SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 23, 1998
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 3 pages.
<PAGE>
ITEM 5. OTHER INFORMATION.
On July 23, 1998, the Trust issued a Press Release, a copy of which
is attached hereto as Exhibit (99.14) and is incorporated herein by
reference.
On August 5, 1998, the Trust issued a Press Release, a copy of which
is attached hereto as Exhibit (99.15) and is incorporated herein by
reference.
On August 13, 1998, the Trust issued a Press Release, a copy of which
is attached hereto as Exhibit (99.16) and is incorporated herein by
reference.
On August 19, 1998, the Trust received consents of independent
auditors to the incorporation by reference in the Trust's Registration
Statement (Form S-3 No. 333-00047) of auditors reports, copies of which are
attached hereto as Exhibits (23.1) and (23.3) and are incorporated herein
by reference.
On August 19, 1998, the Trust received consent of independent
auditors to the incorporation by reference in the Trust's Registration
Statement (Form S-8 No. 333-49437) of auditors reports, a copy of which is
attached hereto as Exhibit (23.2) and is incorporated herein by reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements. Not applicable
(b) Pro Forma Financial Information. Not applicable.
(c) Exhibits
EXHIBIT NUMBER DESCRIPTION
Exhibit (23.1) Consent of Independent Auditors
dated August 19, 1998
Exhibit (23.2) Consent of Independent Auditors
dated August 19, 1998
Exhibit (23.3) Consent of Independent Auditors
dated August 19, 1998
Exhibit (99.14) Press Release dated July 23,
1998
Exhibit (99.15) Press Release dated August 5,
1998
Exhibit (99.16) Press Release dated August 13,
1998
<PAGE>
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: August 19, 1998 BANYAN STRATEGIC REALTY TRUST
(Registrant)
By: /s/ Joel L. Teglia
Vice President,
Chief Financial and
Accounting Officer
EXHIBIT 23.1
- ------------
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement
(Form S-3 No. 333-00047) of Banyan Strategic Realty Trust of our reports
indicated below filed with the Securities and Exchange Commission.
Date of Auditors
Financial Statements Report
-------------------- ----------------
Consolidated financial statements of Banyan February 9, 1998
Strategic Realty Trust included in its Annual
Report (Form 10-K) for the year ended
December 31, 1997
Statement of revenue and certain expenses of May 30, 1997
Phoenix Business Park for the year ended
December 31, 1996 included in the Current
Report (Form 8-K/A) of Banyan Strategic Realty
Trust dated June 26, 1997
Statement of revenue and certain expenses of May 1, 1997
The Oklahoma Properties for the year ended
December 31, 1996 included in the Current
Report (Form 8-K/A) of Banyan Strategic
Realty Trust dated July 15, 1997
Statement of revenue and certain expenses October 9, 1997
of Southlake Corporate Center for the
period from September 26, 1996 to July 30,
1997 included in the Current Report
(Form 8-K/A) of Banyan Strategic Realty
Trust dated December 2, 1997
Statement of revenue and certain expenses October 1, 1997
of University Square Business Center for the
year ended December 31, 1996 included in the
Current Report (Form 8-K/A) of Banyan Strategic
Realty Trust dated December 2, 1997
Statement of revenue and certain expenses October 9, 1997
of Technology Center for the period from
August 8, 1996 to August 26, 1997 included
in the Current Report (Form 8-K/A) of
Banyan Strategic Realty Trust dated
December 2, 1997
Combined statements of revenue and certain May 27, 1998
expenses of Orlando Office Building Portfolio
for the year ended December 31, 1997 and
for the period from January 1, 1998 to
April 30, 1998 included in the Current
Report (Form 8-K/A) of Banyan Strategic
Realty Trust dated May 29, 1998
<PAGE>
Statements of revenue and certain expenses of May 21, 1998
Tower Lane Business Park for the year ended
December 31, 1997 and for the period from
January 1, 1998 to March 31, 1998 included
in the Current Report (Form 8-K/A) of
Banyan Strategic Realty Trust dated May 29,
1998
Statement of revenue and certain expenses June 19, 1998
of Peachtree Pointe Office Park for the
year ended December 31, 1997 included in the
Current Report (Form 8-K/A) of Banyan
Strategic Realty Trust dated July 2, 1998
Ernst & Young LLP
Chicago, Illinois
August 19, 1998
EXHIBIT 23.2
- ------------
CONSENT OF INDEPENDENT AUDITORS
We consent to the incorporation by reference in the Registration Statement
(Form S-8 No. 333-49437) pertaining to the Banyan Strategic Realty Trust
1997 Omnibus Stock and Incentive Plan of our reports indicated below filed
with the Securities and Exchange Commission.
