CHICAGO, March 13 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS), a real estate investment trust, today announced fourth
quarter 2000 net income available to common shareholders of $0.7 million or
$0.05 per diluted common share.
Consolidated Financial Results
For the fourth quarter 2000 Banyan reported a net income available to
common shareholders of $0.7 million, or $0.05 per diluted share, on revenues
of $9.7 million. This compared to net income of $4.8 million, or $0.36 per
diluted share, on revenues of $10.3 million for the fourth quarter of the
previous year. Excluding the effects of a $4.1 million or $0.30 per diluted
share gain on disposition of investments in real estate and a ($0.2) million
or ($0.01) per diluted share extraordinary item, the Trust reported net income
of $0.9 million or $0.07 per diluted share for the fourth quarter of 1999.
EBITDA (earnings before interest, tax, depreciation and amortization) was
$5.1 million for the quarter ended December 31, 2000, compared to $5.7 million
for the fourth quarter of 1999.
For the year ended December 31, 2000 Banyan reported net income available
to common shareholders of $2.0 million, or $0.14 per diluted share, on
revenues of $37.8 million. This compared to net income of $8.5 million, or
$0.63 per diluted share, on revenues of $41.7 million during the previous
year. Excluding the effects of a $4.1 million or $0.30 per diluted share gain
on disposition of investments in real estate and a ($0.2) million or
($0.01) per diluted share extraordinary item, the Trust reported net income of
$4.6 million or $0.34 per diluted share for the year ended December 31, 1999.
Banyan's net income for the year 2000 includes a charge of approximately
($1.9) million or ($0.13) per diluted share related to the severance and
retention program that was adopted in the third quarter. EBITDA was
$19.5 million for the twelve months ended December 31, 2000, compared to
$23.6 million for the same period in the prior year.
The decreases in net income and total revenues for the quarter and twelve
months ending December 31, 2000 compared to the same periods in 1999 are
directly attributable to the decrease in the number of properties owned.
During the fourth quarter of 1999, Banyan disposed of four apartment complexes
and one flex industrial property and used the net proceeds primarily to reduce
corporate debt.
Portfolio Performance
Total revenue for the fourth quarter 2000 was $9.7 million, which
represents a decrease of approximately 5.8% from the $10.3 million in revenue
reported during the same period in the prior year.
The decline in revenue is primarily due to a reduction in the number of
properties owned by Banyan during the fourth quarter 2000 compared to the
prior year. However, on a same-store basis, when comparing the operational
results of the same properties owned by Banyan during the fourth quarter 2000
with the same period in the prior year, total revenues increased by 4.2%.
The average occupancy at Banyan's 27 properties was 85% at December 31,
2000. This represents an increase from 84% as of September 30, 2000, which is
primarily due to positive leasing activity during the quarter. As of March 1,
2001, the average occupancy of the Trust's properties improved to 87%.
Balance Sheet
As of December 31, 2000 total debt and equity market capitalization was
approximately $205 million. EBITDA coverage ratio for the three-month period
ended December 31, 2000 was 2.2 to 1 and was 2.1 to 1 for the year ending
December 31, 2000. The Trust had approximately $119.7 million of total debt
outstanding as of December 31, 2000.
Liquidation Basis of Accounting
As previously announced, Banyan adopted a Plan of Termination and
Liquidation on January 5, 2001 and, on January 8, 2001, announced that it had
entered into a definitive agreement to sell all of its real estate assets to
Denholtz Management Corporation ("Denholtz") at a price of $226 million. The
potential buyer is proceeding with its due diligence which must be completed
by March 30, 2001. During the due diligence period, Denholtz has the right to
terminate the contract for any reason without penalty. The closing is
scheduled for April 30, 2001, unless extended pursuant to the contract.
In prior quarters, Banyan has reported Funds from Operations ("FFO") and
Funds Available for Distribution ("FAD") in its public filings and press
releases in order to compare its results with those of other REIT's. In light
of the Trust's adoption of a Plan of Termination and Liquidation, it will no
longer present this information because its operations are no longer
comparable to those of other REIT's. Furthermore, beginning in 2001, the
Trust will adopt the liquidation basis of accounting and will consequently
cease reporting net income. Instead, the Trust's filings will report Net
Assets in Liquidation and a Statement of Changes in Net Assets in Liquidation.
Banyan Strategic Realty Trust is an equity Real Estate Investment Trust
(REIT) that owns 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. The Trust's current portfolio
consists of 27 properties totaling 3.5 million rentable square feet. As of
March 1, 2001 the Trust has 14,291,940 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, 2000. The "Management's
Discussion and Analysis of Financial Condition and Results of Operations"
section was included in our Form 10-K for the year ended December 31, 2000
which was filed with the Securities and Exchange Commission on March 9, 2001.
