Capital Trust Inc. (CT, Financial) filed Quarterly Report for the period ended 2009-06-30.
Capital Trust Inc. is an investment management and real estate finance company designed to take advantage of high-yielding lending and investment opportunities in commercial real estate and related assets. Capital Trust Inc. has a market cap of $36.7 million; its shares were traded at around $1.66 with and P/S ratio of 0.2. Capital Trust Inc. had an annual average earning growth of 35.4% over the past 5 years.
On March 16, 2009, we also entered into an agreement to terminate the master repurchase agreement with Goldman Sachs, pursuant to which we satisfied the indebtedness due under the Goldman Sachs secured credit facility. Specifically, we: (i) pre-funded certain required advances of approximately $2.4 million under one loan in the collateral pool, (ii) paid Goldman Sachs $2.6 million to effect a full release to us of another loan, and (iii) transferred all of the other assets that served as collateral for Goldman Sachs to Goldman Sachs for a purchase price of $85.7 million as payment in full for the balance remaining under the secured credit facility. Goldman Sachs agreed to release us from any further obligation under the secured credit facility.
In some cases our Loan originations are not fully funded at closing, creating an obligation for us to make future fundings, which we refer to as Unfunded Loan Commitments. Typically, Unfunded Loan Commitments are part of construction and transitional Loans. As of June 30, 2009, our six Unfunded Loan Commitments totaled $13.5 million. Of the total Unfunded Loan Commitments, $9.0 million will only be funded when and/or if the borrower meets certain performance hurdles with respect to the underlying collateral. As of June 30, 2009, $5.6 million of the Unfunded Loan Commitments relates to a Loan classified as held-for-sale, as described in Note 5 to the consolidated financial statements.
Also, in May of 2009, we negotiated a discounted partial repayment with one of our borrowers, which resulted in a repayment of $3.0 million to us, and the forgiveness of an additional $1.0 million of the borrower s indebtedness. Following this discounted repayment, we were relieved of a $3.8 million Unfunded Loan Commitment under this loan. As a result of this transaction, we recorded a $1.0 million loss during the quarter under the provision for loan losses on our consolidated statement of operations.
As of June 30, 2009, we had 11 Loans with an aggregate net book value of $64.3 million ($185.7 million gross carrying value , net of $121.4 million of reserves) against which we had recorded a provision for loan losses.
In 2008, we, together with our co-lender, foreclosed on a Loan secured by a multifamily property, and took title to the collateral securing the original Loan. At the time the foreclosure occurred, the Loan had a book balance of $11.9 million which was reclassified as Real Estate Held-for-Sale (also referred to as Real Estate Owned) on our consolidated balance sheet as of December 31, 2008 to reflect our ownership interest in the property. Since that time, we have received $564,000 of accumulated cash from the property, which has been recorded as a reduction to our basis in the asset. We have recorded an aggregate $4.2 million impairment to reflect the property at fair value based on sales proceeds of $7.1 million collected subsequent to quarter end.
Read the The complete Report
Capital Trust Inc. is an investment management and real estate finance company designed to take advantage of high-yielding lending and investment opportunities in commercial real estate and related assets. Capital Trust Inc. has a market cap of $36.7 million; its shares were traded at around $1.66 with and P/S ratio of 0.2. Capital Trust Inc. had an annual average earning growth of 35.4% over the past 5 years.
Highlight of Business Operations:
During the first six months of 2009, the state of the commercial real estate markets, both in terms of fundamentals and capital availability, continued to deteriorate. Occupancy and rental rates declined in virtually all product types and geographic markets, and borrowers with near-term refinancing needs encountered increased difficulty finding replacement financing. As a result, commercial mortgage delinquencies and defaults are rising rapidly, as sponsors are unable (or unwilling) to support projects in the face of value decline. In the first six months of 2009, our portfolio experienced significant credit deterioration, evidenced by $66.5 million of new provisions for loan losses and $20.9 million of impairments on our securities portfolio and real estate owned. We expect this trend to continue for the foreseeable future and expect significant challenges ahead for our business. These challenges are discussed in the risk factors contained in Exhibit 99.1 to this Form 10-Q.On March 16, 2009, we also entered into an agreement to terminate the master repurchase agreement with Goldman Sachs, pursuant to which we satisfied the indebtedness due under the Goldman Sachs secured credit facility. Specifically, we: (i) pre-funded certain required advances of approximately $2.4 million under one loan in the collateral pool, (ii) paid Goldman Sachs $2.6 million to effect a full release to us of another loan, and (iii) transferred all of the other assets that served as collateral for Goldman Sachs to Goldman Sachs for a purchase price of $85.7 million as payment in full for the balance remaining under the secured credit facility. Goldman Sachs agreed to release us from any further obligation under the secured credit facility.
In some cases our Loan originations are not fully funded at closing, creating an obligation for us to make future fundings, which we refer to as Unfunded Loan Commitments. Typically, Unfunded Loan Commitments are part of construction and transitional Loans. As of June 30, 2009, our six Unfunded Loan Commitments totaled $13.5 million. Of the total Unfunded Loan Commitments, $9.0 million will only be funded when and/or if the borrower meets certain performance hurdles with respect to the underlying collateral. As of June 30, 2009, $5.6 million of the Unfunded Loan Commitments relates to a Loan classified as held-for-sale, as described in Note 5 to the consolidated financial statements.
Also, in May of 2009, we negotiated a discounted partial repayment with one of our borrowers, which resulted in a repayment of $3.0 million to us, and the forgiveness of an additional $1.0 million of the borrower s indebtedness. Following this discounted repayment, we were relieved of a $3.8 million Unfunded Loan Commitment under this loan. As a result of this transaction, we recorded a $1.0 million loss during the quarter under the provision for loan losses on our consolidated statement of operations.
As of June 30, 2009, we had 11 Loans with an aggregate net book value of $64.3 million ($185.7 million gross carrying value , net of $121.4 million of reserves) against which we had recorded a provision for loan losses.
In 2008, we, together with our co-lender, foreclosed on a Loan secured by a multifamily property, and took title to the collateral securing the original Loan. At the time the foreclosure occurred, the Loan had a book balance of $11.9 million which was reclassified as Real Estate Held-for-Sale (also referred to as Real Estate Owned) on our consolidated balance sheet as of December 31, 2008 to reflect our ownership interest in the property. Since that time, we have received $564,000 of accumulated cash from the property, which has been recorded as a reduction to our basis in the asset. We have recorded an aggregate $4.2 million impairment to reflect the property at fair value based on sales proceeds of $7.1 million collected subsequent to quarter end.
Read the The complete Report
