Anthracite Capital Reports GAAP Earnings of $1.20 Per Share and Operating Earnings of $1.13 Per Share for Full Year 2005.NEW YORK New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of -- Anthracite anthracite (ăn`thrəsīt'): see coal. anthracite or hard coal Coal containing more fixed carbon than any other form of coal and the lowest amount of volatile (quickly evaporating) material, giving it the Capital, Inc. (NYSE NYSE See: New York Stock Exchange :AHR AHR Aryl Hydrocarbon Receptor AHR American Historical Review (Journal of the American History Association) AHR Anchor AHR airway hyper-responsiveness AHR Assisted Human Reproduction AHR Air-Conditioning Heating Refrigeration ) (the "Company" or "Anthracite") today reported diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. net income available to common stockholders for the year ended December December: see month. 31, 2005 of $1.20 per share versus $0.50 per share for the year ended December 31, 2004. For the quarters ended December 31, 2005 and 2004, diluted net income available to common stockholders was $0.47 and $0.09 per share, respectively. Operating Earnings Operating Earnings Profits after subtracting expenses such as marketing, cost of goods sold, administration and general operating costs from revenue. Notes: Tax and interest expenses are not subtracted - operating earnings are synonymous with EBIT (earnings before (defined below) for the year ended December 31, 2005 and 2004 were $1.13 and $1.12 per share, respectively. Operating Earnings for the three months ended December 31, 2005 and 2004 were $0.27 and $0.28 per share, respectively. Chris CHRIS Chemical Hazards Response Information System (US DoD) CHRIS California Historical Resources Information System CHRIS Computerized Human Resources Information System CHRIS Command Human Resources Intelligence System Milner Milner can refer to: People
See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). book value by $3.21 per share and distributed $2.24 in dividends, resulting in a nominal return nominal return The rate of return on an investment without adjustment for inflation. While nominal return is useful in comparing the returns from different investments, it can be a very misleading indication of true investor earnings on an investment. of 85%. Operating Earnings for the fourth quarter of 2005 were negatively impacted by increased general and administrative expenses associated with our global expansion, higher short term funding costs, and higher cash balances carried due to the issuance of trust preferred securities. We continue to view the current market environment with cautious optimism based on the positive fundamentals and the ability to balance fully priced assets with very attractive funding costs." Based on the $0.28 per share dividend declared on December 8, 2005, and the February February: see month. 15, 2006 closing price of $10.89, Anthracite's annualized annualized Of or relating to a variable that has been mathematically converted to a yearly rate. Inflation and interest rates are generally annualized since it is on this basis that these two variables are ordinarily stated and compared. dividend yield is 10.28%. Table 1, provided below, reconciles Operating Earnings per share with diluted net income available to common stockholders per share. All currency amounts discussed herein are in thousands, except share and per share amounts. Fourth Quarter Financial Results Income from Operating Portfolio Interest income from commercial real estate assets increased $10,587, or 20%, from the quarter ended December 31, 2004 and $5,225, or 9%, from the quarter ended September September: see month. 30, 2005. The Company's commercial real estate assets have increased 16% year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. with an estimated fair value of $3,774,246 at December 31, 2005 compared with $3,265,914 at December 31, 2004. This includes non-dollar denominated investments with a U.S. dollar value of $167,271 at December 31, 2005. The Company's weighted average cost of funds Cost of Funds The interest rate paid on an outstanding loan. Notes: Money isn't free! Cost of funds is the cost of borrowing money. See also: Interest Rate Cost of funds Interest rate associated with borrowing money. increased to 5.7% at December 31, 2005 from 5.1% at December 31, 2004. For the quarter ended December 31, 2005, hedging expense not related to collateralized debt obligations Collateralized Debt Obligation (CDO) A general inclusive term which covers Collateralized Bond Obligations, Collateralized Loan Obligations, and Collateralized Mortgage Obligations, ("CDOs") was $1,596 ($0.03 per share), a decrease from $2,829 ($0.05 per share) for the quarter ended December 