EXHIBIT 99.10
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AT THE TRUST: AT THE FINANCIAL RELATIONS BOARD:
Karen Dickelman Tony Ebersole Georganne Palffy
Director - Investor Relations General Info. Analyst Inquiries
312 683-3671 312 640-6728 312 640-6768
www.banyanreit.com
email: ir@banyanreit.com
FOR IMMEDIATE RELEASE
WEDNESDAY, NOVEMBER 10, 1999
BANYAN STRATEGIC REALTY TRUST REPORTS $0.21 FFO PER SHARE
FOR THIRD QUARTER
Banyan Strategic Realty Trust Third Quarter Highlights *
. Third Quarter FFO of $2.8 million, or $0.21 per share
. Revenues of $10.5 million
. EBITDA of $6.0 million
. Average occupancy of portfolio 89 percent at September 30, 1999
. Quarterly cash distribution of $0.12 per share declared
. Total debt and equity market capitalization of $220 million at
September 30, 1999
* Per share data presented on diluted basis
CHICAGO, NOVEMBER 10, 1999 -- BANYAN STRATEGIC REALTY TRUST (NASDAQ:
BSRTS), a real estate investment trust, today announced third quarter 1999
funds from operations (FFO) of $2.8 million, or $0.21 per share. The
portfolio-wide occupancy rate for the Trust's properties as of
September 30, 1999 was 89 percent.
CONSOLIDATED FINANCIAL RESULTS
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For the third quarter 1999 Banyan reported net income of $1.2 million, or
$0.09 per share, on revenues of $10.5 million, and FFO of $2.8 million, or
$0.21 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 $2.7 million, or $0.19 per
share during the third quarter the previous year. EBITDA (earnings before
interest, tax, depreciation and amortization) in the recent quarter was
$6.0 million, an increase of seven percent over the third quarter a year
ago.
For the first nine months of 1999, the company reported net income of $3.7
million, or $0.27 per share, on revenues of $31.4 million and FFO of $8.4
million, or $0.62 per share. In the first nine months of last year the
company reported net income of $4.0 million, or $0.29 per share, on
revenues of $28.8 million and FFO of $7.6 million, or $0.55 per share.
EBITDA in the first nine months period was $17.9 million, an increase of 16
percent from the $15.4 million during the same period last year.
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"We are pleased with our ability to grow FFO and EBITDA for both the three-
month and nine-month periods over the comparable periods a year ago," said
Leonard G. Levine, President and CEO of Banyan. "Meanwhile, we have
maintained our cost discipline, with general and administrative costs as a
percent of total revenue declining to 10.3 percent during the first nine
months of this year from 12.0 percent a year ago."
PORTFOLIO PERFORMANCE -- NINE MONTHS REVENUE UP 9 PERCENT
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Total revenue for the first nine-month period increased nine percent to
$31.4 million from $28.8 million during the same period in the previous
year. As of September 30, 1999, the company's portfolio of 32 properties
was 89 percent occupied.
SALE OF KENTUCKY PROPERTY AND PENDING SALE OF OKLAHOMA PROPERTIES ANNOUNCED
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During the third quarter, the company announced it had entered into
agreements to sell Quantum Business Centre in Jefferson County, Kentucky,
and the Oklahoma Apartment Portfolio in Oklahoma City and Lawton, Oklahoma,
with net cash proceeds from the combined sales expected to be approximately
$10.6 million.
The Quantum Business Centre, a multi-tenant office/warehouse property
located in suburban Louisville, was sold to a private investor for
approximately $6.1 million on November 4, 1999. The transaction yielded an
internal rate of return on the Trust's investment of approximately 15
percent, with net cash proceeds of approximately $3.6 million.
The Oklahoma Apartment Portfolio includes four separate apartment complexes
totaling 864 units and is under contract for sale to an institutional
investor, with net cash proceeds to the Trust expected to be approximately
$7 million. The sale of the Oklahoma Apartment Portfolio is contingent
upon the bondholder's approval of the purchaser's assumption of bonds used
to finance the property. This transaction is expected to close by year
end.
Any taxable gains generated by the sale of the Quantum Business Centre and
the Oklahoma Apartment Portfolio transactions are expected to be offset by
the Trust's net operating loss carry forwards.
