The filings for both REITs attributed the losses in large part to non-performing loans and the continued deterioration in real estate values. The Vestin REITs invest in commercial real estate loans and also are involved in asset management, real estate lending and other financial services through subsidiaries.

Vestin I had 19 loans outstanding with an aggregate principal amount totaling $32.3 million at the end of the year, with $21.3 million of that total considered non-performing. The company has started foreclosure proceedings on five of the non-performing loans and is conducting workout discussions with certain non-performing borrowers. As of Dec. 31, the REIT owned 11 properties that it acquired through foreclosure, compared with eight properties owned at the end of 2008.

Vestin II had 26 loans outstanding with an aggregate principal totaling $112.1 million at the end of the year, of which 12 loans totaling approximately $68.3 million were considered non-performing, and the company has started foreclosure proceedings on seven of them. As with the non-performing loans of Vestin I, Vestin II is conducting workout discussions with some of the non-performing borrowers. The company owned 17 REO properties at the end of the year, compared with 11 properties at the end of 2008.