Vestin Realty Mortgage I, Inc. Reports Results For The Three And Six Months Ended June 30, 2010
Vestin Realty Mortgage I, Inc. (Nasdaq: VRTA), a real estate investment trust (“REIT”), announced results of operations for the three and six months ended June 30, 2010.
The Company reported a net loss of approximately $0.6 million or ($0.10) per share and $0.9 million or ($0.14) per share, respectively, for the three and six months ended June 30, 2010 compared with a net loss of approximately $3.2 million or ($0.49) per share and $4.7 million or ($0.72) per share, respectively, for the three and six months ended June 30, 2009.
Interest income from investment in real estate loans was approximately $0.6 million for the six months ended June 30, 2010, as compared with approximately $0.8 million for the same period in 2009. This decrease in interest income is mainly due to the decrease in our portfolio of performing real estate loans, which declined from 14 loans totaling approximately $12.7 million as of June 30, 2009, to nine loans totaling approximately $8.1 million as of June 30, 2010. Our revenue is dependent upon the balance of our performing loans and the interest earned on these loans. In addition, the weighted average interest rate on our performing loans has decreased from 12.48% as of June 30, 2009 to 10.85% as of June 30, 2010. This decline is a result of current market conditions in the lending industry, the level of non-performing assets in our portfolio and the reduction of interest rates on outstanding loans through Troubled Debt Restructuring.
As of June 30, 2010, the Company had 17 real estate loans outstanding with a balance of approximately $26.3 million, of which eight loans with an aggregate principal amount approximating $18.2 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 June 30, 2010, the Company had commenced foreclosure proceedings with respect to most of the non-performing loans, of which three loans have subsequently been foreclosed upon, including the RightStar loans in Hawaii. 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 June 30, 2010, we owned six properties that we acquired through foreclosure, compared with 11 properties owned as of December 31, 2009.
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