f8k101513a1_brtrealty.htm


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.   20549

FORM 8-K/A

CURRENT REPORT


Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934


Date of Report (Date of earliest event reported): October 15, 2013

BRT REALTY TRUST
(Exact name of Registrant as specified in charter)
 
 
Massachusetts 001-07172 13-2755856
(State or other jurisdiction (Commission file No.) (IRS Employer I.D. No.)
 of incorporation)    
 
 60 Cutter Mill Road, Suite 303, Great Neck, New York 11021
 (Address of principal executive offices) (Zip code)
 
Registrant's telephone number, including area code     516-466-3100

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
 
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 

 
 
Explanatory Note
 
On October 18, 2013, we filed a Current Report on Form 8-K (the “Current Report”) disclosing that we entered into a joint venture and the purchase by the venture of three multi-family properties located at 8455 Will Clayton Parkway, Humble, TX, 515 South Bender Avenue, Humble, TX and 3520 Burke Road, Pasadena, TX (collectively “The Humble-Pasadena Apartments” or the “Properties”) for a contract purchase price of $22.6 million, of which $17.0 million was financed with mortgage debt.

We are filing this amendment to the Current Report to include under (i) Item 9.01(a), audited statement of revenues and certain expenses of the Properties and (ii) Item 9.01(b), our unaudited pro forma financial statements reflecting the acquisition of the Properties.

Item 9.01
Financial Statements and Exhibits.
 
(a) Financial Statements of Business Acquired-The Humble-Pasadena Apartments   Page
           
  (i) Independent Auditor’s Report  1
  (ii) Statements of Revenues and Certain Expenses for the year ended December 31, 2012 and the six months ended June 30, 2013 (Unaudited)  2
  (iii) Notes to Statements of Revenues and Certain Expenses  3
 
(b)
Unaudited Pro Forma Consolidated Financial Statements.
   
           
  (i) Pro Forma Consolidated Balance Sheet at June 30, 2013  6
  (ii) Pro Forma Consolidated Statements of Income:  
    For the year ended September 30, 2012     7
    For the nine months ended June 30, 2013  8
  (iii) Notes to Pro Forma Consolidated Financial Statements  9

(c) Exhibits    
           
  Exhibit No. Title of Exhibit  
  23.1 Consent of BDO USA, LLP dated November 12, 2013  
       
 
 
 

 
 
Independent Auditor’s Report

Board of Trustees and Shareholders
BRT Realty Trust and Subsidiaries
Great Neck, New York  11021

We have audited the accompanying statement of revenues and certain expenses of the properties located at 8455 Will Clayton Parkway, Humble, TX, 515 South Bender Avenue, Humble, TX and 3520 Burke Road, Pasadena, TX (collectively “The Humble-Pasadena Apartments” or the “Properties”) for the year ended December 31, 2012.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of the statement of revenues and certain expenses in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of the statement of revenues and certain expenses that is free from material misstatement, whether due to fraud or error.

Auditor’s Responsibility

Our responsibility is to express an opinion on the statement of revenues and certain expenses based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the statement of revenues and certain expenses is free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the statement of revenues and certain expenses. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the statement of revenues and certain expenses, whether due to fraud or error. In making those risk assessments, the auditor considers internal controls relevant to The Humble-Pasadena Apartment’s preparation and fair presentation of the statement of revenues and certain expenses in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal controls. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the statement of revenues and certain expenses.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the statement of revenues and certain expenses referred to above presents fairly, in all material respects, the statement of revenues and certain expenses of The Humble-Pasadena Apartments for the year ended December 31, 2012, in accordance with accounting principles generally accepted in the United States of America.
 
Emphasis of Matter

The accompanying statement of revenues and certain expenses was prepared for the purpose of complying with rules and regulations of the U.S. Securities and Exchange Commission and for inclusion in a Current Report on Form 8-K of BRT Realty Trust as described in Note 2 to the statement of revenues and certain expenses and is not intended to be a complete presentation of The Humble-Pasadena Apartments’ revenues and expenses.


