<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(AMENDMENT NO. 39)
AMERICAN REALTY TRUST, INC.
(Name of Issuer)
COMMON STOCK, $0.01 PAR VALUE
(Title of Class of Securities)
029-177-409
(CUSIP Number)
ROBERT A. WALDMAN, 10670 N. CENTRAL EXPRESSWAY, SUITE 600, DALLAS, TEXAS 75231
(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
AUGUST 11, 1999
(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G to report
the acquisition which is the subject of this Schedule 13D, and is filing this
schedule because of Rules 13d-1(b)(3) or (4), check the following box [ ].
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<TABLE>
<S> <C> <C>
CUSIP NO. 029-177-409 PAGE 2
- ----------------------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above
Persons BASIC CAPITAL MANAGEMENT, INC. 75-2261065
- ----------------------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
- ----------------------------------------------------------------------------------------------
3) SEC Use Only
- ----------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
- ----------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e)
- ----------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization NEVADA
- ----------------------------------------------------------------------------------------------
7) Sole Voting Power 5,997,372
Number of
Shares ------------------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each ------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power 5,997,372
Person
With ------------------------------------------------------------------------
10) Shared Dispositive Power -0-
- ----------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person 5,997,372
- ----------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
- ----------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 56.8%
- ----------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) CO
- ----------------------------------------------------------------------------------------------
</TABLE>
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<TABLE>
<S> <C> <C>
CUSIP NO. 029-177-409 PAGE 3
- ----------------------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above
Persons NATIONAL OPERATING, L.P. 75-2163170
- ----------------------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
- ----------------------------------------------------------------------------------------------
3) SEC Use Only
- ----------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
- ----------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items
2(d) or 2(e)
- ----------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization DELAWARE
- ----------------------------------------------------------------------------------------------
7) Sole Voting Power 195,732
Number of
Shares ----------------------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each ----------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power 195,732
Person
With ----------------------------------------------------------------------------
10) Shared Dispositive Power -0-
- ----------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person 195,732
- ----------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
- ----------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 1.9%
- ----------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) PN
- ----------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 4
<TABLE>
<S> <C> <C>
CUSIP NO. 029-177-409 PAGE 4
- ---------------------------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above Persons
THE GENE E. PHILLIPS CHILDREN'S TRUST 13-6599759
- ---------------------------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
- ---------------------------------------------------------------------------------------------------
3) SEC Use Only
- ---------------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
- ---------------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e)
- ---------------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization TEXAS
- ---------------------------------------------------------------------------------------------------
7) Sole Voting Power 98,332
Number of
Shares ---------------------------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each ---------------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power 98,332
Person
With ---------------------------------------------------------------------------------
10) Shared Dispositive Power -0-
- ---------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person 98,332
- ---------------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
- ---------------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 0.9%
- ---------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) 00
- ---------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 5
<TABLE>
<S> <C> <C>
CUSIP NO. 029-177-409 PAGE 5
- ---------------------------------------------------------------------------------------------------
1) Names of Reporting Persons S.S. or I.R.S. Identification Nos. of Above Persons
CONTINENTAL MORTGAGE AND EQUITY TRUST 94-2738844
- ---------------------------------------------------------------------------------------------------
2) Check the Appropriate Box if a Member of a Group (See Instructions)
(a)
(b)
- ---------------------------------------------------------------------------------------------------
3) SEC Use Only
- ---------------------------------------------------------------------------------------------------
4) Source of Funds (See Instructions)
- ---------------------------------------------------------------------------------------------------
5) Check if Disclosure of Legal Proceedings is Required Pursuant to Items 2(d) or 2(e)
- ---------------------------------------------------------------------------------------------------
6) Citizenship or Place of Organization CALIFORNIA
- ---------------------------------------------------------------------------------------------------
7) Sole Voting Power 820,850
Number of
Shares ---------------------------------------------------------------------------------
Beneficially 8) Shared Voting Power -0-
Owned by
Each ---------------------------------------------------------------------------------
Reporting 9) Sole Dispositive Power 820,850
Person
With ---------------------------------------------------------------------------------
10) Shared Dispositive Power -0-
- ---------------------------------------------------------------------------------------------------
11) Aggregate Amount Beneficially Owned by Each Reporting Person 820,850
- ---------------------------------------------------------------------------------------------------
12) Check if the Aggregate Amount in Row (11) Excludes Certain Shares (See Instructions)
- ---------------------------------------------------------------------------------------------------
13) Percent of Class Represented by Amount in Row (11) 7.8%
- ---------------------------------------------------------------------------------------------------
14) Type of Reporting Person (See Instructions) 00
- ---------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 6
AMERICAN REALTY TRUST, INC.
