Capital Trust raises $845M in real estate mezzanine funds.Capital Trust, Inc. announced that CT Mezzanine Partners II, L.P. has completed its final closing with $845,183,333 of total equity -- making it one of the largest dedicated real estate mezzanine funds ever raised. Managed by a subsidiary of Capital Trust and co-sponsored by Citigroup Investments Inc., the fund expects to originate up to $2.3 billion in loans and investments over the next two years. In addition, the company reported net income of 10 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. (diluted) for the second quarter of 2001, an increase from 3 cents per share (diluted) for the second quarter of 2000. Sam Zell Samuel "Sam" Zell (born September 1941) is a U.S.-born billionaire and real estate entrepreneur. He is co-founder and Chairman of Equity Group Investments, a private investment firm. , chairman of Capital Trust, commented, "The closing of this fund is a significant milestone in the history of Capital Trust and the real estate finance world. The capital markets for real estate continue to evolve, with securitization Securitization The process of creating a financial instrument by combining other financial assets and then marketing them to investors. Notes: Mortgage backed securities are a perfect example of securitization. May also be spelled as "securitisation. of both debt and equity bringing ever-greater efficiency and sophistication so·phis·ti·cate v. so·phis·ti·cat·ed, so·phis·ti·cat·ing, so·phis·ti·cates v.tr. 1. To cause to become less natural, especially to make less naive and more worldly. 2. . Mezzanine finance has emerged as a critical component of the new capital structure; this is a major business and Capital Trust is positioned to be the industry leader." John Klopp, Capital Trust's CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. , added. "Institutional investors recognize that the real estate finance industry has fundamentally changed and we are extremely pleased that our capital partners have selected CT Mezzanine Partners II as the way to participate in this growing market. With over $2 billion of successful transactions completed, our strategy remains the same: provide flexible, medium-term mezzanine financing Mezzanine Financing A hybrid of debt and equity financing. Mezzanine financing is typically used to finance the expansion of existing companies, and it is basically debt capital that gives the lender the rights to convert to an ownership or equity interest in the company if the to owners of large, high-quality, income producing real estate. With interest rates low and senior loan amounts constrained by the rating agencies, demand for our brand of mezzanine capital Mezzanine capital (or mezzanine debt) is a broad financial term that refers to unsecured, high-yield, subordinated debt or preferred stock that represents a claim on a company's assets that is senior only to that of a company's shareholders. is stronger than ever." For the quarter ended June 30, the company reported total revenues of $19.8 million and net income of 10 cents per share (based on 36.7 million weighted average diluted shares outstanding), compared to total revenues of $23.7 million and net income of 3 cents per share (based on 23.4 million weighted average diluted shares outstanding) in the same period last year. For the six months ending with June 30, the company reported total revenues of $39.0 million and net income of 17 cents per share (based on 39.0 million weighted average diluted shares outstanding), compared to total revenues of $47.9 million and net income of 13 cents per share (based on 30.4 million weighted average diluted shares outstanding) in the same period of 2000. On Aug. 13, the company repurchased 4 million shares of its common and 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. in a privately negotiated transaction. The repurchase represents 18% of the company's common share equivalents and increases book value by approximately 6 cents per share. In connection with the final closing of CT Mezzanine Farmers II and since the initial closing of the fund on April 9, the company also issued warrants to purchase 1.3 million shares of class "A" common stock from an affiliate of Citigroup Investments Inc. Affiliates of Citigroup Investments have been issued warrants, all expiring in March 2005, to purchase a total of 8.5 million shares of Capital Trust class "A" common stock. Based on the company's closing stock price on Aug. 13, its book value per common share Book Value Per Common Share A measure used by owners of common shares in a firm to determine the level of safety associated with each individual share after all debts are paid accordingly. Formula: is equivalent to $5.66. As a result of the Securities and Exchange Commission's Regulation FD, Capital Trust will provide earnings guidance in its quarterly earnings release. These projections are based on current expectations and are forward-looking. Management projects a net income of approximately 10 to 12 cents per share (diluted) for the thud 1. thud - Yet another metasyntactic variable (see foo). It is reported that at CMU from the mid-1970s the canonical series of these was "foo", "bar", "thud", "blat". 2. thud - Rare term for the hash character, "#" (ASCII 35). See ASCII for other synonyms. quarter of 2001 and net income of approximately 36 to 38 cents per share for the year ending December 31. 2001. |
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