EXHIBIT 99.14
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AT THE TRUST: AT THE FINANCIAL RELATIONS BOARD:
Karen Dickelman Tony Ebersole Georganne Palffy
Director - Investor General Info. Analyst Inquiries
Relations
312 683-3671 312 640-6728 312 640-6768
www.banyanreit.com
email: ir@banyanreit.com
FOR IMMEDIATE RELEASE
WEDNESDAY, FEBRUARY 23, 2000
BANYAN STRATEGIC REALTY TRUST REPORTS $0.19 FFO PER SHARE FOR
FOURTH QUARTER; COHEN FINANCIAL RETAINED TO EVALUATE TRUST'S
PROPERTIES
BANYAN STRATEGIC REALTY TRUST FOURTH QUARTER/FISCAL 1999 HIGHLIGHTS *
. Fourth Quarter FFO of $2.5 million, or $0.19 per share; full year
1999 FFO of $0.81 per share
. Annual cash distribution of $0.48 per share, with quarterly cash
distribution of $0.12 per share declared January 10, 2000
. Fourth Quarter Revenues of $10.3 million
. Fourth quarter EBITDA of $5.7 million/full year EBITDA of $23.6
million
. Disposition of assets during the year nets company $10.8 million in
cash proceeds
. Average occupancy rate of portfolio 88 percent at December 31, 1999
. Total debt and equity market capitalization of $214 million at
December 31, 1999
* Per share data presented on diluted basis
CHICAGO, FEBRUARY 23, 2000 - BANYAN STRATEGIC REALTY TRUST (Nasdaq: BSRTS),
a real estate investment trust, today announced 1999 funds from operations
of $10.9 million, or $0.81 per share. Fourth quarter FFO was $2.5 million,
or $0.19 per share. The portfolio-wide occupancy rate for the Trust's
properties as of December 31, 1999 was 88 percent.
CONSOLIDATED FINANCIAL RESULTS
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For the fourth quarter 1999 Banyan reported net income of $4.8 million, or
$0.36 per share, on revenues of $10.3 million, and FFO of $2.5 million, or
$0.19 per share. Fourth Quarter 1999 income before net gains and
extraordinary items was $913,000, or $0.07 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 $2.8 million, or $0.21 per share during the fourth quarter the
previous year. EBITDA (earnings before interest, tax, depreciation and
amortization) in the recent quarter was $5.7 million.
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For the twelve months ended December 31, 1999, the company reported net
income of $8.5 million, or $0.63 per share, on revenues of $41.7 million
and FFO of $10.9 million, or $0.81 per share. Income before net gains and
extraordinary items for the twelve months ended December 31, 1999 was $4.6
million, or $0.34 per share. During the same period the previous year, the
company reported income before extraordinary item of $5.5 million, or
$0.40 per share, on revenues of $39.4 million and FFO of $10.4 million, or
$0.75 per share. EBITDA in the recent 12-month period was $23.6 million,
an increase of 10 percent from the $21.3 million during the previous year.
"We are pleased we were able to continue our FFO growth, as well as grow
EBITDA year over year", said Leonard G. Levine, President and CEO of
Banyan. "Overall, our general and administrative costs as a percent of
total revenue declined a full percentage point to 10.8 percent during the
year from the previous year. Meanwhile, the office and flex-industrial
markets we serve continue to exhibit strong real estate fundamentals, with
rents in our portfolio below average market rents in each market, which
bodes well for both occupancy and same store growth going forward."
PORTFOLIO PERFORMANCE - REVENUE UP 6 PERCENT
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Total revenue for twelve-month period increased 6 percent to $41.7 million
from $39.4 million during the previous year. As of December 31, 1999, the
company's portfolio of 27 properties was 88 percent occupied.
SALE OF KENTUCKY AND OKLAHOMA PROPERTIES CONCLUDED
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The company realized a gain of $4.1 million during the fourth quarter from
the sale of two properties, the Quantum Business Centre, a multi-tenant
office/warehouse property located in Jefferson County (suburban
Louisville), Kentucky, and its Oklahoma Apartment Portfolio, four separate
apartment complexes totaling 864 units. The company realized total net
cash proceeds of approximately $10.8 million from these transactions.
