EXHIBIT 99.15
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AT THE TRUST
Robert G. Higgins Investor Relations
Vice President, General Counsel L.G. Schafran - Chairman and
Interim CEO/President
630-218-7255 630-218-7250
bhiggins@banyanreit.com ir@banyanreit.com
FOR IMMEDIATE RELEASE
TUESDAY, AUGUST 14, 2001
BANYAN STRATEGIC REALTY TRUST REPORTS $47.3 MILLION
DECREASE IN NET ASSETS IN LIQUIDATION AFTER INITIAL LIQUIDATING
DISTRIBUTION OF $73.6 MILLION OR $4.75 PER SHARE
CHICAGO - AUGUST 14, 2001. BANYAN STRATEGIC REALTY TRUST (Nasdaq: BSRTS)
announced today that for the quarter ending June 30, 2001, its Net Assets
in Liquidation decreased by approximately $47.3 million from approximately
$65.4 million at March 31, 2001 to approximately $18.1 million at June 30,
2001. The decrease was primarily the result of the Trust's initial
liquidating distribution of $4.75 per share on June 28, 2001, amounting to
$73.6 million. Offsetting this decrease were approximately $25.8 million of
gains on the Trust's disposition of 24 of its 27 properties on May 17, 2001
(net of minority interests of $6.5 million), operating income in the amount
of approximately $1.0 million and interest on cash and cash equivalents of
approximately $0.4 million, reduced by depreciation expense of
approximately $1.0 million.
For the three months ending June 30, 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 June 30, 2001.
For the six months ending June 30, 2001, the Trust's Net Assets in
Liquidation decreased by approximately $46.1 million from approximately
$64.2 million at December 31, 2000 to approximately $18.1 million at
June 30, 2001. The decrease was primarily the result of distributions to
shareholders of $74.2 million including the Trust's initial liquidating
distribution of $4.75 per share on June 28, 2001, amounting to $73.6
million. Offsetting this decrease were gains on the disposition Trust's
sale of 24 of its 27 properties on May 17, 2001 (net of minority interests
of $6.5 million) of approximately $25.8 million, operating income in the
amount of approximately $3.5 million, recovery of losses on loans, notes
and interest receivable of approximately $0.9 million and $0.5 million of
interest on cash and cash equivalents, reduced by depreciation expense of
approximately $2.6 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.
BANYAN STRATEGIC REALTY TRUST
ADD 1
For the six months ending June 30, 2000, the Trust reported Net Income
Available to Common Shares of approximately $2.1 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 six months
ending June 30, 2001.
Banyan added that after making its initial liquidating distribution of
$4.75 per share, it has established reserves that it expects will cover
contingent liabilities related to pending litigation, liquidation costs and
the net costs of operating the Trust through its final liquidation which is
anticipated to occur during the third or fourth quarter of 2002. The Trust
anticipates that it will make additional liquidating distributions from
excess of reserves as additional assets are sold or contingent liabilities
are reduced or eliminated. The Trust currently estimates that it will make
additional distribution(s) of approximately $1.25 per share and that the
total amount of liquidating distributions that will be made pursuant to its
Plan of Termination and Liquidation (including the initial liquidating
distribution of $4.75 per share) remains at approximately $6.00 per share.
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 six and three months ending June 30, 2001 are reported
on the Consolidated Statement of Changes in Net Assets in Liquidation while
the June 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
June 30, 2001 which was filed with the Securities and Exchange Commission
on August 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.