CUSIP NO. 029-177-409
ITEM 1. SECURITY AND ISSUER
Item 1 is hereby amended to read as follows:
This amendment relates to the Common Shares, $0.01 par value (the
"Shares"), of AMERICAN REALTY TRUST, INC., a Georgia corporation (the
"Company"), and amends the statement on Schedule 13D filed on October 29, 1998.
The principal executive offices of the Company are located at 10670 North
Central Expressway, Suite 600, Dallas, Texas 75231.
ITEM 2. IDENTITY AND BACKGROUND
Item 2 is hereby amended to read as follows:
This statement is being filed on behalf of Basic Capital Management, Inc.
("BCM"), National Operating, L.P. ("NOLP"), the Gene E. Phillips Children's
Trust (the "GEP Trust") and Continental Mortgage and Equity Trust ("CMET")
(collectively the "Reporting Persons").
BCM, NOLP, the GEP Trust and CMET may be deemed to constitute a "person"
within the meaning of Section 13(d) of the Securities Exchange Act of 1934, as
amended, because BCM is beneficially owned by a trust established for the
benefit of Gene E. Phillips' children and the executive officers of CMET are
also executive officers of BCM. NRLP Management Corp. ("NMC"), a wholly-owned
subsidiary of the Company, is the general partner of NOLP. The executive
officers of NMC are also executive officers of BCM and CMET.
(I) BCM is a corporation organized and existing under the laws of the State
of Nevada. BCM's principal business activity is the provision of advisory
services for real estate investment trusts. Its principal place of business and
principal office is located at 10670 North Central Expressway, Suite 600 Dallas,
Texas 75231.
BCM is owned by Realty Advisors, Inc., a Nevada corporation. Realty
Advisors, Inc. is owned by a trust established for the benefit of the children
of Gene E. Phillips. The directors and executive officers of BCM are as follows:
<TABLE>
<CAPTION>
Name Position(s) with BCM
- ---- --------------------
<S> <C>
Karl L. Blaha President
Thomas A. Holland Executive Vice President and
Chief Financial Officer
Clifford C. Towns, Jr. Executive Vice President - Finance
Steven K. Johnson Executive Vice President -
Residential Asset Management
</TABLE>
6
<PAGE> 7
<TABLE>
<CAPTION>
Name Position(s) with BCM
- ---- --------------------
<S> <C>
Bruce A. Endendyk Executive Vice President
A. Cal Rossi, Jr. Executive Vice President
Cooper B. Stuart Executive Vice President
Dan S. Allred Senior Vice President -
Land Development
James D. Canon, III Senior Vice President
Robert A. Waldman Senior Vice President,
General Counsel and Secretary
Drew D. Potera Vice President, Treasurer
and Securities Manager
Mickey Ned Phillips Director
Ryan T. Phillips Director
</TABLE>
Mr. Blaha's business address is 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231. Mr. Blaha's present principal occupation is President of
BCM. Mr. Blaha is a citizen of the United States of America.
Mr. Holland's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Holland's present principal occupation is
Executive Vice President and Chief Financial Officer of BCM. Mr. Holland is a
citizen of the United States of America.
Mr. Towns' business address is 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231. Mr. Towns' present principal occupation is Executive Vice
President - Finance of BCM. Mr. Towns is a citizen of the United States of
America.
Mr. Johnson's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Johnson's present principal occupation is
Executive Vice President - Residential Asset Management of BCM. Mr. Johnson is a
citizen of the United States of America.
Mr. Endendyk's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Endendyk's present principal occupation is
Executive Vice President of BCM. Mr. Endendyk is a citizen of the United States
of America.
