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Fieldstone Sinks to New Low

The stock hits its worst level in the past 52 weeks.

Fieldstone Investment's


shares were sinking Thursday after the company posted a third-quarter loss and said it would cut its planned dividend payment.

The real estate investment trust had a loss of $45 million, or 97 cents a share, in the latest quarter, compared with a profit of $23 million, or 47 cents a share, in the same quarter a year ago.

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Fieldstone's core loss for the quarter was $20.7 million, or 45 cents a share.

"We are disappointed to report a core loss for the third quarter, the result primarily of increased reserves due to the accelerated delinquencies of the newer loans in our portfolio and continued market pressures on sale margins," said Michael Sonnenfeld, president and chief executive.

The company also lowered its guidance for this year's dividends, saying it will probably pay out $1.31 to $1.41 a share, down from its previous forecast of $1.60 to $1.80 a share.

Shares of Fieldstone were dropping 19.4% to $6.08, a 52-week low.