interest -- Diluted:
Income before Net Gains and
Extraordinary Item $0.07 $0.10 $0.34 $0.40
Net Income $0.36 $0.10 $0.63 $0.39
Funds from Operations
Net Income $4,819 $1,387 $8,487 $5,378
Plus:
Depreciation and amortization
expense 1,713 1,493 6,629 5,176
Less:
Minority interest share of
depreciation and amortization
expense (83) (90) (309) (315)
Net gain on disposition of
investments in real estate (4,089) -- (4,089) --
Extraordinary item, net of
minority interest 183 -- 183 141
Funds from operations $2,543 $2,790 $10,901 $10,380
CONDENSED CONSOLIDATED BALANCE SHEETS
Unaudited
(Dollars in thousands)
December 31, December 31,
1999 1998
Investment in Real Estate, at cost: $199,264 $220,808
Less: Accumulated Depreciation (15,420) (11,399)
183,844 209,409
Cash and Cash Equivalents 13,097 3,731
Restricted Cash 2,668 2,657
Other Assets 7,038 6,793
Total Assets $206,647 $222,590
Loans and Bonds Payable $132,681 $151,648
Other Liabilities 6,415 6,359
Minority Interest 2,256 2,149
Shareholders' Equity 65,295 62,434
Total Liabilities and Shareholders'
Equity $206,647 $222,590
BANYAN STRATEGIC REALTY TRUST
PORTFOLIO SUMMARY
12/31/99
Location Square Footage
FLEX/INDUSTRIAL
Milwaukee Industrial Portfolio Milwaukee, Wisconsin 235,800
Elmhurst Metro Court Elmhurst, Illinois 140,800
Willowbrook Industrial Court Willowbrook, Illinois 84,300
6901 Riverport Drive Louisville, Kentucky 322,100
Lexington Business Center Lexington, Kentucky 308,800
Newtown Business Center Lexington, Kentucky 87,100
Avalon Ridge Business Park Norcross, Georgia 57,400
Metric Plaza Winter Park, Florida 32,000
Park Center Orlando, Florida 47,400
University Corporate Center Winter Park, Florida 127,800
Tower Lane Business Park Bensenville, Illinois 95,900
Johns Creek Office and
Industrial Park Duluth and Suwanee, Georgia 119,300
Sub-Total 1,658,700
OFFICE
Colonial Penn Building Tampa, Florida 79,200
Commerce Center Sarasota, Florida 81,100
Woodcrest Office Park Tallahassee, Florida 264,900
Midwest Office Center Oakbrook Terrace, Illinois 77,000
Phoenix Business Park Atlanta, Georgia 110,600
Butterfield Office Plaza Oak Brook, Illinois 200,800
Southlake Corporate Center Morrow, Georgia 56,200
University Square Business
Center Huntsville, Alabama 184,700
Technology Center Huntsville, Alabama 48,500
Airways Plaza Office Center Memphis, Tennessee 87,800
Peachtree Pointe Office Park Norcross, Georgia 71,700
Avalon Center Office Park Norcross, Georgia 53,300
Sand Lake Tech Center Orlando, Florida 84,100
Technology Park Norcross, Georgia 145,700
Sub-Total 1,545,600
RETAIL
Northlake Tower Shopping Center Atlanta, Georgia 321,600
Total 3,525,900
Scheduled Lease Expirations
Occupancy % 2000 2001 2002 After
2002
FLEX/INDUSTRIAL
Milwaukee Industrial Portfolio 89% 27% 11% 32% 19%
Elmhurst Metro Court 65% 15% 30% 12% 8%
Willowbrook Industrial Court 91% 28% 20% 31% 12%
6901 Riverport Drive 100% 45% 0% 0% 55%
Lexington Business Center 71% 19% 9% 5% 38%
Newtown Business Center 97% 4% 37% 16% 40%
Avalon Ridge Business Park 100% 0% 0% 0% 100%
Metric Plaza 100% 0% 0% 69% 31%
Park Center 80% 9% 25% 24% 22%
University Corporate Center 84% 22% 33% 21% 8%
Tower Lane Business Park 88% 37% 15% 30% 6%
Johns Creek Office and
Industrial Park 100% 0% 50% 50% 0%
Sub-Total 87% 23% 16% 18% 30%
OFFICE
Colonial Penn Building 100% 28% 0% 0% 72%
Commerce Center 100% 0% 11% 5% 84%
Woodcrest Office Park 95% 24% 12% 13% 46%
Midwest Office Center 91% 39% 13% 29% 10%
Phoenix Business Park 57% 2% 13% 18% 24%
Butterfield Office Plaza 96% 27% 16% 37% 16%
Southlake Corporate Center 87% 9% 32% 35% 11%
University Square Business Center 91% 28% 25% 26% 12%
Technology Center 100% 35% 65% 0% 0%
Airways Plaza Office Center 26% 16% 4% 3% 3%
Peachtree Pointe Office Park 89% 29% 13% 16% 31%
Avalon Center Office Park 100% 0% 0% 0% 100%
Sand Lake Tech Center 77% 0% 0% 39% 38%
Technology Park 96% 13% 28% 4% 51%
87% 19% 16% 18% 34%
RETAIL
Northlake Tower Shopping Center 98% 14% 2% 7% 75%
Total 88% 21% 15% 17% 35%
SOURCE Banyan Strategic Realty Trust
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Related links:
http://www.banyanreit.com
CONTACT:
Karen Dickelman, Director - Investor
Relations of Banyan Strategic Realty Trust, 312-683-3671, or
ir@banyanreit.com, or General, Tony Ebersole, or Analyst,
Georganne Palffy, both of The Financial Relations Board,
312-640-6768
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