Date of Auditors
Financial Statements Report
-------------------- ----------------
Combined statements of revenue and certain May 27, 1998
expenses of Orlando Office Building Portfolio
for the year ended December 31, 1997 and for
the period from January 1, 1998 to April 30, 1998
included in the Current Report (Form 8-K/A) of
Banyan Strategic Realty Trust dated May 29, 1998
Statements of revenue and certain expenses of May 21, 1998
Tower Lane Business Park for the year ended
December 31, 1997 and for the period from
January 1, 1998 to March 31, 1998 included
in the Current Report (Form 8-K/A) of
Banyan Strategic Realty Trust dated May 29, 1998
Statement of revenue and certain expenses of July 19, 1998
Peachtree Pointe Office Park for the year ended
December 31, 1997 included in the Current Report
(Form 8-K/A) of Banyan Strategic Realty Trust
dated July 2, 1998
Ernst & Young LLP
Chicago, Illinois
August 19, 1998
EXHIBIT 23.3
- ------------
INDEPENDENT AUDITORS' CONSENT
We consent to the incorporation by reference in Amendment #1 to
Registration Statement No. 333-00047 of Banyan Strategic Realty Trust on
Form S-3 of our report dated June 11, 1997 on our audit of the statement of
revenues and certain expenses of RREEF MA-I Butterfield Office Plaza, Inc.
for the year ended December 31, 1996, appearing in the Current Report on
Form 8-K of Banyan Strategic Realty Trust dated June 26, 1997.
Deloitte & Touche LLP
Chicago, Illinois
August 19, 1998
EXHIBIT 99.14
- -------------
AT THE TRUST AT THE FINANCIAL RELATIONS BOARD
Karen Dickelman Tony Ebersole Laura Kuhlmann Claire Koeneman
Director/Investor General Info. Media Inquiries Analyst
Relations Inquiries
312 683-3671 312 640-6728 312 640-6727 312 640-6784
www.banyanreit.com
- ------------------
FOR IMMEDIATE RELEASE
THURSDAY JULY 23, 1998
BANYAN STRATEGIC REALTY TRUST SHAREHOLDERS APPROVE REMOVING LIMIT
ON LIFE OF THE TRUST
CHICAGO, JULY 23, 1998 - BANYAN STRATEGIC REALTY TRUST (Nasdaq:BSRTS)
announced today that its annual meeting of shareholders was held on July
23, 1998. Among other things, the Trust's shareholders approved a key
proposal to remove a requirement that the Trust be terminated in March,
2001. Leonard G. Levine, President of the Trust, stated that, "We are
pleased that our shareholders have concurred with this proposal. We feel
strongly that removing any limitation on the life of the Trust will enhance
our ability to attract additional capital and continue our long-term
business plan." The shareholders also re-elected Messrs. Walter E. Auch,
Sr., Norman M. Gold, and Marvin A. Sotoloff as trustees.
In a related matter, a proposal to authorize the Trust to issue preferred
stock did not, however, receive sufficient votes. As a result, the Trust
adjourned the meeting until August 4, 1998 at 10:00 a.m. central time to
permit additional time to solicit approval of this proposal.
Banyan Strategic Realty Trust is a diversified equity real estate
investment trust (REIT) with a portfolio that includes primarily
flex/industrial and suburban office buildings, as well as retail and
residential properties. The Trust's current portfolio includes 30
properties totaling 3.5 million rentable square feet and 864 apartment
units. The properties are located in major metropolitan areas and mid-to-
small second tier markets primarily in the Midwest and Southeast United
States. The Trust currently has 13,301,825 shares of beneficial interest
outstanding.
For further information regarding Banyan free of charge via fax, dial 1-
800-PRO-INFO and enter
"BSRTS".
