Desert Capital REIT, Inc. Announces Second Quarter 2006 Results.HENDERSON Henderson. 1 City (1990 pop. 25,945), seat of Henderson co., NW Ky., on the Ohio River, in an oil, coal, tobacco, corn, and livestock area; founded 1797, inc. as a city 1867. , Nev. -- Desert Capital REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). , Inc. today announced that its net income for the second quarter of 2006 totaled $3.5 million or $0.25 per share, as compared to a net income of $0.9 million or $0.27 per share reported for the second quarter of 2005. For the six months ended June June: see month. 30, 2006, net income totaled $6.5 million or $0.52 per share, as compared to $1.6 million or $0.54 per share for the same period in 2005. Total revenues for the quarter ended June 30, 2006, totaled $6.9 million, as compared to $4.3 million in the same period in 2005. Interest income for the second quarter was $4.2 million, as compared to $0.9 million reported for the same period in 2005. The company also generated non-interest income, primarily from fees on loans brokered to third parties, of $2.7 million for the quarter ended June 30, 2006, as compared to $3.4 million for the same period in 2005. At June 30, 2006, the net balance in the mortgage investment portfolio was $134 million, as compared to $101 million at March 31, 2006. The average balance of the loan portfolio during the second quarter was $107 million and the average yield on these assets for the quarter was 13.5% compared to an average yield of 13.5% for the first quarter of 2006. Todd Todd , Sir Alexander Robertus 1907-1997. British chemist. He won a 1957 Nobel Prize for his study of nucleic acids and nucleotide structures. B. Parriott, 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. and Chairman of the Board of Directors of Desert Capital REIT, Inc., stated, "We made significant strides in the second quarter that will provide lasting benefits for our stockholders including the issuance of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $31 million of long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. junior subordinate notes, which increases our portfolio of loans and our financial flexibility. This additional source of capital is expected to generate an attractive spread for an extended period of time." Financing Activity Desert Capital issued approximately $31 million of long-term junior subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. notes through a private placement of trust preferred securities. The proceeds from the notes were used to invest in mortgage loans. Portfolio Activity During the second quarter of 2006, DCR DCR Department of Conservation and Recreation DCR Decrease DCR Digital Cable Ready (television) DCR Dark Crisis (Yu-Gi-Oh! cards) DCR Debt Coverage Ratio DCR Dacryocystorhinostomy funded all or a portion of 35 loans totaling $51.3 million. Of the new loans, 15 were acquisition and development loans totaling $44 million and 20 were construction loans totaling $7.3 million. At June 30, 2006, DCR's loan portfolio contained 121 loans with a net outstanding principal balance of $134 million, and a weighted average current interest rate of 13.4%. Dividend Desert Capital REIT declared dividends declared dividend A dividend authorized by a firm's board of directors. At the time a dividend is declared, the firm creates a liability for the dividend's payment. of $0.30 per share for the second quarter of 2006. About Desert Capital REIT, Inc. Desert Capital REIT, Inc., is a Henderson, Nev.-based real estate investment trust that invests in loans to owners and developers of real estate properties. Formed in December December: see month. 2003, Desert Capital's portfolio of mortgage loans consists of acquisition and development, construction, commercial property and residential loans. For more information, please call (800) 419-2855 or visit www.desertcapitalreit.com. About Consolidated Mortgage consolidated mortgage A mortgage made to replace two or more outstanding mortgages. , LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control With nearly 30 years of continuous real estate investment success, Consolidated Mortgage, LLC is one of the largest private trust deed A legal document that evidences an agreement of a borrower to transfer legal title to real property to an impartial third party, a trustee, for the benefit of a lender, as security for the borrower's debt. investment firms in Nevada Nevada (nəvăd`ə, –vä–), far western state of the United States. It is bordered by Utah (E), Arizona (SE), California (SW, W), and Oregon and Idaho (N). , with over $400 million currently outstanding in brokered loans. The company is located at 1291 Galleria Drive, Suite 220, Henderson, NV 89104. For information, please call (702) 739-9090. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement Statements included herein that state the company's or management's intentions, hopes, beliefs, expectations or predictions of the future are "forward-looking for·ward-look·ing adj. Concerned with or making provision for the future: forward-looking educators; a forward-looking corporate plan. Adj. 1. " 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 of 1995 which by their nature, involve known and unknown risks and uncertainties. The company's actual results, performance or achievements could differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. by such statements.
