Pecan CREEK, Calif., July 5, 2018/PRNewswire/ – Owens Realty Mortgage, Inc. (NYSE American: ORM) (the “Organization” or “ORM”) today reported that it has sent a letter to its investors. A full duplicate of the letter can be found beneath:
Decision in favor of OWENS REALTY MORTGAGE’S DIRECTOR NOMINEES
BRYAN DRAPER AND JAMES KESSLER ON THE WHITE PROXY CARD TODAY
July 5, 2018
Dear Fellow Stockholders,
On the off chance that you bolster executives that keep on executing our key intend to return money to investors through predictable and developing profits, capable stock repurchases and conveying cash-flow to drive future profit yield and value development – vote in favor of Bryan Draper and James Kessler on the WHITE intermediary card today.
When casting a ballot your offers, think about the reasonable contrast in plans for your organization:
ORM, Bryan Draper and James Kessler
THE HOVDE GROUP, Steven Hovde and James Hua
Expanding Stockholder Returns
Momentary Liquidation Strategy
Dependable Share Repurchases and Dividend Growth
Wildly Aggressive Share Repurchase Could Jeopardize Your Investment
Lined up with All Stockholders
Proprietors of 4.48% of the Company
Purchasing Stock Consistently Since Public Listing
Not Aligned with All Stockholders
Looked for Buyout at $18.25
Plans to Sell Shares in a Year or Less
Previously Selling Shares1
Sorting THE RECORD Out FOR ALL STOCKHOLDERS – DO NOT LET THE HOVDE GROUP’S DISTORTIONS MISLEAD YOU
- Actuality: Your Board Has Delivered Outstanding Returns Over the Past 5 Years:
Try not to be tricked by the Hovde Group’s utilization of money related information that returns 10+ years. The Hovde Group gives off an impression of being utilizing this time span to carefully select money related outcomes from an industry-wide budgetary emergency to misleadingly occupy investors from our remarkable returns since our stock has had the option to acknowledge on an open trade. Since the Company’s open posting as a REIT2, we have conveyed a 87% absolute investor return. Over a similar period, the middle of the Company’s friends fell by 6%.3
- Certainty: ORM Continues to Pay Consistent and Increasing Dividends:
Try not to be misled by the Hovde Group’s profit yield counts. The Hovde Group’s count of profit yield has a converse association with share cost. It is a reality, in any case, that we have delivered steady profits since our open posting in 2013. In the course of recent years, investors have gotten $1.64/share in profits, with a 100% expansion in profits paid since 2018. At the end of the day, taking everything into account, organizations with acknowledging offers ought to have lower profit yields. Since ORM’s stock cost has fundamentally outflanked its friend bunch in all out investor return, we have a lower profit yield.
- Truth: Permanently Reduced Fees Paid to ORM’s External Manager are Received as Gross Revenue and NOT Net Income:
Try not to be deceived by the Hovde Group’s distortions about charges paid to ORM’s outer administrator. The Hovde Group misleadingly looks at these charges to overall gain to the outside administrator when they must be fittingly contrasted with net income. The reality remains that under 1/3 of ORM’s gross income has been paid to its outer chief in charges since our open posting 5 years prior. Likewise, through the span of quite a while, the free individuals from your Board have been working intimately with driving monetary specialist, FTI, and as of late arranged a changeless decrease in charges paid to ORM’s outside director. This has just brought about a 22.2% charge decrease, contrasting Q1 2018 with Q1 2017. Starting last quarter, our administration expenses were among the most reduced of our friends.
THE HOVDE GROUP’S INTERESTS ARE NOT ALIGNED WITH ALL STOCKHOLDERS
THE HOVDE GROUP IS FOCUSED ON SELLING ITS STOCK AS SOON AS POSSIBLE
YOUR BOARD HAS BEEN BUYING STOCK
The Hovde Group’s and its chosen people’s inclinations are not lined up with all investors. It has clarified that it is hoping to sell its stock inside a year, however in a perfect world as quickly as time permits. Truth be told, the Hovde Group needed your Board to repurchase its offers at $18.25 per share only a couple of months prior. It has since begun selling stock. As of May 31, 2018, it sold 10,000 offers when our stock hit $17 per share.