EXHIBIT 99.15
- -------------
AT THE TRUST AT THE FINANCIAL RELATIONS BOARD:
Karen Dickelman Tony Ebersole Laura Kuhlmann Susan Steidle
Director/Investor General Info. Media Inquiries Analyst
Relations Inquiries
312 683-3671 312 640-6728 312 640-6727 312 640-6774
www.banyanreit.com
- ------------------
FOR IMMEDIATE RELEASE
WEDNESDAY, AUGUST 5, 1998
BANYAN STRATEGIC REALTY TRUST REPORTS $0.195 FFO PER SHARE ON
REVENUES OF $9.7 MILLION FOR SECOND QUARTER 1998
Year-to-Date Acquisitions Increase Portfolio by 19% -
Again Revises FFO Targets Upward for 1998
-------------------------------------------------------
BANYAN STRATEGIC REALTY TRUST HIGHLIGHTS
. Second Quarter Funds From Operations (FFO) of $2.6 million, or $0.195
per share, more than double same period last year
. Revenues of 9.7 million, up 44 percent from year earlier period
. Average occupancy of portfolio 93 percent at June 30, 1998
. Quarterly cash distribution of $0.12 per share declared
. One office and five flex/industrial properties acquired in quarter,
comprising 444,000 square feet, for total consideration of $32 million
. Shareholders approve changes in the Trust's governing document
providing greater opportunity for future portfolio growth
. Revises 1998 FFO targets upward to $0.75 to $0.76 per share range
CHICAGO, AUGUST 5 -- BANYAN STRATEGIC REALTY TRUST (Nasdaq: BSRTS) real
estate investment trust, today announced second quarter 1998 funds from
operations (FFO) of $2.6 million, or $0.195 per share, nearly double total
FFO per share in the previous year's second quarter. The improved FFO and
other operating results for both the second quarter and first six months
reflect the improving performance of the Trust's portfolio, which increased
the amount of square footage under management by 35 percent from the
previous year's second quarter, as well as the continued strong office and
flex/industrial markets the Trust serves in the mid-west and southeastern
areas of the U.S. Occupancy rates at the Trust's 30 properties as of
June 30, 1998 averaged 93 percent.
Since the beginning of 1998, the Trust has announced a total of $41.6
million in completed acquisitions, totaling 569,000 net rentable square
feet, for 19 percent increase in square footage from year-end 1997.
CONSOLIDATED FINANCIAL RESULTS
- ------------------------------
Banyan reported significantly higher second quarter and first six months
1998 results compared to the comparable periods a year ago.
For the second quarter, net income nearly tripled to $1.3 million, compared
to $439,000 in the previous year's second quarter. Basic earnings (income
before net gains and extraordinary items) increased to $0.11 per share,
from $0.04 per share in the second quarter last year. Revenues grew 45
percent to $9.7 million, compared to $6.7 million during the 1997 second
quarter. FFO of $2.6 million, or $0.195 per share, more than doubled from
FFO of $1.2 million, or $0.12 per share a year ago.
<PAGE>
For the first six months of 1998, the Trust reported net income of $2.6
million, or $0.195 per share, on revenues of $18.2 million, and FFO of $4.9
million, or $0.375 per share. For the first six months of 1997, the
company reported net income of $0.8 million or $0.08 per share, on revenues
of $12.6 million, and FFO of $2.3 million, or $0.22 per share.
"For the second consecutive quarter, we exceeded expectations as our
growing portfolio, with consistently high occupancy rates of 93 percent,
continued to generate stronger financial and operating results from a year
ago," said Leonard G. Levine, President of Banyan. "With our new
acquisitions so far in 1998, all in markets with strong economic growth,
and consistent positive operations at the existing properties, we are again
revising our estimated 1998 FFO upward to a range of $0.75 to $0.76 per
share to reflect our confidence in continued portfolio performance and
growth going forward."
TWO NEW ACQUISITIONS ANNOUNCED IN SECOND QUARTER
- ------------------------------------------------
During the second quarter, Banyan acquired six multi-tenant office
properties located in Orlando and Winter Park, Florida, Bensenville,
Illinois, in west suburban Chicago, plus a third property in Norcross,
Georgia, for a total consideration of $32 million. The properties totaled
approximately 444,000 net rentable square feet, representing a 15 percent
increase in square footage of the Trust's overall portfolio.
The Orlando and Winter Park acquisitions consist of four multi-tenant
office properties, or a total of sixteen buildings, consisting of
approximately 291,000 square feet. The $23.3 million purchase price
equates to a rate of 10.25 percent on net operating income for the full
year 1999. Occupancy at the combined properties was 92 percent at June 30,
1998.
