Vestin Realty Mortgage I, Inc. (Nasdaq:VRTA), a real estate investment trust (“REIT”), announced results of operations for the three months ended March 31, 2010.
The Company reported a net loss of approximately $0.3 million or ($0.05) per share for the three months ended March 31, 2010 compared with a net loss of approximately $1.5 million or ($0.23) per share for the three months ended March 31, 2009. Interest income from investment in real estate loans was $322,000 for the three months ended March 31, 2010 compared to $347,000 for the three months ended March 31, 2009. This decrease in interest income is primarily due to a decline of approximately $10.9 million in the amount of our investment in real estate loans. The decline in the size of our loan portfolio was largely due to an increase in real estate owned properties acquired thorough the foreclosure of four non-performing loans since March 31, 2009 and a reduction in new lending as a result of current market conditions. Notwithstanding the lower revenues, our loss for the three months ended March 31, 2010 was narrower than the comparable period in 2009, primarily because of reductions in the provision for loan losses.
As of March 31, 2010, the Company had 19 loans outstanding with an aggregate principal amount approximating $32.3 million, of which nine loans with an aggregate principal amount approximating $21.2 million were considered non-performing. Loans are considered non-performing when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement or when the payment of interest is 90 days past due. As of March 31, 2010, the Company has commenced foreclosure proceedings with respect to four of the non-performing loans. In addition, the Company is conducting workout discussions with certain non-performing borrowers; however, no assurance can be given as to whether these discussions will be successful. As of March 31, 2010, we owned nine properties that we acquired through foreclosure, compared with 11 properties owned as of December 31, 2009.