14846--12/14/2007--BRT_REALTY

related topics

{loan, real, estate}

{investment, property, distribution}

{tax, income, asset}

{debt, indebtedness, cash}

{financial, litigation, operation}

{personnel, key, retain}

{cost, operation, labor}

{stock, price, share}

{condition, economic, financial}

Risks Related to Our Business If borrowers default on loans, we will experience a decrease in income and any recovery may be limited by the value of the underlying property The inability of our borrowers to refinance or sell underlying real property may lead to defaults on our loans Decrease in Loan Originations 2007 Fiscal Year compared to the 2006 Fiscal Year If a significant number of our mortgage loans are in default or we otherwise must write down our loans, a breach of our revolving credit facility could occur Our allowance for loan losses and valuation allowances against owned real estate may not be adequate to cover actual losses A portion of our loans are subordinate loans which carry a greater risk of loss than senior loans We may suffer a loss if a borrower defaults on a loan that is secured by undeveloped land We may suffer a loss if a borrower defaults on a loan that is not secured directly by underlying real estate Dependence on Two Borrowers in Fiscal 2007 We are subject to the risks associated with loan participations, such as lack of full control rights We may have less control of our investment when we invest in joint ventures The accounting treatment of the assets held by our CIT joint venture could make it difficult to analyze our financial statements and to compare them with our prior period financial statements Our inability to control our joint venture with CIT could result in diversion of time and effort by our management and the inability to achieve the goals of the joint venture We are exposed to risk of environmental liabilities with respect to properties to which we take title The geographic concentration of our portfolio may make our revenues and the value of our portfolio vulnerable to adverse changes in local economic conditions We face intense competition in acquiring desirable mortgage investments Our revenues and the value of our portfolio are affected by a number of factors that affect investments in real estate generally Changes in interest rates may harm our results of operations Our revenues and the value of our portfolio may be negatively affected by casualty events occurring on properties securing our loans Senior management and other key personnel are critical to our business and our future success may depend on our ability to retain them Our transactions with affiliated entities involve conflicts of interest We will be adversely affected by a decrease in the market value of, or cash distributions paid on, shares of Entertainment Properties Trust Risks Related to the REIT Industry Failure to qualify as a REIT would result in material adverse tax consequences and would significantly reduce cash available for distributions We are subject to certain distribution requirements that may result in our having to borrow funds at unfavorable rates Compliance with REIT requirements may hinder our ability to maximize profits We cannot assure you of our ability to pay dividends in the future

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14846--12/14/2007--BRT_REALTY_TRUST