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): December 16, 1999
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 15 pages.
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<PAGE>
ITEM 2. ACQUISITION OR DISPOSITION OF ASSET
On December 16, 1999, the Trust sold its interest in the Oklahoma
Apartment Portfolio, which consisted of four apartment complexes totaling
864 units. The properties were sold to an institutional investor for $24.1
million. The purchaser assumed the bonds used to finance the properties.
As a result of the sale, the Trust received approximately $7.2 million in
net proceeds and will recognize a gain of approximately $3.3 million in the
fourth quarter of 1999.
ITEM 5. OTHER INFORMATION
On December 17, 1999, the Trust issued a Press Release, a copy of
which is attached hereto as Exhibit (99.11) and is incorporated herein by
reference.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(a) Financial Statements. Not applicable.
(b) Pro Forma Financial Information.
(c) Exhibits
EXHIBIT NUMBER DESCRIPTION
Exhibit (99.11) Press Release dated December 17, 1999
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<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: January 3, 2000 BANYAN STRATEGIC REALTY TRUST
(Registrant)
By: /s/ JOEL L. TEGLIA
-----------------------
Joel L. Teglia
Vice President,
Chief Financial Officer
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<PAGE>
b) PRO FORMA FINANCIAL INFORMATION
BANYAN STRATEGIC REALTY TRUST
PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 1999
(Unaudited)
This unaudited Pro Forma Condensed Consolidated Balance Sheet is
presented assuming that as of September 30, 1999, the Trust disposed of its
interests in Quantum Business Centre and the four properties in the
Oklahoma Apartment Portfolio.
This unaudited Pro Forma condensed Consolidated Balance Sheet is not
necessarily indicative of what the actual financial position would have
been at September 30, 1999, nor does it purport to represent the future
financial position of the Trust.
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<PAGE>
<TABLE>
BANYAN STRATEGIC REALTY TRUST
Pro Forma Consolidated Balance Sheet
September 30, 1999
(Unaudited)
(Dollars in thousands)
<CAPTION>
Pro Forma Oklahoma
Quantum Pro Forma before Apartment Pro Forma
Business Adjustment Oklahoma Portfolio Adjustment
Historical Centre (A) (B) Sale (C) (D) Pro Forma
---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
Investment in
Real Estate,
at cost:
Land . . . . . . $ 38,600 $ (900) $ 37,700 $ (1,255) $ 36,445
Building . . . . 172,554 (4,165) 168,389 (19,781) 148,608
Building
Improvements. . 13,234 (635) 12,599 (647) 11,952
---------- ---------- ---------- ---------- ---------- ---------- ----------
224,388 (5,700) 0 218,688 (21,683) 0 197,005
Less: Accumulated
Depreciation. . (15,847) 510 (15,337) 1,300 (14,037)
---------- ---------- ---------- ---------- ---------- ---------- ----------
208,541 (5,190) 0 203,351 (20,383) 0 182,968
---------- ---------- ---------- ---------- ---------- ---------- ----------
Cash and Cash
Equivalents . . . 2,587 (21) $ 3,600 6,166 (22) $ 7,200 13,344
Restricted Cash
-Capital
Improvements. . . 1,948 1,948 (41) 1,907
Restricted Cash
-Other. . . . . . 2,087 (44) 2,043 (260) 1,783
Interest and
Accounts
Receivable. . . . 1,155 (48) 1,107 (8) 1,099
Deferred Financ-
ing Costs, net. . 1,704 1,704 (105) 1,599
Other Assets . . . 4,097 (85) 4,012 (14) 3,998
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Assets . . . $ 222,119 $ (5,388) $ 3,600 $ 220,331 $ (20,833) $ 7,200 $206,698
========== ========== ========== ========== ========== ========== ==========
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<PAGE>
