BRT Realty Trust announces result of operations for the quarter and six months ended March 31, 2002.

Great Neck, New York, May 13, 2002 -- BRT Realty Trust (NYSE:BRT)today announced that for the three months ended March 31, 2002 it had total revenues of $4,152,000 and net income of $3,343,000, or $0.44 per share on a diluted basis.  Net income for the three months ended March 31, 2002 includes a net gain on sale of real estate assets of $607,000, or $.08 per share.  This compares with total revenues, net income and income per share on a diluted basis of $3,325,000, $2,929,000 and $.40 per share, respectively, for the three months ended March 31, 2001.  Net income for the three months ended March 31, 2001 includes net gain on sale of real estate assets of $1,475,000, or $.20 per share, which is offset by a $264,000 loss ($.04 per share) on early extinguishment of debt.  Revenues, net income and net income per share increased 25%, 14% and 10%, respectively, quarter over quarter.  The weighted average number of common shares outstanding on a diluted basis was 7,581,711 and 7,291,344 for the three months ended March 31, 2002 and 2001, respectively.

BRT also announced that for the six months ended March 31, 2002 it had total revenues of $9,137,000 and net income of $6,799,000, or $.91 per share on a diluted basis. Net income for the six months ended March 31, 2002 includes a net gain on sale of real estate assets of $607,000 or $.08 per share. For the six months ended March 31, 2001, BRT reported total revenues of $7,793,000 and net income of $6,030,000, or $.83 per share on a diluted basis.  The six months ended March 31, 2001 includes net gain on sale of real estate assets and net realized gain on sale of available-for-sale securities totaling $1,490,000, or $0.21 per share, which is offset by a $264,000 loss ($.04 per share) on early extinguishment of debt.  Revenues, net income and net income per share increased 17%, 13% and 10%, respectively for the six months ending March 31, 2002 as compared to the six months ending March 31, 2001.  The weighted average number of common shares outstanding on a diluted basis was 7,481,471 and 7,273,282 for the six months ended March 31, 2002 and March 31, 2001, respectively.

Commenting on the results of operations, Jeffrey Gould, President and Chief Executive Officer of BRT noted that the quarter and six months ended March 31, 2002 were positively impacted by a 15% and 23% increase, respectively, in interest and fees on loans, due to an increase in the average balance of loans outstanding during each period and receipt of additional interest from two participating loans in the six months ending March 31, 2002.  The six months ended March 31, 2001 reflects additional interest and fees recognized from a loan that was repaid and the return of a loan from non-performing to performing status.  Both periods in the current fiscal year were positively affected by a $500,000 reversal of a previously provided allowance.

Mr. Gould pointed out that total expenses declined 12% quarter versus quarter and were relatively unchanged for the comparative six month periods. BRT incurred $301,000 of non-recurring type expenses related to investment income in the three and six months ended March 31, 2001 resulting from fees and expenses incurred in the solicitation of proxies to vote in favor of BRT’s nominee to the Board of Trustees of Entertainment Properties Trust.  There was no comparable expense in the three and six months ended March 31, 2002.  Without giving effect to the expenses relating to investment income, total expenses increased by $100,000, or 8%, quarter versus quarter, and by $237,000, or 9%, six month versus six month, primarily due to an increase in the advisor’s fee, which increase is due to an increase in invested assets, the basis upon which the fee is calculated, and an increase in operating expenses related to real estate owned.  There were no other material changes in expenses quarter versus quarter or six months versus six months.

In the three and six month periods ended March 31, 2001 BRT recorded an extraordinary expense of $264,000 on the early extinguishment of debt.  This amount represents a write-off of unamortized deferred fees associated with a revolving credit line which was terminated during the 2001 fiscal year.

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

Certain information contained herein is forward looking within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended.  BRT intends such forward looking statements to be covered by the safe harbor provisions for forward looking statements contained in the Private Securities Litigation Reform Act of 1995 and includes this statement for purposes of complying with these safe harbor provisions.  The forward looking statements should not be relied upon since they involve known and unknown risks, uncertainties and other factors, which, in some cases, are beyond BRT's control and could materially affect actual results, performance or achievements.

Contact:  Simeon Brinberg - (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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News Source : BRT Realty Trust announces result of operations for the quarter and six months ended March 31, 2002.