Banyan Strategic Realty Trust Second Quarter Summary*
-- Second Quarter FFO of $2.8 million, or $0.18 per share vs. $2.8 million
or $0.205 per share for the second quarter last year
-- Revenues of $9.4 million vs. $10.5 million for the second quarter last
year
-- EBITDA of $5.4 million vs. $6.0 million for the second quarter last
year
-- Average occupancy of portfolio 88% at June 30, 2000 and 1999
-- Quarterly cash distribution of $0.12 per share declared
*Per share data presented on diluted basis
CHICAGO, Aug. 17 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS), a real estate investment trust, today announced second
quarter 2000 diluted funds from operations (FFO) of $2.8 million or $0.18 per
share.
Consolidated Financial Results
For the second quarter 2000 Banyan reported net income available to common
shareholders of $1.0 million, or $0.07, on revenues of $9.4 million and FFO of
$2.8 million or $0.18 per share. This compared to net income of $1.2 million,
or $0.09 per share, on revenues of $10.5 million and FFO of $2.8 million or
$0.20 per share during the second quarter the previous year. EBITDA (earnings
before interest, tax, depreciation and amortization) was $5.4 million for the
quarter ended June 30, 2000.
Portfolio Performance
Total revenue for the second quarter 2000 was $9.4 million, which
represents a decrease of approximately 10 percent from the $10.5 million in
revenue reported during the same period last year. This decrease is due to a
reduction in the number of properties owned by Banyan during the second
quarter 2000.
However, on a same-store basis when comparing the operational results of
the same properties owned by Banyan during the second quarter 2000 with the
same period last year, total revenues increased approximately $0.2 million as
a result of an increase in rental rates.
The average occupancy at Banyan's 27 properties was 88 percent at
June 30, 2000.
During the final six months of 2000, leases for approximately ten percent
(10%) of the Trust's leasable square footage will expire. Although vacancy
may increase temporarily, we believe that at most properties this lease "roll-
over" is routine and the underlying space will either be released at market
rental rates to either the existing or a new tenant (generally within a three
to six month period). The most significant lease expiration has already
occurred at 6901 Riverport Drive where a tenant occupying approximately
145,000 square feet vacated on July 31, 2000 dropping the Trust's portfolio
occupancy to 84% from 88%. We are in the process of marketing this space but
have not located a new tenant and are unable to predict how long it will take
to do so. Our total revenues may be adversely affected if the space remains
vacant for an extended period of time.
Balance Sheet
As of June 30, 2000 total debt and equity market capitalization was
approximately $207 million. EBITDA coverage ratio for the three-month period
ended June 30, 2000 was 2.40 to 1. The Trust had approximately $119 million
of total debt outstanding as of June 30, 2000.
Quarterly Cash Distribution/Funds Available for Distribution
On July 14, 2000 Banyan declared a quarterly cash distribution of $0.12
per share for the second quarter ended June 30, 2000. The distribution is
payable August 21, 2000 to shareholders of record as of July 21, 2000.
Funds Available for Distribution (FAD) totaled $2.4 million for the three
months ended June 30, 2000, or $0.16 per share. This compared to FAD of
$2.3 million or $0.17 per share for the same period last year.
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. The Trust's current portfolio
consists of 27 properties totaling 3.5 million rentable square feet. As of
this date the Trust has 14,202,414 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, 1999. 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, 2000
which was filed with the Securities and Exchange Commission on
August 14, 2000. 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
6/30/00 6/30/99 12/31/99
Total Revenue $9,460 $10,483 $41,716
Operating Expenses (8,118) (9,115) (36,597)
Operating Income 1,342 1,368 5,119
Minority Interest in Consolidated
Partnerships (147) (141) (538)
Net Gains on Disposition of
Real Estate -- -- 4,089
Extraordinary Item, Net of
Minority Interest -- -- (183)
Net Income $1,195 $1,227 $8,487
Less Income Attributable to
Preferred Shares $(153) -- --
Net Income Available to
Common Shares $1,042 $1,227 $8,487
Basic and Diluted Earnings
Available to Common Shares Per
Weighted-Average Common Share:
Income Before Net Gains and
Extraordinary Item $0.07 $0.09 $0.34
Net Income $0.07 $0.09 $0.63
Weighted Average Basic
Shares 14,181,101 13,449,337 13,468,514
Weighted Average Diluted
Shares 14,191,737 13,455,717 13,475,072
