CHICAGO, Aug. 13 /PRNewswire-FirstCall/ -- Banyan Strategic Realty Trust
(OTC Bulletin Board: BSRTS) announced today that for the quarter ended June
30, 2002, its Net Assets in Liquidation decreased by approximately
$8.1 million, from approximately $12.1 million at March 31, 2002, to
approximately $4.0 million at June 30, 2002. The decrease was primarily due
to distributions that were paid and payable to shareholders during the quarter
in the amount of approximately $7.7 million and an operating loss of
approximately $0.7 million. This amount was partially offset by net gain on
the disposition of investment in real estate held for sale of approximately
$0.2 million and approximately $0.1 million of interest income on cash and
cash equivalents.
For the three months ended June 30, 2001, the Trust reported that Net
Assets in Liquidation decreased by approximately $47.3 million, from
approximately $65.4 million at March 31, 2001, to approximately $18.1 million
at June 30, 2001. This decrease was primarily due to the Trust's initial
liquidating distribution to shareholders of $4.75 per share, or $73.6 million,
offset by the gain of approximately $25.8 million (net of minority interest of
$6.4 million) from the sale of 27 of its 30 properties on May 17, 2001. Also
offsetting the reduction in net assets in liquidation were operating income in
the amount of approximately $1.0 million, and interest on cash and cash
equivalents and employee notes of approximately $0.5 million, reduced by
depreciation expense of approximately $1.0 million. These results are not
comparable to the results for the quarter ended June 30, 2002.
For the six months ended June 30, 2002 the Trust's Net Assets in
Liquidation decreased by approximately $8.4 million, from approximately
$12.4 million at December 31, 2001, to approximately $4.0 million at June 30,
2002. The decrease was due primarily to distributions that were paid and
payable to shareholders during the six months in the amount of approximately
$7.7 million, an operating loss of approximately $1.0 million and minority
interest of approximately $0.1 million offset by net gain on the disposition
of investment in real estate held for sale of approximately $0.2 million and
approximately $0.2 million of interest income on cash and cash equivalents.
For the six months ended June 30, 2001, the Trust reported that Net Assets
in Liquidation decreased by approximately $46.1 million, from approximately
$64.2 million at December 31, 2000, to approximately $18.1 million at June 30,
2001. This decrease was primarily due to total distributions paid to
shareholders of $74.2 million including the Trust's initial liquidating
distribution, described above, offset by the gain of approximately
$25.8 million (net of minority interest of $6.4 million) from the sale of 27
of its 30 properties on May 17, 2001. Also offsetting the reduction in net
assets in liquidation were operating income in the amount of approximately
$3.5 million, recovery of losses on loans, notes and interest receivable of
approximately $0.9 million and interest on cash and cash equivalents of
approximately $0.5 million, reduced by depreciation expense of approximately
$2.6 million. These results are not comparable to the results for the six
months ended June 30, 2002.
Status of Real Estate Asset Sales
On May 2, 2002, the Trust announced that it had signed a contract to sell
its Tucker (Atlanta), Georgia property, known as Northlake Tower Festival
Mall, for a gross purchase price of $20.5 million. If the transaction closes
at the contract price, the Trust expects to realize net proceeds of
approximately $3.35 million, or approximately $0.215 per share, after
crediting the Purchaser the amount of the existing Northlake debt
(approximately $16.8 million) and paying related closing costs and prorations
(expected to be approximately $0.35 million). The sale transaction is
currently scheduled to close on September 17, 2002, but remains subject to the
buyer's ability to assume the existing debt on the property.
Nasdaq Delisting
As previously announced on July 11, 2002, representatives of the Nasdaq
Listing Qualifications Panel notified the Trust that Banyan's June 20, 2002
appeal of a determination to delist Banyan's shares of beneficial interest had
been denied. Accordingly, the Trust consented to a delisting of its shares as
of the opening of the market on July 12, 2002. Also previously announced,
Banyan was first notified on February 15, 2002, that it would be subject to
delisting if the closing price of its shares did not exceed the $1.00 minimum
bid price for ten consecutive trading days during the 90-day period ending on
May 15, 2002. In May, Nasdaq notified Banyan of the imminent delisting, which
Banyan appealed.
Banyan shares may now be quoted on the Over the Counter Bulletin Board
("OTCBB"), but there can be no assurance that a market will continue to exist
for the shares. Investors do not have direct access to the OTCBB and must
contact a broker/dealer to trade OTCBB securities. Further information about
the OTCBB is available at http://www.otcbb.com .
Banyan Strategic Realty Trust is an equity Real Estate Investment Trust
(REIT) that adopted a Plan of Termination and Liquidation on January 5, 2001.
On May 17, 2001, the Trust sold approximately 85% of its portfolio in a single
transaction. Additional properties were sold on April 1, 2002 and May 1,
2002. Banyan now owns a leasehold interest in one (1) real estate property
located in Atlanta, Georgia, representing approximately 9% of its original
portfolio. Since adopting the Plan of Termination and Liquidation, Banyan has
made liquidating distributions totaling $5.45 per share. As of this date, the
Trust has 15,496,806 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 sale of the Trust's
remaining property, the amount of the remaining liquidating distributions, the
outcome of pending litigation and other risks and uncertainties that are
detailed from time to time in the Trust's reports filed with the Securities
and Exchange Commission, including the report on Form 10-K for the year ended
December 31, 2001 which was filed with the Securities and Exchange Commission
on March 21, 2002. Please also see the "Management's Discussion and Analysis
of Financial Condition and Results of Operations" section that was included in
our Form 10-Q for the quarter ended June 30, 2002 which was filed with the
Securities and Exchange Commission on August 9, 2002. 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 .
SOURCE Banyan Strategic Realty Trust
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Related links:
http://www.banyanreit.com
CONTACT:
Robert G. Higgins, First Vice President,
General Counsel, +1-630-218-7255, bhiggins@banyanreit.com , or
Investor Relations, L.G. Schafran, Chairman and Interim
CEO-President, +1-630-218-7250, ir@banyanreit.com , both of
Banyan Strategic Realty Trust
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