In Norcross, Banyan purchased Avalon Ridge Business Park, consisting of two
single-story office buildings with a total of 57,400 net rentable square
feet, for approximately $4.3 million, or a capitalization rate of 11
percent on net operating income. Currently, Avalon Ridge is 100 percent
leased. Finally, in Bensenville, just west of Chicago, the Trust acquired
Tower Lane Business Park, two single-story office buildings containing
approximately 95,900 net rentable square feet, for a total of $5.2 million,
or a capitalization rate of 12 percent on net operating income. The
buildings were 92 percent occupied at June 30, 1998.
PORTFOLIO PERFORMANCE - SECOND QUARTER RENTAL INCOME UP 40 PERCENT
- ------------------------------------------------------------------
Rental income from the Trust's portfolio increased 40 percent to $8.4
million, compared to $6.0 million during the same period a year ago,
reflecting the addition of twelve properties acquired since the end of last
year's second quarter. Total property operating expenses as a percent of
total revenue decreased to 33 percent in the second quarter of 1998 from 39
percent for the same period the previous year.
BALANCE SHEET, MARKET VALUE AND LIQUIDITY
- -----------------------------------------
At June 30, 1998, total assets at net book value were approximately $200
million. The debt to total market capitalization ratio was 58.7 percent,
based on a total market capitalization of $225.6 million. EBITDA (earnings
before interest, tax, depreciation and amortization) was $ 5.3 million, up
18% from the first quarter. EBITDA coverage ratio for the second quarter
was 2.23. The Trust had $132.5 million of total debt outstanding as of
June 30, 1998.
<PAGE>
As previously announced, the Trust in the second quarter finalized a
financing with The Capital Company of America LLC (CCA), formerly known as
Nomura Asset Capital Corporation, including a permanent debt financing of
$53.6 million and a $25 million revolving acquisition line of credit to
replace the Trust's previous acquisition line of credit. The debt under
this facility has a 10-year term at an interest rate set at 6.97 percent,
amortized over 26 years. Proceeds of the CCA permanent debt financing were
used to retire certain permanent debt scheduled to mature within the next
two years and to repay amounts borrowed under the CCA line and the
revolving line with a previous lender, which was not renewed.
The new line of credit has an initial term of 24 months at a rate of LIBOR
plus 2.00 percent and can be extended for one additional year for a fee of
0.50 percent of the $25 million facility.
QUARTERLY CASH DISTRIBUTION AND FUNDS AVAILABLE FOR DISTRIBUTION (FAD)
- ----------------------------------------------------------------------
On July 6, Banyan declared a quarterly cash distribution of $0.12 per share
for the second quarter ended June 30, 1998. The distribution is payable
August 21, 1998 to shareholders of record as of July 21, 1998. In the
first quarter of 1998, the distribution was increased from the previous
quarterly distributions of $0.10 per share, based on the Trust's increased
levels of FFO.
Funds Available for Distribution (FAD) totaled $2.1 million for the three
months ended June 30, 1998, or $0.16 per share.
SHAREHOLDERS APPROVE AMENDMENTS TO THE TRUST'S GOVERNING DOCUMENTS
ENHANCING FUNDING ABILITY
- ------------------------------------------------------------------
On July 23, 1998 shareholders voting at the Trust's annual meeting approved
certain amendments to the Trust's governing document that the Trust feels
will increase its financing options. Among other proposals, the
shareholders approved eliminating a requirement that the Trustees consider
terminating the Trust by March, 2001.
"We believe this key vote by shareholders will provide a springboard to
allow for continued growth of our portfolio, by increasing our ability to
attract additional capital through a follow on offering and pursue our long
term business plan of both through internal and external growth," Mr.
Levine said.
OUTLOOK
- -------
Mr. Levine added, "With our acquisitions completed through the first half
of 1998, along with potential acquisitions in the pipeline, we are moving
toward our targets for the year. Still, we are continuing to examine
additional opportunities in both our existing markets, as well as others
experiencing strong economic growth. These include some markets in the
Western U.S., including California, Salt Lake City, Las Vegas and Denver,
as well as the northeast. We believe there remains significant opportunity
to continue our portfolio growth through the continued acquisition of mid-
size office and flex-industrial properties where we compete principally
with the private sector, giving us the ability to increase income and
property value through improved rental rates and increased occupancy."
