Banyan Strategic Realty Trust Second Quarter Summary*
-- Third Quarter FFO of $0.9 million, or $0.065 per share vs.
$2.8 million or $0.21 per share for the third quarter last year
-- Third Quarter charge of $1.6 million or $0.115 per share for severance
and termination costs
-- Revenues of $9.3 million vs. $10.5 million for the third quarter last
year
-- EBITDA of $3.6 million vs. $6.0 million for the third quarter last
year
-- Average occupancy of portfolio 84% at September 30, 2000 vs. 89% last
year
-- Quarterly cash distribution of $0.12 per share declared
*Per share data presented on diluted basis
CHICAGO, Nov. 15 /PRNewswire/ -- Banyan Strategic Realty Trust
(Nasdaq: BSRTS), a real estate investment trust, today announced third quarter
2000 funds from operations (FFO) of $0.9 million or $0.065 per share.
Consolidated Financial Results
For the third quarter 2000 Banyan reported a net loss available to common
shareholders of $0.7 million, or $0.05 per share, on revenues of $9.3 million
and FFO of $0.9 million or $0.065 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 $0.21 per share during the third quarter the previous year.
EBITDA (earnings before interest, tax, depreciation and amortization) was
$3.6 million for the quarter ended September 30, 2000, compared to
$6.0 million for the third quarter last year.
Severance and Termination Costs
In September 2000, in view of its strategic direction, the Trust adopted
an employee severance and retention program. It has terminated certain
employees and will continue to review its staffing needs in the future. The
total expenses for the nine and three months ended September 30, 2000 include
a charge of approximately $1.6 million or $0.115 per diluted share related to
the severance and retention program.
Portfolio Performance
Total revenue for the third quarter 2000 was $9.3 million, which
represents a decrease of approximately 11.4 percent from the $10.5 million in
revenue reported during the same period last year.
The decline in revenue is primarily due to a reduction in the number of
properties owned by Banyan during the third quarter 2000. However, on a
same-store basis when comparing the operational results of the same properties
owned by Banyan during the third quarter 2000 with the same period last year,
total revenues remained unchanged.
The average occupancy at Banyan's 27 properties was 84 percent at
September 30, 2000. This represents a decrease from 88% as of June 30, 2000
which is primarily due to increased vacancy at the Trust's industrial property
at 6901 Riverport Drive where a tenant occupying approximately 145,000 square
feet did not renew its lease.
Balance Sheet
As of September 30, 2000 total debt and equity market capitalization was
approximately $210 million. EBITDA coverage ratio for the three-month period
ended September 30, 2000 was 1.60 to 1. The Trust had approximately
$118 million of total debt outstanding as of September 30, 2000.
Quarterly Cash Distribution/Funds Available for Distribution
On October 16, 2000 Banyan declared a quarterly cash distribution of
$0.12 per share for the third quarter ended September 30, 2000. The
distribution is payable November 28, 2000 to shareholders of record as of
October 27, 2000.
Funds Available for Distribution (FAD) totaled $0.6 million for the three
months ended September 30, 2000, or $0.04 per share. This compared to FAD of
$2.2 million or $0.16 per share for the same period last year. The primary
factor contributing to the reduced FAD for the quarter ended September 30,
2000 is related to severance and termination costs of approximately
$1.6 million incurred during the period.
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 14,245,649 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 September 30, 2000
which was filed with the Securities and Exchange Commission on November 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
09/30/2000 09/30/2000 12/31/1999
Total Revenue $9,285 $10,509 $41,716
Operating Expenses (9,742) (9,180) (36,597)
Operating Income (Loss) (457) 1,329 5,119
Minority Interest in
Consolidated Partnerships (130) (126) (538)
Net Gains on Disposition
of Real Estate -- 4,089
Extraordinary Item, Net of
Minority Interest -- -- (183)
Net Income (Loss) $(587) $ 1,203 $8,487
Less Income Attributable to
Preferred Shares $(155) -- --
Net Income (Loss) Available to
Common Shares $(742) $ 1,203 $8,487
Basic and Diluted Earnings
Available to Common Shares Per
Weighted-Average Common Share:
Income (Loss) Before Net Gains