31, 2004. The increase in the Company's cost of funds is attributable to the issuance of $75,000 of trust preferred securities, $239,660 of CDO (Collaborative Data Objects) A programming interface from Microsoft for accessing MAPI-based e-mail, calendaring and scheduling servers. Originally called "OLE Messaging" and "Active Messaging," CDO wraps the Enhanced MAPI library into a COM object that provides the debt and increases in short-term interest rates Short-term interest rates Interest rates on loan contracts-or debt instruments such as Treasury bills, bank certificates of deposit or commerical paper-having maturities of less than one year. Often called money market rates. . The Company's estimated exposure at December 31, 2005 to a 50 basis point move in short-term interest rates remained at $0.01 per share annually. During the quarter, the Company incurred incentive fees of $4,290, of which $4,131 is related to the net realized gain Realized Gain A gain resulting from selling an asset at a price higher than the original purchase price. Notes: There may be tax consequences for a realized profit. on CDO HY2 (discussed below). The Company's manager, BlackRock BlackRock Inc. (NYSE: BLK) is a major American investment management firm. As of September 30, 2007, BlackRock’s assets under management totaled $1.3 trillion[2] across fixed income, liquidity, equity, alternative investment and real estate strategies. Financial Management, Inc., is paid an incentive fee equal to 25% of the amount by which the rolling four-quarter GAAP net income before the incentive fee exceeds the greater of 8.5% or 400 basis points over the ten-year Treasury note multiplied mul·ti·ply 1 v. mul·ti·plied, mul·ti·ply·ing, mul·ti·plies v.tr. 1. To increase the amount, number, or degree of. 2. Mathematics To perform multiplication on. by the adjusted issue price of $11.37 per share as of December 31, 2005 (see further description of the Incentive Fee calculation in the Company's Form 10-Q Form 10-Q See 10-Q. for the quarter ended September 30, 2005, filed with the Securities and Exchange Commission on November November: see month. 9, 2005.) The Company's Operating Earnings for the fourth quarter of 2005 represent an annualized return on the quarter's average common stockholders' equity Stockholders' Equity The portion of the balance sheet that includes capital received from investors in exchange for stock (paid-in capital), donated capital, and retained earnings. This is equal to total assets minus liabilities, preferred stock and intangible assets. of 11.6%, as compared to 13.6% for the fourth quarter of 2004 and 11.5% for the third quarter of 2005. The net interest margin of 2.9% for the fourth quarter of 2005 decreased from 3.1% for the fourth quarter of 2004 and increased from 2.8% for the third quarter 2005. The Company raised $75,000 of trust preferred securities in September of 2005. The Company acquired approximately $50,000 of real estate equity in December 2005 and two Controlling Class CMBS CMBS See: Commercial Mortgage Backed Securities transactions (defined below) in October October: see month. and December of 2005. This mismatch mismatch 1. in blood transfusions and transplantation immunology, an incompatibility between potential donor and recipient. 2. one or more nucleotides in one of the double strands in a nucleic acid molecule without complementary nucleotides in the same position on the other of timing as well as the $293 increase in general and administrative expenses over third quarter 2005 negatively impacted Operating Earnings for the fourth quarter of 2005. The 31% increase in general and administrative expenses for the fourth quarter of 2005 was primarily attributable to costs associated with the Company's global expansion. The Company's debt to capital ratio decreased to 5.9:1 as of December 31, 2005 from 6.2:1 at December 31, 2004, and the recourse The right of an individual who is holding a Commercial Paper, such as a check or promissory note, to receive payment on it from anyone who has signed it if the individual who originally made it is unable, or refuses, to tender payment. debt to capital ratio increased to 2.0:1 from 1.6:1 over the same period. Other Income (Loss) As previously reported, on July July: see month. 