Vestin Realty Mortgage II, Inc. Reports Results For The Three Months Ended March 31, 2010
Vestin Realty Mortgage II, Inc. (Nasdaq:VRTB), 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 $2.5 million or ($0.19) per share for the three months ended March 31, 2010 compared with a net loss of approximately $6.4 million or ($0.46) per share for the three months ended March 31, 2009. Interest income from investment in real estate loans was approximately $0.8 million as compared with approximately $2.1 million in the three months ended March 31, 2009. This decrease in interest income is primarily due to a decline of approximately $77.6 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 five 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 and in interest expense.
As of March 31, 2010, the Company had 27 real estate loans outstanding, including a loan related to seller-financed REO, with a balance of approximately $115.3 million, of which 12 loans with an aggregate principal amount approximating $68.3 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 had commenced foreclosure proceedings with respect to six of the non-performing loans, of which two loans have subsequently been foreclosed upon. 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 10 properties that we acquired through foreclosure, compared with 17 properties owned as of December 31, 2009.
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