Banyan Strategic Realty Trust Second Quarter Highlights*
-- Second Quarter FFO of $2.8 million, or $0.205 per share, up 13% from
one year ago
-- Revenues of $10.5 million
-- EBITDA of $6.0 million
-- Average occupancy of portfolio of 88 percent at June 30, 1999
-- Quarterly cash distribution of $0.12 per share declared.
-- Total market capitalization of $230 million at June 30, 1999
*Per share data presented on diluted basis.
CHICAGO, Aug. 11 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS) a real estate investment trust, today announced second quarter
1999 funds from operations (FFO) of $2.8 million, or $0.205 per share, a
13 percent increase in per share FFO from last year's second quarter. The
company's average occupancy rate at the Trust's 32 properties was 88 percent
at June 30, 1999.
Consolidated Financial Results
Banyan reported second quarter 1999 net income of $1.2 million, or $0.09
per share, on revenues of $10.5 million, and FFO of $2.8 million, or $0.205
per share. This compared to second quarter 1998 net income of $1.3 million,
or $0.09 per share, on revenues of $9.7 million, and FFO of $2.6 million, or
$0.18 per share.
For the first six months of 1999, the company reported net income of
$2.5 million, or $0.18 per share, on revenues of $20.9 million and FFO of
$5.6 million, or $0.41 per share. In the first six months of last year the
company reported net income of $2.6 million, or $0.19 per share, on revenues
of $18.2 million and FFO of $4.9 million, or $0.35 per share. EBITDA
(earnings before interest, tax, depreciation and amortization) in the first
six months period was $11.9 million, an increase of 22 percent from the
$9.7 million during the same period last year.
"In addition to our continuing growth in FFO and EBITDA from the previous
year, we are pleased with our ability to hold the line on costs as we increase
revenues," said Leonard G. Levine, President of Banyan. "Our general and
administrative costs as a percent of total revenue declined from 11.9 percent
to 10.5 percent in the first six months from the previous year. At mid-year
we remain on target for full year FFO growth of approximately 10 percent over
last year, based on the strength of our existing portfolio. Meanwhile, the
office and flex/industrial markets we serve remain strong, which bode well for
favorable leasing activity and rent increases going forward."
Portfolio Performance -- Second Quarter Revenue up 8 Percent
Total revenue increased 8 percent to $10.5 million for the second quarter,
compared with $9.7 million during the same period the previous year. The
increase was due to the addition of two properties acquired since the end of
the second 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 June 30, 1999.
Balance Sheet, Market Value and Liquidity
At June 30, 1999, total debt and equity market capitalization was
$230 million. EBITDA coverage ratio for the six-month period ended
June 30, 1999 was 2.05 to 1. The Trust had $150.8 million of total debt
outstanding as of June 30, 1999.
Quarterly Cash Distribution and Funds Available for Distribution (FAD)
On July 7, Banyan declared a quarterly cash distribution of $0.12 per
share for the second quarter ended June 30, 1999. The distribution is payable
August 20, 1999 to shareholders of record as of July 20, 1999.
Funds Available for Distribution (FAD) totaled $2.3 million for the three
months ended June 30, 1999, or $0.17 per share.
Outlook
Mr. Levine added, "Based on our existing portfolio, we remain on track for
total 1999 FFO of between $0.82 and $0.83 per share, an increase of
approximately 10 percent over last year. We remain focused on internal growth
through favorable leasing transactions and rental increases. The markets in
which we operate continue to exhibit strong real estate fundamentals.
Additionally, we are actively exploring the potential disposition of a portion
of both our core and non-core assets. Management believes that a disposition
of non-core assets would strengthen our focus on our primary portfolio sector,
the flex/industrial properties. We will pursue the disposition of certain
core properties where we believe that values may have maximized and the
re-deployment of capital in attractive acquisition opportunities would
generate higher current and future returns."
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 13,471,497 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 June 30, 1999
filed with the Securities and Exchange Commission on August 12, 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 .
