Banyan Strategic Realty Trust First Quarter Highlights*
-- First Quarter FFO of $2.8 million, or $0.205 per share, up 20 percent
from a year ago
-- Revenues of $10.4 million, an increase of 21 percent from last year
-- EBITDA of $5.9 million, up 32 percent from previous year
-- Average occupancy of portfolio of 88 percent at March 31, 1999
-- Quarterly cash distribution of $0.12 per share declared.
*Per share data presented on diluted basis.
CHICAGO, May 12 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS) a real estate investment trust, today announced first quarter
1998 funds from operations (FFO) of $2.8 million, or $0.205 per share, an
18 percent increase in total FFO from last year's first quarter. The
company's average occupancy rate at the Trust's 32 properties was 88 percent
at March 31, 1999.
Consolidated Financial Results
Banyan reported first quarter 1999 net income of $1.2 million, or
$0.09 per share, on revenues of $10.4 million, and FFO of $2.8 million,
or $0.205 per share. This compared to first quarter 1998 net income of
$1.4 million, or $0.10 per share, on revenues of $8.6 million, and FFO of
$2.4 million, or $0.17 per share.
"We are pleased with our revenue, cash flow and FFO growth in the first
quarter over the first quarter of last year," said Leonard G. Levine,
President of Banyan. "This was due primarily to the significant expansion of
our portfolio from a year ago. We have targeted FFO growth for the full year
1999 at more than 10 percent above last year, exclusive of any new
acquisitions, through our ability to maintain favorable leasing activity and
rollovers in the strong office and flex/industrial markets we serve."
Portfolio Performance -- First Quarter Revenue up 21 Percent
Total revenue increased 21 percent to $10.4 million for the first quarter,
compared with $8.6 million during the same period the previous year. The
increase was due to the addition of eight properties acquired since the end of
the first quarter last year and through higher rents achieved at some of the
Trust's properties as a result of lease rollovers. The Company's portfolio of
32 properties was 88 percent occupied at March 31, 1999.
Balance Sheet
At March 31, 1999, total assets at net book value were approximately
$222 million. EBITDA (earnings before interest, tax, depreciation and
amortization) was $5.9 million, up 32 percent from the previous year's first
quarter. EBITDA coverage ratio through March 31, 1999 was 2.04. The Trust
had $151.2 million of total debt outstanding as of March 31, 1999.
Quarterly Cash Distribution and Funds Available for Distribution (FAD)
On April 5, Banyan declared a quarterly cash distribution of $0.12 per
share for the first quarter ended March 31, 1999. The distribution is payable
May 21, 1999 to shareholders of record as of April 21, 1999.
Funds Available for Distribution (FAD) totaled $2.3 million for the three
months ended March 31, 1999, or $0.17 per share. FAD for the same period a
year ago totaled $2.0 million, or $0.15 per share. FAD is calculated by
adjusting FFO for straight-line rents, lease commissions paid and normalized
reserves for capital improvements. The capital reserve is $0.075 per square
foot for flex/industrial properties, $0.10 per square foot for office
properties, $0.15 per square foot for retail property and $200 per residential
unit.
Outlook
Mr. Levine added, "With our existing portfolio, we have targeted total
1999 FFO of between $0.82 and $0.83 per share. We will maintain our focus on
internal growth through favorable leasing transactions and rental increases,
since the markets in which we operate exhibit strong real estate fundamentals.
At the same time, we continue to seek value-added acquisitions and disposition
opportunities in our market niche in order to provide for future growth."
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 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 32 properties totaling 3.7 million rentable square feet and
864 apartment units. As of this date, the Trust has 13,432,587 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-Q for the quarter ended March 31, 1999
filed with the Securities and Exchange Commission on May 13, 1999. 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.