It is along these lines barely an unexpected that the Hovde Group and its candidates have likewise clarified that it plans to seek after techniques, for example, excessively forceful offer repurchases, to take into account its momentary expectations to sell its stock. Forcefully repurchasing offers represents a genuine danger of liquidation. On the off chance that the Company were to utilize the entirety of its money to repurchase shares, it would viably slow down the Company’s scaffold loaning business. Without bargain stream, chances to develop our advance portfolio would vanish, prompting no other choice however beginning liquidation in the close to term (allowing the Hovde Group to leave its venture on a sped up timetable).
Your Board, nonetheless, accepts that investors ought to have portrayal the meeting room. This is the reason, so as to alleviate our interests about the momentary commands of the Hovde Group and its chosen people, we proposed a few useful settlement choices. These incorporated that the Hovde Group relate to us a commonly pleasing female executive to speak to its inclinations on the Board. The Hovde Group completely dismissed the entirety of our settlement proposition.
Meanwhile, your Board’s advantages stay lined up with the interests all things considered. For sure, while the Hovde Group has been selling stock, your Board has been purchasing stock. Your executives and the board acquired more than 64,000 offers during the last open purchasing window. They have, truth be told, purchased shares in 8 out of the last 11 open purchasing windows since the Company’s open posting 5 years prior.
Your Board has likewise expanded its assorted variety and autonomy, incorporating with the ongoing arrangement of Ann Marie Mehlum. Presently, 66.7% of your Board is contained autonomous executives and previous lead free chief, Dennis Schmal, presently serves in the job of autonomous Chairman of the Board. The Board has likewise actualized, among other investor well disposed activities, executive and official stock possession rules and a lion’s share casting a ballot standard for uncontested chief decisions. These activities were gotten under way some time before the Hovde Group started its battle against ORM.
ORM’S NOMINEES, BRYAN DRAPER AND JAMES KESSLER, ARE BEST QUALIFIED TO SERVE ALL STOCKHOLDERS
As an investor, you can ensure your speculation by deciding in favor of our exceptionally qualified chosen people – Bryan Draper (additionally the Company’s CEO) and James Kessler. Mr. Draper’s broad involvement with the business contract financing and land enterprises, including REO miens, credit offices, and hazard oversight, alongside his CPA affirmation and bookkeeping and money related ability make him all around qualified to fill in as a chief of the Company. In like manner, Mr. Kessler’s broad involvement with land speculation, advancement, business tasks and the board enterprises, remembering his situations for two traded on an open market REITs, fortifies our Board’s aggregate capabilities, abilities, experience and perspectives. Mr. Draper and Mr. Kessler bring many years of industry-explicit qualifications that contribute enormously to the piece of your Board, the progressing fruitful execution of the Company’s vital arrangement and the long haul estimation of your venture.
WE URGE YOU TO VOTE THE WHITE PROXY CARD
What’s more, SUPPORT OUR HIGHLY QUALIFIED NOMINEES
You may cast a ballot by phone, Internet or by marking, dating and restoring the WHITE intermediary card in the postage-paid envelope gave. Your vote is critical. If you don’t mind dispose of any gold intermediary cards you have gotten from the Hovde Group. In the event that you have just restored a gold intermediary card, you can change your vote essentially by marking, dating and restoring a WHITE intermediary card today. Just your most recent dated intermediary card will be tallied.
In the event that you have inquiries concerning how to cast a ballot your offers, if it’s not too much trouble contact Georgeson, LLC, our intermediary specialist, at (888) 206-5970 or ORM@Georgeson.com.
We are amazingly respected to serve for the benefit of you, our investors. Your Board and supervisory group are focused on helpful commitment with our investors and amplifying the estimation of your venture.
In the interest of the Board, thank you for your proceeded with help.
The Owens Realty Mortgage Board