<PAGE> 1
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D
Under the Securities Exchange Act of 1934
(AMENDMENT NO. 40)
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)
NOVEMBER 30, 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 [ ].
<PAGE> 2
SCHEDULE 13D
CUSIP NO. 029-177-409 PAGE 2
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
BASIC CAPITAL MANAGEMENT, INC. 75-2261065
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
WC
- --------------------------------------------------------------------------------
5 CHECK BOX 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
NUMBER OF
SHARES 6,008,871
BENEFICIALLY -----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING -0-
PERSON -----------------------------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
6,008,871
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
6,008,871
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
56.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
<PAGE> 3
SCHEDULE 13D
CUSIP NO. 029-177-409 PAGE 3
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
NATIONAL OPERATING L.P. 75-2163170
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
- --------------------------------------------------------------------------------
5 CHECK BOX 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
NUMBER OF
SHARES 195,732
BENEFICIALLY -----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING -0-
PERSON -----------------------------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
195,732
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
195,732
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
1.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE> 4
SCHEDULE 13D
CUSIP NO. 029-177-409 PAGE 4
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
THE GENE E. PHILLIPS CHILDREN'S TRUST 13-6599759
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
- --------------------------------------------------------------------------------
5 CHECK BOX 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
NUMBER OF
SHARES 98,332
BENEFICIALLY -----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING -0-
PERSON -----------------------------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
98,332
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
98,332
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
0.9%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
OO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<PAGE> 5
SCHEDULE 13D
CUSIP NO. 029-177-409 PAGE 5
- --------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
S.S. OR I.R.S. IDENTIFICATION NO. OF ABOVE PERSON
TRANSCONTINENTAL REALTY INVESTORS, INC. 94-656582
- --------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP*
(a) [ ]
(b) [ ]
- --------------------------------------------------------------------------------
3 SEC USE ONLY
- --------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
- --------------------------------------------------------------------------------
5 CHECK BOX 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
NUMBER OF
SHARES 820,850
BENEFICIALLY -----------------------------------------------------------------
OWNED BY 8 SHARED VOTING POWER
EACH
REPORTING -0-
PERSON -----------------------------------------------------------------
WITH 9 SOLE DISPOSITIVE POWER
820,850
-----------------------------------------------------------------
10 SHARED DISPOSITIVE POWER
-0-
- --------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON
820,850
- --------------------------------------------------------------------------------
12 CHECK BOX IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES* [ ]
- --------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
7.8%
- --------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
CO
- --------------------------------------------------------------------------------
*SEE INSTRUCTIONS BEFORE FILLING OUT!
INCLUDE BOTH SIDES OF THE COVER PAGE, RESPONSES TO ITEMS 1-7
(INCLUDING EXHIBITS) OF THE SCHEDULE, AND THE SIGNATURE ATTESTATION.
<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 August 11, 1999.
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 Transcontinental Realty Trust, Inc. ("TCI")
(collectively the "Reporting Persons").
On November 30, 1999, TCI acquired Continental Mortgage and Equity Trust
("CMET") through a merger pursuant to which TCI acquired all of the outstanding
CMET shares. As a result of this merger, TCI acquired all of CMET's assets,
including the 820,850 shares of the Company owned by CMET. Accordingly, CMET has
been replaced by TCI as the beneficial owner and the Reporting Person on this
Schedule 13D.
BCM, NOLP, the GEP Trust and TCI 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 TCI 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 TCI.
(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:
6
<PAGE> 7
<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
David W. Starowicz Executive Vice President - Commercial
Asset Management
Bruce A. Endendyk Executive Vice President
A. Cal Rossi, Jr. Executive Vice President
Cooper B. Stuart Executive Vice President
Robert A. Waldman Senior Vice President,
General Counsel and Secretary
Carey M. Portman Director and Vice President
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. Starowicz's business address is 10670 North Central Expressway,
Suite 600, Dallas, Texas 75231. Mr. Starowicz's present principal occupation is
Executive Vice President - Commercial Asset Management of BCM. Mr. Starowicz 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.
7
<PAGE> 8
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.
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. 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. Portman's business address is c/o Commerce International, Inc., 399
Central Avenue, 2nd Floor, Highland Park, Illinois 60035. Mr. Portman's present
principal occupation is Chairman of Commerce International, Inc. Mr. Portman 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.
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
8
<PAGE> 9
Equipment Sales. Mr. D. Phillips is a citizen of the United States of
America.
(IV) TCI is a real estate investment company organized and existing
under the law of the State of Nevada. TCI's principal business activity is
investments in real estate. The principal place of business and principal office
of TCI is located at 10670 North Central Expressway, Suite 600, Dallas, Texas
75231.