Mr. Rossi's business address is 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231. Mr. Rossi's present principal occupation is Executive Vice
President of BCM. Mr. Rossi is a citizen of the United States of America.
7
<PAGE> 8
Mr. Stuart's business address is 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231. Mr. Stuart's present principal occupation is Executive Vice
President of BCM. Mr. Stuart is a citizen of the United States of America.
Mr. Allred's business address is 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231. Mr. Allred's present principal occupation is Senior Vice
President - Land Development of BCM. Mr. Allred is a citizen of the United
States of America.
Mr. Canon's business address is 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231. Mr. Canon's present principal occupation is Senior Vice
President of BCM. Mr. Canon is a citizen of the United States of America.
Mr. Waldman's business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. Waldman's present principal occupation is Senior
Vice President, General Counsel and Secretary of BCM. Mr. Waldman is a citizen
of the United States of America.
Mr. Potera's business address is 10670 North Central Expressway, Suite 600,
Dallas, Texas 75231. Mr. Potera's present principal occupation is Vice
President, Treasurer and Securities Manager of BCM. Mr. Potera is a citizen of
the United States of America.
Mickey Ned Phillips' business address is 264 Rolling Hills Circle, Gaffney,
South Carolina 29340. Mr. M. Phillips' present principal occupation is owner of
Phillips Remodeling Co. Mr. M. Phillips is a citizen of the United States of
America.
Ryan T. Phillips' business address is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231. Mr. R. Phillips' present principal occupation is an
independent real estate investor. Mr. R. Phillips is a citizen of the United
States of America.
(II) NOLP is a Delaware limited partnership engaged in the business of
investing in real estate and real estate related assets. The principal place of
business and principal office of NOLP is 10670 North Central Expressway, Suite
600, Dallas, Texas 75231.
NOLP has no officers or directors. The general partner of NOLP is NMC.
(III) The GEP TRUST is a trust formed under the laws of Texas for the
benefit of the children of Mr. Gene E. Phillips. The trustee of GEP Trust is Mr.
Gene E. Phillips' brother, Donald W. Phillips.
Mr. Gene E. Phillips' business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. G. Phillips' present principal occupation is
Chief Executive Officer and President of Syntek West, Inc. Mr. G. Phillips is a
citizen of the United States of America.
8
<PAGE> 9
Donald W. Phillips' business address is 10670 North Central Expressway,
Suite 515, Dallas, Texas 75231. Mr. D. Phillips' present principal occupation is
President and owner of Big D Oil Field Equipment Sales. Mr. D. Phillips is a
citizen of the United States of America.
(IV) CMET is a real estate investment trust organized and existing under
the law of the State of California. CMET's principal business activity is
investments in real estate. As of July 31, 1999, the Company owned 41.0% of
CMET's outstanding securities. The principal place of business and principal
office of CMET is located at 10670 North Central Expressway, Suite 600, Dallas,
Texas 75231.
The following is a list of each executive officer and trustee of CMET:
<TABLE>
<CAPTION>
Name Position(s) with CMETM
- ---- ----------------------
<S> <C>
Thomas A. Holland Executive Vice President and
Chief Financial Officer
Karl L. Blaha Executive Vice President -
Commercial Asset Management
Steven K. Johnson Executive Vice President -
Residential Asset Management
Bruce A. Endendyk Executive Vice President
James D. Canon, III Senior Vice President
Robert A. Waldman Senior Vice President, Secretary
and General Counsel
Drew D. Potera Vice President and Treasurer
Richard W. Douglas Trustee
Larry E. Harley Trustee
R. Douglas Leonhard Trustee
Murray Shaw Trustee
Ted P. Stokely Trustee
Martin L. White Trustee
Edward G. Zampa Trustee
</TABLE>
9
<PAGE> 10
Information with respect to Messrs. Holland, Blaha, Johnson, Endendyk,
Canon, Waldman and Potera is disclosed in (I) above.
Mr. Douglas' business address is 3030 McKinney Avenue, #1201, Dallas, Texas
75204. Mr. Douglas' present principal occupation is Executive Vice President of
the Staubach Company. Mr. Douglas is a citizen of the United States of America.