/s/BDO USA, LLP

New York, New York
November 12, 2013
 
 
1

 
 
The Humble-Pasadena Apartments
Statements of Revenues and Certain Expenses


   
Six Months Ended
June 30, 2013
(unaudited)
   
 
Year Ended
December 31, 2012
 
Revenues:
           
  Rental and other income
  $ 2,199,000     $ 4,004,000  
                 
Certain Expenses:
               
  Real estate taxes
    184,000       348,000  
  Management fees
    66,000       120,000  
  Utilities
    315,000       621,000  
  Payroll
    383,000       705,000  
  Insurance
    141,000       289,000  
  Repairs and maintenance
    177,000       352,000  
  Other real estate operating expenses
    162,000       288,000  
Total certain expenses
    1,428,000       2,723,000  
                 
Revenues in excess of certain expenses
  $ 771,000     $ 1,281,000  

See Independent Auditor’s report and accompanying notes to the Statements of Revenues and Certain Expenses.

 
2

 

The Humble-Pasadena Apartments
Notes to Statements of Revenues and Certain Expenses


1.  Organization

The properties, located at 8455 Will Clayton Parkway, Humble, TX, 515 South Bender Avenue, Humble, TX and 3520 Burke Road, Pasadena, TX (“The Humble-Pasadena Apartments”), are three garden apartment complexes which contain a total of 564 units.

BRT Realty Trust (“BRT” or the “Trust”) is a business trust organized in Massachusetts.  BRT  (i) participates as an equity investor in joint ventures that acquire, own and operate multi-family properties, (ii) originates and holds for investment senior mortgage loans secured by commercial and multi-family real estate properties and (iii) owns and operates commercial and mixed use real estate assets, and in particular, development properties located in Newark, New Jersey.
 
On October 15, 2013, a consolidated joint venture comprised of TRB Houston Four Pack LLC, the Trust’s wholly-owned subsidiary and an unaffiliated joint venture partner acquired The Humble-Pasadena Apartments for a contract purchase price of $22.6 million, including $17.0 million of mortgage debt.

2.  Basis of Presentation and Significant Accounting Policies

The accompanying statements of revenues and certain expenses of The Humble-Pasadena Apartments have been prepared in accordance with Rule 3-14 of Regulation S-X of the Securities and Exchange Commission for inclusion in the Trust’s Current Report on Form 8-K/A.  Accordingly, the statements of revenues and certain expenses exclude certain expenses that may not be comparable to those expected to be incurred in the future operations of the aforementioned properties.  Items excluded consist of interest expense, depreciation, amortization, corporate expenses, and other costs not directly related to future operations.

Use of Estimates

The preparation of the statements of revenues and certain expenses in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the statements of revenues and certain expenses.  Actual results could differ from those estimates.

Revenue Recognition

Rental revenue is recognized on an accrual basis when earned and due from tenants.  Leases are generally for a one-year term and have no renewal options.

Income Taxes

The entity that owns The Humble-Pasadena Apartments was organized as a limited liability company and is not directly subject to federal taxes.  The limited liability company is subject to state franchise tax.
 
3.  Subsequent Events

Subsequent events were evaluated from December 31, 2012 through November 12, 2013, the date on which the statement of revenues and certain expenses was issued.

 
3

 
 
BRT REALTY TRUST AND SUBSIDIARIES
Pro Forma Consolidated Financial Statements
(Unaudited)

On October 15, 2013, a consolidated joint venture comprised of TRB Houston Four Pack LLC, a wholly-owned subsidiary of BRT Realty Trust (“the Trust”), and an unaffiliated joint venture partner, acquired three multi-family garden apartment complexes located at 8455 Will Clayton Parkway, Humble, TX, 515 South Bender Avenue, Humble, TX and 3520 Burke Road, Pasadena, TX (“The Humble-Pasadena Apartments”), containing 564 units for a contract purchase price of $22.6 million, including $17.0 million of mortgage debt.

The pro forma unaudited consolidated balance sheet is presented as if the acquisition had been completed on June 30, 2013.  The pro forma unaudited consolidated statement of income for the year ended September 30, 2012 is presented as if the acquisitions had been completed on October 1, 2011. The unaudited pro forma consolidated statement of income for the nine months ended June 30, 2013 is presented as if the acquisition had been completed on October 1, 2012.

