Dynex Capital, Inc. Declares Preferred Stock Dividend and Announces Pending Sale of Real Estate Owned.GLEN ALLEN, Va. -- Dynex Capital, Inc. (NYSE NYSE See: New York Stock Exchange : DX) announced today that its Board of Directors has declared a dividend on its Series D Cumulative Convertible Preferred Stock Convertible Preferred Stock Preferred stock that includes an option for the holder to convert the preferred shares into a fixed number of common shares, usually anytime after a predetermined date. Also known as "convertible preferred shares". of $0.2375 per share for the fourth quarter of 2006. The dividend will be payable on January 31, 2007, to holders of record of the Series D 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. as of December 29, 2006. The Company also announced that a contract has been entered into to sell real estate owned Real Estate Owned Property owned by a lender - usually a bank - after an unsuccessful sale at a foreclosure auction. This is common because most of the properties up for sale at these auctions are worth less than the total amount owed to the bank: the minimum bid in most which secures an approximate $23 million securitized delinquent commercial mortgage loan collateralizing certain commercial mortgage securities. These commercial mortgage securities are held by the joint venture the Company and an affiliate of Deutsche Bank formed in the third quarter of 2006. During the third quarter, the Company recorded an approximate charge of $1.7 million to 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. of its investment in the joint venture based upon the estimated net proceeds Net Proceeds The amount received after all costs are deducted from the sale of a piece of property or security. Notes: In the case of an investor selling a security, net proceeds represent the proceeds from the sale minus any trading costs (i.e. commissions). at that time from the sale of the underlying real estate owned. Based on the contract's sales price and the estimate of loss on the sale of the real estate owned provided by the servicer of the loan, the Company does not expect a further adjustment to the carrying value of its investment in the joint venture from the sale. The sale is expected to close in January 2007. Dynex Capital, Inc. is a financial services company that elects to be treated as a real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ) for federal income tax purposes. Additional information about Dynex Capital, Inc. is available at www.dynexcapital.com. Note: This document contains "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 of 1995. The words "believe," "expect," "forecast," "anticipate," "estimate," "project," "plan, " and similar expressions identify forward-looking statements that are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. The Company's actual results and timing of certain events could differ materially from those projected in or contemplated by the forward-looking statements as a result of unforeseen external factors. These factors may include, but are not limited to, changes in general economic and market condition, variability in investment portfolio cash flows, availability of suitable reinvestment opportunities, defaults by borrowers, fluctuations in interest rates, fluctuations in property capitalization rates and values of commercial real estate, defaults by third-party servicers, prepayments of investment portfolio assets, other general competitive factors, the impact of regulatory changes, and the impact of Section 404 of the Sarbanes-Oxley Act See SOX. of 2002. For additional information, see the Company's Quarterly Report on Form 10-Q for the period ended September 30, 2006, and the Company's Annual Report on Form 10-K for the period ended December 31, 2005, and other reports filed with and furnished to the Securities and Exchange Commission. |
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion