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Great Neck mortgage firm sheds bad loans, sees profit

The website for BRT Realty Trust, which specializes

The website for BRT Realty Trust, which specializes in mortgage loans backed by commercial and multiunit properties. Photo Credit: BRT Realty Trust

Shedding all its nonperforming loans during the past year, Great Neck-based BRT Realty Trust has turned a profit after two years of losses, the company said in its annual earnings report.

BRT originates and holds mortgages on commercial and multifamily U.S. properties. It said company performance improved as it increased revenue from real estate loan fees and interest.

For the year ended Sept. 30 BRT's net income attributable to common shareholders rose $14.4 million to $6.4 million, or $0.45 per diluted share, compared to the previous year's net loss of $8 million or $0.58 per share.

The market responded Tuesday to the results, which had been released after trading closed the previous day. Shares were up $0.05 to $6.25.

"During fiscal 2011, we resolved all our remaining problem loans, increased our loan origination activities and at fiscal year-end, all our loans are earning," chief executive Jeffrey A. Gould said in a news release.

"As a result, we are reporting positive results for the year ended Sept. 30, 2011, after reporting losses in each of the two prior fiscal years," Gould said.

BRT total revenue rose to $17.9 million, an amount that is 120 percent higher than total revenue the previous year. Meanwhile its total expenses fell to $13.8 million, a 30.3 percent drop compared to fiscal 2010 when it had to include a $5.8 million provision for loan loss and impairment charges, the company said.

A map on the company's website shows recent real estate transactions coast to coast, including several in metro New York City -- including a $22.8 million office building refinance -- two in California and a half-dozen in Florida.

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