DESERT CAPITAL REIT, INC.
Consolidated Balance Sheets
June 30, December 31,
2006 2005
---------------------------
(Unaudited)
ASSETS
Mortgage investments - net $134,425,908 $ 67,649,251
Loans held-for-sale 4,868,181 1,461,147
Goodwill 13,388,555 13,388,555
Building and equipment - net 7,857,936 8,029,250
Land 1,820,000 1,820,000
Cash and cash equivalents 2,841,891 4,459,289
Interest receivable 1,260,472 572,944
Deferred financing costs 993,545 -
Investment in equity affiliates 928,000 -
Other 323,258 145,356
------------- -------------
Total assets $168,707,746 $ 97,525,792
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Notes payable $ 10,068,148 $ 12,112,386
Junior subordinated notes 30,928,000 -
Dividends payable 1,428,679 880,633
Deferred income taxes 60,215 -
Accounts payable and accrued expenses 908,241 1,708,444
------------- -------------
Total liabilities 43,393,283 14,701,463
------------- -------------
Preferred stock, $0.01 par value:
15,000,000 shares authorized, none
outstanding - -
Common stock, $0.01 par value:
100,000,000 shares authorized;
14,037,465 and 9,388,994 shares issued
and outstanding on June 30, 2006 and
December 31, 2005, respectively 140,375 93,890
Additional paid-in capital 126,401,263 83,005,684
Retained earnings (1,227,175 ) (275,245)
------------- -------------
Total stockholders' equity 125,314,463 82,824,329
------------- -------------
Total liabilities and stockholders'
equity $168,707,746 $ 97,525,792
============= =============
DESERT CAPITAL REIT, INC.
Consolidated Statement of Operations
Three Months Six Months
Ended June 30, Ended June 30,
------------------------------------------------
2006 2005 2006 2005
------------------------------------------------
INTEREST INCOME:
Mortgage
investments $4,019,247 $863,445 $6,873,195 $1,544,381
Other interest 160,597 40,228 316,940 73,803
----------- ----------- ----------- -----------
Total interest
income 4,179,844 903,673 7,190,135 1,618,184
INTEREST EXPENSE:
Interest expense 387,794 262,417 685,688 501,306
----------- ----------- ----------- -----------
Total interest
expense 387,794 262,417 685,688 501,306
Net interest income 3,792,050 641,256 6,504,447 1,116,878
Provision for
loan losses 78,146 8,590 125,749 27,606
----------- ----------- ----------- -----------
Net interest income
after provision
for loan loss 3,713,904 632,666 6,378,698 1,089,272
NON-INTEREST INCOME:
Loan brokerage fees 2,182,006 2,554,319 4,447,093 5,419,450
Service and other
loan fees 442,736 812,178 1,013,071 1,364,803
Other 91,058 64,834 283,914 66,631
----------- ----------- ----------- -----------
Total non-
interest
income 2,715,800 3,431,331 5,744,078 6,850,884
NON-INTEREST EXPENSE:
Compensation 554,339 530,565 1,020,796 937,454
Management fees 1,204,704 888,741 2,309,508 1,745,774
Professional fees 449,890 511,990 874,964 984,804
Insurance 106,811 116,146 214,059 229,131
Depreciation 107,938 15,849 214,966 32,758
Other 402,523 259,155 948,202 591,076
----------- ----------- ----------- -----------
Total non-
interest
expense 2,826,205 2,322,446 5,582,495 4,520,997
----------- ----------- ----------- -----------
Net income before
taxes 3,603,499 1,741,551 6,540,281 3,419,159
Income tax expense 60,215 193,279 60,215 362,016
Income before
minority interest 3,543,284 1,548,272 6,480,066 3,057,143
Income allocated to
minority interest - 624,461 - 1,435,357
----------- ----------- ----------- -----------
Net income $3,543,284 $923,811 $6,480,066 $1,621,786
=========== =========== =========== ===========
Earnings per share -
basic and diluted 0.25 0.27 0.52 0.54
|
|
Printer friendly
Cite/link
Email
Feedback
Reader Opinion