"The dispositions of our Oklahoma Apartment Portfolio and Quantum Business
Centre are consistent with our strategy of selling certain non-core assets,
as well as maximizing returns to shareholders from properties that have
reached their maximum potential," said Mr. Levine.
BALANCE SHEET, MARKET VALUE AND LIQUIDITY
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At the end of the fourth quarter 1999, total debt and equity market
capitalization was approximately $214 million. EBITDA coverage ratio for
the twelve-month period ended December 31, 1999 was 2.0 to 1. The Trust
had $132.7 million of total debt outstanding as of December 31, 1999.
On January 20, 2000, $6.2 million of the Trust's $7.4 million unsecured
convertible loan payable was converted into 61,572 Series A convertible
preferred shares at a conversion price of $100 per share. These shares may
be further converted into common shares at a conversion price of $5.15 per
share. The balance of the loan along with accrued interest and a $37,000
conversion/repayment fee was repaid as of that date using the Trust's cash
reserves.
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QUARTERLY CASH DISTRIBUTION AND FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
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On January 10, 2000, the Trust declared a quarterly cash distribution of
$0.12 per share for the fourth quarter ended December 31, 1999. The
distribution was paid February 22, 2000 to shareholders of record as of
January 21, 2000.
Funds Available for Distribution (FAD) totaled $2.1 million for the three
months ended December 31, 1999, or $0.16 per share, and $9.0 million, or
$0.67 per share for the twelve months ended December 31, 1999. This
compared to FAD of $2.3 million or $0.17 per share, and $8.6 million or
$0.62 per share, for the same periods in the previous year.
COHEN FINANCIAL ENGAGED
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The Trust's Board has recently formed a special committee comprised
entirely of its Independent Trustees to begin the process of evaluating
strategic alternatives. To assist in this process, the committee has
engaged Cohen Financial to, among other things, evaluate the Trust's
properties. Cohen Financial is a Chicago-based real estate investment
banking firm.
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 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 located in
the Midwestern and Southeastern United States. The Trust's current
portfolio consists of 27 properties totaling 3.5 million rentable square
feet. As of this date, the Trust has 14,126,605 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-K for the
year ended December 31, 1999 filed with the Securities and Exchange
Commission by March 31, 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."
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FINANCIAL TABLE TO FOLLOW
BANYAN STRATEGIC REALTY TRUST
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CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(Dollars in thousands)
December 31, December 31,
1999 1998
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Investment in Real Estate, at cost. . . . $ 199,264 $ 220,808
Less: Accumulated Depreciation . . . . (15,420) (11,399)
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183,844 209,409
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Cash and Cash Equivalents . . . . . . . . 13,097 3,731
Restricted Cash . . . . . . . . . . . . . 2,668 2,657
Other Assets. . . . . . . . . . . . . . . 7,038 6,793
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Total Assets. . . . . . . . . . . . . . . $ 206,647 $ 222,590
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Loans and Bonds Payable . . . . . . . . . $ 132,681 $ 151,648
Other Liabilities . . . . . . . . . . . . 6,415 6,359
Minority Interest . . . . . . . . . . . . 2,256 2,149
Shareholders' Equity. . . . . . . . . . . 65,295 62,434
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Total Liabilities and
Shareholders' Equity. . . . . . . . . . $ 206,647 $ 222,590
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SELECTED FINANCIAL DATA
(Dollars in thousands, except per share data)
Three Months Ended Year Ended
12/31/99 12/31/98 12/31/99 12/31/98
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Total revenue . . . . . . . . . . . . . . . . . . . . . $ 10,296 $ 10,643 $ 41,716 $ 39,416
