Vestin Realty Mortgage I, Inc. Reports Results for the One-Month and Ten Months ended April 30, 2006.LAS VEGAS Las Vegas (läs vā`gəs), city (1990 pop. 258,295), seat of Clark co., S Nev.; inc. 1911. It is the largest city in Nevada and the center of one of the fastest-growing urban areas in the United States. -- Vestin 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. Mortgage I, Inc. (Nasdaq: VRTA VRTA Vibration Reduction Test Aircraft (CH-47D Helicopter) ) a real estate investment trust (REIT REIT See: Real Estate Investment Trust REIT See real estate investment trust (REIT). ), today announced results of operations for the one-month and ten months ended April 30, 2006. Vestin Realty Mortgage I, Inc. ("the Company") was organized in January January: see month. 2006 as a Maryland Maryland (mâr`ələnd), one of the Middle Atlantic states of the United States. It is bounded by Delaware and the Atlantic Ocean (E), the District of Columbia (S), Virginia and West Virginia (S, W), and Pennsylvania (N). corporation for the sole purpose of effecting a merger with Vestin Fund I, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control . At the opening of business on May 1, 2006, Vestin Fund I, LLC ("Fund I"), which had a June June: see month. 30 fiscal year, merged into Vestin Realty Mortgage I, Inc. which has a December December: see month. 31 fiscal year. As a result of this merger, a 10-K for the ten months ended April 30, 2006 has been filed with the SEC. The members of Fund I received one share of Vestin Realty Mortgage I, Inc.'s common stock for each membership unit they owned in Fund I. The Company commenced trading on June 1, 2006 on the Nasdaq National Market as VRTA. The following information relates to Vestin Realty Mortgage I, Inc. as the successor to Fund I. For the one-month ended April 30, 2006, revenues were $0.4 million. Net income for the one-month ended April 30, 2006 was $0.3 million or $0.04 per weighted average membership unit. Revenues for the ten months ended April 30, 2006 were $5.2 million. Net income for the ten months ended April 30, 2006 was $1.1 million or $0.14 per weighted average membership unit. In commenting on the ten months ended April 30, 2006, Mike Shustek, Chief Executive Officer stated, "The results of operations for the ten months ended April 30, 2006 were adversely impacted by an additional non-cash loan loss provision of $3.0 million, or $0.44 per share, that we recorded related to the Rightstar loan. The Company owns a $9.3 million principal portion of an aggregate total $32.3 million first mortgage, secured by 4 cemeteries This is a list of famous cemeteries, mausoleums and other places people are buried, world-wide. It may never be fully completed or, depending on its its nature, it may be that it can never be completed. However, new and revised entries in the list are always welcome. and 8 mortuaries MORTUARIES, Eng. law. These are a sort of ecclesiastical heriots, being a customary gift claimed by and due to the minister, in many parishes, on the death of the parishioner. 2 Bl. Com. 425. owned by Rightstar International in Hawaii Hawaii, island, United States Hawaii, island (1990 pop. 120,217), 4,037 sq mi (10,456 sq km), largest and southernmost island of the state of Hawaii and coextensive with Hawaii co.; known as the Big Island. . The Company's net book value of the Rightstar loan, net of loan loss provisions, is $4.5 million. Rightstar is currently being operated by a court appointed ap·point tr.v. ap·point·ed, ap·point·ing, ap·points 1. To select or designate to fill an office or a position: appointed her the chief operating officer of the company. 2. receiver and we have filed litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. against the State of Hawaii to allow the foreclosure foreclosure Legal proceeding by which a borrower's rights to a mortgaged property may be extinguished if the borrower fails to live up to the obligations agreed to in the loan contract. to be completed. We do not anticipate any further losses related to the Rightstar loan. "Also, in anticipation The performance of an act or obligation before it is legally due. In patent law, the publication of the existence of an invention that has already been patented or has a patent pending, of the merger into Vestin Realty Mortgage I, Inc., Fund I paid in April 2006 the distribution that would have normally been paid in May 2006. This resulted in eleven cash distributions being paid in the ten months ended April 30, 2006, which had a downward effect of approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $0.05 per unit on our equity. Member's (now shareholders) equity at April 30, 2006 was $62.2 million or $9.06 per share. Going forward, Vestin Realty Mortgage I, Inc. intends to declare TO DECLARE. To make known or publish. By tho constitution of the United States, congress have power to declare war. In this sense the word, declare, signifies, not merely to make it known that war exists, but also to make war and to carry it on. 4 Dall. 37; 1 Story, Const. Sec. dividends on a quarterly basis, about 30 days following the end of each calendar quarter." Mr. Shustek added, "The Rightstar loan is our only loan in default. We were pleased to resolve the Mid-State Raceway (Vernon Vernon, city, Canada Vernon, city (1991 pop. 23,514), S British Columbia, Canada, near the north end of Okanagan Lake. The center of a fruit-growing and dairying area, it has packing and dehydrating plants. Downs) foreclosure without any loss to the Company on May 1, 2006. We also anticipate disposing of our last remaining parcel of real estate held for sale in the near future." About Vestin Realty Mortgage I, Inc. Vestin Realty Mortgage I, Inc. is a real estate investment trust ("REIT") that invests in short term secured loans to commercial borrowers. As of April 30, 2006, the company had assets of over $63 million. Vestin Realty Mortgage I, Inc. is managed by Vestin Mortgage, Inc., which is a subsidiary of Vestin Group, Inc., a well-known well-known adj. 1. Widely known; familiar or famous: a well-known performer. 2. Fully known: well-known facts. asset management, real estate lending and financial service company. Since 1995, Vestin Mortgage Inc.'s mortgage activities have facilitated more than $1.8 billion in lending transactions. 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. Certain information discussed in this press release may constitute forward-looking statements within 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 and the federal securities laws. Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions at the time made, it can give no assurance that its expectations will be achieved. Readers are cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements are inherently subject to unpredictable and unanticipated risks, trends and uncertainties, such as the Company's inability to accurately forecast its operating results; the Company's potential inability to achieve profitability or generate positive cash flow; the availability of financing; defaults on outstanding loans; unexpected difficulties encountered in pursuing our remedies rem·e·dy n. pl. rem·e·dies 1. Something, such as medicine or therapy, that relieves pain, cures disease, or corrects a disorder. 2. Something that corrects an evil, fault, or error. 3. if a loan is in default; a decline in the value of collateral collateral (kəlăt`ərəl), something of value given or pledged as security for payment of a loan. Collateral consists usually of financial instruments, such as stocks, bonds, and negotiable paper, rather than physical goods, although securing our loans and other risks associated with the Company's business. The Company assumes no obligation to update or supplement forward-looking statements that become untrue un·true adj. un·tru·er, un·tru·est 1. Contrary to fact; false. 2. Deviating from a standard; not straight, even, level, or exact. 3. Disloyal; unfaithful. because of subsequent events.