26, 2005, the Company closed CDO HY2 and issued non-recourse liabilities with a face amount of $365,010. Senior investment grade notes with a face amount of $240,134 were issued and sold in a private placement. The Company retained the floating rate BBB- note, the below investment grade notes and the preferred shares Preferred shares Preferred shares give investors a fixed dividend from the company's earnings and entitle them to be paid before common shareholders. See: Preferred stock. . The Company recorded CDO HY2 as a secured financing for accounting purposes and consolidated the assets, liabilities, income and expenses of CDO HY2 until the sale of the floating rate BBB- note in the fourth quarter of 2005, at which point CDO HY2 qualified as a sale under relevant accounting guidelines guidelines, n.pl a set of standards, criteria, or specifications to be used or followed in the performance of certain tasks. . The value of the transaction was $349,237, consisting of cash of $244,212 and retained non-investment grade debt and preferred shares with a fair market value of $105,025 in exchange for a portfolio of commercial mortgage-backed securities Commercial mortgage-backed securities (CMBS) are a type of bond commonly issued in American security markets. They are a type of Mortgage-backed security which are backed by mortgages on commercial rather than residential real estate. ("CMBS") and real estate investment trust ("REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ") debt with an estimated fair value of $323,103. The adjusted purchase price of the portfolio of CMBS and REIT debt was $323,849. The following table summarizes the impact of this transaction on fourth quarter 2005 results and per share amounts:
Net realized gain related to sale of CDO HY2 $16,523 $0.30
Increase in accumulated other comprehensive income 9,611 0.17
Incentive fee attributable to CDO HY2 gain (4,131) (0.07)
-----------------
Total book value impact $22,003 $0.40
=================
Richard Ri·chard , Joseph Henri Maurice Known as "Rocket." 1921-2000. Canadian hockey player. A right wing for the Montreal Canadiens (1942-1960), he led his team to eight Stanley Cup championships and was the first player to score 50 goals in a Shea, President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of the Company, stated, "In addition to unlocking significant economic value for our shareholders, the CDO HY2 transaction reduces income volatility associated with these highly credit sensitive assets. The ramp component of the transaction also provided the Company with a unique competitive advantage in the fourth quarter since our long term funding was in place and our cost of capital was fixed." Mr. Shea continued: "We are currently expanding our operations in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). where we see a greater role for commercial real estate finance
in the capital markets, similar to what has been happening in the U.S.
over the last ten years. Our expertise in both real estate finance and
capital markets, combined with our growing global reputation will
enhance our ability to create a significant platform in this
market."Certain securities held by the Company are accounted for under Emerging Issues Task Force Issue 99-20, "Recognition of Interest Income and Impairment Impairment 1. A reduction in a company's stated capital. 2. The total capital that is less than the par value of the company's capital stock. Notes: 1. This is usually reduced because of poorly estimated losses or gains. 2. on Purchased and Retained Beneficial Interests in Securitized securitized Of, related to, or being debt securities that are secured with assets. For example, mortgage purchase bonds are secured by mortgages that have been purchased with the bond issue's proceeds. Financial Assets Financial assets Claims on real assets. " ("EITF EITF Emerging Issues Task Force EITF Edinburgh International Television Festival EITF Europe International Taekwon-Do Federation 99-20"). On a quarterly basis, the Company updates its estimated cash flows for securities subject to EITF 99-20. The Company compares the yields resulting from the updated cash flows to the current GAAP yields. An impairment charge is required under EITF 99-20 if the updated yield is lower than the current GAAP yield and the security has a market value less than its adjusted purchase price. The Company carries these securities at their market value on its consolidated statement of financial condition. As of December 31, 2005, the Company's portfolio had four CMBS that required an impairment of $1,857, of which $1,410 was attributed to higher prepayment Prepayment 1. The payment of a debt obligation prior to its due date. 2. The excess payment over a scheduled debt repayment amount. Notes: 1. Examples include deferred expenses such as rent and early loan repayments. 