The pro forma unaudited consolidated statements of income for the nine months ended June 30, 2013 has been adjusted to reflect the income and certain expense items of Grove at Trinity Pointe, Avondale Station Apartments, Spring Valley Club Apartments, Stonecrossing of Westchase, Courtney Station Apartments, Autumn Brook Apartments and The Palms on Westheimer Apartments (as defined) (collectively the “Previously Reported Acquisitions”) from the date of acquisition through June 30, 2013.

These pro forma unaudited statements of income are presented for informational purposes only and should be read in conjunction with the Trust’s Annual Report on Form 10-K for the year ended September 30, 2012.

The pro forma unaudited consolidated statements of income are based on assumptions and estimates considered appropriate by the Trust’s management; however, such statements do not purport to represent what the Trust’s financial position and results of operations would have been assuming the completion of the acquisition on October 1, 2011 and October 1, 2012, nor do they purport to project the Trust’s financial position and results of operations at any future date or for any future period.

In the opinion of the Trust’s management, all adjustments necessary to reflect the effects of the transactions described above have been included in the pro forma consolidated financial statements.

Set forth below is a summary of the previously reported transactions reflected in these pro forma unaudited consolidated financial statements.

On or about  November 15, 2012, a consolidated joint venture comprised of TRB Grove at Trinity LLC, a wholly owned subsidiary of the Trust, and an unaffiliated joint venture partner, acquired Grove at Trinity Pointe, a 464 unit multi-family garden apartment complex located in Cordova, Tennessee (“Grove at Trinity Pointe”).  The contract purchase price was $25.5 million and included $19.25 million of mortgage debt.

On or about November 19, 2012, a consolidated joint venture comprised of TRB Avondale LLC, a wholly owned subsidiary of the Trust, and an unaffiliated joint venture partner, acquired Avondale Station Apartments, a 212 unit multi-family garden apartment complex located in Decatur, Georgia (“Avondale Station Apartments”).  The contract purchase price was $10.45 million and included $8.0 million of mortgage debt.
 
 
4

 
 
On or about January 11, 2013, a consolidated joint venture comprised of TRB Spring Valley LLC, a wholly owned subsidiary of the Trust, and an unaffiliated joint venture partner, acquired Spring Valley Club Apartments, a 160 unit multi-family garden apartment complex located in  Panama City, Florida (“Spring Valley Club Apartments”).  The contract purchase price was $7.2 million and included $5.6 million of mortgage debt.

On or about April 19, 2013, a consolidated joint venture comprised of TRB Houston Galleria LLC, a wholly owned subsidiary of the Trust, and an unaffiliated joint venture partner, acquired Stonecrossing of Westchase, a 240 unit multi-family garden apartment complex located in Houston, Texas (“Stonecrossing of Westchase”).  The contract purchase price was $16.8 million and included $13.2 million of mortgage debt.

On or about April 29, 2013, a consolidated joint venture comprised of TRB Courtney Station LLC, a wholly owned subsidiary of the Trust, and an unaffiliated joint venture partner, acquired Courtney Station Apartments, a 300 unit multi-family garden apartment complex located in Pooler, Georgia (“Courtney Station Apartments”).  The contract purchase price was $35.3 million and included $26.4 million of mortgage debt.

On or about June 21, 2013, a consolidated joint venture comprised of TRB Autumn Brook LLC, a wholly owned subsidiary of the Trust, and an unaffiliated joint venture partner, acquired Autumn Brook Apartments, a 156 unit multi-family garden apartment complex located in Hixson, Tennessee (“Autumn Brook Apartments”).  The contract purchase price was $10.9 million and included $8.1 million of mortgage debt.

On or about  October 4, 2013, a consolidated joint venture comprised of TRB Houston Four Pack LLC, a wholly owned subsidiary of the Trust, and an unaffiliated joint venture partner, acquired The Palms on Westheimer Apartments, a 798 unit multi-family garden apartment complex located in Houston, Texas (“The Palms on Westheimer Apartments”).  The contract purchase price was $32.8 million and included $24.1 million of mortgage debt.