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"
SELECTED FINANCIAL DATA
(Dollars in thousands, except per share data)
Three Months Ended Year Ended Year Ended
12/31/2000 12/31/1999 12/31/2000 12/31/1999
Total revenue $9,701 $10,296 $37,796 $41,716
Operating expenses (8,780) (9,226) (34,680) (36,597)
Operating income 921 1,070 3,116 5,119
Minority interest
in consolidated
partnerships (88) (157) (491) (538)
Net gains on disposition
of real estate -- 4,089 -- 4,089
Extraordinary item, net
of minority interest -- (183) (42) (183)
Net income $833 $4,819 $2,583 $8,487
Less Income Allocated
to Preferred Shares $(154) -- $(585) --
Net Income Available
to Common Shares $679 $4,819 $1,998 $8,487
Basic and Diluted
Earnings Available
to Common
Shares Per Weighted-Average
Common Share:
Income Before Net Gains
and Extraordinary Item $0.05 $0.07 $0.14 $0.34
Net Income $0.05 $0.36 $0.14 $0.63
Weighted average
basic shares 14,257,184 13,527,273 14,182,800 13,468,514
Weighted average
diluted shares 14,260,382 13,533,755 14,187,517 13,475,072
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
December 31, December 31,
2000 1999
Investment in Real Estate Held for
Sale, at cost: $205,686 $199,264
Less: Accumulated Depreciation (21,511) (15,420)
184,175 183,844
Cash and Cash Equivalents 2,393 13,097
Restricted Cash 2,378 2,668
Other Assets 7,111 7,038
Total Assets $196,057 $206,647
Loans and Bonds Payable $119,652 $132,681
Other Liabilities 6,738 6,415
Minority Interest 2,317 2,256
Shareholders' Equity 67,350 65,295
Total Liabilities and Shareholders'
Equity $196,057 $206,647
PORTFOLIO SUMMARY
Scheduled Lease
Expirations
Square Occupancy After
Location Footage % 2001 2002 2003 2003
FLEX/INDUSTRIAL
Milwaukee
Industrial Milwaukee,
Properties Wisconsin 235,800 92% 18% 39% 6% 29%
Elmhurst Metro Elmhurst,
Court Illinois 140,800 86% 29% 12% 6% 39%
Willowbrook Willowbrook,
Industrial Court Illinois 84,300 99% 32% 28% 34% 5%
Lexington Lexington,
Business Center Kentucky 308,800 70% 9% 5% 11% 45%
Newtown Business Lexington,
Center Kentucky 87,100 98% 39% 16% 9% 34%
6901 Riverport Louisville,
Drive Kentucky 322,100 55% 0% 0% 0% 55%
Avalon Ridge Norcross,
Business Park Georgia 57,400 100% 0% 0% 39% 61%
Tower Lane Bensenville,
Business Park IIlinois 95,900 84% 31% 25% 11% 17%
Metric Plaza Winter Park,
Florida 32,000 100% 0% 69% 31% 0%
Park Center Orlando,
Florida 47,400 90% 32% 32% 11% 15%
University Winter Park,
Corporate Center Florida 127,800 77% 39% 22% 13% 3%
Johns Creek Duluth and
Office and Suwanee,
Industrial Park Georgia 119,300 100% 0% 50% 0% 50%
Sub-Total 1,658,700 80% 16% 19% 10% 35%
OFFICE
Colonial Penn
Building Tampa, Florida 79,200 74% 0% 0% 0% 74%
Commerce Center Sarasota,
Florida 81,100 100% 11% 5% 0% 84%
Woodcrest Office Tallahassee,
Park Florida 264,900 87% 14% 20% 14% 39%
Oakbrook
Midwest Office Terrace,
Center Illinois 77,000 100% 28% 15% 50% 7%
Phoenix Business Atlanta,
Park Georgia 110,600 100% 4% 18% 9% 69%
Butterfield Oak Brook,
Office Plaza Illinois 200,800 91% 22% 39% 11% 19%
Southlake Morrow,
Corporate Georgia
Center 56,200 94% 32% 35% 6% 23%
University Huntsville,
Square Alabama
Business
Center 184,700 93% 29% 24% 10% 30%
Technology Huntsville,
Center Alabama 48,500 100% 0% 0% 0% 100%
Airways Plaza Memphis,
Office Center Tennessee 87,800 19% 4% 5% 8% 2%
Peachtree Pointe Norcross,
Office Park Georgia 71,700 83% 21% 13% 19% 30%
Avalon Center Norcross,
Office Park Georgia 53,300 100% 0% 0% 13% 87%
Sand Lake Tech Orlando,
Center Florida 84,100 97% 0% 0% 38% 59%
Technology Park Norcross,
Georgia 145,700 96% 24% 4% 40% 28%
Sub-Total 1,545,600 88% 16% 16% 16% 40%
RETAIL
Northlake Tower Atlanta,
Shopping Center Georgia 321,600 98% 2% 7% 13% 76%
Total 3,525,900 85% 15% 17% 13% 40%
SOURCE Banyan Strategic Realty Trust
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Related links:
http://www.banyanreit.com
CONTACT:
Robert G. Higgins, First Vice President,
General Counsel, 312-683-5539, bhiggins@banyanreit.com , or L.G.
Schafran, Chairman and Interim CEO, President, 312-683-5525,
ir@banyanreit.com , both of Banyan Strategic Realty Trust
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