CHICAGO, Nov. 14 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS) announced today that due primarily to a $0.20 per share
liquidating distribution, for the quarter ended September 30, 2001 its Net
Assets in Liquidation decreased by approximately $3.8 million from
approximately $18.1 million at June 30, 2001 to approximately $14.3 million at
September 30, 2001. The distribution of $0.20 per share, amounting to
$3.1 million, was payable to shareholders of record on September 24, 2001 and
was paid on October 24, 2001. This was the Trust's second liquidating
distribution, raising the total per share distribution to $4.95 per share thus
far. Also contributing to the decrease in Net Assets in Liquidation was an
operating loss of $0.3 million, depreciation expense of $0.3 million and
minority interest of $0.2 million offset by $0.2 million of interest income on
cash and cash equivalents.
For the three months ended September 30, 2000, the Trust reported Net Loss
Available to Common Shares of approximately $0.7 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
September 30, 2001.
For the nine months ended September 30, 2001, the Trust's Net Assets in
Liquidation decreased by approximately $49.9 million from approximately
$64.2 million at December 31, 2000 to approximately $14.3 million at September
30, 2001. The decrease was primarily the result of distributions paid and
payable to shareholders of $77.3 million including the Trust's initial
liquidating distribution of $4.75 per share on June 28, 2001, amounting to
$73.6 million and the Trust's second liquidating distribution of $0.20 per
share, amounting to $3.1 million. Offsetting this decrease were gains on the
Trust's sale of 24 of its 27 properties on May 17, 2001 (net of minority
interests of $6.4 million) of approximately $25.8 million, operating income in
the amount of approximately $3.1 million, recovery of losses on loans, notes
and interest receivable of approximately $0.9 million and $0.6 million of
interest on cash and cash equivalents, reduced by depreciation expense of
approximately $2.9 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 nine months ended September 30, 2000, the Trust reported Net
Income Available to Common Shares of approximately $1.3 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 nine months ended
September 30, 2001.
Status of Real Estate Asset Sales
As of September 30, 2001, Banyan owned three properties; Northlake Tower
Festival Shopping Center in Atlanta, Georgia; University Square Business
Center in Huntsville, Alabama and 6901 Riverport Drive in Louisville,
Kentucky. In accordance with the Amended Purchase and Sale Agreement with
affiliates of Denholtz Management Corporation ("Denholtz"), under which Banyan
previously sold 24 of its 27 properties to Denholtz, University Square is
under contract of sale to Denholtz with a required closing date of December
19, 2001 and 6901 Riverport Drive and the Northlake Tower Festival Shopping
Center can be "put" to Denholtz upon 90 days notice. As of today's date, the
Trust has not elected to "put" either 6901 Riverport Drive or the Northlake
Tower Festival Shopping Center to Denholtz.
If Denholtz defaults any of its obligations with respect to its purchase
of these three properties, it will forfeit to Banyan, $1 million in earnest
money now held in escrow, and all of Denholtz's obligations to purchase and
Banyan's obligations to sell the remaining properties will then be
extinguished. The Trust, in turn, will then be required to market and sell
the properties to other parties. Since Banyan's adoption of its Plan of
Termination and Liquidation, the condition of the United States economy in
general and in the real estate markets in which its properties are located, in
particular, has weakened. Accordingly, if Denholtz defaults, there can be no
assurance, in light of these unforeseen market developments, that Banyan will
be able to complete its Plan of Termination and Liquidation within the time
period previously projected or that it will achieve sales prices for its
properties sufficient to allow it to make the distributions in the amount
previously anticipated.
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 nine and three months ended September 30, 2001 are reported
on the Consolidated Statement of Changes in Net Assets in Liquidation while
the September 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 September 30, 2001
which was filed with the Securities and Exchange Commission on November 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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