Operating expenses. . . . . . . . . . . . . . . . . . . (9,226) (9,133) (36,597) (33,325)
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Operating income. . . . . . . . . . . . . . . . . . . . 1,070 1,510 5,119 6,091
Minority interest in consolidated partnerships. . . . . (157) (123) (538) (572)
Net gains on disposition of investments in real estate. 4,089 -- 4,089 --
Extraordinary item, net of minority interest. . . . . . (183) -- (183) (141)
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Net income. . . . . . . . . . . . . . . . . . . . . . . $ 4,819 $ 1,387 $ 8,487 $ 5,378
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Earnings per share of Beneficial Interest - Basic:
Income before Net Gains and Extraordinary Item. . . . $ 0.07 $ 0.10 $ 0.34 $ 0.41
Net Income. . . . . . . . . . . . . . . . . . . . . . $ 0.36 $ 0.10 $ 0.63 $ 0.40
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Earnings per share of Beneficial Interest - Diluted:
Income before Net Gains and Extraordinary Item. . . . $ 0.07 $ 0.10 $ 0.34 $ 0.40
Net Income. . . . . . . . . . . . . . . . . . . . . . $ 0.36 $ 0.10 $ 0.63 $ 0.39
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FUNDS FROM OPERATIONS
Net Income. . . . . . . . . . . . . . . . . . . . . . . $ 4,819 $ 1,387 $ 8,487 $ 5,378
PLUS:
Depreciation and amortization expense. . . . . . . . . 1,713 1,493 6,629 5,176
LESS:
Minority interest share of depreciation and
amortization expense. . . . . . . . . . . . . . . . . (83) (90) (309) (315)
Net gain on disposition of investments in real estate. (4,089) -- (4,089) --
Extraordinary item, net of minority interest . . . . . 183 -- 183 141
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Funds from operations . . . . . . . . . . . . . . . . . $ 2,543 $ 2,790 $ 10,901 $ 10,380
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PORTFOLIO SUMMARY
12/31/99
Scheduled Lease Expirations
Occu- -----------------------------
Square pancy After
Location Footage % 2000 2001 2002 2002
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FLEX/INDUSTRIAL
Milwaukee Industrial Portfolio Milwaukee, Wisconsin 235,800 89% 27% 11% 32% 19%
Elmhurst Metro Court Elmhurst, Illinois 140,800 65% 15% 30% 12% 8%
Willowbrook Industrial Court Willowbrook, Illinois 84,300 91% 28% 20% 31% 12%
6901 Riverport Drive Louisville, Kentucky 322,100 100% 45% 0% 0% 55%
Lexington Business Center Lexington, Kentucky 308,800 71% 19% 9% 5% 38%
Newtown Business Center Lexington, Kentucky 87,100 97% 4% 37% 16% 40%
Avalon Ridge Business Park Norcross, Georgia 57,400 100% 0% 0% 0% 100%
Metric Plaza Winter Park, Florida 32,000 100% 0% 0% 69% 31%
Park Center Orlando, Florida 47,400 80% 9% 25% 24% 22%
University Corporate Center Winter Park, Florida 127,800 84% 22% 33% 21% 8%
Tower Lane Business Park Bensenville, Illinois 95,900 88% 37% 15% 30% 6%
Johns Creek Office and Duluth and Suwanee,
Industrial Park Georgia 119,300 100% 0% 50% 50% 0%
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Sub-Total 1,658,700 87% 23% 16% 18% 30%
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OFFICE
Colonial Penn Building Tampa, Florida 79,200 100% 28% 0% 0% 72%
Commerce Center Sarasota, Florida 81,100 100% 0% 11% 5% 84%
Woodcrest Office Park Tallahassee, Florida 264,900 95% 24% 12% 13% 46%
Midwest Office Center Oakbrook Terrace, Illinois77,000 91% 39% 13% 29% 10%
Phoenix Business Park Atlanta, Georgia 110,600 57% 2% 13% 18% 24%
Butterfield Office Plaza Oak Brook, Illinois 200,800 96% 27% 16% 37% 16%
Southlake Corporate Center Morrow, Georgia 56,200 87% 9% 32% 35% 11%
University Square Business CenterHuntsville, Alabama 184,700 91% 28% 25% 26% 12%
Technology Center Huntsville, Alabama 48,500 100% 35% 65% 0% 0%
Airways Plaza Office Center Memphis, Tennessee 87,800 26% 16% 4% 3% 3%
Peachtree Pointe Office Park Norcross, Georgia 71,700 89% 29% 13% 16% 31%
Avalon Center Office Park Norcross, Georgia 53,300 100% 0% 0% 0% 100%
Sand Lake Tech Center Orlando, Florida 84,100 77% 0% 0% 39% 38%
Technology Park Norcross, Georgia 145,700 96% 13% 28% 4% 51%
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Sub-Total 1,545,600 87% 19% 16% 18% 34%
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RETAIL
Northlake Tower Shopping Center Atlanta, Georgia 321,600 98% 14% 2% 7% 75%
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Total 3,525,900 88% 21% 15% 17% 35%
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