2. rates on a pool of Small Business Administration commercial mortgages. Changes in the timing of credit losses and prepayments Prepayments Payments made in excess of scheduled mortgage principal repayments. caused updated yields on these securities to decline from their GAAP yields. Commercial Real Estate Credit Risk The Company's primary focus is to invest in a diversified diversified (di·verˑ·s portfolio of CMBS and commercial real estate loans. The majority of these investments take the form of CMBS that are collateralized by pools of underlying mortgage loans. The underlying loans are secured by first mortgages on office buildings, retail centers, apartment buildings, hotels and other types of commercial properties. The cash flows the Company receives from its CMBS portfolio are dependent upon the credit performance of the underlying mortgage loans. The Company assumes losses will occur on the underlying mortgage loans and the interest income the Company records for its CMBS securities reflects these assumed losses. Loss assumptions are maintained at a level believed by management to be sufficient to absorb estimated credit losses inherent in the underlying loans. The Company considers CMBS securities where it maintains the right to control the foreclosure/workout process on the underlying loans as controlling class CMBS ("Controlling Class CMBS"). The Company acquired two Controlling Class CMBS transactions during the fourth quarter of 2005 and owns 22 Controlling Class CMBS transactions as of December 31, 2005. However, portions of the non-rated tranches Tranches A piece, portion or slice of a deal or structured financing. This portion is one of several related securities that are offered at the same time but have different risks, rewards and/or maturities. "Tranche" is the French word for "slice". of 17 of the 22 transactions are included in CDO HY1 and CDO HY2 which reduces the Company's exposure to the credit risk in these transactions. The current principal balance of the loans underlying the Company's 22 Controlling Class CMBS is $29,668,349. Delinquencies of 30 days or more on these loans as a percent of current loan balances were 0.64% at the end of the fourth quarter of 2005, compared with 0.75% at the end of the third quarter of 2005. With the disposition of three loans during the fourth quarter of 2005, the weighted average loss severity experienced for the 1998 and 1999 Controlling Class CMBS decreased from 23.0% at September 30, 2005 to 22.8% at December 31, 2005. During the fourth quarter of 2005, there were five credit upgrades on three of the Company's Controlling Class CMBS and no credit downgrades. The aforementioned a·fore·men·tioned adj. Mentioned previously. n. The one or ones mentioned previously. aforementioned Adjective mentioned before Adj. 1. data and other information on the credit quality of the underlying commercial mortgage loans are considered by the Company when it estimates future cash flows on each Controlling Class structure to compute To perform mathematical operations or general computer processing. For an explanation of "The 3 C's," or how the computer processes data, see computer. revised yields in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with EITF 99-20. Commercial Real Estate Securities During the fourth quarter of 2005, the Company purchased $148,662 of commercial real estate securities, of which $55,497 were investment grade multifamily agency securities. However, the Company's commercial real estate securities portfolio decreased by approximately 3% to an estimated fair value of $2,005,383 at December 31, 2005, compared with $2,070,725 at September 30, 2005 due to the sale of CDO HY2. The average yields on the Company's commercial real estate securities for the quarters ended December 31, 2005 and 2004 were as follows:
For the quarter ended
December 31,
2005 2004
---------------------
Investment grade commercial real estate
securities 5.7% 6.2%
Non-investment grade CMBS securities 10.1% 9.7%
All commercial real estate securities 7.8% 8.0%
The average cost of financing the commercial real estate securities portfolio during the fourth quarter of 2005 was 5.6%, compared to 5.1% for the fourth quarter of 2004. Net interest income and net realized and unrealized gain Unrealized Gain A profit that results from holding on to an asset rather than cashing it in and using the funds. Notes: Let's say you own a stock that has doubled, but you haven't sold it yet. This is said to be an unrealized gain. from the commercial real estate securities portfolio for the quarters ended December 31, 2005 and 2004 are as follows:
For the quarter ended
December 31,
2005 2004
---------------------
Interest income $39,392 $31,785
Interest expense* (25,044) (18,290)
---------------------
Net interest income 14,348 13,495
---------------------
Net realized and unrealized gain 16,334 16,237
---------------------
Loss on impairment of assets (1,857) (26,018)
---------------------
Net interest income and gain from commercial real
estate securities $28,825 $3,714
=====================
*Including hedges in the Company's CDOs.
