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CRIIMI MAE'S TAX BASIS INCOME INCREASES 20 PERCENT ON STRENGTH OF 1993 MORTGAGE INVESTMENTS

 ROCKVILLE, Md., Nov. 4 /PRNewswire/ -- CRIIMI MAE Inc. (NYSE:CMM), the largest real estate investment trust (REIT) specializing in federally insured multifamily mortgages, said today that tax basis income for the third quarter of 1993 increased by nearly 20 percent compared to the same period last year.
 This growth was primarily due to the higher net interest income generated by mortgage investments acquired during the second and third quarters of 1993.
 During these periods, CRIIMI MAE invested or committed to invest nearly all of the funds available from a $350 million financing facility the company established in April. By Sept. 30, 1993, CRIIMI MAE had used $50 million of the funds from the financing facility to replace a portion of its corporate debt and had invested or committed to invest approximately $300 million of funds from the facility in government insured multifamily mortgages.
 These new mortgage investments generated an average net positive interest rate spread at Sept. 30, 1993, of approximately 250 basis points over the cost of financing the investments. The spread will change as the interest rate environment changes.
 Chairman William B. Dockser said: "The investments we have made in this year's interest rate environment have helped to improve the quality of CRIIMI MAE's earnings. Recurring earnings from ordinary operations have accounted for nearly 70 percent of the tax basis income generated during the first nine months of this year, vs. just over 58 percent for the same period last year."
 For the three months ended Sept. 30, 1993, tax basis income was approximately $5.2 million (26 cents per share), up nearly 20 percent from approximately $4.4 million (22 cents per share) for the third quarter of 1992.
 The portion of tax basis income from ordinary operations increased more than 23 percent, from approximately $3.7 million (18 cents per share) for last year's third quarter to approximately $4.5 million (22 cents per share) for this year's third quarter.
 The portion of tax basis income from net capital gains from mortgage dispositions remained at approximately $700,000 (4 cents per share) for the third quarter of both 1992 and 1993.
 The federal tax code requires CRIIMI MAE to pay virtually all of its tax basis income as dividends to shareholders to preserve CRIIMI MAE's REIT status.
 CRIIMI MAE reports both tax basis income and net income in its financial statements, but only tax basis income has a direct bearing on the level of dividends paid to shareholders.
 For financial reporting purposes, CRIIMI MAE reported a nearly eight percent increase in net income, from approximately $3.5 million (17 cents per share) for last year's third quarter to approximately $3.8 million (19 cents per share) for the same period this year.
 As with tax basis income, net income increased for the third quarter due to higher net interest income generated by mortgage investments acquired during the second and third quarters of 1993.
 For this year's third quarter and first nine months, other expenses (both on a tax basis and for financial statement purposes) include a reserve for a proposed litigation settlement which was announced Sept. 27, 1993.
 Assets totaled approximately $787.1 million at Sept. 30, 1993, up nearly 29 percent from $610.5 million a year earlier.
 As of Sept. 30, 1993, CRIIMI MAE was invested in 186 mortgage investments -- 118 were directly owned by CRIIMI MAE and 68 were held through a subsidiary, CRI Liquidating REIT, Inc. CRIIMI MAE owns approximately 67 percent of CRI Liquidating REIT.
 CRIIMI MAE's adviser is an affiliate of CRI, Inc., a real estate investment management firm based in the Washington area.
 CRIIMI MAE Inc.
 (Unaudited)
 For the For the
 Three months ended Nine months ended
 Sept. 30, Sept. 30,
 1993 1992 1993 1992
 Tax basis income:
 Ordinary income:
 Interest and other
 operating
 revenues $14,067,737 $11,190,329 $37,079,439 $31,982,229
 Interest expense (7,161,153) (6,246,525) (19,503,882) (18,089,723)
 Other expenses (2,385,913)(B)(1,276,952) (5,011,900)(B)(3,563,666)
 Total ordinary
 income 4,520,671 3,666,852 12,563,657 10,328,840
 Net capital gains 708,996 704,033 5,398,047 7,407,704(A)
 Total tax
 basis income $ 5,229,667 $ 4,370,885 $17,961,704 $17,736,544
 Tax basis income
 per share:
 Ordinary income $0.22 $0.18 $0.62 $0.51
 Net capital gains 0.04 0.04 0.27 0.37
 Total tax basis
 income per share $0.26 $0.22 $0.89 $0.88
 Dividends paid
 per share: $0.28 $0.27 $0.84 $0.81
 (A) Includes the capital gain of approximately $6,730,000 ($.33 per
 share) recognized upon receipt of the assignment proceeds from
 one large mortgage.
 (B) Includes reserve for settlement of litigation.
 Financial statement net income:
 Gross income,
 including net
 gains on mortgage
 dispositions $15,688,593 $13,611,402 $ 43,300,598 $43,683,652(C)
 Interest expense (7,238,447) (6,401,931) (19,486,310) (18,175,768)
 Other expenses (2,940,587)(E)(1,461,807)(6,109,654)(E)(4,427,564)
 Minority interests
 in net income of
 consolidated
 subsidiary(D) (1,708,916) (2,221,549) (5,982,391) (7,870,157)
 Net financial
 statement income $3,800,643 $3,526,115 $11,722,243 $13,210,163
 Net financial
 statement income
 per weighted
 average share
 outstanding $0.19 $0.17 $0.58 $0.65
 As of Sept. 30,
 1993 1992
 Total assets $787,135,565 $610,549,960
 (C) Includes capital gain recognized upon receipt of the assignment
 proceeds from one large mortgage.
 (D) Represents the ownership interests of the minority shareholders
 in the net income of a subsidiary -- CRI Liquidating REIT, Inc.
 -- which is approximately 67 percent owned by CRIIMI MAE Inc.
 (E) Includes reserve for settlement of litigation.
 -0- 11/4/93
 /CONTACT: James T. Pastore, 301-231-0323, or Susan B. Railey, 301-468-3120, both for CRIIMI MAE/
 (CMM)


CO: CRIIMI MAE, Inc. ST: Maryland IN: FIN SU: ERN

IH-DC -- DC030 -- 0763 11/04/93 13:15 EST
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Date:Nov 4, 1993
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