 
5

 

BRT REALTY TRUST AND SUBSIDIARIES
PRO FORMA - CONSOLIDATED BALANCE SHEET
As of June 30, 2013
(Amounts in thousands, except per share data)
 
   
The Trust
Historical
   
The Palms
on Westheimer
   
 
Purchase of Humble-Pasadena Apartments
   
The Trust
Pro Forma
as Adjusted
 
ASSETS
                       
Real estate properties, net of accumulated depreciation of $9,510
  $ 348,991     $ 32,800     $ 22,620     $ 404,411  
                                 
Real estate loans, all earning interest
    67,447       -       -       67,447  
Deferred fee income
    (614 )     -       -       (614 )
      66,833       -               66,833  
                                 
Cash and cash equivalents
    24,435       (9,669 )     (5,033 )     9,733  
Restricted cash – construction holdbacks
    36,425       -       -       36,425  
Available-for-sale securities at market
    310       -       -       310  
Deferred costs
    12,747       276       241       13,264  
Prepaid expenses
    4,404       366       669       5,439  
Other assets
    7,685       3,400       367       11,452  
Total Assets
  $ 501,830     $ 27,173     $ 18,864     $ 547,867  
                                 
LIABILITIES AND EQUITY
                               
Liabilities:
                               
Mortgages payable
  $ 277,425     $ 24,100     $ 16,965     $ 318,490  
Junior subordinated notes
    37,400       -       -       37,400  
Accounts payable and accrued liabilities
    5,393       437       266       6,096  
Deposits payable
    1,620       99       22       1,741  
Deferred income
    25,848       -       -       25,848  
        Total Liabilities
    347,686       24,636       17,253       389,575  
                                 
    Commitments and contingencies
    -       -       -       -  
                                 
Equity:
                               
BRT Realty Trust shareholders’ equity:
                               
    Preferred shares, $1 par value:
                               
        authorized 10,000 shares, none issued
    -       -       -       -  
        Shares of beneficial interest, $3 par value:
                               
        authorized number of shares, unlimited, 13,535 issued
    40,606       -       -       40,606  
        Additional paid-in capital
    165,583       -       -       165,583  
        Accumulated other comprehensive income
    23       -       -       23  
        Accumulated deficit
    (72,358 )     -       -       (72,358 )
                Total BRT Realty Trust shareholders’ equity
    133,854       -       -       133,854  
Non-controlling interests
    20,290       2,537       1,611       24,438  
        Total Equity
    154,144       2,537       1,611       158,292  
             Total Liabilities and Equity
  $ 501,830     $ 27,173     $ 18,864     $ 547,867  

See accompanying notes to the unaudited pro forma consolidated financial statements

 
6

 

BRT REALTY TRUST AND SUBSIDIARIES
PRO FORMA – UNAUDITED CONSOLIDATED STATEMENT OF INCOME
For The Year Ended September 30, 2012
(Dollars in thousands, except share data)

   
The Trust Historical
   
Previously Reported Acquisitions(f)
   
Purchase of Humble-Pasadena
   
The Trust Pro Forma
as Adjusted
 
Revenues:
                       
Rental and other revenue from real estate properties
  $ 8,675     $ 20,406     $ 4,637     $ 33,718  
Interest and fees on real estate loans
    9,530       -       -       9,530  
Recovery of previously provided allowances
    156       -       -       156  
Other income
    1,218       -       -       1,218  
Total revenues
    19,579       20,406       4,637       44,622  
Expenses:
                               
Interest expense
    4,729       4,510 (a)     891 (e)     10,130  
Advisor’s fees, related party
    1,104       499 (b)     81 (b)     1,684  
Property acquisition costs
    2,407       -       -       2,407  
General and administrative—including $705 to related party
    7,161       -       -       7,161  
Operating expenses relating to real estate properties
    6,042       11,242       2,998       20,282  
Depreciation and  amortization
    2,004       3,807 (c)     603 (c)     6,414  
Total expenses
    23,447       20,058       4,573       48,078  
Total revenues less total expenses
    (3,868 )     348       64       (3,456 )
Equity in earnings of unconsolidated ventures
    829       -       -       829  
Gain on sale of available-for-sale securities
    605       -       -       605  
Gain on sale of loan
    3,192       -       -       3,192  
Income from continuing operations
    758       348       64       1,170  
                                 
