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Last night, we filed our 10-Q and announced our results for the third quarter, our second full quarter of operating CT Legacy REIT, the entity formed March 31, 2011 to hold our legacy assets. Geff will take you through our quarterly results and also discuss our adjusted balance sheet and operating results.During the quarter we experienced continued strong repayment activity in CT Legacy REIT. The formation of CT Legacy REIT established the necessary time and flexibility to work and collect our legacy assets in the market that should improve overtime. Our management at CT Legacy REIT is focused on maximizing the recovery for all stakeholders, the largest of which are the Capital Trust shareholders. We collected $54 million on five loans in Legacy REIT during the quarter bringing total collections since the March formation to $251 million on 15 loans representing over 99% of par recovery. Total recovery through September 30 equaled 50% of the CT Legacy REIT net book value on March 31. Although there are still significant credit challenges remaining within the Legacy REIT portfolio, and we expect head on velocity to flow, we remain confident that Tom and his team will continually achieve great results. CT Investor Management Company or CTIMCO, our wholly-owned investment management subsidiary maintained strong capabilities in a wide array of activities, lending, investing, asset management, capital raising, special servicing and operating as public company parent. Although our primary business remains investment management, our special servicing business has expanded as a five year peak of the market loans approach bottom maturity. In particular, we have established its strong track record working a large structured floating rate loan with securitized senior mortgages and multiple tranches of subordinate debt. As for the markets in general, volatility in global financial markets and economies combined with uncertain domestic economic unemployment growth prospects continue to slow the recovery in commercial real estate. The CMBS market remained dislocated with the investor bonds subordinate to senior AAA largely absence in the market. Although credit performance of current business CMBS is likely to be very strong, investors remains uncomfortable with conduit offerings and pricing for junior bonds is gaped out.
The restoration of investor confidence in the economy and related commercial real estate credit performance is necessary to do conduit activity. The reality continues to be that investors have not fully recovered from the shock of the 2008 CMBS market collapse and the constant reminders provided by continuing weak credit performance of many legacy securitization. And now there is greater fear of event [ph] risk and related market volatility to keep more investors on the side lines. With life companies already at deep origination levels and focused narrowly on primary properties in market, permanent debt is not available for many assets.While specific opportunities in commercial mortgage event will evolve change overtime, we believe that the scale of the opportunity for providers of Capital is great and that our platform is very well positioned to take advantage of these opportunities. There is an expanding need for mezzanine financing to fill the gap on recapitalization and acquisitions as peak of the market loans mature. The floating rate bridge loan market, an historic area of strength for CT is still dislocated highly inefficient funded primarily by private bridge lenders to the high cost of capital. We also continue to see an expanding investment opportunity in the low LTD mezzanine segments particularly as CMBS markets struggle to absorb large offerings. We continue to be active in this bid through our high grade funds and related separate accounts providing low risk financing junior to investment grade loans and core assets. As we aggressively manage our portfolios and continue to make new investments for existing product funds, we have begun to work on a next generation investment vehicle. We expect to significantly invest in this process over the coming quarters. And with that I will turn it over to Geff. Geff Jervis Thank you, Steve, and good morning, everyone. As Steve mentioned, last night we reported our earnings for the third quarter and filed our Form 10-Q. Read the rest of this transcript for free on seekingalpha.com