SHAREHOLDERS' EQUITY

12 Months Ended

Sep. 30, 2011

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY

NOTE 12—SHAREHOLDERS' EQUITY

Distributions

        During the year ended September 30, 2011, the Trust did not declare or pay any dividends.

Stock Options

        At September 30, 2011 there were 11,000 options outstanding that were issued pursuant to the BRT 1996 Stock Option Plan, all of which are currently exercisable. These options have an exercise price of $8.25 and expire December 2011. No further grants can be made under this Plan.

        Changes in the number of shares under all option arrangements are summarized as follows:

	Year Ended September 30,
	2011			2010		2009
Outstanding at beginning of period		22,500			22,500		22,500
Expired		(11,500	)		—		—
Outstanding at end of period		11,000			22,500		22,500
Exercisable at end of period		11,000			22,500		22,500
Option prices per share outstanding (a)	$	8.25		$	6.12 - $8.25	$	7.75 - $10.45
Weighted average remaining contractual life (years)		.2			.6		1.6
Weighted average exercise price		8.75			7.16		9.07

(a)

The exercise price of these options have been adjusted for the fiscal year ended September 30, 2011 and 2010 to give effect to the stock dividend that took place in October 2009.

Restricted Shares

        An aggregate of 850,000 shares have been authorized for issuance under the Trust's equity incentive plans, of which 229,560 shares remain available for future grants at September 30, 2011. The restricted shares issued vest five years from the date of grant and under specified circumstances, including a change in control, may vest earlier. Since inception of the plans, 126,410 shares have vested and 491,705 shares have been granted and have not yet vested.

        During the fiscal years ended September 30, 2011, 2010 and 2009, the Trust issued 138,150, 125,150 and 126,450 restricted shares, respectively, under the Trusts equity incentive plans. For accounting purposes, the restricted shares are not included in the outstanding shares shown on the consolidated balance sheets until they vest. The estimated fair value of restricted stock at the date of grant is being amortized ratably into expense over the applicable vesting period. For the years ended September 30, 2011, 2010 and 2009, the Trust recognized $845,000, $833,000 and $876,000 of compensation expense, respectively. At September 30, 2011, $1,801,000 has been deferred as unearned compensation and will be charged to expense over the remaining vesting periods. The weighted average vesting period is 2.85 years.

        Changes in number of shares outstanding under the 2009 and 2003 BRT Incentive Plans are shown below:

	Years Ended September 30,
	2011			2010			2009
Outstanding at beginning of the year		391,580			299,280			197,540
Issued		138,150			125,150			126,450
Cancelled		(175	)		(2,050	)		(750	)
Vested		(37,850	)		(30,800	)		(23,960	)
Outstanding at the end of the year		491,705			391,580			299,280

Warrant

        On June 2, 2011, in connection with entering into a joint venture with an affiliate of Torchlight Investors ("Torchlight"), the Trust issued a warrant to purchase 100,000 shares of beneficial interest of the Trust. The warrant is exercisable until May 30, 2012. The exercise price of the warrant is $9.00 per share and includes anti-dilution adjustments in the event of stock splits, stock dividends and issuances of securities. The warrant's fair value of $259,000 as of the issue date was determined by a third party appraiser using a Monte Carlo simulation model and was recorded as a component of the Trust's investment in the joint venture.

Earnings (Loss) Per Share

        The following table sets forth the computation of basic and diluted earnings (loss) per share (dollars in thousands):

	2011		2010			2009
Numerator for basic and diluted earnings (loss) per share attributable to common shareholders:
Net income (loss)	$	6,374	$	(8,015	)	$	(47,755	)
Denominator:
Denominator for basic earnings (loss) per share—weighted average shares(1)		14,041,569		13,871,668			11,643,972
Effect of dilutive securities:
Employee stock options		—		298			—
Stock dividend payable		—		—			2,437,352
Denominator for diluted earnings (loss) per share—adjusted weighted average shares and assumed conversions(1)		14,041,569		13,871,668			11,643,972
Basic earnings (loss) per share	$	.45	$	(.58	)	$	(4.10	)
Diluted earnings (loss) per share	$	.45	$	(.58	)	$	(4.10	)

(1)

Outstanding shares for 2010 and 2009 are the same for basic and diluted as the effect of dilutive shares in the computation of earnings per share would have been antidilutive.

Share Buyback and Treasury Shares

        In September 2011, the Board of Trustees approved a share repurchase program pursuant to which the Trust may spend up to $2,000,000 to repurchase its shares of beneficial interest. Shares repurchased under this program will be retired. As of September 30, 2011, the Trust had repurchased 7,305 shares at an average cost of $6.35 per share. During the fiscal years ended September 30, 2010 and 2009 the Trust repurchased 52,403 and 256,110 shares, respectively, at an average cost of $5.55 and $3.68 per share, respectively.

        During the years ended September 30, 2011, 2010 and 2009, 37,850, 30,800 and 23,960 treasury shares, respectively, were issued in connection with the vesting of restricted stock under the Trust's incentive plans. As of September 30, 2011, the Trust owns 1,422,000 treasury shares of beneficial interest at an aggregate cost of $11,070,000.

Tender Offer

        On October 27, 2010, 147,388 shares of beneficial interest were tendered pursuant to a previously announced tender offer. The total purchase price of these shares was $6.30 per share, aggregating $929,000.