Funds from Operations
Net Income Attributable to
Common Shares $1,042 $1,227 $8,487
Add:
Depreciation and Amortization
Expense 1,702 1,650 6,629
Less:
Minority Interest Share of
Depreciation and Amortization
Expense (90) (92) (309)
Net Gain on Disposition of
Real Estate -- -- (4,089)
Extraordinary Item, Net of
Minority Interest -- -- 183
Funds From Operation - Basic $2,654 $2,785 $10,901
Add:
Preferred Dividend 153 -- --
Funds From Operation - Diluted $2,807 $2,785 $10,901
Weighted Average Basic
Shares 14,181,101 13,449,337 13,468,514
Weighted Average Diluted
Shares 15,387,318 13,455,717 13,475,072
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
June 30, December 31,
2000 1999
Investment in Real Estate, at cost: $201,817 $199,264
Less: Accumulated Depreciation (18,352) (15,420)
183,465 183,844
Cash and Cash Equivalents 4,534 13,097
Restricted Cash 2,672 2,668
Other Assets 7,338 7,038
Total Assets $198,009 $206,647
Loans and Bonds Payable $118,714 $132,681
Other Liabilities 6,552 6,415
Minority Interest 2,375 2,256
Shareholders' Equity 70,368 65,295
Total Liabilities and Shareholders' Equity $198,009 $206,647
PORTFOLIO SUMMARY
Scheduled Lease
Expirations
7/1-12/31
Location Square Footage Occupancy % 2000
FLEX/
INDUSTRIAL
Milwaukee
Industrial
Properties Milwaukee, WI 235,800 92% 9%
Elmhurst Metro
Court Elmhurst, IL 140,800 66% 3%
Willowbrook
Industrial
Court Willowbrook, IL 84,300 97% 17%
Lexington
Business
Center Lexington, KY 308,800 69% 0%
Newtown
Business
Center Lexington, KY 87,100 99% 4%
6901
Riverport
Drive Louisville, KY 322,100 100% 45%
Avalon Ridge
Business
Park Norcross, GA 57,400 100% 0%
Tower Lane
Business
Park Bensenville, IL 95,900 84% 15%
Metric Plaza Winter Park, FL 32,000 100% 0%
Park Center Orlando, FL 47,400 90% 9%
University
Corporate
Center Winter Park, FL 127,800 77% 7%
Johns Creek
Office and
Industrial
Park Duluth and
Suwanee, GA 119,300 100% 0%
Sub-Total 1,658,700 87% 13%
OFFICE
Colonial Penn
Building Tampa, FL 79,200 72% 0%
Commerce
Center Sarasota, FL 81,100 100% 0%
Woodcrest
Office Park Tallahassee, FL 264,900 93% 12%
Midwest Office
Center Oakbrook Terrace,
IL 77,000 97% 18%
Phoenix
Business
Park Atlanta, GA 110,600 100% 0%
Butterfield
Office Plaza Oak Brook, IL 200,800 91% 10%
Southlake
Corporate
Center Morrow, GA 56,200 89% 3%
University
Square
Business
Center Huntsville, AL 184,700 91% 17%
Technology
Center Huntsville, AL 48,500 65% 0%
Airways
Plaza Office
Center Memphis, TN 87,800 17% 0%
Peachtree
Pointe Office
Park Norcross, GA 71,700 84% 24%
Avalon Center
Office Park Norcross, GA 53,300 87% 0%
Sand Lake
Tech Center Orlando, FL 84,100 100% 0%
Technology
Park Norcross, GA 145,700 100% 13%
Sub-Total 1,545,600 88% 9%
RETAIL
Northlake Tower
Shopping
Center Atlanta, GA 321,600 97% 1%
Total 3,525,900 88% 10%
PORTFOLIO SUMMARY (cont.)
Scheduled Lease Expirations
Location 2001 2002 After 2002
Milwaukee
Industrial
Properties Milwaukee, WI 16% 32% 35%
Elmhurst Metro
Court Elmhurst, IL 37% 12% 14%
Willowbrook
Industrial
Court Willowbrook, IL 22% 31% 27%
Lexington
Business
Center Lexington, KY 9% 5% 55%
Newtown
Business
Center Lexington, KY 37% 16% 42%
6901
Riverport
Drive Louisville, KY 0% 0% 55%
Avalon Ridge
Business
Park Norcross, GA 0% 0% 100%
Tower Lane
Business
Park Bensenville, IL 21% 30% 18%
Metric Plaza Winter Park, FL 0% 69% 31%
Park Center Orlando, FL 25% 31% 25%
University
Corporate
Center Winter Park, FL 33% 23% 14%
Johns Creek
Office and
Industrial
Park Duluth and
Suwanee, GA 0% 50% 50%
Sub-Total 15% 18% 41%
OFFICE
Colonial Penn
Building Tampa, FL 0% 0% 72%
Commerce
Center Sarasota, FL 11% 5% 84%
Woodcrest
Office Park Tallahassee, FL 17% 20% 44%
Midwest Office
Center Oakbrook Terrace,
IL 19% 32% 28%
Phoenix
Business
Park Atlanta, GA 4% 18% 78%
Butterfield
Office Plaza Oak Brook, IL 21% 39% 21%
Southlake
Corporate
Center Morrow, GA 32% 38% 16%
University
Square
Business
Center Huntsville, AL 25% 24% 25%
Technology
Center Huntsville, AL 0% 0% 65%
Airways
Plaza Office
Center Memphis, TN 4% 3% 10%
Peachtree
Pointe Office
Park Norcross, GA 13% 9% 38%
Avalon Center
Office Park Norcross, GA 0% 0% 87%
Sand Lake
Tech Center Orlando, FL 0% 3% 97%
Technology
Park Norcross, GA 28% 4% 55%
Sub-Total 15% 17% 47%
RETAIL
Northlake Tower
Shopping
Center Atlanta, GA 2% 7% 87%
Total 14% 17% 47%
SOURCE Banyan Strategic Realty Trust
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Related links:
http://www.banyanreit.com
CONTACT:
Karen Dickelman, Investor Relations for
Banyan Strategic Realty Trust, 312-683-3761; or General
Inquiries, Leslie Hunziker, 312-640-6760, or Analyst Inquiries,
Georganne Palffy, 312-640-6768, of The Financial Relations Board,
for Banyan Strategic Realty Trust
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