Owens Realty Mortgage, Inc. Reports Second Quarter 2013 Financial Results

Owens Realty Mortgage, Inc. today reported financial results for the quarter ended June 30, 2013.

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Walnut Creek, CA (PRWEB) August 14, 2013

Owens Realty Mortgage, Inc. (NYSE MKT: ORM) (the “Company”) today reported financial results for the quarter ended June 30, 2013.

Second Quarter 2013 Highlights

  •     Net income attributable to common stockholders of $6,431,017, or $0.57 per diluted        common share.
  •     Book value attributable to common stockholders of $16.53 per diluted common share at June 30, 2013 as compared to $16.21 per diluted common share at March 31, 2013.
  •     Completed the sale of four real estate owned properties with book values totaling $15,515,000.
  •     Recorded a $6.7 million reversal of loan loss reserves.

Summary of Second Quarter Financial Results

Net income attributable to common stockholders of the Company was $6,431,017 or $0.57 per basic and diluted common share for the three months ended June 30, 2013 as compared to a net loss of $(1,034,241) or $(0.09) per basic and diluted common share for the corresponding quarter of the prior year. The second quarter 2013 net income attributable to common stockholders includes recognized gains of approximately $2,430,000 (or $256,000 net of $2,174,000 of gain attributable to non-controlling interest) and deferred gains of approximately $2,344,000 from the sale of four real estate owned properties and approximately $6,700,000 from the reversal of the provision for loan losses primarily related to the current appraised value of the property securing three delinquent loans that were foreclosed on during the quarter.

Events Subsequent to Second Quarter 2013

Common Stock Dividend
The Board of Directors authorized a dividend of $0.016 per share of common stock that is payable on August 14, 2013 to stockholders of record at the close of business on August 6, 2013.

Investments
In July 2013, the Company completed a $9,625,000 senior trust deed, fixed rate investment secured by an industrial office building complex located in the greater San Francisco Bay area. The investment is a five-year interest-only loan bearing an interest rate of 10%, with a 6% pay rate for the first nine months (the difference deferred until maturity). The loan is collateralized by four commercial buildings with an aggregate total of 166,380 net rentable square feet and represents an estimated 67% loan-to-value ratio.

About Owens Realty Mortgage, Inc.

Owens Realty Mortgage, Inc., a Maryland corporation, is a real estate investment trust that invests in commercial real estate mortgage loans primarily in the Western U.S. The Company specializes in loans that require speed and flexibility. Owens Realty Mortgage, Inc., is headquartered in Walnut Creek, California, and is externally managed and advised by Owens Financial Group, Inc.

Additional information can be found on the Company’s website at http://www.owensmortgage.com .

Forward-Looking Statements

This press release includes “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. Words such as “expect,” “target,” “assume,” “estimate,” “project,” “budget,” “forecast,” “anticipate,” “intend,” “plan,” “may,” “will,” “could,” “should,” “believe,” “predicts,” “potential,” “continue,” and similar expressions are intended to identify such forward-looking statements. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of the Company’s control. The Company’s actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause the Company’s actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (1) increased loan delinquencies and foreclosures; (2) losses in value of the real estate securing the Company’s loans; (3) additional obligations relating to the Company’s ownership of real property; (4) failure to qualify as a REIT; and (5) compliance with REIT requirements may limit Company flexibility or cause the Company to forego otherwise attractive opportunities.

Readers are cautioned not to place undue reliance upon any forward-looking statements, which speak only as of the date made. The Company does not undertake or accept any obligation to release publicly any updates or revisions to any forward-looking statement to reflect any change in its expectations or any change in events, conditions or circumstances on which any such statement is based. Additional information concerning forward-looking statements and risk factors is contained in the Company’s most recent filings with the Securities and Exchange Commission. All subsequent written and oral forward-looking statements concerning the Company or matters attributable to the Company or any person acting on its behalf are expressly qualified in their entirety by the cautionary statements above.

See attached interim consolidated financial statements for the quarter ended June 30, 2013.


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