JER Has Less Cash, More Delinquencies

JER Investors Trust's earnings report shows increasing difficulties. The buyer of commercial real estate also said that as of Feb. 28, it had $2.7 million in unrestricted cash, down from $8.4 million as of Dec. 31. In its portfolio of commercial mortgage backed securities, the company said delinquencies of 60 days or more increased from 42 basis points as of Sept. 30 to 83 as of Dec. 31. to 143 as of Feb. 24.

The company, whose founder, Joe Robert, had brain surgery last month, said that as of Dec. 31, it is in compliance with all its debt agreements. JER also said it expects to meet its liquidity requirements through moves such as issuing securities, selling assets, reducing operating expenses or extending debt maturities. "However, there can be no assurances that we will be able to achieve these objectives," the McLean company said.

JER lost $254.2 million ($98.75 a share) in the year ended Dec. 31, compared with a profit of $23.1 million ($8.97) the previous year. Revenue shrunk to $108.1 million from $134.6 million, and funds from operations, adjusted for dividends, dropped to $36.7 million from $45.5 million.

For the quarter, revenue dropped to $15.9 million from $34.4 million, net loss expanded to $181.4 million from $7.4 million, and adjusted funds from operations were $8.5 million, compared with $11.0 million.

By Terri Rupar  |  March 3, 2009; 8:40 AM ET  | Category:  Economy Watch , Finance
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