BANYAN STRATEGIC REALTY TRUST
Pro Forma Consolidated Balance Sheet - Continued
September 30, 1999
(Unaudited)
(Dollars in thousands)
Pro Forma Oklahoma
Quantum Pro Forma before Apartment Pro Forma
Business Adjustment Oklahoma Portfolio Adjustment
Historical Centre (A) (B) Sale (C) (D) Pro Forma
---------- ---------- ---------- ---------- ---------- ---------- ----------
LIABILITIES AND
SHAREHOLDERS'
EQUITY
LIABILITIES
Mortgage Loans
Payable . . . . . $ 122,006 (2,448) 119,558 119,558
Bonds Payable. . . 20,989 20,989 (16,188) 4,801
Unsecured Loan
Payable . . . . . 7,400 7,400 7,400
Accounts Payable
and Accrued
Expenses. . . . . 2,475 (58) 2,417 2,417
Accrued Real
Estate Taxes
Payable . . . . . 2,000 (42) 1,958 (146) 1,812
Accrued Interest
Payable . . . . . 742 (16) 726 (98) 628
Unearned Revenue . 1,047 (9) 1,038 (14) 1,024
Security
Deposits. . . . . 1,392 (71) 1,321 (113) 1,208
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total
Liabilities . . . 158,051 (2,644) 0 155,407 (16,559) 0 138,848
---------- ---------- ---------- ---------- ---------- ---------- ----------
Minority Interest
in Consolidated
Partnerships. . . 2,180 2,180 2,180
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<PAGE>
BANYAN STRATEGIC REALTY TRUST
Pro Forma Consolidated Balance Sheet - Continued
September 30, 1999
(Unaudited)
(Dollars in thousands)
Pro Forma Oklahoma
Quantum Pro Forma before Apartment Pro Forma
Business Adjustment Oklahoma Portfolio Adjustment
Historical Centre (A) (B) Sale (C) (D) Pro Forma
---------- ---------- ---------- ---------- ---------- ---------- ----------
SHAREHOLDERS'
EQUITY
Shares of Bene-
ficial Interest . 120,497 120,497 120,497
Accumulated
Deficit . . . . . (51,243) (2,744) 3,600 (50,387) (4,274) 7,200 (47,461)
Treasury Shares
at Cost . . . . . (7,366) (7,366) (7,366)
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Share-
holders' Equity . 61,888 (2,744) 3,600 62,744 (4,274) 7,200 65,670
---------- ---------- ---------- ---------- ---------- ---------- ----------
Total Liabilities
and Shareholders'
Equity. . . . . . $ 222,119 $ (5,388) $ 3,600 $ 220,331 $ (20,833) $ 7,200 $ 206,698
========== ========== ========== ========== ========== ========== ==========
</TABLE>
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<PAGE>
BANYAN STRATEGIC REALTY TRUST
Notes to Pro Forma Consolidated Balance Sheet
September 30, 1999
(Unaudited)
(A) To reflect September 30, 1999 balances of Quantum Business Centre
which was sold on November 4, 1999.
(B) The adjustment reflects net sales proceeds from the sale of Quantum
Business Centre.
(C) To reflect September 30, 1999 balances of Oklahoma Apartment
Portfolio which was sold on December 16, 1999.
(D) The adjustment reflects net sales proceeds from the sale of the
Oklahoma Apartment Portfolio.
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<PAGE>
BANYAN STRATEGIC REALTY TRUST
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1999 AND
FOR THE YEAR ENDED DECEMBER 31, 1998
(Unaudited)
The unaudited Pro Forma Condensed Consolidated Statement of
Operations for the nine months ended September 30, 1999 is presented as if
each of the 1999 disposition properties had been disposed as of January 1,
1999.
The unaudited Pro Forma Condensed Consolidated Statement of
Operations for the year ended December 31, 1998 is presented as if each of
the 1999 disposition properties had been disposed as of January 1, 1998.
These unaudited Pro Forma Condensed Consolidated Statement of
Operations have been prepared by management of the Trust and do not purport
to be indicative of the results which would actually have been obtained had
the transactions described above had been completed on the dates indicated
or which may be obtained in the future.