The Board of Trustees expects to evaluate various alternatives for the use
of the $10.6 million in proceeds from these sales once both transactions
are closed.
BALANCE SHEET, MARKET VALUE AND LIQUIDITY
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At the end of the third quarter 1999, total debt and equity market
capitalization was $220 million. EBITDA coverage ratio for the nine-month
period ended September 30, 1999 was 2.05 to 1. The Trust had $150.4
million of total debt outstanding as of September 30, 1999.
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QUARTERLY CASH DISTRIBUTION AND FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
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On October 6, Banyan declared a quarterly cash distribution of $0.12 per
share for the third quarter ended September 30, 1999. The distribution is
payable November 22, 1999 to shareholders of record as of October 22, 1999.
Funds Available for Distribution (FAD) totaled $2.2 million for the three
months ended September 30, 1999, or $0.16 per share, and $6.8 million, or
$0.51 per share for the nine months ended September 30, 1999.
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 31 properties totaling 3.5 million
rentable square feet and 864 apartment units. As of this date, the Trust
has 13,510,742 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-Q for the
quarter ended September 30, 1999 filed with the Securities and Exchange
Commission on November 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
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SELECTED FINANCIAL DATA
(Dollars in Thousands, except per share data)
Three Months Ended Year Ended
9/30/99 9/30/98 12/31/98
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Total revenue. . . . . . $ 10,509 $ 10,552 $ 39,416
Operating expenses . . . (9,180) (9,044) (33,325)
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Operating income . . . . 1,329 1,508 6,091
Minority interest
in consolidated
partnerships . . . . . (126) (151) (572)
Extraordinary item,
net of minority
interest . . . . . . . -- -- (141)
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Net income . . . . . . . $ 1,203 $ 1,357 $ 5,378
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Earnings per share of
Beneficial Interest --
Basic:
Income before Extra-
ordinary Item . . . $ 0.09 $ 0.10 $ 0.41
Net Income. . . . . $ 0.09 $ 0.10 $ 0.40
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Earnings per share of
Beneficial Interest --
Diluted:
Income before Extra-
ordinary Item. . . . $ 0.09 $ 0.10 $ 0.40
Net Income. . . . . $ 0.09 $ 0.10 $ 0.39
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FUNDS FROM OPERATIONS
Net income . . . . . . . $ 1,203 $ 1,357 $ 5,378
PLUS:
Depreciation and
amortization expense. . 1,682 1,393 5,176
LESS:
Minority interest
share of depreciation
and amortization
expense . . . . . . . . (78) (82) (315)
Extraordinary item,
net of minority
interest. . . . . . . . -- -- 141
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Funds from operations. . $ 2,807 $ 2,668 $ 10,380
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CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands)
September 30, December 31,
1999 1998
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Investment in Real Estate, at cost:. $ 224,388 $ 220,808
Less: Accumulated Depreciation. (15,847) (11,399)
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208,541 209,409
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Cash and Cash Equivalents. . . . . . 2,587 3,731
Restricted Cash. . . . . . . . . . . 4,035 2,657
Other Assets . . . . . . . . . . . . 6,956 6,793
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Total Assets . . . . . . . . . . . . $ 222,119 $ 222,590
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Loans and Bonds Payable. . . . . . . $ 150,395 $ 151,648
Other Liabilities. . . . . . . . . . 7,656 6,359
Minority Interest. . . . . . . . . . 2,180 2,149
Shareholders' Equity . . . . . . . . 61,888 62,434
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Total Liabilities and
Shareholders' Equity . . . . . . . $ 222,119 $ 222,590
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BANYAN STRATEGIC REALTY TRUST