Mr. Harley's business address is 8520 Breakers Point, Dallas, Texas 75243.
Mr. Harley is retired. Mr. Harley is a citizen of the United States of America.
Mr. Leonhard's business address is 13230 Hunters Lark, San Antonio, Texas
78230. Mr. Leonhard is retired. Mr. Leonhard is a citizen of the United States
of America.
Mr. Shaw's business address is 3713 Ebony Hollow Pass, Austin, Texas 78739.
Mr. Shaw's present principal occupation is Chairman of the Board of Stephen F.
Austin University. Mr. Shaw is a citizen of the United States of America.
Mr. Stokely's business address is 10670 North Central Expressway, Suite
515, Dallas, Texas 75231. Mr. Stokely's present principal occupation is General
Manager of Minority and Elderly Housing Assistance Foundation, Inc. Mr. Stokely
is a citizen of the United States of America.
Mr. White's business address is 8051 Coach Drive, Oakland, California
94605. Mr. Martin is Chairman and Chief Executive Officer of Community Based
Developers, Inc. Mr. White is a citizen of the United States of America.
Mr. Zampa's business address is 25 Norwood Avenue, Ross, California 94957.
Mr. Zampa is General Partner of Edward G. Zampa and Company. Mr. Zampa is a
citizen of the United States of America.
During the last five (5) years, (i) none of the persons enumerated in (I)
through (IV) above has been convicted in a criminal proceeding (excluding
traffic violations and similar misdemeanors) and (ii) none of such persons was a
party to a civil proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a judgment,
decree or final order enjoining future violations of, or prohibiting or
mandating activities subject to, federal or state securities laws or finding any
violation with respect to such laws.
10
<PAGE> 11
ITEM 5. INTEREST IN SECURITIES OF THE ISSUER
Item 5(a), 5(b) and 5(c) are hereby amended to read as follows:
(a) SHARE OWNERSHIP
The following tables show the Shares owned directly and beneficially by the
persons named in Item 2 hereof on the date of this statement:
Shares Owned Directly
---------------------
<TABLE>
<CAPTION>
Number of Percent of
Name Shares Class (1)
- ---- --------- ----------
<S> <C> <C>
BCM 5,997,474 56.8%
CMET 820,850 7.8%
NOLP 195,732 1.9%
GEP Trust 98,332 0.9%
--------- ----
TOTAL 7,112,286 67.3%
</TABLE>
Shares Owned Beneficially
-------------------------
<TABLE>
<CAPTION>
Number of Percent of
Name Shares Class (1)
- ---- --------- ----------
<S> <C> <C>
BCM 5,727,474 56.8%
CMET 820,850 7.8%
NOLP 195,732 1.9%
GEP Trust 98,332 0.9%
Ryan T. Phillips (2)(3) 6,095,704 57.7%
M. Ned Phillips (2) 5,997,372 56.8%
--------- ----
Total Shares beneficially
owned by Reporting Persons 7,112,286 67.3%
</TABLE>
- ----------------------------
(1) Percentage calculations are based upon 10,563,434 Shares outstanding at July
31, 1999. Total and addends may not match due to rounding.
(2) May be deemed to be the beneficial owner of Shares held directly by BCM by
virtue of the relationship to BCM described in Item 2.
(3) May be deemed to be the beneficial owner of Shares held directly by the GEP
Trust by virtue of the relationship to the GEP Trust described in Item 2.
11
<PAGE> 12
(b) VOTING AND DISPOSITIVE POWER
The Trustee of the GEP Trust has complete voting and dispositive power over
the 98,332 Shares held by the GEP Trust. Each of the Trustees of CMET share
voting and dispositive power over the 820,850 Shares held by CMET. Each of the
Directors of BCM exercise voting and dispositive power over the 5,997,372 Shares
held by BCM. Each of the Directors of NMC, the general partner of NOLP, have
complete voting and dispositive power over the 195,732 Shares held by NOLP.