Discontinued operations:
                               
Gain on sale of real estate assets
    792       -       -       792  
Net income
    1,550       348       64       1,962  
Plus: net loss (income) attributable to non controlling interests
    2,880       (171 )(d)     (29 )(d)     2,680  
Net income attributable to common shareholders
  $ 4,430     $ 177     $ 35     $ 4,642  
                                 
Basic and diluted per share amounts attributable to common shareholders:
                               
                                 
Income from continuing operations
  $ .26     $ . 01     $ -     $ . 27  
Discontinued operations
    .06       -       -       .06  
Basic and diluted income per share
  $ .32     $ .01     $ -     $ .33  
                                 
Amounts attributable to BRT Realty Trust:
                               
  Income from continuing operations
  $ 3,638     $ 177     $ 35     $ 3,850  
  Discontinued operations
    792       -       -       792  
Net income
  $ 4,430     $ 177     $ 35     $ 4,642  
                                 
Weighted average number of common shares outstanding:
                               
Basic and diluted
    14,035,792       14,035,792       14,035,792       14,035,792  

See accompanying notes to the pro forma unaudited consolidated financial statements.
 
 
7

 
 
BRT REALTY TRUST AND SUBSIDIARIES
PRO FORMA – UNAUDITED CONSOLIDATED STATEMENT OF INCOME
For The Nine Months Ended June 30, 2013
 (Dollars in thousands, except share data)

   
The Trust Historical
   
Previously Reported Acqusitions(f)
   
Purchase of Humble-Pasadena Apartments
   
The Trust
Pro Forma
as Adjusted
 
Revenues:
                       
Rental and other revenue from real estate properties
  $ 20,756     $ 9,863     $ 3,478     $ 34,097  
Interest and fees on real estate loans
    7,766       -       -       7,766  
Recovery of previously provided allowances
    1,022       -       -       1,022  
Other income
    891       -       -       891  
Total revenues
    30,435       9,863       3,478       43,776  
Expenses:
                               
Interest expense
    8,734       2,276 (a)     664 (e)     11,674  
Advisor’s fees, related party
    1,314       255 (b)     61 (b)     1,630  
Property acquisition costs
    1,805       -       -       1,805  
General and administrative—including $403 to related party
    5,527       -       -       5,527  
Operating expenses relating to real estate properties
    11,158       5,658       2,249       19,065  
Depreciation and amortization
    4,737       1,823 (c)     452 (c)     7,012  
Total expenses
    33,275       10,012       3,426       46,713  
Total revenues less total expenses
    (2,840 )     (149 )     52       (2,937 )
Equity in earnings of unconsolidated ventures
    183       -       -       183  
Gain on the sale of available-for-sale securities
    482       -       -       482  
(Loss) income from continuing operations
    (2,175 )     (149 )     52       (2,272 )
     Discontinued Operations:
                               
Gain on sale of real estate assets
    509       -       -       509  
Net (loss) income
    (1,666 )     (149 )     52       (1,763 )
Plus: net loss (income) attributable to non-controlling interests
    1,893       (23 )(d)     ( 23 )     1,847  
Net income (loss) attributable to common shareholders
  $ 227     $ (172 )   $ 29     $ 84  
                                 
Basic and diluted per share amounts attributable to common shareholders:
                               
(Loss) income from continuing operations
  $ (.02 )   $ (.01 )   $ -     $ (. 03 )
Discontinued operations
     .04        -        -        .04  
Basic and diluted income (loss) per share
  $ .02     $ (.01 )   $ .00     $ .01  
                                 
Amounts attributable to BRT Realty Trust:
                               
  (Loss) income from continued operations
  $ (282 )   $ (172 )   $ 29     $ (425 )
  Discontinued operations
    509       -        -       509  
Net income (loss)
  $ 227     $ (172 )   $ 29     $ 84  
                                 
Weighted average number of common shares outstanding:
                               
Basic and diluted
    14,128,398       14,128,398       14,128,398       14,128,398  

See accompanying notes to the pro form unaudited consolidated financial statements.
 
