CHICAGO, May 15 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS) announced today that for the quarter ending March 31, 2001,
its Net Assets in Liquidation increased by approximately $1.1 million from
approximately $61.1 million at December 31, 2000 to approximately
$62.2 million at March 31, 2001. The increase was primarily the result of
operating income in the amount of approximately $2.5 million and recovery of
losses on loans, notes and interest receivable of approximately $0.9 million
reduced by depreciation expense of approximately $1.6 million and
distributions to shareholders in the amount of approximately $0.6 million.
The recovery of losses on loans, notes and interest receivable of
approximately $0.9 million represents cash received in respect of the Trust's
interest in a liquidating trust established for the benefit of the unsecured
creditors VMS Realty Partners and its affiliates. The interest in this
liquidating trust had previously been accorded no carrying value in the
Trust's financial statements.
For the three months ending March 31, 2000, the Trust reported Net Income
Available to Common Shares of approximately $1.0 million. Because of the
differences between the liquidation basis of accounting and the going concern
basis of accounting described below, this amount is not comparable to the net
changes in assets in liquidation as reported for the three months ending March
31, 2001.
Liquidation Basis of Accounting
As a result of the adoption of a Plan of Termination and Liquidation on
January 5, 2001, the Trust began reporting on the liquidation basis of
accounting effective for the quarter ending March 31, 2001. Therefore,
operations for the three months ending March 31, 2001 are reported on the
Consolidated Statement of Changes in Net Assets in Liquidation while the
March 31, 2000 results are reported on a going concern basis on the
Consolidated Statement of Operations. The financial statement presentations
differ in that under the liquidation basis of accounting, the Trust no longer
amortizes deferred financing fees and leasing commissions and no longer
records straight line rental income. Leasing commissions, however, are
deducted in the computation of Operating Income and are no longer capitalized
and amortized.
Upon adopting the liquidation basis of accounting, the Trust also recorded
a charge of approximately $6.3 million in order to write off certain
intangible assets that were included on the December 31, 2000 balance sheet.
As a result, its Shareholders' Equity as of December 31, 2000 as reported on
the going concern basis was reduced by approximately $5.5 million related to
the write off leasing commissions and deferred financing fees that were
included in total assets at December 31, 2000 and approximately $0.8 million
for costs related to the liquidation and termination of the company.
Property Sale Update
As previously announced, the closing of the Trust's 27-property sale to
Denholtz Management Corporation which commenced on May 9, 2001, was adjourned
by Denholtz, pursuant to its contractual right to do so. Although a specific
timetable has not yet been established, the closing is expected to resume and
be completed by May 21, 2001.
Assuming the closing takes place as now anticipated, Banyan indicated that
it does not anticipate any material change in the timing or amount of its
projected first liquidating distribution of between approximately $4.60 per
share and approximately $4.80 per share within thirty (30) days of the initial
closing. Banyan added that its final liquidating distribution is now
anticipated to occur during the third or fourth quarter of 2002. The
estimated total amount of liquidating distributions remains at approximately
$6.00 per share.
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. Banyan's current portfolio consists
of properties totaling 3.5 million rentable square feet. As of this date
Banyan has 15,488,137 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 such as the closing of the Denholtz
transaction and other 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, filed
with the Securities and Exchange Commission on March 9, 2001. The
"Management's Discussion and Analysis of Financial Condition and Results of
Operations" section was included in our Form 10-Q for the quarter
ended March 31, 2001 which was filed with the Securities and Exchange
Commission on May 15, 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.
SOURCE Banyan Strategic Realty Trust
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Related links:
http://www.banyanreit.com
CONTACT:
Robert G. Higgins, Vice President, General
Counsel, 312-683-5539, or bhiggins@banyanreit.com , or Investor
Relations, L.G. Schafran, Chairman and Interim CEO-President,
312-683-5525, or ir@banyanreit.com , both of Banyan Strategic
Realty Trust
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