BRT Announces the results of operations for the three and nine months ended June 30, 2001.

Great Neck, New York, August 9, 2001 -- BRT Realty Trust (NYSE:BRT)today announced that for the three months ended June 30, 2001 it had total revenues of $3,461,000 and net income of $2,100,000, or $.29 per share on a diluted basis.  Net income for the June 30, 2001 quarter includes a net gain on sale of real estate assets and foreclosed properties offset by a net realized loss on sale of available-for-sale securities, totaling $278,000, or $.04 per share.  For the comparable three months ended June 30, 2000, BRT reported total revenues of $2,857,000 and net income of $2,112,000, or $.29 per share on a diluted basis.  Net income for the June 30, 2000 quarter includes a net gain on the sale of real estate assets and foreclosed properties and net gain on sale of available-for-sale securities totaling $623,000, or $.08 per share.  The diluted weighted average number of shares outstanding was 7,328,490 and 7,247,240 for the three months ended June 30, 2001 and 2000, respectively.

For the nine months ended June 30, 2001 BRT reported total revenues of $11,254,000 and net income of $8,130,000 or $1.12 per share on a diluted basis.  Net income for the nine months ended June 30, 2001 includes a net gain on sale of real estate assets and foreclosed properties and net realized gain on the sale of available-for-sale securities totaling $1,768,000, or $.24 per share, and an extraordinary expense item of $264,000, or $.04 per share, on the early extinguishment of debt.  For the comparable nine months ended June 30, 2000, BRT reported total revenues of $7,961,000 and net income of $5,914,000, or $.81 per share on a diluted basis.  Net income for the June 30, 2000 nine month period includes a net gain on sale of real estate assets and foreclosed properties and net realized gain on sale of available-for-sale securities totaling $1,809,000, or $.25 per share.  The diluted weighted average number of shares outstanding was 7,291,554 and 7,250,164 for the nine months ended June 30, 2001 and 2000, respectively.  

Commenting on the results of operations, Jeffrey Gould, President and Chief Operating Officer of BRT, noted that revenues increased by 21%, from quarter to quarter and by 41% for the nine months ended June 30, 2001 as compared to the nine months ended June 30, 2000.  The primary component of BRT’s revenues, interest and fees on real estate loans, increased by 18% quarter over quarter and 41% nine months versus nine months, respectively, primarily because the average balance of loans outstanding in the current periods increased.  In addition, in the 2001 nine month period, the Trust recognized additional interest of $710,000 from the payoff of a participating loan.  Also on the revenue side, operating income on real estate properties increased by 78%  quarter over quarter and by 70% nine months versus nine months primarily because of rental income attributable to the purchase of a leasehold interest in a commercial property in the last quarter of the prior fiscal year and earnings of unconsolidated ventures increased by 113% quarter versus quarter and 80% nine months versus nine months due to income earned on new ventures entered into since June 30, 2000.

On the expense side, Mr. Gould noted that excluding fees and expenses incurred by BRT in both periods in a proxy contest, referred below, and an extraordinary expense item, expenses were essentially the same quarter over quarter and increased by approximately 5% nine months versus nine months.  During these periods the advisors fee increased by $39,000 and $104,000, respectively, as the Trust experienced a higher outstanding balance of invested assets, the basis upon which the fee is calculated.  General and administrative fees increased by $61,000 quarter versus quarter as a result of BRT’s increased level of loan activity and by $10,000 for the nine month period ending June 30, 2001.  Mr. Gould pointed out in the third quarter and the nine-months ended June 30, 2001, BRT booked a “non-recurring type” expense of $274,000 and $575,000, respectively, relating to its solicitation of proxies seeking the election of its designee to the Board of Trustees of Entertainment Properties Trust, an entity in which the Trust owns approximately 9.2% of the outstanding shares and also reported an extraordinary expense items of $264,000 in the nine months ended June 30, 2001 as it wrote off expenses as a result of its termination of a credit line.

BRT Realty Trust is a mortgage-oriented real estate investment Trust.

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995.  Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially.  Such risks, uncertainties and other factors include, but are not limited to, fluctuations in interest rates, levels of competition, the effect of government regulation, the availability of capital and changes in general and local economic and real estate market conditions.

Contact:  Simeon Brinberg, BRT Realty Trust (516.466.3100)

BRT is a New York-based Real Estate Investment Trust that specializes in the origination and holding for investment of senior and junior commercial mortgage loans secured by real property in the United States. For more information on BRT, please visit ourHome Page.

Caution Concerning Forward-Looking Statements: Materials included in this filing may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual results to be materially different from historical results or from any future results expressed or implied by such forward-looking statements. Statements that include the words "may," "will," "would," "could," "should," "believes," "estimates," "projects," "potential," "expects," "plans," "anticipates," "intends," "continues," "forecast," "designed," "goal," or the negative of those words or other comparable words should be considered uncertain and forward-looking.

Contact: Simeon Brinberg, Senior Vice President - (516) 466-3100

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