SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A-NUMBER 1
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) December 19, 1995
BANYAN STRATEGIC REALTY TRUST
(Exact name of Registrant as specified in its charter)
Massachusetts 0-15465 36-3375345
(State of or other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification
incorporation) Number)
150 South Wacker Drive, Suite 2900, Chicago, IL 60606
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (312) 553-9800
This document consists of 5 pages.
Exhibit index is located on page 4.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
Financial Statements and Pro Forma Financial Information:
(i) Woodcrest Office Park (See attached).
SIGNATURES
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.
Date: May 1, 1996 BANYAN STRATEGIC REALTY TRUST
(Registrant)
By: /s/ Joel L. Teglia
---------------------------------
Vice President, Chief Financial
and Accounting Officer
Statement of Revenue and Certain Expenses
Woodcrest Office Park
For the Eleven Months Ended November 30, 1995
with Report of Independent Auditors
Report of Independent Auditors
Mr. Joel L. Teglia, Chief Financial Officer
Banyan Strategic Realty Trust
We have audited the Statement of Revenue and Certain Expenses of Woodcrest
Office Park (the Property) for the eleven months ended November 30, 1995. The
Statement of Revenue and Certain Expenses is the responsibility of the
Property's management. Our responsibility is to express an opinion on the
Statement of Revenue and Certain Expenses based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the Statement of Revenue
and Certain Expenses is free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the Statement of Revenue and Certain Expenses. An
audit also includes assessing the basis of accounting used and the
significant estimates made by management, as well as evaluating the overall
presentation of the Statement of Revenue and Certain Expenses. We believe
that our audit provides a reasonable basis for our opinion.
The accompanying Statement of Revenue and Certain Expenses was prepared for the
purpose of complying with the rules and regulations of the Securities and
Exchange Commission as described in Note 2 and is not intended to be a complete
presentation of the Property's results of operations.
In our opinion, the Statement of Revenue and Certain Expenses referred to above
presents fairly, in all material respects, the revenue and certain expenses
described in Note 2 of Woodcrest Office Park for the eleven months ended
November 30, 1995, in conformity with generally accepted accounting principles.
Ernst & Young LLP
Chicago, Illinois
February 22, 1996
Woodcrest Office Park
Statement of Revenue and Certain Expenses
For the Eleven
Months Ended
November 30,
1995
REVENUE
Rental revenue $2,851,538
EXPENSES
Property operating 441,452
Utilities 473,321
Real estate taxes 204,752
Insurance 39,089
----------
Total expenses 1,158,614
----------
Revenue in excess of certain $1,692,924
expenses ==========
See accompanying notes.
Woodcrest Office Park
Notes to Statement of Revenue and Certain Expenses
1. BUSINESS
The accompanying statement of revenue and certain expenses relates to the
operations of the Woodcrest Office Park (the Property), a group of eighteen
office buildings located in Tallahassee, Florida. The property was acquired on
December 19, 1995, by BSRT Woodcrest Office Park Limited Partnership of which
Banyan Strategic Realty Trust (the Trust) is a general partner with an 85%
interest and Mr. Daniel Smith is a limited partner with a 15% interest. The
property was previously owned by Alandco, Inc.
As of November 30, 1995, the Property was approximately 97% leased on an overall
basis and there were forty-five tenants.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying statement of revenue and certain expenses was prepared for the
purpose of complying with the rules and regulations of the Securities and
Exchange Commission. The statement is not representative of the actual
operations of the Property for the period presented nor indicative of future
operations as certain expenses namely mortgage and other interest expense,
depreciation, amortization, and income taxes, if any, which may not be
comparable to the expenses expected to be incurred by the Trust in the future
operations of the Property, have been excluded.
REVENUE RECOGNITION
Rental revenue is recognized on a straight-line basis over the term of the
leases.
3. RENTALS
The Property has entered into tenant leases with terms of up to ten years.
Certain leases provide for tenants to share in increases in operating expenses
and real estate taxes in excess of base amounts, as defined.
Woodcrest Office Park
Estimated Pro Forma Statement
of Net Operating Income
(Unaudited)
The Estimated Pro Forma Statement of Net Operating Income represents the amount
of estimated income which would be realized by the Registrant during twelve
months of ownership of the Property, based upon the assumptions set forth in the
accompanying notes (See Note 1).
REVENUE
Rental revenue $3,110,800
EXPENSES
Property operating 481,600
Utilities 516,400
Depreciation (See Note 2) 199,125
Real estate taxes 223,400
Insurance 42,600
----------
Total expenses 1,463,125
----------
Pro Forma revenue in excess of
expenses $1,647,675
==========
Pro Forma funds from operations
(see Note 4) $1,846,800
The accompanying notes are an integral part of the estimated pro forma
statement.
Woodcrest Office Park
Notes to Estimated Pro Forma Statement
1) This statement does not purpose to forecast actual operating results for
any period in the future and thus, the following assumptions may not be
valid for future years and actual results may differ. These statements
should be read in conjunction with the Statement of Revenue and Certain
Expenses for the eleven months ended November 30, 1995 which were
annualized and modified by Management for known changes in revenues and
expenses associated with the Registrant's ownership of the Property in
order to estimate the pro forma statement.
2) Depreciation expense which represents a non-cash expenditure has been
included for informational purposes only. Depreciation is calculated on a
depreciable basis of approximately $7,965,000 using the straight line
method based on a useful life of 40 years.
3) The Property will be managed by an unaffiliated third party for an initial
management fee of 4.0% of gross revenues.
4) Funds From Operations (or "FFO") has been provided in the Pro Forma
Statement as supplemental information to the property's projected
operating results. FFO is used by the real estate investment trust
industry as a measure of a property's performance and is defined as net
operating income from a property's operations, plus certain non-cash items
including depreciation and amortization and excluding any extraordinary
capital items.
