Chastain Capital Reports Fourth Quarter Results
ATLANTA--(BUSINESS WIRE)--Feb. 1, 1999--Chastain Capital Corporation (Nasdaq/NM:CHAS - news), today reported results for the fourth quarter ended December 31, 1998, its third quarter of operations.
The Company recorded a net loss of $7,605,000, or $1.03 per share, for the fourth quarter. These results include $7,609,000 of losses realized on the sale of assets, $2,068,000 of net mark-to-market charges and changes in valuation allowances, $2,393,000 of gains on forward interest rate lock agreements and $1,842,000 for fees incurred with the Company's restructuring. Excluding these items, the Company would have recorded net income of $1,521,000, or $0.21 per share, in the fourth quarter.
The Company recorded a net loss for the period April 23, 1998 (the Company's inception) to December 31, 1998 of $45,672,000, or $5.54 per share. These results included $7,567,000 of losses realized on the sale of assets, $26,118,000 of non-cash mark-to-market charges, $13,336,000 of losses on forward interest rate lock agreements and $1,842,000 for fees incurred with the Company's restructuring and a non-recurring, non-cash charge of $878,000 relating to stock options granted at the initial public offering. Excluding the charges, the Company would have recorded net income of $4,069,000, or $0.49 per share, for the period April 23, 1998 to December 31, 1998.
On November 13, 1998, the Company announced that due to dramatic changes in the real estate capital markets, primarily continued losses from widening of commercial mortgage and commercial mortgage-backed securities (CMBS) spreads, it had ceased acquiring new assets, restructured its credit facilities, disposed of certain assets and secured $40 million of subordinated debt to meet its immediate liquidity requirements. The Company also announced that the fourth quarter dividend was expected to be suspended and that the Board of Directors would review strategic alternatives with respect to the Company's remaining assets.
Since announcing the restructuring, Chastain Capital has sold the remaining $20 million of its whole loans and terminated its remaining $47 million of whole loan commitments. The Company has extended the maturity of $8 million in borrowings from Merrill Lynch until February 26, 1999. The remainder of the Company's short term borrowings mature on March 31, 1999. The Company is reviewing alternatives as to these pending maturities and may sell additional assets or obtain new financing in order to meet these maturities |
