CreXus Investment Corp. Reports Results For The 3rd Quarter 2012
The accretion of discount on the Company’s loan and preferred equity portfolio, which is a component of interest income, for the quarters ended September 30, 2012, September 30, 2011 and June 30, 2012, was $8.0 million, $30.2 million and $2.6 million, respectively. The total net discount remaining at September 30, 2012 was $7.9 million.
The Company’s discontinued operations were composed of net income of $2.9 million and a $2.6 million impairment charge for the quarter ended September 30, 2012, which relates to the net operating results of collateral acquired during the quarter ended March 30, 2012 via a deed in lieu of foreclosure that are recorded as real estate held for sale in the Consolidated Statements of Financial Condition. Net income from discontinued operations for the quarter ended September 30, 2012 is recorded net of a tax provision of approximately $425 thousand.
Annualized general and administrative expenses, including the management fee, as a percentage of average total equity was 2.07%, 1.86% and 2.00% for the quarters ended September 30, 2012, September 30, 2011, and June 30, 2012, respectively. At September 30, 2012, the Company had a common stock book value per share of $11.93, as compared to $11.96 and $11.96 at September 30, 2011 and June 30, 2012, respectively.
CreXus acquires, manages and finances, directly or through its subsidiaries, commercial mortgage loans and other commercial real estate debt, commercial real property, commercial mortgage-backed securities and other commercial and residential real estate-related assets. The Company’s principal business objective is to generate net income for distribution to investors from the spread between the yields on its investments and the cost of borrowing to finance their acquisition and secondarily to provide capital appreciation. The Company, a Maryland corporation that has elected to be taxed as a real estate investment trust (“REIT”), is externally managed by Fixed Income Discount Advisory Company, a wholly owned subsidiary of Annaly Capital Management, Inc.
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