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
6/30/99 6/30/98 12/31/98
Total revenue $10,483 $9,657 $39,416
Operating expenses (9,115) (8,057) (33,325)
Operating income 1,368 1,600 6,091
Minority interest in
consolidated partnerships (141) (182) (572)
Extraordinary item, net of
minority interest -- (141) (141)
Net income $1,227 $1,277 $5,378
Earnings per share of
Beneficial Interest -- Basic:
Income before
Extraordinary Item $0.09 $0.11 $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 $0.09 $0.39
Funds from Operations
Net income $1,227 $1,277 $5,378
Plus:
Depreciation and amortization
expense 1,650 1,234 5,176
Less:
Minority interest share of
depreciation and amortization
expense (92) (80) (315)
Extraordinary item, net of
minority interest -- 141 141
Funds from operations $2,785 $2,572 $10,380
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
June 30, December 31,
1999 1998
Investment in Real Estate, at cost: $223,400 $220,808
Less: Accumulated Depreciation (14,326) (11,399)
209,074 209,409
Cash and Cash Equivalents 2,654 3,731
Restricted Cash 3,708 2,657
Other Assets 6,882 6,793
Total Assets $222,318 $222,590
Loans and Bonds Payable $150,822 $151,648
Other Liabilities 7,814 6,359
Minority Interest 2,216 2,149
Shareholders' Equity 62,096 62,434
Total Liabilities and
Shareholders' Equity $222,318 $222,590
PORTFOLIO SUMMARY
30-Jun-99
Location Square Occupancy
Footage %
FLEX/INDUSTRIAL
Milwaukee Industrial
Properties Milwaukee, Wisconsin 235,800 94%
Elmhurst Metro Court Elmhurst, Illinois 140,800 60%
Willowbrook Industrial
Court Willowbrook, Illinois 84,300 91%
Quantum Business Centre Louisville, Kentucky 182,300 83%
Lexington Business Center Lexington, Kentucky 308,800 54%
Newtown Business Center Lexington, Kentucky 87,100 79%
6901 Riverport Drive Louisville, Kentucky 322,100 100%
Avalon Ridge Business Park Norcross, Georgia 57,400 100%
Tower Lane Business Park Bensenville, Illinois 95,900 94%
Metric Plaza Winter Park, Florida 32,000 100%
Park Center Orlando, Florida 47,400 59%
University Corporate Center Winter Park, Florida 127,800 100%
Johns Creek Office and
Industrial Park Duluth and Suwanee, Georgia 119,300 100%
Sub-Total 1,841,000 84%
OFFICE
Colonial Penn Building Tampa, Florida 79,200 100%
Commerce Center Sarasota, Florida 81,100 100%
Woodcrest Office Park Tallahassee, Florida 264,900 88%
Midwest Office Center Oakbrook Terrace, Illinois 77,000 97%
Phoenix Business Park Atlanta, Georgia 110,600 54%
Butterfield Office Plaza Oak Brook, Illinois 200,800 96%
Southlake Corporate Center Morrow, Georgia 56,200 96%
University Square Business
Center Huntsville, Alabama 184,700 87%
Technology Center Huntsville, Alabama 48,500 100%
Airways Plaza Office Center Memphis, Tennessee 87,800 24%
Peachtree Pointe Office Park Norcross, Georgia 71,700 98%
Avalon Center Office Park Norcross, Georgia 53,300 100%
Sand Lake Tech Center Orlando, Florida 84,100 74%
Technology Park Norcross, Georgia 145,700 100%
Sub-Total 1,545,600 86%
RETAIL
Northlake Tower
Shopping Center Atlanta, Georgia 321,600 98%
Total 3,708,200 86%
Scheduled Lease Expirations
7/1-12/31 After
1999 2000 2001 2001
FLEX/INDUSTRIAL
Milwaukee Industrial
Properties 18% 20% 11% 45%
Elmhurst Metro Court 15% 6% 30% 9%
Willowbrook Industrial Court 12% 23% 15% 41%
Quantum Business Centre 12% 23% 18% 30%
Lexington Business Center 2% 16% 10% 26%
Newtown Business Center 33% 4% 18% 24%
6901 Riverport Drive 0% 45% 0% 55%
Avalon Ridge Business Park 0% 0% 0% 100%
Tower Lane Business Park 23% 33% 15% 23%
Metric Plaza 0% 0% 0% 100%
Park Center 0% 9% 25% 25%
University Corporate Center 10% 49% 18% 23%
Johns Creek Office and
Industrial Park 0% 0% 50% 50%
Sub-Total 9% 22% 15% 38%
OFFICE
Colonial Penn Building 0% 100% 0% 0%
Commerce Center 0% 0% 11% 89%
Woodcrest Office Park 9% 27% 12% 40%
Midwest Office Center 18% 32% 14% 33%
Phoenix Business Park 15% 2% 13% 24%
Butterfield Office Plaza 10% 26% 16% 44%
Southlake Corporate Center 0% 9% 42% 45%
University Square Business
Center 23% 15% 25% 24%
Technology Center 0% 35% 65% 0%
Airways Plaza Office Center 0% 16% 4% 4%
Peachtree Pointe Office Park 21% 16% 15% 46%
Avalon Center Office Park 0% 0% 0% 100%
Sand Lake Tech Center 0% 0% 0% 74%
Technology Park 17% 9% 26% 48%
Sub-Total 10% 21% 16% 39%
RETAIL
Northlake Tower Shopping
Center 2% 17% 2% 77%
Total 9% 21% 14% 42%
RESIDENTIAL
Location Residential Occupancy
Units %
Country Creek Apartments Oklahoma City, Oklahoma 320 100%
Willowpark Apartments Lawton, Oklahoma 160 96%
Winchester Run Apartments Oklahoma City, Oklahoma 192 98%
Woodrun Village Apartments Yukon, Oklahoma 192 97%
Total 864 98%
PORTFOLIO TOTAL 88%
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
General, Tony Ebersole, 312-640-6728, or Analyst, Georganne
Palffy, 312-640-6768, both of The Financial Relations Board
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