Commercial Real Estate Loans During the quarter ended December 31, 2005, the Company purchased $40,835 U.S. dollar denominated commercial real estate loans with a total principal balance of $44,000, Euro denominated commercial real estate loans with a cost of EUR EUR In currencies, this is the abbreviation for the Euro. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 39,860 ($46,740) and a total principal balance of EUR 40,000, as well as a British Pound denominated commercial real estate loan with a cost of GBP GBP In currencies, this is the abbreviation for the British Pound. Notes: The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion. 22,374 ($39,534) and a principal balance of GBP 22,374. During the quarter ended December 31, 2005, the Company experienced repayments and the sale of a commercial real estate loan related to CDO HY2 in the aggregate amount of $53,016. This activity brings total commercial real estate loans to $424,709 as of December 31, 2005, up from $353,402 at September 30, 2005. The carrying value Carrying Value Also know as "book value," it is a company's total assets minus intangible assets and liabilities, such as debt. Notes: This is different than market value, as it can be higher or lower depending on the circumstances. and average yields on the Company's commercial real estate loans, exclusive of the Company's investments in Carbon Capital, Inc. and Carbon Capital II, Inc. (collectively, the "Carbon Capital Funds"), as of December 31, 2005 were as follows:
Average Average Average
Carrying Spread Spread Spread
Value to to to
Carrying (Local Average 1-month 3-month 3-month
Value Currency) Yield USD LIBOR GBP LIBOR EURIBOR
--------------------------------------------------------
Fixed Rate $142,490 9.11%
Floating Rate 93,859 5.64%
Floating Rate 56,955 GBP 33,134 4.31%
Floating Rate 72,997 EUR 61,571 3.52%
---------
$366,301
=========
For the three months ended December 31, 2005 and 2004, the total cost of borrowings secured by loan assets was 5.4% and 3.4%, respectively. The Company has three committed warehouse lines that can be used to finance these commercial loan assets. The Company's investments in the Carbon Capital Funds are included in commercial real estate loans. The annualized yield on the Company's investments in the Carbon Capital Funds was 22.1% for the quarter ended December 31, 2005. The Company's investments in the Carbon Capital Funds as of December 31, 2005 were $59,643, as compared to $56,812 as of December 31, 2004. Net interest income from the commercial real estate loan portfolio for the quarters ended December 31, 2005 and 2004 is as follows:
For the
quarter ended
December 31,
2005 2004
----------------
Interest income $10,827 $7,948
Interest expense (2,135) (1,185)
----------------
Net interest income from commercial real estate loans $8,692 $6,763
================
Commercial Real Estate Equity On December 14 and 19 of 2005, the Company invested an aggregate of $50,704 in the BlackRock Diamond Property Fund ("BlackRock Diamond"). BlackRock Diamond is a private REIT managed by BlackRock Realty realty n. a short form of "real estate." (See: real estate) REALTY. An abstract of real, as distinguished from personalty. Realty relates to lands and tenements, rents or other hereditaments. Vide Real Property. Advisors, Inc. BlackRock Diamond's Diamond's was a department store based in Phoenix, Arizona. It opened in 1897 as The Boston Store and was renamed Diamond's in 1947 in honor of the store's 50th anniversary. investment objective is to seek current income and capital appreciation from a portfolio of equity real estate assets while preserving capital. The Company has a 27% ownership in BlackRock Diamond as of December 31, 2005 and recorded $299 of income during the fourth quarter under the equity method. The Company has $24,296 of remaining capital commitments to BlackRock Diamond, which is expected to increase to $49,296 in the first quarter of 2006. Book Value Net book value per share at the end of the fourth quarter of 2005 was $9.59. This is an increase of 3.3% from $9.28 at September 30, 2005 and an increase of 12.0% from $8.56 at December 31, 2004. Below is a calculation of book value per share* for the years ended December 31, 2005, 2004, and 2003, as well as the quarter ended September 30, 2005.
12/31/2005 9/30/2005 12/31/2004 12/31/2003
-------------------------------------------
Total Stockholders' Equity $598,018 $572,486 $513,738 $417,430
Less:
Series B Preferred Stock
Liquidation Value - - - (43,942)
Series C Preferred Stock
Liquidation Value (57,500) (57,500) (57,500) (57,500)
-------------------------------------------
Common Equity $540,518 $514,986 $456,238 $315,988
Shares Outstanding 56,339 55,511 53,289 49,494
Book Value Per Share $9.59 $9.28 $8.56 $6.38
===========================================
*Book value per share calculations prior to the fourth quarter of 2005
deducted the carrying value of preferred share classes. For the fourth
quarter of 2005 and all future periods, the Company will present book
value per share based on liquidation value calculation, as shown
above.
