With these results and with our new investments I reiterate, as I have many times before, that we are dedicated to a $1.00 cash dividend for 2011. We as managers and shareholders are working hard to build a company that can both pay a substantial dividend and increase shareholder value by building and growing businesses and business platforms.
During the quarter we took the opportunity to sell two more large legacy subordinate loan positions, over $40 million of real estate loan balance, continuing our reduction of exposure to the subordinate positions originated before the financial crisis. Although we believe that these loans will be collectible, they were subordinate to much larger loans and exposed us to potential binary risks. So we considered it prudent to pair back those positions and focus our capital on new investments. In doing so we took a loss of $2 million as recorded this quarter. We maintained our general reserves for real estate loans and have a $10.5 million balance at the end of the quarter.
Q1 of 2011 was marked by many positive events including earning $.26 of adjusted net income with over $200 million of cash on hand doing that and making new investments of over $60 million into commercial real estate loans, our syndicated bank loan business and commercial finance. All areas were able to achieve projected pre-tax returns on those investments of 12% to 25% on new dollars invested.
Finally and in some ways most importantly we put into overdrive our newly restarted commercial real estate mortgage business. It had begun to put out the massive cash balances we have been carrying over the last year or two. We expect to finalize new lines of credit for this business within the next few weeks.Read the rest of this transcript for free on seekingalpha.com