EXHIBIT 99.17
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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
WEDNESDAY, NOVEMBER 14, 2001
BANYAN STRATEGIC REALTY TRUST REPORTS $3.8 MILLION
DECREASE IN NET ASSETS IN LIQUIDATION AFTER SECOND LIQUIDATING
DISTRIBUTION OF $3.1 MILLION OR $0.20 PER SHARE
CHICAGO - NOVEMBER 14, 2001. 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.
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BANYAN STRATEGIC REALTY TRUST
ADD 1
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
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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
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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 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.
BANYAN STRATEGIC REALTY TRUST
ADD 2
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.
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