 
8

 
 
BRT REALTY TRUST AND SUBSIDIARIES
Notes to Pro Forma Unaudited Consolidated Financial Statements
(Unaudited)

Basis of Pro Forma Presentation

1.  
The consolidated financial statements include the consolidated accounts of the Trust and its investments in limited liability companies in which the Trust is presumed to have control in accordance with the consolidation guidance of the Financial Accounting Standards Board Accounting Standards Codification (“ASC”).  Investments in entities for which the Trust has the ability to exercise significant influence but does not have financial or operating control, are accounted for under the equity method of accounting.  Accordingly, the Trust’s share of the net earnings (or losses) of entities accounted for under the equity method are included in consolidated net income under the caption “Equity in earnings of unconsolidated ventures”.  Investments in entities for which the Trust does not have the ability to exercise any influence are accounted for under the cost method of accounting.

In October, 2013, The Trust entered into a joint venture and the joint venture acquired The Palms on Westheimer Apartments for $32.8 million, funded with cash and a mortgage loan of $24.1 million.

In June 2013, the Trust entered into a joint venture and the joint venture acquired Autumn Brook Apartments for $10.9 million, funded with cash and a mortgage loan of $8.1 million.

In April 2013, the Trust entered into a joint venture and the joint venture acquired Courtney Station Apartments for $ 35.3 million, funded with cash and a mortgage loan of $26.4 million.

In April 2013, the Trust entered into a joint venture and the joint venture acquired Stonecrossing of Westchase for $16.8 million, funded with cash and a mortgage loan of $13.2 million.

In January 2013, the Trust entered into a joint venture and the joint venture acquired Spring Valley Apartments for $7.2 million, funded with cash and a mortgage loan of $5.6 million.

In November 2012, the Trust entered into a joint venture and the joint venture acquired Avondale Station Apartments for $10.45 million, funded with cash and a mortgage loan of $8.0 million.

In November 2012, the Trust entered into a joint venture and the joint venture acquired Grove at Trinity Pointe for $25.5 million, funded with cash and a mortgage loan of $19.25 million.

2.  
Notes to the pro forma consolidated statements of income for Stonecrossing of Westchase, Courtney Station Apartments, Spring Valley Club Apartments, Grove at Trinity Pointe, Avondale Station Apartments, Autumn Brook Apartments, The Palms on Westheimer Apartments and The Humble-Pasadena Apartments for the year ended September 30, 2012 and the nine months ended June 30, 2013

a)  
To reflect the interest expense resulting from the mortgages securing Courtney Station Apartments, Stonecrossing at Westchase, Spring Valley Club Apartments, Grove at Trinity Pointe, Avondale Station Apartments, Autumn Brook Apartments and The Palms on Westheimer Apartments, which expense is calculated using interest rates of 4.00%, 3.95%, 4.06%, 3.71%, 3.74%, 4.29% and 4.85%, respectively, and includes amortization of loan related fees.
 
 
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b)  
To reflect the advisory fees to be paid by the Trust pursuant the Amended and Restated Advisory Agreement, as amended.

c)  
To reflect depreciation on the estimated useful life of 30 years.
 
d)  
To reflect the non-controlling interest share of income or loss from these properties for their 20% - 25% equity interests in these joint ventures.

e)  
Interest expense is calculated using an interest rate of 4.90% and includes amortization of loan related fees.

f)  
Refers to previous acquisitions of Courtney Station Apartments, Spring Valley Club Apartments, Stonecrossing of Westchase, Grove at Trinity Pointe, Avondale Station Apartments, Autumn Brook Apartments and The Palms on Westheimer Apartments.


 
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SIGNATURE


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
  BRT REALTY TRUST  
       
 
By:
/s/ George Zweier  
    George Zweier  
November 12, 2013    Vice President and  
Great Neck, NY     Chief Financial Officer  
 
 
 
 
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