EXHIBIT 99.14
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AT THE TRUST
Robert G. Higgins Investor Relations
Vice President, General Counsel L.G. Schafran - Chairman and
Interim CEO/President
312-683-5539 312 683-5525
bhiggins@banyanreit.com ir@banyanreit.com
FOR IMMEDIATE RELEASE -
TUESDAY, MAY 15, 2001
BANYAN STRATEGIC REALTY TRUST REPORTS $1.1 MILLION
INCREASE IN NET ASSETS IN LIQUIDATION; TAKES $6.3 CHARGE UPON
ADOPTION OF LIQUIDATION ACCOUNTING
CHICAGO - MAY 15, 2001. BANYAN STRATEGIC REALTY TRUST (Nasdaq: BSRTS)
announced today that for the quarter ending March 31, 2001, its Net Assets
in Liquidation increased by approximately $1.1 million from approximately
$61.1 million at December 31, 2000 to approximately $62.2 million at
March 31, 2001. The increase was primarily the result of operating income
in the amount of approximately $2.5 million and recovery of losses on
loans, notes and interest receivable of approximately $0.9 million reduced
by depreciation expense of approximately $1.6 million and distributions to
shareholders in the amount of approximately $0.6 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 three months ending March 31, 2000, the Trust reported Net Income
Available to Common Shares of approximately $1.0 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 March 31, 2001.
LIQUIDATION BASIS OF ACCOUNTING
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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 three months ending March 31, 2001 are reported on the
Consolidated Statement of Changes in Net Assets in Liquidation while the
March 31, 2000 results are reported on a going concern basis on the
Consolidated Statement of Operations. The financial statement presentations
differ 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.
Upon adopting the liquidation basis of accounting, the Trust also recorded
a charge of approximately $6.3 million in order to write off certain
intangible assets that were included on the December 31, 2000 balance
sheet. As a result, its Shareholders' Equity as of December 31, 2000 as
reported on the going concern basis was reduced by approximately $5.5
million related to the write off leasing commissions and deferred financing
fees that were included in total assets at December 31, 2000 and
approximately $0.8 million for costs related to the liquidation and
termination of the company.
PROPERTY SALE UPDATE
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As previously announced, the closing of the Trust's 27-property sale to
Denholtz Management Corporation which commenced on May 9, 2001, was
adjourned by Denholtz, pursuant to its contractual right to do so. Although
a specific timetable has not yet been established, the closing is expected
to resume and be completed by May 21, 2001.
Assuming the closing takes place as now anticipated, Banyan indicated that
it does not anticipate any material change in the timing or amount of its
projected first liquidating distribution of between approximately $4.60 per
share and approximately $4.80 per share within thirty (30) days of the
initial closing. Banyan added that its final liquidating distribution is
now anticipated to occur during the third or fourth quarter of 2002. The
estimated total amount of liquidating distributions remains at
approximately $6.00 per share.
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. Banyan's
current portfolio consists of properties totaling 3.5 million rentable
square feet. As of this date Banyan has 15,488,137 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 such as the closing of the
Denholtz transaction and other 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 March 31, 2001 which was filed with the Securities and
Exchange Commission on May 15, 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.
For further information regarding Banyan free of charge via fax,
dial 1-800-PRO-INFO and enter BSRTS.
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