Reconciliation of Operating Earnings to Diluted Net Income Available to Common Stockholders (Table 1) The Company considers its Operating Earnings to be net interest income after operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. and preferred dividends preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) but before realized and unrealized gains and losses, hedge ineffectiveness in·ef·fec·tive adj. 1. Not producing an intended effect; ineffectual: an ineffective plea. 2. Inadequate; incompetent: an ineffective teacher. , incentive fees attributable to the gain on CDO HY2, foreign currency exchange impact, the cost to retire preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. and loss on impairment of assets. The Company believes Operating Earnings to be an effective indicator of the Company's profitability and financial performance over time. Operating Earnings can and will fluctuate over time based on changes in asset levels, funding rates, available reinvestment rates Reinvestment Rate The rate at which cash flows from fixed-income securities may be reinvested. Notes: Because of the additional interest income, bondholders can make larger investment returns if they reinvest received coupon payments. , and expected losses on credit sensitive positions. The table below reconciles Operating Earnings per common share with diluted net income available to common stockholders per common share:
Three Months
Ended Year Ended
December 31, December 31,
---------------------------
2005 2004 2005 2004
---------------------------
Operating earnings per share $0.27 $0.28 $1.13 $1.12
Net realized and unrealized loss (0.01) (0.01) (0.04) (0.21)
Net realized gain attributable to CDO HY1 - 0.31 - 0.32
Net realized gain attributable to CDO HY2 0.30 - 0.30 -
Incentive fee attributable to CDO HY2 gain (0.07) - (0.08) -
Net foreign currency gain (loss) and hedge
ineffectiveness 0.01 - (0.02) (0.03)
Cost to retire preferred stock in excess
of carrying value - - - (0.20)
Loss on impairment of assets (0.03) (0.49) (0.09) (0.50)
---------------------------
Diluted net income available to common
stockholders per share $0.47 $0.09 $1.20 $0.50
===========================
Dividend Reinvestment Plan Dividend Reinvestment Plan (DRP) Plan which provides for automatic reinvestment of shareholder dividends in more shares of a company's stock, often without commissions. Some plans provide for the purchase of additional shares at a discount to market price. The optional cash portion of the Company's Dividend Reinvestment Reinvestment Using dividends, interest and capital gains earned in an investment or mutual fund to purchase additional shares or units, rather than receiving the distributions in cash. 1. In terms of stocks, it is the reinvestment of dividends to purchase additional shares. and Stock Purchase Plan (the "Plan") has been reinstated for all investment dates after July 26, 2005 with a discount of 2% to the trailing 12-business day average provided the stock price remains above threshold levels Noun 1. threshold level - the intensity level that is just barely perceptible intensity, intensity level, strength - the amount of energy transmitted (as by acoustic or electromagnetic radiation); "he adjusted the intensity of the sound"; "they measured the established by the Company at the time. The dividend reinvestment portion of the Plan remains in effect with a discount of 2% as well. During the quarter ended December 31, 2005, the Company issued 821,380 shares under the Plan at a collective weighted-average issuance price of $10.45 per share. The optional cash portion plan of the Plan allows participants to invest up to $20,000 per month at a 2% discount. The optional cash portion of the plan represents 809,542 of the shares that were issued during the quarter under the Plan. The remaining 11,838 shares issued under the Plan during the quarter are attributable to the dividend reinvestment portion of the Plan. To request a prospectus and receive enrollment materials or to ask questions about the Plan, interested investors and stockholders may contact the Company's transfer agent, American Stock Transfer & Trust Company, at 1-877-248-6416, or Investor Relations Investor relations The process by which the corporation communicates with its investors. , Anthracite Capital, Inc., at 212-810-3333. The Company's website address is www.anthracitecapital.com. About Anthracite Anthracite Capital, Inc. is a specialty finance company focused on investments in high yield commercial real estate loans and related securities. Anthracite is externally managed by BlackRock Financial Management, Inc., which is a subsidiary of BlackRock, Inc. ("BlackRock") (NYSE:BLK BLK Black BLK Blank BLK Block BLK Bulk BLK Blocked Shot (basketball) BLK Blocked Kick (football) BLK Blackpool, England, United Kingdom - Blackpool (Airport Code) ), one of the largest publicly traded investment management firms in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. with approximately $453 billion in global assets under management Assets Under Management (AUM) is a term used by financial services companies in the mutual fund and money management or investment management business to gauge how much money they are managing. as of December 31, 2005. BlackRock Realty Advisors, Inc., another subsidiary of BlackRock, provides real estate equity and other real estate-related products and services in a variety of strategies to meet the needs of institutional investors Institutional Investor A non-bank person or organization that trades securities in large enough share quantities or dollar amounts that they qualify for preferential treatment and lower commissions. . BlackRock is a member of The PNC Financial Services PNC Financial Services (NYSE: PNC) is a U.S.