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 DENVER, Sept. 21 /PRNewswire/ -- Asset Investors Corporation (NYSE: AIC) today announced that its board of directors set Oct. 1, 1993, as the record date for its previously announced distribution of common stock of Commercial Assets, Inc., a wholly owned subsidiary of Asset Investors. The distribution basis for the stock dividend to Asset Investors' stockholders is one share of Commercial Assets stock for every two shares of Asset Investors held.
 Approximately 70 percent of Commercial Assets stock, with an estimated value of $52.6 million, or $3.73 per share of Asset Investors stock, will be distributed to Asset Investors' stockholders. The balance of the shares will be retained by Asset Investors as a means of diversifying the company's operations.
 Commercial Assets is believed to be the first publicly traded real estate investment trust (REIT) designed to participate in the acquisition of unrated, credit support classes of securitizations of commercial mortgages -- an emerging segment in the capital market. More specifically, the company will be acquiring, indirectly, multi-family or other commercial properties by acquiring and managing a portfolio of ownership interests in commercial real estate securitizations collateralized by multi-family and other commercial properties.
 Spencer I. Browne, president and chief executive officer of Asset Investors and Commercial Assets, said: "The creation and funding of Commercial Assets and the spin-off of 70 percent of its shares to Asset Investors' stockholders will enable Asset Investors to diversify both its own portfolio and the portfolios of its stockholders by introducing them into the emerging capital market of commercial real estate securitizations. We believe that the commercial real estate market should provide attractive acquisition opportunities for Commercial Assets."
 As previously announced, under applicable REIT rules, Asset Investors is required to distribute $26.9 million to its stockholders in respect of 1992 in order to maintain its status as a REIT, and Asset Investors estimates that it will be required to distribute $25.7 million in respect of the first half of 1993. The distribution of the Commercial Assets shares is intended, among other things, to satisfy these requirements.
 Asset Investors will continue its activities in ownership interests in collateralized residential mortgages, as it has since 1986. Commercial Assets common stock will be listed on the American Stock Exchange under the ticker symbol CAX. Asset Investors common stock will continue to trade on the New York Stock Exchange under the symbol AIC.
 An information statement relating to the spin-off will be distributed to Asset Investors' stockholders shortly after the information statement is declared effective by the Securities and Exchange Commission (SEC). Stock certificates representing the Commercial Assets shares would be distributed shortly thereafter. If the SEC does not declare the information statement effective by Dec. 10, 1993, or if the board of directors of Asset Investors determines that the spin-off is no longer in the best interests of Asset Investors or its stockholders, Asset Investors will pay a dividend in another form by the end of the year.
 This is neither an offer to sell nor a solicitation of any offer to buy any securities. There can be no assurances as to the future trading prices of Commercial Assets common stock.
 For Additional Information on Asset Investors Corporation by fax at no cost, dial 1-800-PRO-INFO, Code No. 016.
 Asset Investors Corporation
 3600 South Yosemite Ste. 900
 Denver, Colorado 80237
 Traded: NYSE (AIC)
 -0- 9/21/93
 /CONTACT: Spencer I. Browne, president and chief executive officer of Asset Investors Corporation, 303-793-2703; Gary Strong at FRB Chicago, 312-266-7800; or Regina Ryan at FRB New York, 212-661-8030/

CO: Asset Investors Corporation; Commercial Assets, Inc. ST: Colorado IN: FIN SU:

TW -- NY073 -- 4268 09/21/93 15:06 EDT
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Publication:PR Newswire
Date:Sep 21, 1993

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