The following is a list of each executive officer and director of TCI:
<TABLE>
<CAPTION>
Name Position(s) with TCI
- ---- --------------------
<S> <C>
Richard W. Douglas Director
Larry E. Harley Director
R. Douglas Leonhard Director
Murray Shaw Director
Ted P. Stokely Director
Martin L. White Director
Edward G. Zampa Director
Karl L. Blaha President
Thomas A. Holland Executive Vice President
and Chief Financial Officer
Steven K. Johnson Executive Vice President -
Residential Asset Management
David W. Starowicz Executive Vice President - Commercial
Asset Management
Bruce A. Endendyk Executive Vice President
Robert A. Waldman Senior Vice President, Secretary
and General Counsel
</TABLE>
Information with respect to Messrs. Holland, Blaha, Johnson, Endendyk,
Starowicz and Waldman 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.
9
<PAGE> 10
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 Number Fifty Osgood Place, Suite 110,
San Francisco, California 94133. 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.
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:
10
<PAGE> 11
Shares Owned Directly
<TABLE>
<CAPTION>
Number of Percent of
Name Shares Class (1)
- ---- --------- ----------
<S> <C> <C>
BCM 6,008,871 56.9%
TCI 820,850 7.8%
NOLP 195,732 1.9%
GEP Trust 98,332 0.9%
--------- ----
TOTAL 7,123,785 67.4%
</TABLE>
Shares Owned Beneficially
<TABLE>
<CAPTION>
Number of Percent of
Name Shares Class (1)
- ---- --------- ----------
<S> <C> <C>
BCM 6,008,871 56.9%
TCI 820,850 7.8%
NOLP 195,732 1.9%
GEP Trust 98,332 0.9%
Ryan T. Phillips (2)(3) 6,107,203 57.8%
M. Ned Phillips (2) 6,008,871 56.9%
--------- ----
Total Shares beneficially
owned by Reporting Persons 7,123,785 67.4%
</TABLE>
(1) Percentage calculations are based upon 10,563,720 Shares outstanding at
November 30, 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.
(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 Directors of TCI share
voting and dispositive power over the 820,850 Shares held by TCI. Each of the
Directors of BCM exercise voting and dispositive power over the 6,008,871 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.
11
<PAGE> 12
(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 10/7/99 11,000 $16.75 Open Market
BCM 10/26/99 7,100 $17.625 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 100,000 shares
to American Express Financial, pledged 15,960 shares to Ameritrade, pledged
97,000 shares to Baird, pledged 625,000 shares to Banker's Trust, pledged
445,009 shares to Bear Stearns, pledged 91,144 shares to Brown & Company,
pledged 38,500 shares to Burke, Christensen, pledged 30,201 shares to Cutter &
Co., pledged 370,758 shares to Dain Rauscher PB, pledged 109,552 shares to Dain
Rauscher TC, pledged 571,275 shares to Dean Witter, pledged 84,00 shares to
Deutsche Morgan, pledged 145,000 shares to First Columbus Bank, pledged 40,000
shares to First Enterprize Bank, pledged 109,809 shares to First Southwest
Securities, pledged 31,000 shares to First Union Brokerage, pledged 96,000
shares to Hambrecht & Quist, pledged 94,000 shares Hobbs Melville, pledged
81,889 shares to J.C. Bradford & Co., pledged 105,224 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 102,100 shares to Paine Webber, pledged
76,400 shares to Raymond James, pledged 148,252 shares to Regions Investment,
pledged 96,000 shares to Robb, Peck, McCooey, pledged 159,363 shares to
Southland Securities, pledged 61,864 shares to Southwest Securities, pledged
9,100 shares to Waterford Capital, 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 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.
TCI 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.
12
<PAGE> 13
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: November 30, 1999.
BASIC CAPITAL MANAGEMENT, INC.
By: /s/ Karl L. Blaha
---------------------------------------
Karl L. Blaha, 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
TRANSCONTINENTAL REALTY INVESTORS, INC.
By: /s/ Karl L. Blaha
---------------------------------------
Karl L. Blaha, President
<PAGE> 14
April 5, 2000
Securities and Exchange Commission
Document Control
Judiciary Plaza
450 Fifth Street, N.W.
Washington, DC 20549
Re: Amendment No.40 to Schedule 13-D by Basic Capital Management,
Inc., National Operating, L.P., Gene E. Phillips Children's
Trust and Transcontinental Realty Investors, Inc. ("Reporting
Persons") with respect to the Common Stock of American Realty
Trust, Inc.
Ladies and Gentlemen:
On behalf of the Reporting Persons, I am filing, via EDGAR, this
Amendment No. 40 to Schedule 13-D according to Rule 901(c)(4) relating to the
securities of American Realty Trust, Inc.
Very truly yours,
By: /s/ Robert A. Waldman
--------------------------------
Senior Vice President and
General Counsel
RAW/kmp
