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MORTGAGE AND REALTY TRUST REPORTS FOURTH QUARTER, FISCAL YEAR RESULTS

MORTGAGE AND REALTY TRUST REPORTS FOURTH QUARTER, FISCAL YEAR RESULTS
 ELKINS PARK, Pa., Nov. 21 /PRNewswire/ -- Mortgage and Realty Trust (NYSE: MRT) announced today its unaudited results for the fourth quarter and fiscal year ended Sept. 30, 1991.
 The trust's annual audited financial statements will be mailed to shareholders on or about Dec. 30, 1991, together with a proxy statement and proxy card for use in connection with the trust's annual shareholders' meeting scheduled for Feb. 12, 1992.
 The notes accompanying the following financial information are an integral part of this presentation.
 MORTGAGE AND REALTY TRUST
 Periods ended Quarter Fiscal Year
 Sept. 30 1991 1990 1991 1990
 Income (loss) before
 provision for losses
 and reorganization
 expenses $(63,000) $3,094,000 $3,154,000 $18,485,000
 Less:
 Provision for losses
 on real estate loans
 and investments 15,000,000 10,000,000 33,000,000 23,790,000
 Reorganization
 expenses 452,000 4,824,000 5,807,000 5,051,000
 Net (loss) (15,515,000) (11,730,000) (35,653,000) (10,356,000)
 Net (loss) per share $(1.40) $(1.06) $(3.22) $(.94)
 Summary Financial Data
 Years ended Sept. 30 1991 1990
 Net (loss) $(35,653,000) $(10,356,000)
 Net (loss) per share -- primary $(3.22) $(.94)
 Total assets $514,404,000 $595,645,000
 Cash and cash
 equivalents (A) 14,378,000 46,356,000
 Invested assets:
 Mortgage loans:
 Earning 344,632,000 406,834,000
 Non-earning (B) 47,460,000 50,616,000
 Investment in real
 estate equities 49,709,000 49,856,000
 Properties acquired through
 foreclosure and held for sale:
 Earning 33,885,000 17,791,000
 Non-earning 29,914,000 22,383,000
 Total invested assets (C) 505,600,000 547,480,000
 Non-earning assets as a
 percentage of invested assets 15.30 13.34
 Allowance for losses $14,707,000 $10,792,000
 Allowance as a percentage
 of invested assets 2.91 1.98
 Total unfunded commitments $14,646,000 $59,090,000
 Long-term
 participating loans 60,882,000 63,630,000
 Creditor obligations 374,000,000 403,732,000
 Shareholders' equity 133,064,000 168,717,000
 Book value per share $12.01 $15.23
 Ratio of debt-to-equity (D) 2.70:1 2.21:1
 (A) On Sept. 30, 1991, the trust had $12.9 million invested in highest grade short-term commercial paper, certificates of deposit and bankers acceptances. On Sept. 30, 1990, the trust had $46.4 million invested in short-term Treasury bills.
 (B) Non-earning mortgage loans include $47.5 million and $16.2 million of in-substance foreclosures, the carrying value of which were reduced to the fair value of the collateral on Sept. 30, 1991, and 1990, respectively.
 (C) Before allowance for losses.
 (D) Debt includes interest payable and is reduced by cash and cash equivalent.
 The following notes are an integral part of this presentation:
 NOTES TO THE FINANCIAL INFORMATION
 -- Provision for losses on real estate loans and investments: The trust's regular quarterly analysis of the portfolio resulted in a provision for losses of $15 million in the September 1991 quarter. For the fiscal year ended Sept. 30, 1991, the total provision for losses was $33 million. The allowance for losses at Sept. 30, 1991, was $14.8 million after fourth quarter charge-offs of $8.5 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 continued. These factors continued to have a significant negative effect on valuations of income-producing real estate.
 -- Non-performing assets: Non-performing assets (non-earning loans, non-earning in-substance foreclosures and non-earning properties acquired through foreclosure and held for sale) totalled $77.4 million at Sept. 30, 1991, compared to $49.5 million at June 30, 1991 and $73 million at Sept. 30, 1990.
 The continuing high level of non-performing assets has been caused by a number of factors such as: (1) continued softness in the economy, (2) overbuilding in many regional markets which has caused rental rates to decline, and (3) the real estate liquidity crisis that has significantly reduced funding sources for the trust and many of its borrowers.
 The trust also has two earning loans totalling $12.6 million that were delinquent (interest is more than 60 days past due) at Sept. 30, 1991. The trust is currently in the process of restructuring these loans.
 -- Chapter 11 reorganization expenses: Reorganization expenses reflect actual and estimated expenses for professional fees incurred by the trust and the Creditors' and Shareholders' Committees. The trust expects these expenses to significantly decline in future quarters.
 /delval/
 -0- 11/21/91
 /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 LJ-MP -- PH006 -- 5781 11/21/91 10:11 EST
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No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

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Date:Nov 21, 1991
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