Portfolio Summary
September 30, 1999
Scheduled Lease Expirations
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Occu- 10/31-
Property/ Square pancy 12/31 After
Location Footage % 1999 2000 2001 2001
- ---------------- ------- -------- ------ ---- ---- -----
FLEX/INDUSTRIAL
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Milwaukee Industrial Properties
Milwaukee, WI. . . . . . . . . 235,800 89% 11% 20% 11% 47%
Elmhurst Metro Court
Elmhurst, IL . . . . . . . . . 140,800 72% 14% 12% 30% 16%
Willowbrook Industrial Court
Willowbrook, IL. . . . . . . . 84,300 91% 3% 26% 17% 45%
Quantum Business Centre
Louisville, KY . . . . . . . . 182,300 91% 4% 26% 18% 43%
Lexington Business Center
Lexington, KY. . . . . . . . . 308,800 70% 1% 16% 10% 43%
Newtown Business Center
Lexington, KY. . . . . . . . . 87,100 80% 5% 5% 37% 33%
6901 Riverport Drive
Louisville, KY . . . . . . . . 322,100 100% 0% 45% 0% 55%
Avalon Ridge Business Park
Norcross, GA . . . . . . . . . 57,400 100% 0% 0% 0% 100%
Tower Lane Business Park
Bensenville, IL. . . . . . . . 95,900 88% 7% 33% 15% 33%
Metric Plaza
Winter Park, FL. . . . . . . . 32,000 100% 0% 0% 0% 100%
Park Center
Orlando, FL. . . . . . . . . . 47,400 80% 0% 9% 25% 46%
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Scheduled Lease Expirations
Occu- -------------------------------
Square pancy After
Footage % 1999 2000 2001 2001
------- -------- ---- ---- ---- -----
University Corporate Center
Winter Park, FL. . . . . . . . 127,800 84% 5% 20% 33% 26%
Johns Creek Office and
Industrial Park
Duluth and Suwanee, GA . . . . 119,300 100% 0% 0% 50% 50%
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Sub-total. . . . . . . . . . 1,841,000 87% 4% 21% 17% 45%
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OFFICE
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Colonial Penn Building
Tampa, FL. . . . . . . . . . . 79,200 100% 0% 28% 0% 72%
Commerce Center f/k/a
Florida Power & Light Building
Sarasota, FL . . . . . . . . . 81,100 100% 0% 0% 11% 89%
Woodcrest Office Park
Tallahassee, FL. . . . . . . . 264,900 90% 9% 28% 12% 41%
Midwest Office Center
Oakbrook Terrace, IL . . . . . 77,000 94% 12% 30% 13% 39%
Phoenix Business Park
Atlanta, GA. . . . . . . . . . 110,600 57% 0% 2% 13% 42%
Butterfield Office Plaza
Oak Brook, IL. . . . . . . . . 200,800 96% 5% 27% 16% 48%
Southlake Corporate Center
Morrow, GA . . . . . . . . . . 56,200 87% 0% 9% 32% 46%
University Square Business Center
Huntsville, AL . . . . . . . . 184,700 89% 11% 19% 25% 34%
Technology Center
Huntsville, AL . . . . . . . . 48,500 100% 0% 35% 65% 0%
Airways Plaza Office Center
Memphis, TN. . . . . . . . . . 87,800 26% 0% 16% 4% 6%
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Scheduled Lease Expirations
Occu- -------------------------------
Square pancy After
Footage % 1999 2000 2001 2001
------- -------- ---- ---- ---- -----
Peachtree Pointe Office Park
Norcross, GA . . . . . . . . . 71,700 90% 13% 16% 15% 46%
Avalon Center Office Park
Norcross, GA . . . . . . . . . 53,300 100% 0% 0% 0% 100%
Sand Lake Tech Center
Orlando, FL. . . . . . . . . . 84,100 77% 0% 0% 0% 77%
Technology Park
Norcross, GA . . . . . . . . . 145,700 100% 17% 9% 26% 48%
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Sub-total. . . . . . . . . 1,545,600 87% 6% 18% 16% 47%
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RETAIL
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Northlake Tower Shopping Center
Atlanta, GA. . . . . . . . . . 321,600 97% 2% 17% 2% 76%
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Total. . . . . . . . . . . . . 3,708,200 88% 5% 19% 15% 49%
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RESIDENTIAL OCCU-
RESIDENTIAL UNITS PANCY
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Country Creek Apartments
Oklahoma City, OK. . . . . . . 320 96%
Willowpark Apartments
Lawton, OK . . . . . . . . . . 160 91%
Winchester Run Apartments
Oklahoma City, OK. . . . . . . 192 97%
Woodrun Village Apartments
Yukon, OK. . . . . . . . . . . 192 98%
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Total. . . . . . . . . . . 864 96%
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PORTFOLIO TOTAL. . . . . . . . 89%
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