Banyan Strategic Realty Trust is a diversified equity Real Estate
Investment Trust (REIT) with a portfolio that includes primarily
flex/industrial and suburban office buildings, as well as retail and
residential properties. The Trust's current portfolio consists of 30
properties totaling 3.4 million rentable square feet and 864 apartment
units. The properties are located in major metropolitan areas and mid-to-
small second tier markets primarily in the Midwest and Southeast United
States. Currently, the Trust has 13,306,735 shares of beneficial interest
outstanding.
<PAGE>
Some of the statements contained in the foregoing are forward-looking
statements. Words such as "believes," "intends," "anticipates," "expects,"
and similar expressions are intended to identify forward-looking statements
which are subject to a number of risks and uncertainties, including, among
other things, general real estate investment risks, lack of operating
history associated with recent acquisitions, potential inability to repay
or finance indebtedness at maturity, increases in interest rate,
competition for property acquisitions, adverse consequences of failure to
qualify as a REIT, and possible environmental liabilities. Actual results
could differ materially from those projected in these forward-looking
statements. Reference is made to the annual report on Form 10-K filed by
the Trust, specifically under the heading "Management's Discussion and
Analysis of Financial Condition and Results of Operations - Factors
Affecting the Trust's Business Plan" for a more complete discussion of
these risk factors. The Trust undertakes no obligation to publicly release
the results of any revisions to these forward-looking statements that may
be made to reflect any future events or circumstances.
See Banyan's Website at http://www.banyanreit.com
for complete company information.
For further information regarding Banyan free of charge via fax,
dial 1-800-PRO-INFO and enter "BSRTS."
Financial Tables to Follow
<PAGE>
<TABLE>
BANYAN STRATEGIC REALTY TRUST
ADD 4
Selected Financial Data
(Dollars in Thousands, except per share data)
<CAPTION>
Three Months Ended Year Ended
6/30/98 6/30/97 12/31/97
--------- --------- ----------
<S> <C> <C> <C>
Total revenue . . . . . . . . . . . . . . . . . . . . . $ 9,657 $ 6,747 $ 28,785
Recovery of losses on loans, notes and interest
receivable. . . . . . . . . . . . . . . . . . . . . . -- -- 161
Operating expenses. . . . . . . . . . . . . . . . . . . (8,057) (6,183) (25,664)
-------- -------- --------
Operating income. . . . . . . . . . . . . . . . . . . . 1,600 564 3,282
Minority interest in consolidated
partnerships. . . . . . . . . . . . . . . . . . . . . (182) (145) (590)
Income of real estate ventures. . . . . . . . . . . . . -- 20 37
Net gain on disposition of investment in
real estate, disposition of investment in
real estate venture and disposition of
partnership interest. . . . . . . . . . . . . . . . . -- -- 881
Extraordinary item, net of minority interest. . . . . . (141) -- (64)
-------- -------- --------
Net income. . . . . . . . . . . . . . . . . . . . . . . $ 1,277 $ 439 $ 3,546
======== ======== ========
Earnings per share of Beneficial Interest - Basic:
Income before Net Gains and
Extraordinary Item. . . . . . . . . . . . . . . . . $ 0.11 $ 0.04 $ 0.24
Net Income. . . . . . . . . . . . . . . . . . . . . . $ 0.10 $ 0.04 $ 0.32
======== ======== ========
Earnings per share of Beneficial Interest -
Assuming Dilution:
Income before Net Gains and
Extraordinary Item. . . . . . . . . . . . . . . . . $ 0.10 $ 0.04 $ 0.24
Net Income. . . . . . . . . . . . . . . . . . . . . . $ 0.09 $ 0.04 $ 0.32
======== ======== ========
<PAGE>
Selected Financial Data - Continued
Three Months Ended Year Ended
6/30/98 6/30/97 12/31/97
--------- --------- ----------
FUNDS FROM OPERATIONS
Net income. . . . . . . . . . . . . . . . . . . . . . . $ 1,277 $ 439 $ 3,546
PLUS:
Depreciation expense. . . . . . . . . . . . . . . . . . 1,149 781 3,277
Depreciation included in operations of
real estate ventures. . . . . . . . . . . . . . . . . -- 7 15
Lease commission amortization . . . . . . . . . . . . . 85 54 208
LESS:
Minority interest share of deprecation
expense . . . . . . . . . . . . . . . . . . . . . . . (72) (66) (254)
Minority interest share of lease
commission amortization . . . . . . . . . . . . . . . (8) (6) (21)
Recovery of losses on loans, notes
and interest receivable . . . . . . . . . . . . . . . -- -- (161)
Franchise tax fees accrued. . . . . . . . . . . . . . . 14 13 50
Net gain on disposition of investment
in real estate, disposition of
investment in real estate venture
and disposition of partnership interest . . . . . . . -- -- (881)
Extraordinary item, net of minority interest. . . . . . 141 -- 64
-------- -------- --------
Funds from operations . . . . . . . . . . . . . . . . . $ 2,586 $ 1,222 $ 5,843
======== ======== ========
</TABLE>
<PAGE>
<TABLE>
BANYAN STRATEGIC REALTY TRUST
ADD 5
<CAPTION>
% OF % OF % OF
6/30/97 TOTAL 12/31/97 TOTAL 6/30/98 TOTAL
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
ALABAMA . . . . . . . 0 0.00% 233,200 8.11% 233,200 6.77%
FLORIDA . . . . . . . 428,200 16.76% 428,200 14.89% 719,300 20.87%
GEORGIA . . . . . . . 432,400 16.92% 488,600 16.98% 671,000 19.47%
ILLINOIS. . . . . . . 502,900 19.68% 502,900 17.48% 598,800 17.38%
KENTUCKY. . . . . . . 900,200 35.23% 900,200 31.29% 900,200 26.12%
TENNESSEE . . . . . . 0 0.00% 87,800 3.05% 87,800 2.55%
WISCONSIN . . . . . . 235,800 9.23% 235,800 8.20% 235,800 6.84%
WASHINGTON, DC. . . . 55,900 2.18% 0 0.00% 0 0.00%
--------- -------- --------- -------- --------- --------
TOTAL SQUARE FT . . . 2,555,400 100.00% 2,876,700 100.00% 3,446,100 100.00%
========= ======== ========= ======== ========= ========
OHIO. . . . . . . . . 350 28.83% 0 0.00% 0 0.00%
OKLAHOMA. . . . . . . 864 71.17% 864 100.00% 864 100.00%
--------- -------- --------- -------- --------- --------
TOTAL APARTMENT UNITS 1,214 100.00% 864 100.00% 864 100.00%
========= ======== ========= ======== ========= ========
</TABLE>
EXHIBIT 99.16
- -------------
AT THE TRUST AT THE FINANCIAL RELATIONS BOARD
Karen Dickelman Tony Ebersole Laura Kuhlmann Claire Koeneman
Director/Investor General Info. Media Inquiries Analyst
Relations Inquiries
312 683-3671 312 640-6728 312 640-6727 312 640-6784
www.banyanreit.com
- ------------------
FOR IMMEDIATE RELEASE
THURSDAY AUGUST 13, 1998
BANYAN STRATEGIC REALTY TRUST SHAREHOLDERS APPROVE
AUTHORIZATION TO ISSUE PREFERRED SHARES; ALL OTHER PROXY
PROPOSALS APPROVED
CHICAGO, AUGUST 13, 1998 - BANYAN STRATEGIC REALTY TRUST (Nasdaq:BSRTS)
announced today that shareholders yesterday approved a proposal to
authorize the Trust to issue preferred shares.
As previously announced, on July 23, 1998 the Trust's shareholders approved
the eight other proposals presented on the ballot, including a key
proposal to remove a requirement that the Trust be terminated in March,
2001.
Leonard G. Levine, President of the Trust, stated, "We are very pleased
that our shareholders have concurred with all nine of the proposals. The
ability to issue preferred shares adds to the financing alternatives
available to help the Trust grow."
Banyan Strategic Realty Trust is a diversified equity real estate
investment Trust (REIT) with a portfolio that includes primarily
flex/industrial and suburban office buildings, as well as retail and
residential properties. The Trust's current portfolio includes 30
properties totaling 3.5 million rentable square feet and 864 apartment
units. The properties are located in major metropolitan areas and mid-to-
small second tier markets primarily in the Midwest and Southeast United
States. The Trust currently has 13,316,059 shares of beneficial interest
outstanding.
For further information regarding Banyan free of charge via fax,
dial 1-800-PRO-INFO and enter "BSRTS"