-based financial services corporation, with assets of $92.0 billion. PNC operations include a regional banking franchise operating primarily in eight states and the District of Columbia, specialized financial businesses serving Group, Inc. ("PNC PNC Purdue University North Central (Westville, Indiana) PnC Point 'n Click PNC Police National Computer PNC People's National Congress (Guyana) PNC People's National Congress ") (NYSE:PNC), a diversified financial The diversified financial services segment includes a range of consumer and commercially-oriented companies offering a wide variety of products and services, including various lending products (such as home equity loans and credit cards), insurance, and securities and investment services organization. Through its affiliates, PNC originates commercial, multifamily and residential real estate loans, and services $159 billion in commercial mortgage loans for third parties through its Midland Loan Services, Inc. subsidiary as of December 31, 2005. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and with respect to future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as "trend," "potential," "opportunity," "pipeline," "believe," "comfortable," "expect," "anticipate," "current," "intention," "estimate," "position," "assume," "outlook," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" or similar expressions. Anthracite cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and Anthracite assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance. In addition to factors previously disclosed in Anthracite's Securities and Exchange Commission (the "SEC") reports and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) the introduction, withdrawal, success and timing of business initiatives and strategies; (2) changes in political, economic or industry conditions, the interest rate environment or financial and capital markets, which could result in changes in the value of Anthracite's assets; (3) the relative and absolute investment performance and operations of Anthracite's manager; (4) the impact of increased competition; (5) the impact of capital improvement projects; (6) the impact of future acquisitions and divestitures; (7) the unfavorable resolution of legal proceedings All actions that are authorized or sanctioned by law and instituted in a court or a tribunal for the acquisition of rights or the enforcement of remedies. ; (8) the extent and timing of any share repurchases Share Repurchase A program by which a company buys back its own shares from the marketplace, reducing the number of outstanding shares. This is usually an indication that the company's management thinks the shares are undervalued. ; (9) the impact, extent and timing of technological changes and the adequacy of intellectual property protection; (10) the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Anthracite, BlackRock or PNC; (11) terrorist activities, which may adversely affect the general economy, real estate, financial and capital markets, specific industries, and Anthracite and BlackRock; (12) the ability of Anthracite's manager to attract and retain highly talented professionals; (13) fluctuations in foreign currency exchange rates; and (14) the impact of changes to tax legislation and, generally, the tax position of the Company. Anthracite's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 2004 and Anthracite's subsequent reports filed with the SEC, accessible on the SEC's website at www.sec.gov, identify additional factors that can affect forward-looking statements. To learn more about Anthracite, visit our website at www.anthracitecapital.com. The information contained on the Company's website is not a part of this press release.
Anthracite Capital, Inc. and Subsidiaries
Consolidated Statements of Financial Condition (Unaudited)
(in thousands, except per share data)
----------------------------------------------------------------------
December 31, 2005 December 31, 2004
---------------------- ----------------------
ASSETS
Cash and cash
equivalents $40,556 $23,755
Restricted cash
equivalents 1,246 19,680
Residential mortgage-
backed securities
("RMBS") 259,026 372,071
---------- -----------
Cash and RMBS 300,828 415,506
Commercial mortgage loan
pools 1,292,407 1,312,045
Commercial real estate
