Owens Realty Mortgage, a Maryland corporation, is a specialty finance mortgage company organized to qualify as a real estate investment trust that focuses on the origination, investment, and management of small balance and middle-market commercial real estate loans.
In 2013, we turned a big corner in our company’s history. This is our first annual report as publicly traded Real Estate
Investment trusts (REIT) after the merging of Owens Mortgaged Real Estate (OR ORM) and Owens Mortgage Investment Funds
(Fund Fund par) in May 2013. This transition has given our investors greater liquidity and the opportunity of ORM
continue lending activities.
While the structure of our business and investment portfolio has shifted significantly from loans to real estate through
A few years after the global financial crisis began in 2008, our strategy is to reverse this trend when we can.
exit these positions and expand commercial lending. In 2013, we completed the sale of all or one-sixth of the property
with approximately $ 19.5 million in revenue, earned $ 11.1 million and $ 2.9 million. As of December
As of 31, 2013, we reported $ 5.9 million in real estate held for sale and $ 129.4 million in real estate held for investment.
In 2014, we will continue to sell some of the remaining assets, however, starting in May 2015, we will be able to
Starting to sell real estate assets in our portfolio brings net taxable profits, and avoids 100% net income.
tax penalty for a two-year safe harbor period as a REIT. At that time, if market conditions continue to improve and
We complete the intended improvements for certain properties, we will be in a position to sell a significant portion of our
real estate properties.
Commercial lending has been our core strength and core business for over 50 years and our long-term strategy is still
focus on rebuilding our capital to support increased lending. When this strategy increases traction, we will be in a position
to increase interest income and towards expanding our dividends.
Over the last financial year, we have funded over $ 13 million in new commercial real estate loans along with $ 11.9 million in notes.
brought back from the sale of the property. To effectively manage our cash and take advantage of the mid spread
borrowing costs and loan rates, we’ve secured a revolving credit line of $ 20 million. In addition, we are
Discover opportunities to get up to $ 20 million in additional credit from a different loan source and discovery
Permanent financing options for projects in Lake Tahoe.
Completing this injection will give us the ability to proactively continue lending and expand our presence in the
special financial markets, offering customized short-term commercial real estate loans to small and medium investors.
This is an exciting time for us, as this allows us to return to what we do best. The commercial real estate market has been
warming up in the past year; and we see more lending opportunities in the markets we serve.
In a nutshell, over the past five years, we have continued to invest in the development of our portfolio assets with
It is expected that these efforts, together with the recovery in the real estate market, will create the highest value for us.
long-term shareholders. We also bought back about 3.6% of ordinary shares in circulation or 403,190 shares
with a total cost of just over $ 5 million or a weighted average cost of $ 12.39 a share, reinforcing our book value.
We remain committed to continuing our management strategy as well as our principles of honesty and integrity
Has distinguished mortgage Owens real estate and its precursors for many years. We are excited about the opportunities ahead
and hope to continue making progress in 2014 and beyond.
On behalf of the Board of Directors and all employees of Owens Financial Group, thank you for your investment and continued
assist in this transition period.