Vestin reports losses

The two real estate investment trusts operated by Vestin Group on Tuesday reported decreasing quarterly and yearly losses as their asset sizes continued to shrink.

Vestin Realty Mortgage II lost $16.6 million in the fourth quarter, down from $17.4 million in the third quarter. The loss per share declined to $1.22 from $1.27 in the third quarter.

For the year, Vestin Realty II lost $55 million, less than half the prior year's $130.2 million net loss.

The company ended the year with $87.5 million in assets, down from $199.5 million a year ago.

Interest income from investments for the year dropped to $6.3 million from $18.6 million in the prior year, mainly because of an increase in nonperforming loans and a slowdown in new lending.

The company counted 26 loans totaling $112.1 million. Of those, 12 loans totaling $68.3 million were nonperforming.

Vestin Realty Mortgage I, the smaller of the two REITs, lost $3.1 million in the fourth quarter, down from $4.7 million in the third quarter. The loss per share shrank to 47 cents from 71 cents in the third quarter.

For the year, Vestin I lost $12.5 million, down from $21.5 million in the previous year.

At year-end, Vestin I had 19 loans with total principal of $32.3 million. Of those, nine loans totaling $21.3 million were nonperforming. Assets totaled $26.3 million, down from $38.2 million a year ago.

Separately, Vestin reported that the deadline has passed for appealing the judgment in a case over the two funds. A superior court judge in San Diego ruled in favor of the Vestin REITs, which were defendants in a lawsuit brought on behalf of 1,100 investors.

Contact reporter John G. Edwards
at jedwards@reviewjournal.com or 702-383-0420.