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MORTGAGE AND REALTY TRUST REPORTS THIRD QUARTER RESULTS

 MORTGAGE AND REALTY TRUST REPORTS THIRD QUARTER RESULTS
 ELKINS PARK, Pa., July 22 /PRNewswire/ -- Mortgage and Realty Trust


(NYSE: MRT) announced today its unaudited operating results for the third quarter ended June 30, 1992.
 The notes accompanying the following financial information are an integral part of this presentation:
 Periods ended Quarter Nine months
 June 30 1992 1991 1992 1991
 Earnings (loss) before
 provision for losses
 and reorganization
 expenses $(1,354,000) $(1,000) $(2,235,000) $3,217,000
 Less:
 Provision for losses
 on real estate loans
 and investments 11,000,000 3,000,000 22,000,000 18,000,000
 Reorganization
 expenses 232,000 594,000 600,000 5,355,000
 Net loss (12,586,000) (3,595,000) (24,835,000) (20,138,000)
 Net loss per share $(1.13) $(.33) $(2.24) $(1.82)
 As previously announced, Mortgage and Realty Trust received the 100 percent acceptance necessary to effect a consensual out-of-court restructuring of its outstanding $329 million of creditor obligations. The trust has made a payment of $4 million reducing its creditor obligations to $325 million, bringing the debt current.
 Pursuant to the successful restructuring, the trust's outstanding creditor obligations have been modified to provide for, among other things, (1) additional deferrals of the scheduled principal amortization during a temporary period; (2) a temporary 9 percent cap on current payments of interest; (3) a plan requiring MRT to reduce non-performing assets or incur certain penalty fees; (4) corresponding covenant adjustments; and (5) a change in the approval mechanism to allow for third-party financings where the proceeds are used to repay creditor obligations. The modified securities will mature on June 30, 1995, with certain deferred payments payable no later than Dec. 31, 1995. The modified securities will continue to be secured by liens on all of MRT's assets.
 The restructuring is an integral part of the trust's overall undertaking to improve its financial and operating performance. MRT's trustees said they believe that this restructuring will help maximize the long-term value of its assets and shareholder value.
 MORTGAGE AND REALTY TRUST
 Summary Financial Data
 Quarters ended June 30, 1992 March 31, 1992 June 30, 1991
 Net loss $(12,586,000) $(7,054,000) $(3,595,000)
 Net loss per
 share -- primary $(1.14) $(.64) $(.33)
 Total assets $456,637,000 $468,001,000 $528,900,000
 Cash and cash
 equivalents(A) 14,215,000 11,913,000 17,563,000
 Invested assets:
 Mortgage loans:
 Earning 262,959,000 266,356,000 376,758,000
 Non-earning(B) 47,973,000 54,096 000 21,115,000
 Investment in real
 estate equities 56,145,000 59,072,000 50,527,000
 Properties acquired
 through foreclosure
 and held for sale:
 Earning 56,135,000 52,911,000 32,854,000
 Non-earning 26,359,000 30,332,000 28,355,000
 Total invested
 assets(C) 449,571,000 462,767,000 509,609,000
 Non-earning assets as
 a percentage of
 invested assets 16.54 18.24 9.71
 Allowance for losses $16,316,000 $13,941,000 $8,308,000
 Allowance as a
 percentage of invested
 assets 3.63 3.01 1.63
 Total unfunded
 commitments $8,453,000 $8,761,000 $20,749,000
 Long-term
 participating loans 43,666,000 43,480,000 56,806,000
 Debt:
 Creditor
 obligations 329,000,000 329,000,000 374,000,000
 Loan on equity
 investment 14,647,000 13,502,000 ---
 Total 343,647,000 342,502,000 374,000,000
 Shareholders' equity 108,228,000 120,814,000 148,579,000
 Book value per
 share $9.86 $10.91 $13.41
 Ratio of debt-to-
 equity(D) 3.04:1 2.74:1 2.40:1
 (A) On June 30, 1992, the trust has $12.7 million invested in high- grade short-term commercial paper. On March 31, 1992, the trust had $10.5 million invested in high-grade short-term commercial paper. On June 30, 1991, the trust had $16.2 million invested in high-grade short- term commercial paper and certificates of deposit.
 (B) Non-earning mortgage loans include $40.2, $46.4 and $21.1 million of in-substance foreclosures, the carrying value of which were reduced to the fair value of the collateral on June 30, 1992, March 31, 1992, and June 30, 1991, respectively.
 (C) Before allowance for losses.
 (D) Debt includes interest payable and is reduced by cash and cash equivalents.
 NOTE TO THE FINANCIAL INFORMATION
 Provision for Losses on Real Estate Loans and
 Investments and Non-performing Assets
 The trust's regular quarterly analysis of the portfolio resulted in a provision for losses of $11 million in the June 1992 quarter. The allowance for losses at June 30, 1992, was $16.3 million after charge- offs of $8.6 million. Deterioration in real estate values caused by generally lower rental rates, oversupply of space and the lack of liquidity in the real estate industry persists. These factors continue to have a significant negative effect on valuations of income-producing real estate.
 Non-performing assets (non-earning loans, non-earning in-substance foreclosures and non-earning properties acquired through foreclosure and held for sale) totalled $74.3 million at June 30, 1992, compared to $84.4 million at March 31, 1992, and $49.5 million at June 30, 1991.
 /delval/
 -0- 7/22/92
 /CONTACT: C.W. Strong Jr., president of Mortgage and Realty Trust, 818-953-7700/
 (MRT) CO: Mortgage and Realty Trust ST: Pennsylvania IN: FIN SU: ERN


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Date:Jul 22, 1992
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