INVESTMENT IN UNCONSOLIDATED VENTURES

12 Months Ended

Sep. 30, 2011

INVESTMENT IN UNCONSOLIDATED VENTURES

INVESTMENT IN UNCONSOLIDATED VENTURES

NOTE 7—INVESTMENT IN UNCONSOLIDATED VENTURES

        On June 2, 2011, a wholly owned subsidiary of the Trust entered into a joint venture with an affiliate of Torchlight Investors ("Torchlight"). The joint venture has the right, but not the obligation, to acquire all whole loans originated by the Trust. The BRT member is the managing member of the joint venture. The joint venture may be capitalized with up to $100 million of which 20% will be funded by the BRT member and 80% will be funded by Torchlight as and when loans are acquired. Subsequent to year end, the parties to the venture terminated the Trust's obligation to sell loans to this venture.

        In the fiscal year ended September 30, 2011, the Trust's share of the venture's earnings was $99,000. The Trust's equity investment in this joint venture totaled $3,431,000 at September 30, 2011.

        The Trust is also a partner in two unconsolidated joint ventures, each of which owns and operates one property. The Trust was also a partner in an unconsolidated joint venture that engaged in short term lending. That venture ceased operations in November 2009. These ventures generated $251,000, $196,000 and ($2,791,000) in equity earnings (loss) for the years ended September 30, 2011, 2010 and 2009, respectively. The Trust's equity investment in these unconsolidated joint ventures totaled $816,000 and $775,000 at September 30, 2011 and 2010, respectively.