CHICAGO, Aug. 14 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS) announced today that for the quarter ending June 30, 2001, its
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. The decrease was primarily the result of the Trust's
initial liquidating distribution of $4.75 per share on June 28, 2001,
amounting to $73.6 million. Offsetting this decrease were approximately
$25.8 million of gains on the Trust's disposition of 24 of its 27 properties
on May 17, 2001 (net of minority interests of $6.5 million), operating income
in the amount of approximately $1.0 million and interest on cash and cash
equivalents of approximately $0.4 million, reduced by depreciation expense of
approximately $1.0 million.
For the three months ending June 30, 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 June
30, 2001.
For the six months ending June 30, 2001, the Trust's 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. The decrease was primarily the result of distributions to shareholders
of $74.2 million including the Trust's initial liquidating distribution of
$4.75 per share on June 28, 2001, amounting to $73.6 million. Offsetting this
decrease were gains on the disposition Trust's sale of 24 of its 27 properties
on May 17, 2001 (net of minority interests of $6.5 million) of approximately
$25.8 million, 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 $0.5 million of interest on cash and cash equivalents,
reduced by depreciation expense of approximately $2.6 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 six months ending June 30, 2000, the Trust reported Net Income
Available to Common Shares of approximately $2.1 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 six months ending June
30, 2001.
Banyan added that after making its initial liquidating distribution of
$4.75 per share, it has established reserves that it expects will cover
contingent liabilities related to pending litigation, liquidation costs and
the net costs of operating the Trust through its final liquidation which is
anticipated to occur during the third or fourth quarter of 2002. The Trust
anticipates that it will make additional liquidating distributions from excess
of reserves as additional assets are sold or contingent liabilities are
reduced or eliminated. The Trust currently estimates that it will make
additional distribution(s) of approximately $1.25 per share and that the total
amount of liquidating distributions that will be made pursuant to its Plan of
Termination and Liquidation (including the initial liquidating distribution of
$4.75 per share) remains at approximately $6.00 per share.
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 six and three months ending June 30, 2001 are reported on
the Consolidated Statement of Changes in Net Assets in Liquidation while the
June 30, 2000 results are reported on a going concern basis on the
Consolidated Statement of Operations. The financial statement presentations
differ materially 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.
Banyan Strategic Realty Trust is an equity Real Estate Investment Trust
(REIT). Its current portfolio consists of interests in three properties
totaling 828,400 rentable square feet. As of this date, Banyan 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 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 June 30, 2001
which was filed with the Securities and Exchange Commission on August 14,
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 .
SOURCE Banyan Strategic Realty Trust
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Related links:
http://www.banyanreit.com
CONTACT:
Robert G. Higgins, 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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