VESTIN REALTY MORTGAGE I, INC.
(SUCCESSOR TO VESTIN FUND I, LLC)
BALANCE SHEETS
ASSETS
April 30, June 30,
2006 2005
------------ -----------
Cash $ 10,732,000 $ 2,862,000
Certificates of deposit 300,000 300,000
Interest and other receivables 953,000 682,000
Note receivable, net of allowance of
$729,000 at April 30, 2006 and $747,000
at June 30, 2005 291,000 119,000
Real estate held for sale 2,497,000 7,757,000
Real estate held for sale - seller
financed 8,797,000 10,374,000
Investment in real estate loans, net of
allowance for loan losses of $4,801,000
at April 30, 2006 and $1,896,000 at
June 30, 2005 39,975,000 54,878,000
Assets under secured borrowings -- 11,391,000
------------ -----------
Total assets $ 63,545,000 $88,363,000
============ ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Accounts payable and accrued liabilities $ 362,000 $ 443,000
Due to Fund Manager 37,000 922,000
Due to Vestin Group -- 2,000
Due to Vestin Fund II -- 1,560,000
Due to Vestin Fund III -- 6,000
Secured borrowings -- 11,391,000
Deposit liability 916,000 768,000
------------ -----------
Total liabilities 1,315,000 15,092,000
------------ -----------
Stockholders' equity
Preferred stock, $0.0001 par value;
1,000,000 shares authorized; none
issued -- --
Common stock, $0.0001 par value;
25,000,000 shares authorized; 6,868,740
shares issued at April 30, 2006 1,000 --
Capital in excess of par 62,229,000 --
Members equity - Authorized 10,000,000
units at $10 per unit, 7,686,323
members units issued and outstanding at
June 30, 2005 -- 73,271,000
------------ -----------
Total equity 62,230,000 73,271,000
------------ -----------
Total liabilities and stockholders'
equity $ 63,545,000 $88,363,000
============ ===========
VESTIN REALTY MORTGAGE I, INC.
(SUCCESSOR TO VESTIN FUND I, LLC)
STATEMENTS OF OPERATIONS
FOR THE FOR THE
TEN MONTH NINE MONTH
TRANSITION TRANSITION
PERIOD PERIOD
ENDED ENDED FOR THE YEAR END
----------- ----------- -------------------------
April 30, June 30, September 30, September 30,
2006 2005 2004 2003
----------- ----------- ----------- ------------
Revenues
Interest income
from investment
in real estate
loans $ 4,144,000 $ 4,303,000 $ 7,519,000 $ 9,194,000
Gain on sale of
real estate
held for sale 521,000 1,072,000 - -
Gain on sale of
marketable
securities 47,000 - - -
Revenue related
to the sale of
real estate - - 4,667,000 -
Other income 472,000 694,000 480,000 1,171,000
----------- ----------- ----------- ------------
Total
revenues 5,184,000 6,069,000 12,666,000 10,365,000
Operating expenses
Management
fees-related
party 230,000 201,000 255,000 253,000
Provision for
loan loss 3,000,000 1,296,000 100,000 400,000
Interest expense 176,000 408,000 1,789,000 1,121,000
Loss on sale of
real estate
held for sale - 400,000 463,000 -
Write down on
real estate
held for sale - 1,271,000 535,000 3,383,000
Write off of
deferred bond
offering costs - - - 204,000
Expenses
related to
real estate
held for sale 220,000 708,000 597,000 467,000
Professional
Fees 310,000 411,000 225,000 190,000
Professional
fees - related
parties 167,000 83,000 5,000 5,000
Other 31,000 163,000 130,000 31,000
----------- ----------- ----------- ------------
Total
operating
expenses 4,134,000 4,941,000 4,099,000 6,054,000
----------- ----------- ----------- ------------
NET INCOME $ 1,050,000 $ 1,128,000 $ 8,567,000 $ 4,311,000
=========== =========== =========== ============
Net income
allocated to
members $ 1,050,000 $ 1,128,000 $ 8,567,000 $ 4,311,000
=========== =========== =========== ============
Net income
allocated to
members per
weighted average
membership units $ 0.14 $ 0.14 $ 1.03 $ 0.45
=========== =========== =========== ============
Weighted average
membership units 7,369,224 7,919,354 8,339,404 9,668,310
=========== =========== =========== ============
|
|
||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion