EXHIBIT 99.6
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AT THE TRUST: AT THE FINANCIAL RELATIONS BOARD:
Karen Dickelman Tony Ebersole Georganne Palffy
Director - General Info. Analyst Inquiries
Investor Relations 312/640-6728 312/640-6768
312/683-3671
FOR IMMEDIATE RELEASE
WEDNESDAY, AUGUST 11, 1999
BANYAN STRATEGIC REALTY TRUST REPORTS $0.205 FFO PER SHARE FOR
SECOND QUARTER
BANYAN STRATEGIC REALTY TRUST SECOND QUARTER HIGHLIGHTS*
. Second Quarter FFO of $2.8 Million, or $0.205 Per share, up 13% from
one year ago.
. Revenues of $10.5 Million
. EBITDA of $6.0 Million
. Average occupancy of portfolio of 88 percent at June 30, 1999
. Quarterly cash distribution of $0.12 per share declared.
. Total market capitalization of $230 million at June 30, 1999
* Per share data presented on diluted basis.
CHICAGO, AUGUST 11, 1999 -- BANYAN STRATEGIC REALTY TRUST (NASDAQ: BSRTS) a
real estate investment trust, today announced second quarter 1999 funds
from operations (FFO) of $2.8 million, or $0.205 per share, a 13 percent
increase in per share ffo from last year's second quarter. The company's
average occupancy rate at the Trust's 32 properties was 88 percent at
June 30, 1999.
CONSOLIDATED FINANCIAL RESULTS
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Banyan reported second quarter 1999 net income of $1.2 million, or $0.09
per share, on revenues of $10.5 million, and FFO of $2.8 million, or $0.205
per share. This compared to second quarter 1998 net income of $1.3 million,
or $0.09 per share, on revenues of $9.7 million, and FFO of $2.6 million,
or $0.18 per share.
For the first six months of 1999, the company reported net income of $2.5
million, or $0.18 per share, on revenues of $20.9 million and FFO of $5.6
million, or $0.41 per share. In the first six months of last year the
company reported net income of $2.6 million, or $0.19 per share, on
revenues of $18.2 million and FFO of $4.9 million, or $0.35 per share.
EBITDA (earnings before interest, tax, depreciation and amortization) in
the first six months period was $11.9 million, an increase of 22 percent
from the $9.7 million during the same period last year.
"In addition to our continuing growth in FFO and EBITDA from the previous
year, we are pleased with our ability to hold the line on costs as we
increase revenues," said Leonard G. Levine, President of Banyan. "Our
general and administrative costs as a percent of total revenue declined
from 11.9 percent to 10.5 percent in the first six months from the previous
year. At mid-year we remain on target for full year FFO growth of
approximately 10 percent over last year, based on the strength of our
existing portfolio. Meanwhile, the office and flex/industrial markets we
serve remain strong, which bode well for favorable leasing activity and
rent increases going forward."
BANYAN STRATEGIC REALTY TRUST
ADD 1
PORTFOLIO PERFORMANCE - SECOND QUARTER REVENUE UP 8 PERCENT
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Total revenue increased 8 percent to $10.5 million for the second quarter,
compared with $9.7 million during the same period the previous year. The
increase was due to the addition of two properties acquired since the end
of the second quarter last year and through higher rents achieved at some
of the Trust's properties as a result of lease rollovers. The Company's
portfolio of 32 properties was 88 percent occupied at June 30, 1999.
BALANCE SHEET, MARKET VALUE AND LIQUIDITY
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At June 30, 1999, total debt and equity market capitalization was $230
million. EBITDA coverage ratio for the six-month period ended June 30,
1999 was 2.05 to 1. The Trust had $150.8 million of total debt outstanding
as of June 30, 1999.
QUARTERLY CASH DISTRIBUTION AND FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
- ----------------------------------------------------------------------
On July 7, Banyan declared a quarterly cash distribution of $0.12 per share
for the second quarter ended June 30, 1999. The distribution is payable
August 20, 1999 to shareholders of record as of July 20, 1999.
Funds Available for Distribution (FAD) totaled $2.3 million for the three
months ended June 30, 1999, or $0.17 per share.
OUTLOOK
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Mr. Levine added, "Based on our existing portfolio, we remain on track for
total 1999 FFO of between $0.82 and $0.83 per share, an increase of
approximately 10 percent over last year. We remain focused on internal
growth through favorable leasing transactions and rental increases. The
markets in which we operate continue to exhibit strong real estate
fundamentals. Additionally, we are actively exploring the potential
disposition of a portion of both our core and non-core assets. Management
believes that a disposition of non-core assets would strengthen our focus
on our primary portfolio sector, the flex/industrial properties. We will
pursue the disposition of certain core properties where we believe that
values may have maximized and the re-deployment of capital in attractive
acquisition opportunities would generate higher current and future
returns."
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 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 32 properties totaling 3.7 million
rentable square feet and 864 apartment units. As of this date, the Trust
has 13,471,497 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, 1998.
The "Management's Discussion and Analysis of Financial Condition and
Results of Operations" section will be included in our Form 10-Q for the
quarter ended June 30, 1999 filed with the Securities and Exchange
Commission on August 12, 1999. 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."
FINANCIAL TABLES TO FOLLOW
BANYAN STRATEGIC REALTY TRUST
ADD 3
SELECTED FINANCIAL DATA
(Dollars in Thousands, except per share data)
Year
Three Months Ended Ended
6/30/99 6/30/98 12/31/98
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Total revenue $10,483 $ 9,657 $39,416
Operating expenses (9,115) (8,057) (33,325)
Operating income 1,368 1,600 6,091
Minority interest in
consolidated partnerships (141) (182) (572)
Extraordinary item, net of
minority interest -- (141) (141)
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Net income $ 1,227 $ 1,277 $ 5,378
======== ======== ========
Earnings per share of
Beneficial Interest -- Basic:
Income before Extra-
ordinary Item $ 0.09 $ 0.11 $ 0.41
Net Income $ 0.09 $ 0.10 $ 0.40
======== ======== ========
Earnings per share of
Beneficial Interest -- Diluted:
Income before Extra-
ordinary Item $ 0.09 $ 0.10 $ 0.40
Net Income $ 0.09 $ 0.09 $ 0.39
======== ======== ========
FUNDS FROM OPERATIONS
Net income $ 1,227 $ 1,277 $ 5,378
PLUS:
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Depreciation and
amortization expense 1,650 1,234 5,176
LESS:
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Minority interest share
of depreciation and
amortization expense (92) (80) (315)
Extraordinary item,
net of minority interest -- 141 141
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Funds from operations $ 2,785 $ 2,572 $ 10,380
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MORE...
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
June 30, December 31,
1999 1998
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Investment in Real Estate, at cost: $223,400 $220,808
Less: Accumulated Depreciation (14,326) (11,399)
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209,074 209,409
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Cash and Cash Equivalents 2,654 3,731
Restricted Cash 3,708 2,657
Other Assets 6,882 6,793
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Total Assets $222,318 $222,590
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Loans and Bonds Payable $150,822 $151,648
Other Liabilities 7,814 6,359
Minority Interest 2,216 2,149
Shareholders' Equity 62,096 62,434
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Total Liabilities and
Shareholders' Equity $222,318 $222,590
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PORTFOLIO SUMMARY
30-Jun-99
Scheduled Lease Expirations
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Occu- 7/1-
Square pancy 12/31 After
Location Footage % 1999 2000 2001 2001
-------- -------- ------ ----- ----- ---- ----
FLEX/INDUSTRIAL
Milwaukee Industrial Properties Milwaukee, Wisconsin 235,800 94% 18% 20% 11% 45%
Elmhurst Metro Court Elmhurst, Illinois 140,800 60% 15% 6% 30% 9%
Willowbrook Industrial Court Willowbrook, Illinois 84,300 91% 12% 23% 15% 41%
Quantum Business Centre Louisville, Kentucky 182,300 83% 12% 23% 18% 30%
Lexington Business Center Lexington, Kentucky 308,800 54% 2% 16% 10% 26%
Newtown Business Center Lexington, Kentucky 87,100 79% 33% 4% 18% 24%
6901 Riverport Drive Louisville, Kentucky 322,100 100% 0% 45% 0% 55%
Avalon Ridge Business Park Norcross, Georgia 57,400 100% 0% 0% 0% 100%
Tower Lane Business Park Bensenville, Illinois 95,900 94% 23% 33% 15% 23%
Metric Plaza Winter Park, Florida 32,000 100% 0% 0% 0% 100%
Park Center Orlando, Florida 47,400 59% 0% 9% 25% 25%
University Corporate Center Winter Park, Florida 127,800 100% 10% 49% 18% 23%
Johns Creek Office
and Industrial Park Duluth and Suwanee,
Georgia 119,300 100% 0% 0% 50% 50%
--------- ---- ---- ---- ---- ----
Sub-Total 1,841,000 84% 9% 22% 15% 38%
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OFFICE
Colonial Penn Building Tampa, Florida 79,200 100% 0% 100% 0% 0%
Commerce Center Sarasota, Florida 81,100 100% 0% 0% 11% 89%
Woodcrest Office Park Tallahassee, Florida 264,900 88% 9% 27% 12% 40%
Midwest Office Center Oakbrook Terrace,
Illinois 77,000 97% 18% 32% 14% 33%
Phoenix Business Park Atlanta, Georgia 110,600 54% 15% 2% 13% 24%
Butterfield Office Plaza Oak Brook, Illinois 200,800 96% 10% 26% 16% 44%
Southlake Corporate Center Morrow, Georgia 56,200 96% 0% 9% 42% 45%
University Square Business Center Huntsville, Alabama 184,700 87% 23% 15% 25% 24%
Technology Center Huntsville, Alabama 48,500 100% 0% 35% 65% 0%
Airways Plaza Office Center Memphis, Tennessee 87,800 24% 0% 16% 4% 4%
Peachtree Pointe Office Park Norcross, Georgia 71,700 98% 21% 16% 15% 46%
Avalon Center Office Park Norcross, Georgia 53,300 100% 0% 0% 0% 100%
Sand Lake Tech Center Orlando, Florida 84,100 74% 0% 0% 0% 74%
Technology Park Norcross, Georgia 145,700 100% 17% 9% 26% 48%
--------- ---- ---- ---- ---- ----
Sub-Total 1,545,600 86% 10% 21% 16% 39%
--------- ---- ---- ---- ---- ----
Scheduled Lease Expirations
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Occu- 7/1-
Square pancy 12/31 After
Location Footage % 1999 2000 2001 2001
-------- -------- ------ ----- ----- ---- ----
RETAIL
Northlake Tower Shopping Center Atlanta, Georgia 321,600 98% 2% 17% 2% 77%
--------- ---- ---- ---- ---- ----
Total 3,708,200 86% 9% 21% 14% 42%
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RESIDENTIAL
Residen- Occu-
tial pancy
Units %
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Country Creek Apartments Oklahoma City,
Oklahoma 320 100%
Willowpark Apartments Lawton, Oklahoma 160 96%
Winchester Run Apartments Oklahoma City,
Oklahoma 192 98%
Woodrun Village Apartments Yukon, Oklahoma 192 97%
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Total 864 98%
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PORTFOLIO TOTAL 88%
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