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<PAGE>
<TABLE>
Banyan Strategic Realty Trust
Pro Forma Condensed Consolidated Statement of Operations
For the Nine Months Ended September 30, 1999
(Unaudited)
(Dollars in thousands, except per share data)
<CAPTION>
1999 Dispositions (A)
-----------------------
Quantum Oklahoma
Business Apartment
Historical Centre Portfolio Pro Forma
---------- -------- ---------- ----------
<S> <C> <C> <C> <C>
Revenue
Rental Income. . . . . . . $ 27,611 $ (587) $ (2,940) $ 24,084
Operating Cost Reimburse-
ment . . . . . . . . . . 2,831 20 0 2,851
Miscellaneous Tenant
Income . . . . . . . . . 865 0 (333) 532
Income on Investments
and Other Income . . . . 113 0 (1) 112
---------- ---------- ---------- ----------
Total Revenue. . . . . . . . 31,420 (567) (3,274) 27,579
---------- ---------- ---------- ----------
Expenses
Property Operating . . . . 4,043 (69) (818) 3,156
Repairs and Maintenance. . 3,327 (111) (356) 2,860
Real Estate Taxes. . . . . 2,237 (42) (134) 2,061
Interest . . . . . . . . . 8,719 (148) (890) 7,681
Ground Lease . . . . . . . 704 0 0 704
Depreciation and
Amortization . . . . . . 4,916 (137) (429) 4,350
General and Adminis-
trative. . . . . . . . . 3,229 0 0 3,229
Amortization of Deferred
Financing Costs. . . . . 196 0 (13) 183
---------- ---------- ---------- ----------
Total Expenses . . . . . . . 27,371 (507) (2,640) 24,224
---------- ---------- ---------- ----------
Income Before Minority
Interest . . . . . . . . . 4,049 (60) (634) 3,355
Minority Interest in Con-
solidated Partnerships . . (381) 0 0 (381)
---------- ---------- ---------- ----------
Net Income . . . . . . . . . $ 3,668 $ (60) $ (634) $ 2,974
========== ========== ========== ==========
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<PAGE>
Banyan Strategic Realty Trust
Pro Forma Condensed Consolidated Statement of Operations - Continued
For the Nine Months Ended September 30, 1999
(Unaudited)
(Dollars in thousands, except per share data)
1999 Dispositions (A)
-----------------------
Quantum Oklahoma
Business Apartment
Historical Centre Portfolio Pro Forma
---------- -------- ---------- ----------
Weighted number of
shares outstanding
-basic. . . . . . . . . . . 13,448,713 13,448,713
Weighted number of
shares outstanding
-assuming dilution. . . . . 13,455,482 13,455,482
Per Share-basic. . . . . . . $ 0.27 $ 0.22
========== ==========
Per Share-assuming dilution. $ 0.27 $ 0.22
========== ==========
</TABLE>
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<PAGE>
Banyan Strategic Realty Trust
Pro Forma Condensed Consolidated Statement of Operations - continued
(A) These adjustments relate to certain properties disposed subsequent to
September 30, 1999 to exclude each property's operations from the nine
months ended September 30, 1999 results.
