BRT Realty Trust (the Trust) originates and holds for investment senior mortgage loans secured by commercial and multi-family real estate property in the United States. The loans it originates are short term or bridge loans with a duration ranging from six months to one year. It lends at a floating rate of interest based on a spread over the prime rate and receives an origination fee for the loans it originates. It conducts its operations to qualify as a real estate investment trust (REIT), for federal income tax purposes. As of September 30, 2010, it had 12 senior loans outstanding, secured by properties located in six states, of which 70% were secured by properties located in the New York metropolitan area. As of September 30, 2010, its outstanding loans had an aggregate principal balance of $57.7 million and an average contractual interest rate of 9.5%.