14846--12/14/2009--BRT_REALTY

related topics

{loan, real, estate}

{cost, operation, labor}

{investment, property, distribution}

{loss, insurance, financial}

{tax, income, asset}

{personnel, key, retain}

{competitive, industry, competition}

{stock, price, share}

{condition, economic, financial}

Risks Related to Our Business The disruptions in the credit and real estate markets may continue to adversely affect our business. If defaults on our loans continue, it will result in continuing declines in revenues and net income. Decrease in our loan originations will negatively affect our results of operations. We do not have a credit facility, which will limit our loan origination activity. We incurred substantial loan loss provisions and impairment charges in Fiscal 2009 and may incur additional loan loss provisions and impairment charges in Fiscal 2010. Current economic conditions and turmoil in the credit markets expose us to a variety of risks. The Newark Joint Venture may have an operating loss for the foreseeable future. We have limited experience in developing and operating assemblage sites. The success of our Newark Joint Venture depends, to a large extent, on the principal of the Newark Joint Venture's manager. The geographic concentration of our portfolio may make our revenues and the value of our portfolio vulnerable to adverse changes in local economic conditions. In order for real estate properties to generate positive cash flow or to make real estate properties suitable for sale, we may need to make significant capital improvements and incur deferred maintenance costs to these properties. Financing with high loan-to-value ratios involves increased risk of loss and may adversely affect us. In order to facilitate the sale of our real estate properties in Fiscal 2009, we provided seller financing to several purchasers and may continue to do so in the future. It is highly unlikely that we will declare any dividends in 2010. Risks of cost overruns and noncompletion of renovation of properties underlying rehabilitation loans or condominium conversions may result in significant losses. The increased risk of loans secured by unimproved land may harm our results of operations. 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. Liability relating to environmental matters may impact the value of properties that we may acquire upon foreclosure of the properties underlying our investments. We operate in a highly competitive market. 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. Compliance with REIT requirements may hinder our ability to maximize profits.

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14846--12/14/2009--BRT_REALTY_TRUST