According to a statement released by Banyan, the board has nowinitiated an arbitration proceeding with the ultimate aim ofsacking Levine for "just cause," though it did not specify thecauses. None of the parties involved were available for comment,but sources familiar with the matter told GlobeSt.com that theboard of trustees and the REIT's management were at odds over thedisposition of the properties, with management strongly againsthiring any outside party to market them. Also, a group headed byLevine had been negotiating to buy the properties, but was unableto conclude a deal with the board.

Banyan owns primarily office and flexspace in Midwestern andSourthern states, with a current portfolio of 27 properties thattotal 3.5 million sf. Banyan seems to have suffered a strongly fromthe REIT malaise of the last few years. Share prices in Banyansince a high of over $7 in mid-1998 have stagnated between about$4.50 and $6. For the first quarter 2000 (the most recent figuresavailable) Banyan reported net income of $1 million, or 7¢ pershare, on revenues of $9.3 million, and FFO of $2.7 million, or 18¢per share. This compared to net income of $1.2 million, or 9¢ pershare, on revenues of $10.4 million and FFO of $2.8 million, or20.5¢ per share, during the first quarter the previous year.

Total revenue for the first quarter 2000 was $9.3 million, whichrepresents a decrease of 10.6% from the $10.4 million in revenuereported during the same period last year. This decrease is due toa reduction in the number of properties owned by Banyan, buton a"same-store" basis, when comparing the operational results of thesame properties, total revenues also decreased, by roughly $0.1million.