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<PAGE>
<TABLE>
Banyan Strategic Realty Trust
Pro Forma Condensed Consolidated Statement of Operations
For the Year Ended December 31, 1998
(Unaudited)
(Dollars in thousands, except per share data)
<CAPTION>
1999 Dispositions (A)
-----------------------
Quantum Oklahoma
Business Apartment 1998
Historical Centre Portfolio Pro Forma
---------- -------- ---------- ----------
<S> <C> <C> <C> <C>
Revenue
Rental Income. . . . . . . $ 34,470 $ (766) $ (3,748) $ 29,956
Operating Cost Reim-
bursement. . . . . . . . 3,491 (110) 0 3,381
Miscellaneous Tenant
Income . . . . . . . . . 1,146 (26) (392) 728
Income on Investments
and Other Income . . . . 309 0 (30) 279
---------- ---------- ---------- ----------
Total Revenue. . . . . . . . 39,416 (902) (4,170) 34,344
---------- ---------- ---------- ----------
Expenses
Property Operating . . . . 5,762 (133) (1,047) 4,582
Repairs and Maintenance. . 4,041 (108) (483) 3,450
Real Estate Taxes. . . . . 2,720 (53) (208) 2,459
Interest . . . . . . . . . 9,778 (203) (1,199) 8,376
Ground Lease . . . . . . . 926 0 0 926
Depreciation and
Amortization . . . . . . 5,212 (158) (534) 4,520
General and Adminis-
trative. . . . . . . . . 4,614 0 0 4,614
Amortization of Deferred
Financing Costs. . . . . 272 0 (17) 255
---------- ---------- ---------- ----------
Total Expenses . . . . . . . 33,325 (655) (3,488) 29,182
---------- ---------- ---------- ----------
Income Before Extra-
ordinary Item and
Minority Interest. . . . . 6,091 (247) (682) 5,162
Minority Interest in Con-
solidated Partnerships . . (572) 0 0 (572)
Extraordinary Item, Net
of Minority Interest . . . (141) 0 0 (141)
---------- ---------- ---------- ----------
Net Income . . . . . . . . . $ 5,378 $ (247) $ (682) $ 4,449
========== ========== ========== ==========
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<PAGE>
Banyan Strategic Realty Trust
Pro Forma Condensed Consolidated Statement of Operations - Continued
For the Year Ended December 31, 1998
(Unaudited)
(Dollars in thousands, except per share data)
1999 Dispositions (A)
-----------------------
Quantum Oklahoma
Business Apartment 1998
Historical Centre Portfolio Pro Forma
---------- -------- ---------- ----------
Weighted number of
shares outstanding
-basic. . . . . . . . . . . 13,307,658 13,307,658
Weighted number of
shares outstanding
-assuming dilution. . . . . 13,799,662 13,799,662
Per Share-basic. . . . . . . $ 0.40 $ 0.33
========== ==========
Per Share-assuming dilution. $ 0.39 $ 0.32
========== ==========
</TABLE>
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<PAGE>
Banyan Strategic Realty Trust
Pro Forma Condensed Consolidated Statement of Operations - continued
(A) These adjustments relate to certain properties disposed subsequent to
September 30, 1999 to exclude each property's operations from the year
ended December 31, 1998 results.
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EXHIBIT (99.11)
- --------------
AT THE TRUST AT THE FINANCIAL RELATIONS BOARD
Karen Dickelman Tony Ebersole Georganne Palffy
Investor Relations General Inquiries Analyst Inquiries
312 683-3671 312 640-6728 312 640-6784
[email protected]
FOR IMMEDIATE RELEASE
FRIDAY DECEMBER 17, 1999
BANYAN STRATEGIC REALTY TRUST SHAREHOLDERS APPROVE NEW BOARD OF TRUSTEES;
ANNOUNCES CLOSING OF SALE OF OKLAHOMA APARTMENT PORTFOLIO
CHICAGO, December 17, 1999 - Banyan Strategic Realty Trust (Nasdaq: BSRTS)
announced today that its annual meeting of shareholders was held on
December 13, 1999. Among other things, the Trust's shareholders approved a
proposal to elect Messrs. Walter E. Auch, Sr., Daniel Levinson, Stephen M.
Peck, and L.G. Schafran as Trustees. Mr. Leonard G. Levine, President of
the Trust, was also re-elected to the Board of Trustees. Mr. Levine stated
that, "We are pleased that our shareholders concurred with this proposal
and are confident that the new Trustees will bring valuable insight and
experience to the Trust as we pursue our future business strategies."
In another matter, the Trust has completed the previously announced sale of
the Oklahoma Apartment Portfolio, four separate apartment complexes
totaling 864 units. The properties were sold to an institutional investor
on December 16, 1999 for $24.1 million resulting in net proceeds of $7.4
million.
The Trust will report a gain of approximately $3.3 million in the fourth
quarter of 1999 as a result of the sale.
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
and smaller markets of the Midwest and Southeastern United States. The
Trust's current portfolio includes 27 properties totaling 3.5 million
rentable square feet.
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."