(c) TRANSACTIONS IN SECURITIES
The following table lists the purchase transactions in the Shares that were
effected by the Reporting Persons during the past sixty days:
<TABLE>
<CAPTION>
Reporting Number of Price Type of
Person Date Shares Per Share Transaction
- --------- -------- --------- --------- -----------
<S> <C> <C> <C> <C>
BCM 05/19/99 5,000 $16.625 Open Market
BCM 05/19/99 300 $ 16.20 Open Market
BCM 05/19/99 6,200 $ 16.20 Open Market
BCM 05/20/99 5,300 $ 16.50 Open Market
BCM 06/04/99 300 $16.125 Open Market
BCM 06/07/99 300 $16.250 Open Market
BCM 06/15/99 7,800 $ 16.50 Open Market
BCM 06/28/99 200 $ 16.00 Open Market
BCM 06/29/99 24,300 $16.375 Open Market
BCM 06/30/99 5,000 $16.125 Open Market
BCM 07/01/99 18,000 $ 15.00 Open Market
BCM 07/01/99 50,000 $ 15.00 Open Market
BCM 07/13/99 27,800 $15.750 Open Market
BCM 08/11/99 7,000 $ 16.00 Open Market
</TABLE>
ITEM 6. CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS
WITH RESPECT TO SECURITIES OF THE ISSUER.
Item 6 is hereby amended to read as follows:
BCM has pledged 125,711 shares to Advest, Inc., pledged 15,960 shares to
Ameritrade, pledged 100,000 shares to American Express Financial, pledged
128,109 shares to BA Investment Services, pledged 40,000 shares to Bank One
Securities, pledged 675,900 shares to Bear Stearns, pledged 91,144 shares to
Brown & Company, pledged 38,500 shares to Christensen Burke, pledged 30,201
shares to Cutter & Co., pledged 109,552 shares to Dain Rauscher TC, pledged
370,758 shares to Dain Rauscher PB, pledged 521,275 shares to Dean Witter,
pledged 84,000 shares to Deutcshe Morgan, pledged 40,000 shares to First
Enterprize Bank, pledged 109,809 shares to First Southwest Securities, pledged
20,000 shares to First Union Brokerage, pledged 96,000 shares to Hambrecht &
Quist, pledged 94,000 shares to Hobbs Melville, pledged 81,889 shares to J.C.
Bradford & Co., pledged 86,124 shares to Legg Mason (TX), pledged 25,500 shares
to May Financial, pledged 123,437 shares to McDonald & Company, pledged 271,700
shares to Morgan Keegan, pledged 120,000 shares to Norwest Investment Services,
pledged 76,400 shares to Raymond James, pledged 89,052 shares to Regions
Investment, pledged 96,000 shares to Robb, Peck, McCooey, pledged 97,000
shares to
12
<PAGE> 13
Robert Baird, pledged 159,363 shares to Southland Securities, pledged 61,864
shares to Southwest Securities and pledged 161,124 shares to Wedbush Morgan in
stock margin accounts maintained by it with such brokers.
BCM has also pledged 177,000 shares to Foothill Capital, pledged 260,000
shares to United Pacific and pledged 810,000 shares to Preferred Bank pursuant
to loan agreements with such lenders.
NOLP has pledged 195,732 shares to Lehman (NY) in a stock margin account
maintained by it with such broker.
CMET has pledged 820,850 shares to Dean Witter in a stock margin account
maintained by it with such broker.
GEP Trust has pledged 98,332 shares to Dean Witter (NY) in a stock margin
account maintained by it with such broker.
SIGNATURES
After reasonable inquiry and to the best of my knowledge and belief, I
certify that the information set forth in the statement is true, complete and
correct.
Dated: August 26, 1999.
BASIC CAPITAL MANAGEMENT, INC.
By: /s/DREW D. POTERA
------------------------------------------
Drew D. Potera, Vice President
NATIONAL OPERATING, L.P.
NRLP MANAGEMENT CORP., General Partner
By: /s/KARL L. BLAHA
------------------------------------------
Karl L. Blaha, President
GENE E. PHILLIPS CHILDREN'S TRUST
By: /s/DONALD W. PHILLIPS
------------------------------------------
Donald W. Phillips, Trustee
CONTINENTAL MORTGAGE AND EQUITY TRUST
By: /s/DREW D. POTERA
------------------------------------------
Drew D. Potera, Vice President
13