SELECTED FINANCIAL DATA
(Dollars in Thousands, except per share data)
Three Months Ended Year Ended
3/31/99 3/31/98 12/31/98
Total revenue $ 10,428 $ 8,564 $ 39,416
Operating expenses (9,076) (7,091) (33,325)
Operating income 1,352 1,473 6,091
Minority interest
in consolidated partnerships (114) (116) (572)
Extraordinary item,
net of minority interest -- -- (141)
Net income $ 1,238 $ 1,357 $ 5,378
Earnings per share
of Beneficial Interest -- Basic:
Income before Extraordinary Item $ 0.09 $ 0.10 $ 0.41
Net Income $ 0.09 $ 0.10 $ 0.40
Earnings per share
of Beneficial Interest -- Diluted:
Income before Extraordinary Item $ 0.09 $ 0.10 $ 0.40
Net Income $ 0.09 $ 0.10 $ 0.39
Funds from Operations
Net income $ 1,238 $ 1,357 $ 5,378
Plus:
Depreciation and amortization expense 1,584 1,056 5,176
Less:
Minority interest share of
depreciation and amortization expense (56) (63) (315)
Extraordinary item, net of minority
interest -- -- 141
Funds from operations $ 2,766 $ 2,350 $ 10,380
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
March 31, December 31,
1999 1998
Investment in Real Estate, at cost: $ 222,355 $ 220,808
Less: Accumulated Depreciation (12,827) (11,399)
209,528 209,409
Cash and Cash Equivalents 2,332 3,731
Restricted Cash 3,519 2,657
Other Assets 6,960 6,793
Total Assets $ 222,339 $ 222,590
Loans and Bonds Payable $ 151,231 $ 151,648
Other Liabilities 6,644 6,359
Minority Interest 2,192 2,149
Shareholders' Equity 62,272 62,434
Total Liabilities and Shareholders' Equity $ 222,339 $ 222,590
PORTFOLIO SUMMARY
March 31, 1999
Scheduled Lease Expirations
4/1-12/31
Location Square Occ. % 1999 2000 2001 After
Footage 2001
FLEX/INDUSTRIAL
Milwaukee Milwaukee, 235,800 82% 14% 20% 11% 37%
Industrial Wisconsin
Properties
Elmhurst Elmhurst, 140,800 58% 18% 6% 30% 4%
Metro Court Illinois
Willowbrook Willowbrook, 84,300 97% 39% 21% 11% 26%
Industrial Court Illinois
Quantum Louisville, 182,300 74% 15% 21% 18% 20%
Business Centre Kentucky
Lexington Lexington, 308,800 54% 2% 17% 9% 26%
Business Center Kentucky
Newtown Lexington, 87,100 67% 5% 4% 37% 21%
Business Center Kentucky
6901 Riverport Louisville, 322,100 100% 0% 45% 0% 55%
Drive Kentucky
Avalon Ridge Norcross, 57,400 73% 0% 0% 0% 73%
Business Park Georgia
Tower Lane Bensenville, 95,900 90% 28% 31% 15% 16%
Business Park Illinois
Metric Plaza Winter Park, 32,000 100% 0% 0% 0% 100%
Florida
Park Center Orlando, 47,400 65% 6% 9% 25% 25%
Florida
University Winter Park, 127,800 100% 12% 53% 11% 24%
Corporate Center Florida
Johns Creek Office Duluth 119,300 100% 0% 0% 50% 50%
and and Suwanee,
Industrial Park Georgia
Sub-Total 1,841,000 80% 9% 23% 15% 33%
OFFICE
Colonial Penn Tampa, 79,200 100% 0% 100% 0% 0%
Building Florida
Commerce Center Sarasota, 81,100 100% 0% 0% 11% 89%
Florida
Woodcrest Tallahassee, 264,900 89% 11% 26% 13% 39%
Office Park Florida
Midwest Oakbrook 77,000 95% 18% 32% 14% 31%
Office Terrace,
Center Illinois
Phoenix Atlanta, 110,600 71% 9% 26% 13% 23%
Business Park Georgia
Butterfield Oak Brook, 200,800 96% 13% 26% 16% 41%
Office Plaza Illinois
Southlake Morrow, 56,200 100% 0% 13% 42% 45%
Corporate Center Georgia
University Square Huntsville, 184,700 88% 26% 15% 25% 22%
Business Center Alabama
Technology Center Huntsville, 48,500 100% 0% 100% 0% 0%
Alabama
Airways Plaza Memphis, 87,800 91% 87% 0% 4% 0%
Office Center Tennessee
Peachtree Pointe Norcross, 71,700 89% 24% 16% 15% 34%
Office Park Georgia
Avalon Center Norcross, 53,300 100% 0% 0% 0% 100%
Office Park Georgia
Sand Lake Orlando, 84,100 74% 0% 0% 0% 74%
Tech Center Florida
Technology Park Norcross, 145,700 100% 17% 9% 26% 48%
Georgia
Sub-Total 1,545,600 91% 16% 23% 14% 38%
RETAIL
Northlake Tower Atlanta, 321,600 98% 2% 18% 2% 76%
Shopping Center Georgia
Total 3,708,200 86% 11% 22% 13% 40%
RESIDENTIAL Residential Occupancy %
Units
Country Creek Apartments Oklahoma City, Oklahoma 320 97%
Willowpark Apartments Lawton, Oklahoma 160 99%
Winchester Run Apartments Oklahoma City, Oklahoma 192 96%
Woodrun Village Apartments Yukon, Oklahoma 192 97%
Total 864 97%
PORTFOLIO TOTAL 88%
SOURCE Banyan Strategic Realty Trust
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Related links:
http://www.banyanreit.com
CONTACT:
Karen Dickelman, Director of Investor
Relations of Banyan Strategic Realty Trust, 312-683-3671; or
General Info., Tony Ebersole, 312-640-6728, Media Inquiries,
Laura Kuhlmann, 312-640-6727, or Analyst Inquiries, Georganne
Palffy, 312-640-6768, all of the Financial Relations Board
NOTE TO EDITORS: For further information regarding Banyan free of
charge via fax, dial 1-800-PRO-INFO and enter "BSRTS"
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