& Extraordinary Item $(0.05) $0.09 $0.34
Net Income (Loss) $(0.05) $0.09 $0.63
Weighted Average
Basic Shares 14,217,926 13,488,570 13,468,514
Weighted Average
Diluted Shares 14,223,952 13,496,940 13,475,072
Funds from Operations
Net Income (Loss) Available
to Common Shares $(742) $1,203 $8,487
Add:
Depreciation and Amortization
Expense 1,760 1,682 6,629
Less:
Minority Interest Share of
Depreciation and
Amortization Expense (93) (78) (309)
Net Gain on Disposition
of Real Estate -- -- (4,089)
Extraordinary Item, Net of
Minority Interest -- -- 183
Funds From Operation
- Basic and Diluted $925 $2,807 $10,901
Weighted Average
Basic Shares 14,217,926 13,488,570 13,468,514
Weighted Average
Diluted Shares 14,223,952 13,496,940 13,475,072
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
September 30, December 31,
2000 1999
Investment in Real Estate, at cost: $203,685 $199,264
Less: Accumulated Depreciation (19,898) (15,420)
183,787 183,844
Cash and Cash Equivalents 3,209 13,097
Restricted Cash 2,858 2,668
Other Assets 7,185 7,038
Total Assets $197,039 $206,647
Loans and Bonds Payable $118,342 $132,681
Other Liabilities 8,188 6,415
Minority Interest 2,371 2,256
Shareholders' Equity 68,138 65,295
Total Liabilities and Shareholders' Equity $197,039 $206,647
PORTFOLIO SUMMARY
Location Square Occupancy
Footage %
FLEX/INDUSTRIAL
Milwaukee Industrial
Properties Milwaukee, Wisconsin 235,800 90%
Elmhurst Metro Court Elmhurst, Illinois 140,800 76%
Willowbrook Industrial
Court Willowbrook, Illinois 84,300 99%
Lexington Business
Center Lexington, Kentucky 308,800 69%
Newtown Business
Center Lexington, Kentucky 87,100 99%
6901 Riverport Drive Louisville, Kentucky 322,100 55%
Avalon Ridge Business
Park Norcross, Georgia 57,400 100%
Tower Lane Business
Park Bensenville, IIlinois 95,900 84%
Metric Plaza Winter Park, Florida 32,000 100%
Park Center Orlando, Florida 47,400 90%
University Corporate
Center Winter Park, Florida 127,800 76%
Johns Creek Office
and Industrial Park Duluth and Suwanee, Georgia 119,300 100%
Sub-Total 1,658,700 79%
OFFICE
Colonial Penn Building Tampa, Florida 79,200 72%
Commerce Center Sarasota, Florida 81,100 100%
Woodcrest Office Park Tallahassee, Florida 264,900 91%
Midwest Office Center Oakbrook Terrace, Illinois 77,000 97%
Phoenix Business Park Atlanta, Georgia 110,600 100%
Butterfield Office Plaza Oak Brook, Illinois 200,800 89%
Southlake Corporate
Center Morrow, Georgia 56,200 97%
University Square
Business Center Huntsville, Alabama 184,700 89%
Technology Center Huntsville, Alabama 48,500 100%
Airways Plaza Office
Center Memphis, Tennessee 87,800 17%
Peachtree Pointe
Office Park Norcross, Georgia 71,700 77%
Avalon Center
Office Park Norcross, Georgia 53,300 87%
Sand Lake Tech Center Orlando, Florida 84,100 100%
Technology Park Norcross, Georgia 145,700 100%
Sub-Total 1,545,600 88%
RETAIL
Northlake Tower
Shopping Center Atlanta, Georgia 321,600 97%
Total 3,525,900 84%
Scheduled Lease Expirations
10/1-12/31 After
2000 2001 2002 2002
FLEX/INDUSTRIAL
Milwaukee Industrial
Properties 5% 16% 36% 33%
Elmhurst Metro
Court 0% 39% 12% 25%
Willowbrook
Industrial Court 10% 26% 31% 32%
Lexington Business
Center 0% 9% 5% 55%
Newtown Business
Center 2% 39% 16% 42%
6901 Riverport
Drive 0% 0% 0% 55%
Avalon Ridge
Business Park 0% 0% 0% 100%
Tower Lane Business
Park 5% 21% 30% 28%
Metric Plaza 0% 0% 69% 31%
Park Center 9% 25% 31% 25%
University Corporate
Center 7% 33% 22% 14%
Johns Creek Office
and Industrial Park 0% 0% 50% 50%
Sub-Total 2% 15% 19% 43%
OFFICE
Colonial Penn
Building 0% 0% 0% 72%
Commerce Center 0% 11% 5% 84%
Woodcrest Office
Park 6% 20% 20% 45%
Midwest Office
Center 14% 23% 32% 28%
Phoenix Business Park 0% 4% 18% 78%
Butterfield Office
Plaza 2% 21% 39% 27%
Southlake Corporate
Center 0% 32% 38% 27%
University Square
Business Center 7% 26% 24% 32%
Technology Center 0% 0% 0% 100%
Airways Plaza
Office Center 0% 4% 3% 10%
Peachtree Pointe
Office Park 13% 13% 9% 42%
Avalon Center
Office Park 0% 0% 0% 87%
Sand Lake Tech
Center 0% 0% 3% 97%
Technology Park 13% 28% 4% 55%
Sub-Total 5% 16% 17% 50%
RETAIL
Northlake Tower
Shopping Center 1% 2% 7% 87%
Total 3% 14% 17% 50%
SOURCE Banyan Strategic Realty Trust
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Related links:
http://www.banyanreit.com
CONTACT:
Robert G. Higgins, Vice President, General
Counsel, 312-683-5539, email, bhiggins@banyanreit.com, or Karen
Dickelman, Investor Relations, 312-683-3671, email,
ir@banyanreit.com, both of Banyan Strategic Realty Trust
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