WALNUT CREEK, CA—2013 was an important year for Owens Realty Mortgage. So says William Owens, the company's chairman and CEO. Having successfully completed the merger of Owens Mortgage Investment Fund into the company and the listing of its common stock on the NYSE MKT, the company has directed its efforts to “resuming lending activities and the continued development and improvement of certain properties held in the portfolio.”

In addition, says Owens, the company will focus on “the disposing of our real estate assets at opportune times. Although less than a year since our conversion to a REIT, we have made positive progress towards achieving these goals.”

In a Q4 2013 earnings report, the company reported net income attributable to common stockholders of $170,874 or $0.02 per basic and diluted common share for the three months ended December 31, 2013 as compared to a net loss of $(1,922,420) or $(0.17) per basic and diluted common share for the corresponding quarter of the prior year.

The fourth quarter 2013 net income attributable to common stockholders includes recognition of previously deferred gain of approximately $233,000 from the sale of the office and condominium units in Oakland, CA in 2013 due to a partial repayment of the carryback loan in the amount of $1.55 million during the quarter, approximately $446,000 of income from the reversal of the provision for loan losses primarily related to a decrease in the specific loan loss allowance on one loan due to a new appraisal obtained that indicated a higher fair value of the securing collateral, and impairment losses of approximately $666,000 recognized on two real estate properties as a result of new appraisals obtained.

For the year ended Dec. 31, 2013, the company reported net income attributable to common stockholders of $8,732,897 or $0.78 per basic and diluted common share as compared to net loss of $(1,679,820) or $(0.15) per basic and diluted common share for the year ended Dec. 31, 2012.

On February 10, 2014, Owens Realty Mortgage entered into a Credit Agreement and Advance Formula Agreement with California Bank & Trust as the lender and executed a related Master Revolving Note and Security Agreement, which agreements provide the company with a new revolving line of credit facility. Subject to various conditions, borrowings under the Credit Facility will be used for general corporate purposes and to finance the origination of new commercial real estate loans.

The maximum borrowings under the revolving Credit Facility is the lesser of $20 million, which is the face amount of the Master Revolving Note, or the amount determined pursuant to a borrowing base calculation described in the Advance Formula Agreement. At any time that the aggregate principal amount of the total borrowings under the Credit Facility exceeds the maximum permitted pursuant to the borrowing base calculation, the company must promptly repay an amount equal to such excess. Borrowings under the Credit Facility mature on Feb. 5, 2016.

Loan Foreclosure

In March 2014, the company assigned a loan secured by a marina, a campground and land located in Bethel Island, CA with a principal balance of approximately $2.96 million to a new wholly owned subsidiary, Sandmound Marina LLC. Sandmound Marina, LLC then foreclosed on the loan and obtained the properties via the trustee's sale.

Purchase and Sale Agreement

In February 2014, TSV entered into a purchase and sale agreement to purchase nine additional parcels of land (and certain related assets) that constitute the balance of parcels in the second phase of the project and that border the other parcels owned by TSV for $6 million in cash.

Common Stock Dividend

On March 20, 2014, the Board of Directors declared a quarterly dividend of $0.05 per share of common stock for the quarter ending March 31, 2014, which is payable on April 14, 2014 to stockholders of record on March 31, 2014.

Loan Originations

During the first quarter of 2014 (through March 24, 2014), the company originated $7.17 million in new loans.

-- Net income attributable to common stockholders of $170,874, or $0.02 per

diluted common share

-- Book value attributable to common stockholders of $16.66 per common

share at December 31, 2013 as compared to $16.56 per common share at

September 30, 2013

-- FFO of $711,323, or $0.07 per diluted common share (see Non-GAAP

Financial Measures)

-- Recorded $557,000 in reversals of allowance for loan losses and $111,000

provision for loan losses ($446,000 net reversal)

-- Recorded $666,000 in impairment losses on real estate properties

-- The Company repurchased 367,050 shares of its common stock at an

aggregate cost of $4.56 million including commissions, or a

weighted-average cost of $12.43 per share Year 2013 Highlights

-- Completed reorganization on May 20, 2013 in order to qualify as a real

estate investment trust for federal income tax purposes

-- Began trading on the NYSE MKT on July 1, 2013

-- Declared 2013 common dividends of $0.25 per share

-- Net income attributable to common stockholders of $8,732,897, or $0.78

per diluted common share

-- FFO of $937,980, or $0.08 per diluted common share (see Non-GAAP

Financial Measures)

-- Completed the full or partial sale of six real estate properties for net

proceeds of $11,052,000 and gain on sale of $2,943,000

-- Recorded $7,913,000 in reversals of allowance for loan losses and

$91,000 provision for loan losses ($7,822,000 net reversal)

-- Recorded $666,000 in impairment losses on real estate properties

-- The Company repurchased 403,910 shares of its common stock at an

aggregate cost of $5.02 million including commissions, or a

weighted-average cost of $12.44 per share will be entered into by the

parties from time-to-time.

Instant Insights /

Firms Looks to Dispose Assets at “Opportune Times”

Related Stories

Recommended For You