MortgageIT Holdings, Inc. Reports Selected Preliminary Q3 Operating Data and Provides Q4 Dividend Guidance
05 October 2005 - 1:47AM
PR Newswire (US)
- Company to report full Q3 financial results on November 7, 2005
after market hours - NEW YORK, Oct. 4 /PRNewswire-FirstCall/ --
MortgageIT Holdings, Inc. (NYSE:MHL), a residential mortgage real
estate investment trust ("REIT"), today reported selected
preliminary operating data for the third quarter ended September
30, 2005 and provided dividend guidance for the fourth quarter
2005. - Funds record $9.25 billion of loans in the third quarter,
an increase of 198% over the prior year period - Expects to
maintain dividend of $0.48 per share for fourth quarter - Expects
to slow further growth of REIT portfolio until investment
environment improves "The Company continues to achieve record
funding volumes, as we again far exceeded expectations in the third
quarter," said Chairman and CEO Doug Naidus. "While our loan
production is outperforming the broader industry by a substantial
margin, our portfolio earnings are not immune to the challenges
posed by the flattening yield curve and higher prepayment rates.
Overall, the Company's performance remains solid given the adverse
market conditions, and continues to reflect the advantages of
owning a large scale, national mortgage banker and a 100% self
originated portfolio." Loan Funding Activity Highlights The Company
achieved record loan fundings in the third quarter: Third Quarter
Funding Volume ($ Billions) Banked Volume $8.84 Brokered Volume
0.41 Total Fundings $9.25 Loans Purchased by Third Parties $6.44
Loans Transferred to REIT Portfolio 0.98 Total Loans
Sold/Transferred $7.42 % Refinance 52% % Purchase Money 48% - Gain
on Sale Margin -- During the quarter, the Company experienced
pressure on gain on sale margins as compared to the quarter ended
June 30, 2005. The reduced gain on sale margins were a result of
lower sale prices for sub-prime loans combined with a reduction in
margins on pay-option ARMs early in the quarter. Current margins on
pay option ARMs generally are more consistent with levels
experienced in the prior quarter ended June 30, 2005. Current
sub-prime margins continue to experience market pressure. Portfolio
Activity Highlights and Guidance The Company's 100% self originated
portfolio grew to approximately $5.0 billion, including loans
awaiting transfer, at the end of the third quarter. The average
size of the REIT portfolio for the third quarter was approximately
$4.1 billion. - Return on Assets (ROA) on the portfolio -- The
Company expects the ROA for the portfolio for the third quarter of
2005 to be generally consistent with that of the second quarter
ended June 30, 2005. - The Company has decided to slow further
growth of the portfolio until the investment environment improves.
The investment environment has weakened due to the continued
flattening of the yield curve and higher loan prepayments. When
investment conditions improve, the Company intends to grow its 100%
self originated portfolio to approximately $6.1 billion. Fourth
Quarter 2005 Dividend Guidance The Company expects to pay a fourth
quarter dividend of $0.48 per share. Also, the Company expects that
dividend payments for the full year of 2005 will be comprised of
taxable income from the portfolio, which will include dividends
from its wholly owned taxable mortgage bank subsidiary, and will
not include a return of capital. Third Quarter 2005 Conference Call
MortgageIT Holdings, Inc. will release its third quarter 2005
financial results after market hours on Monday, November 7, 2005.
The Company will also hold a conference call to discuss its third
quarter financial results on Tuesday, November 8, 2005 at 10:00
a.m. Eastern Time. Interested parties may listen to the live call
by dialing 800-865-4415 (U.S.) or 973-935-2402 (International) and
referencing the conference ID #6569111, or by visiting the
MortgageIT Holdings corporate website,
http://www.mortgageitholdings.com/, to listen to a live conference
call webcast. A replay of the conference call will be available
through Tuesday, November 15, 2005, at midnight ET. The replay can
be accessed by dialing 877-519-4471 (U.S.), and 973-341-3080
(International). The pass code for the replay is 6569111. About
MortgageIT Holdings, Inc. MortgageIT Holdings, Inc. (NYSE:MHL) is a
self-administered mortgage real estate investment trust ("REIT")
focused on the residential lending market. The Company
self-originates its investment portfolio of high quality adjustable
rate mortgage ("ARM") loans through MortgageIT, Inc., its wholly
owned residential mortgage banking subsidiary. MortgageIT, Inc. is
a full-service residential mortgage banking company that is
licensed to originate loans throughout the United States.
MortgageIT Holdings is organized and conducts its operations to
qualify as a REIT for federal income tax purposes. MortgageIT is
organized and operates as MortgageIT Holdings' taxable REIT
subsidiary. For more information, please visit
http://www.mortgageitholdings.com/. Certain items in this press
release may constitute forward-looking statements within the
meaning of the Private Securities Litigation Reform Act of 1995,
including statements relating to our ability to fund a
fully-leveraged, self-originated loan portfolio, our anticipated
loan funding volume and our ability to pay dividends. These
statements are based on management's current expectations and
beliefs and are subject to a number of trends and uncertainties
that could cause actual results to differ materially from those
described in the forward-looking statements. MortgageIT Holdings
can give no assurance that its expectations will be attained.
Factors that could cause actual results to differ materially from
MortgageIT Holdings' expectations include, but are not limited to,
MortgageIT's continued ability to originate new loans, including
loans that we deem suitable for our securitization portfolio;
changes in the capital markets, including changes in interest rates
and/or credit spreads; and other risks detailed in MortgageIT
Holdings' Annual Report on Form 10-K that was filed with the
Securities and Exchange Commission (SEC) on March 31, 2005 and from
time to time in MortgageIT Holdings' other SEC reports. Such
forward-looking statements speak only as of the date of this press
release. MortgageIT Holdings expressly disclaims any obligation to
release publicly any updates or revisions to any forward-looking
statements contained herein to reflect any change in the Company's
expectations with regard thereto or change in events, conditions or
circumstances on which any statement is based. DATASOURCE:
MortgageIT Holdings, Inc. CONTACT: Investors - Sean McGrath,
MortgageIT Holdings, Inc., +1-646-346-8700; Media - Ted Stacer,
MortgageIT Holdings, Inc., +1-646-346- 7653; Joe LoBello, Brainerd
Communicators, Inc., +1-212-986-6667, for MortgageIT Holdings, Inc.
Web site: http://www.mortgageitholdings.com/
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