securities 2,005,383 1,628,519
Commercial real estate
loans 425,453 325,350
Commercial real estate
equity 51,003 -
------------ ------------
Total commercial
real estate 3,774,246 3,265,914
Other assets 91,107 47,714
------------ ------------
Total Assets $4,166,181 $3,729,134
============ ============
LIABILITIES AND
STOCKHOLDERS' EQUITY
Liabilities:
Short term borrowings:
Secured by pledge of
RMBS $249,122 $356,451
Secured by pledge of
commercial real
estate securities 617,194 305,526
Secured by pledge of
commercial mortgage
loan pools 5,977 773
Secured by pledge of
commercial real
estate loans 230,945 141,601
---------- -----------
Total short term
borrowings 1,103,238 804,351
Long term borrowings:
Collateralized debt
obligations 1,066,930 1,067,967
Secured by pledge of
commercial mortgage
loan pools 1,272,931 1,294,058
Junior subordinated
notes to subsidiary
trust issuing
preferred
securities 77,380 -
---------- -----------
Total long term
borrowings 2,417,241 2,362,025
------------ ------------
Total borrowings 3,520,479 3,166,376
Distributions payable 16,673 15,819
Other liabilities 31,011 33,201
------------ ------------
Total Liabilities 3,568,163 3,215,396
------------ ------------
Stockholders' Equity:
Common Stock, par value
$0.001 per share; 400,000
shares authorized;
56,339 shares issued
and outstanding in
2005; and 53,289
shares issued and
outstanding in 2004 56 53
9.375% Series C
Preferred Stock,
liquidation preference
$57,500 in 2005 and
2004 55,435 55,435
Additional paid-in
capital 612,368 578,919
Distributions in excess
of earnings (130,038) (134,075)
Accumulated other
comprehensive income 60,197 13,406
------------ ------------
Total Stockholders'
Equity 598,018 513,738
------------ ------------
Total Liabilities
and Stockholders'
Equity $4,166,181 $3,729,134
============ ============
Anthracite Capital, Inc. and Subsidiaries
Consolidated Statements of Operations (Unaudited)
(in thousands, except per share data)
----------------------------------------------------------------------
For the For the
Three Months Ended Year Ended
December 31, December 31,
---------------------------------------
2005 2004 2005 2004
---------------------------------------
Operating Portfolio
Income:
Commercial real estate
securities $39,392 $31,785 $142,634 $123,860
Commercial mortgage loan
pools 13,408 13,606 54,025 39,672
Commercial real estate loans 10,827 7,948 35,258 20,790
Commercial real estate
equity 299 - 299 -
RMBS 2,012 3,171 9,851 18,901
Cash and cash equivalents 606 282 2,077 638
Other - - - 742
------------------- -------------------
Total Income 66,544 56,792 244,144 204,603
------------------- -------------------
Expenses:
Interest expense:
Collateralized debt
obligations 19,271 15,978 69,794 58,986
Commercial real estate
securities 5,773 2,312 17,107 7,398
Commercial mortgage loan
pools 12,703 12,850 50,988 37,527
Commercial real estate
loans 2,135 1,185 6,018 2,148
RMBS 2,702 1,858 9,821 7,016
Junior subordinated
notes 1,477 - 1,543 -
Hedging expense 1,596 2,829 7,110 14,434
General and administrative
expense 1,226 1,306 3,917 3,427
Management fee 2,936 2,451 10,975 8,957
Incentive fee 159 - 159 -
------------------- -------------------
Total Expenses 49,978 40,769 177,432 139,893
------------------- -------------------
Income from the operating
portfolio 16,566 16,023 66,712 64,710
------------------- -------------------
Other income (loss):
Net realized and unrealized
loss (286) (357) (2,097) (10,892)
Net realized gain attributable
to CDO HY1 - 16,594 - 16,594
Net realized gain attributable
to CDO HY2 16,523 - 16,523 -
Incentive fee attributable to
CDO HY2 gain (4,131) - (4,131) -
Foreign currency gain (loss) 123 (61) (134) (187)
Hedge ineffectiveness 478 115 (1,188) (1,015)
Loss on impairment of assets (1,857) (26,018) (5,088) (26,018)
------------------- -------------------
Total Other Income (Loss) 10,850 (9,727) 3,885 (21,518)
------------------- -------------------
Net Income 27,416 6,296 70,597 43,192
------------------- -------------------
Dividends on preferred stock 1,348 1,348 5,392 6,916
Cost to retire preferred stock
in excess of carrying value - - - 10,508
------------------- -------------------
Net Income available to Common
Stockholders $26,068 $4,948 $65,205 $25,768
=================== ===================
Operating Earnings:
Income from the operating
portfolio $16,566 $16,023 $66,712 $64,710
Dividends on preferred stock (1,348) (1,348) (5,392) (6,916)
------------------- -------------------
Net Operating Earnings $15,218 $14,675 $61,320 $57,794
=================== ===================
Operating Earnings available to Common
Stockholders per share:
Basic $0.27 $0.28 $1.13 $1.12
Diluted $0.27 $0.28 $1.13 $1.12
Net Income available to Common
Stockholders per share, basic $0.47 $0.09 $1.20 $0.50
Net Income available to Common
Stockholders per share,
diluted $0.47 $0.09 $1.20 $0.50
Weighted average number of
shares outstanding:
Basic 55,838 53,281 54,144 51,767
Diluted 55,844 53,290 54,153 51,776
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion