Banyan Strategic Realty Trust Third Quarter Highlights*
-- Third Quarter FFO of $2.8 million, or $0.21 per share
-- Revenues of $10.5 million
-- EBITDA of $6.0 million
-- Average occupancy of portfolio 89 percent at September 30, 1999
-- Quarterly cash distribution of $0.12 per share declared
-- Total debt and equity market capitalization of $220 million at
September 30, 1999
* Per share data presented on diluted basis
CHICAGO, Nov. 10 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS), a real estate investment trust, today announced third quarter
1999 funds from operations (FFO) of $2.8 million, or $0.21 per share. The
portfolio-wide occupancy rate for the Trust's properties as of September 30,
1999 was 89 percent.
Consolidated Financial Results
For the third quarter 1999 Banyan reported net income of $1.2 million, or
$0.09 per share, on revenues of $10.5 million, and FFO of $2.8 million, or
$0.21 per share. This compared to net income of $1.4 million, or $0.10 per
share, on revenues of $10.6 million, and FFO of $2.7 million, or $0.19 per
share during the third quarter the previous year. EBITDA (earnings before
interest, tax, depreciation and amortization) in the recent quarter was
$6.0 million, an increase of seven percent over the third quarter a year ago.
For the first nine months of 1999, the company reported net income of
$3.7 million, or $0.27 per share, on revenues of $31.4 million and FFO of
$8.4 million, or $0.62 per share. In the first nine months of last year the
company reported net income of $4.0 million, or $0.29 per share, on revenues
of $28.8 million and FFO of $7.6 million, or $0.55 per share. EBITDA in the
first nine months period was $17.9 million, an increase of 16 percent from the
$15.4 million during the same period last year.
"We are pleased with our ability to grow FFO and EBITDA for both the
three-month and nine-month periods over the comparable periods a year ago,"
said Leonard G. Levine, President and CEO of Banyan. "Meanwhile, we have
maintained our cost discipline, with general and administrative costs as a
percent of total revenue declining to 10.3 percent during the first nine
months of this year from 12.0 percent a year ago."
Portfolio Performance -- Nine Months Revenue up 9 Percent
Total revenue for the first nine-month period increased nine percent to
$31.4 million from $28.8 million during the same period in the previous year.
As of September 30, 1999, the company's portfolio of 32 properties was
89 percent occupied.
Sale of Kentucky Property and Pending Sale of Oklahoma Properties
Announced
During the third quarter, the company announced it had entered into
agreements to sell Quantum Business Centre in Jefferson County, Ky., and the
Oklahoma Apartment Portfolio in Oklahoma City and Lawton, Okla., with net cash
proceeds from the combined sales expected to be approximately
$10.6 million.
The Quantum Business Centre, a multi-tenant office/warehouse property
located in suburban Louisville, was sold to a private investor for
approximately $6.1 million on November 4, 1999. The transaction yielded an
internal rate of return on the Trust's investment of approximately 15 percent,
with net cash proceeds of approximately $3.6 million.
The Oklahoma Apartment Portfolio includes four separate apartment
complexes totaling 864 units and is under contract for sale to an
institutional investor, with net cash proceeds to the Trust expected to be
approximately $7 million. The sale of the Oklahoma Apartment Portfolio is
contingent upon the bondholder's approval of the purchaser's assumption of
bonds used to finance the property. This transaction is expected to close by
year end.
Any taxable gains generated by the sale of the Quantum Business Centre and
the Oklahoma Apartment Portfolio transactions are expected to be offset by the
Trust's net operating loss carry forwards.
The Board of Trustees expects to evaluate various alternatives for the use
of the $10.6 million in proceeds from these sales once both transactions are
closed.
Balance Sheet, Market Value and Liquidity
At the end of the third quarter 1999, total debt and equity market
capitalization was $220 million. EBITDA coverage ratio for the nine-month
period ended September 30, 1999 was 2.05 to 1. The Trust had $150.4 million
of total debt outstanding as of September 30, 1999.
Quarterly Cash Distribution and Funds Available for Distribution (FAD)
On October 6, Banyan declared a quarterly cash distribution of $0.12 per
share for the third quarter ended September 30, 1999. The distribution is
payable November 22, 1999 to shareholders of record as of October 22, 1999.
Funds Available for Distribution (FAD) totaled $2.2 million for the three
months ended September 30, 1999, or $0.16 per share, and $6.8 million, or
$0.51 per share for the nine months ended September 30, 1999.
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, and
Chicago, and smaller markets such as Huntsville, Ala.; Louisville, Ky.;
Memphis, Tennessee; and Orlando, Fla. located in the Midwestern and
Southeastern United States. The Trust's current portfolio consists of 31
properties totaling 3.5 million rentable square feet and 864 apartment units.
As of this date, the Trust has 13,510,742 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 September 30,
1999 filed with the Securities and Exchange Commission on November 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
09/30/99 09/30/98 12/31/98
Total revenue $10,509 $10,552 $39,416
Operating expenses (9,180) (9,044) (33,325)
Operating income 1,329 1,508 6,091
Minority interest in consolidated
partnerships (126) (151) (572)
Extraordinary item, net of minority
interest -- -- (141)
Net income $1,203 $1,357 $5,378
Earnings per share of Beneficial
Interest -- Basic:
Income before Extraordinary Item $0.09 $0.10 $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 $0.10 $0.39
Funds from Operations
Net income $1,203 $1,357 $5,378
Plus:
Depreciation and amortization expense 1,682 1,393 5,176
Less:
Minority interest share of depreciation
and amortization expense (78) (82) (315)
Extraordinary item, net of minority
interest -- -- 141
Funds from operations $2,807 $2,668 $10,380
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
September 30, December 31,
1999 1998
Investment in Real Estate, at cost: $224,388 $220,808
Less: Accumulated Depreciation (15,847) (11,399)
208,541 209,409
Cash and Cash Equivalents 2,587 3,731
Restricted Cash 4,035 2,657
Other Assets 6,956 6,793
Total Assets $222,119 $222,590
Loans and Bonds Payable $150,395 $151,648
Other Liabilities 7,656 6,359
Minority Interest 2,180 2,149
Shareholders' Equity 61,888 62,434
Total Liabilities and Shareholders' Equity $222,119 $222,590
PORTFOLIO SUMMARY
30-Sep-99
Location Square Occupancy
Footage %
FLEX/INDUSTRIAL
Milwaukee Industrial Properties Milwaukee, Wisconsin 235,800 89%
Elmhurst Metro Court Elmhurst, Illinois 140,800 72%
Willowbrook Industrial Court Willowbrook, Illinois 84,300 91%
Quantum Business Centre Louisville, Kentucky 182,300 91%
Lexington Business Center Lexington, Kentucky 308,800 70%
Newtown Business Center Lexington, Kentucky 87,100 80%
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 88%
Metric Plaza Winter Park, Florida 32,000 100%
Park Center Orlando, Florida 47,400 80%
University Corporate Center Winter Park, Florida 127,800 84%
Johns Creek Office and Duluth and Suwanee,
Industrial Park Georgia 119,300 100%
Sub-Total 1,841,000 87%
OFFICE
Colonial Penn Building Tampa, Florida 79,200 100%
Commerce Center Sarasota, Florida 81,100 100%
Woodcrest Office Park Tallahassee, Florida 264,900 90%
Midwest Office Center Oakbrook Terrace,
Illinois 77,000 94%
Phoenix Business Park Atlanta, Georgia 110,600 57%
Butterfield Office Plaza Oak Brook, Illinois 200,800 96%
Southlake Corporate Center Morrow, Georgia 56,200 87%
University Square Business
Center Huntsville, Alabama 184,700 89%
Technology Center Huntsville, Alabama 48,500 100%
Airways Plaza Office Center Memphis, Tennessee 87,800 26%
Peachtree Pointe Office Park Norcross, Georgia 71,700 90%
Avalon Center Office Park Norcross, Georgia 53,300 100%
Sand Lake Tech Center Orlando, Florida 84,100 77%
Technology Park Norcross, Georgia 145,700 100%
Sub-Total 1,545,600 87%
RETAIL
Northlake Tower Shopping Center Atlanta, Georgia 321,600 97%
Total 3,708,200 88%
RESIDENTIAL
Location Residential Occupancy
Units %
Country Creek Apartments Oklahoma City, Oklahoma 320 96%
Willowpark Apartments Lawton, Oklahoma 160 91%
Winchester Run Apartments Oklahoma City, Oklahoma 192 97%
Woodrun Village Apartments Yukon, Oklahoma 192 98%
Total 864 96%
PORTFOLIO TOTAL 89%
Scheduled Lease Expirations
10/31-12/31 After
1999 2000 2001 2001
FLEX/INDUSTRIAL
Milwaukee Industrial Properties 11% 20% 11% 47%
Elmhurst Metro Court 14% 12% 30% 16%
Willowbrook Industrial Court 3% 26% 17% 45%
Quantum Business Centre 4% 26% 18% 43%
Lexington Business Center 1% 16% 10% 43%
Newtown Business Center 5% 5% 37% 33%
6901 Riverport Drive 0% 45% 0% 55%
Avalon Ridge Business Park 0% 0% 0% 100%
Tower Lane Business Park 7% 33% 15% 33%
Metric Plaza 0% 0% 0% 100%
Park Center 0% 9% 25% 46%
University Corporate Center 5% 20% 33% 26%
Johns Creek Office and Industrial Park 0% 0% 50% 50%
Sub-Total 4% 21% 17% 45%
OFFICE
Colonial Penn Building 0% 28% 0% 72%
Commerce Center 0% 0% 11% 89%
Woodcrest Office Park 9% 28% 12% 41%
Midwest Office Center 12% 30% 13% 39%
Phoenix Business Park 0% 2% 13% 42%
Butterfield Office Plaza 5% 27% 16% 48%
Southlake Corporate Center 0% 9% 32% 46%
University Square Business Center 11% 19% 25% 34%
Technology Center 0% 35% 65% 0%
Airways Plaza Office Center 0% 16% 4% 6%
Peachtree Pointe Office Park 13% 16% 15% 46%
Avalon Center Office Park 0% 0% 0% 100%
Sand Lake Tech Center 0% 0% 0% 77%
Technology Park 17% 9% 26% 48%
Sub-Total 6% 18% 16% 47%
RETAIL
Northlake Tower Shopping Center 2% 17% 2% 76%
Total 5% 19% 15% 49%
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
ir@banyanreit.com, or General, Tony Ebersole, 312-640-6728, or
Analysts, Georganne Palffy, 312-640-6768, both of The Financial
Relations Board for Banyan Strategic Realty Trust
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