"THIS HOUSE IS PRE-DISASTERED, ELLEN. WE'LL TAKE IT"! - T.S. Garp
JER Investors Trust Inc. Reports Recent Developments
IRVING, Texas, Oct 13, 2011 (BUSINESS WIRE) -- JER Investors Trust Inc. ("JERIT") (Pink Sheets: JERT.PK) today summarized for its shareholders the following recent developments:
-- From the time of its initial public offering of shares, JERIT was externally managed by JER Commercial Debt Advisers LLC. That manager has been replaced with effect from August 30, 2011. JERIT's new external manager is C-III JERIT Manager LLC (the "New Manager"), and JERIT and the New Manager entered into an amended and restated management agreement on August 30. 2011. The terms of the amended and restated management agreement are substantially the same as the terms of the previous management agreement between JERIT and JER Commercial Debt Advisers.
-- The composition of JERIT's board of directors has changed. With effect from August 30, 2011, JERIT's board of directors consists of Joseph Lytle, Lawrence Block and Steve Bartlett.
-- JERIT's officers have changed. With effect from August 30, 2011, JERIT has the following officers:
Lawrence Block President
Robert Phillips Treasurer
William Jarrard, Jr. Vice President
Jenna Unell Secretary
Yvonne Owens Assistant Secretary
- The New Manager is an indirect subsidiary of C-III Capital Partners LLC ("C-III"). Joseph Lytle, Robert Phillips and Jenna Unell are employees of C-III. Lawrence Block, William Jarrard and Yvonne Owens are employees of Island Capital Group LLC, which indirectly controls C-III. More information about C-III is provided below.
-- These changes to JERIT's management were effected in connection with a transaction in which C-III purchased the commercial real estate special servicing and collateralized debt obligation ("CDO") management businesses previously operated by J.E. Robert Company, Inc. ("JER") and its affiliates. As a result of that transaction, affiliates of C-III have taken over the special servicing (previously performed by JER) of loans collateralizing various commercial mortgage-backed securities ("CMBS") owned by two subsidiaries of JERIT that have issued CDOs, as well as collateral administration of those CDO entities.
-- In connection with the transaction described above, C-III purchased the rights of National Australia Bank Limited ("NAB") under a judgment entered against JERIT in August 2011 in the amount of $29,004,598. That judgment relates to JERIT's defaulted obligations under an interest rate swap. That default, and JERIT's resulting obligation to NAB, were described in the Annual Report on Form 10-K filed by JERIT with the Securities and Exchange Commission on December 17, 2010.
-- C-III and its affiliates will face potential conflicts of interest in respect of their respective new relationships with JERIT that are similar in many respects to the conflicts of interest that previously affected the relationships among JERIT, JER and JER's affiliates. C-III also will face a conflict of interest in deciding whether, and if so how, to enforce its rights under the judgment it purchased from NAB. JERIT does not have sufficient funds available to it to pay that judgment.
C-III Capital Partners LLC is a leading commercial real estate services company engaged in a broad range of activities, including primary and special loan servicing, loan origination, fund management and principal investment. The company's principal place of business is located in Irving, TX, and it has additional offices in New York, South Carolina, Tennessee, Illinois and Virginia.
C-III Asset Management LLC, a wholly-owned subsidiary of C-III Capital Partners LLC, is a highly rated servicer (primary and special) of commercial real estate loans. Its clients include issuers of CMBS and CDOs, institutional lenders and other investors. C-III Asset Management LLC is rated "CPS 2-" by Fitch and "Above Average" by Standard & Poor's as a primary servicer, and is one of the highest rated special servicers in the industry with ratings of "CSS 1-" by Fitch and "Strong" by Standard & Poor's. For more information, visit www.c3cp.com.
JER Investors Trust Inc. is a specialty finance company that was organized primarily to originate and acquire real estate debt securities and loans and fee interests in net leased real estate assets. JERIT is externally managed and therefore depends on its manager (now C-III JERIT Manager LLC) to manage its portfolio of commercial real estate structured finance investments and other real estate related investments. JERIT's investment portfolio includes commercial real estate structured finance products such as CMBS, mezzanine loans and participations in whole mortgage loans. JERIT is organized and conducts its operations in a manner intended to allow it to qualify as a real estate investment trust (REIT) for federal income tax purposes.
Since at least the second half of 2007, JERIT has experienced significant operating difficulties and liquidity issues. The transactions described above between C-III and JER did not involve any change in the capitalization of JERIT or result in any improvement in JERIT's financial condition or liquidity position.
As previously reported, JERIT's shares no longer are registered under the Securities Exchange Act of 1934, and as a result JERIT no longer is subject to the periodic reporting or other obligations under that Act.
SOURCE: JER Investors Trust Inc.
CONTACT: C-III JERIT Manager LLC Mark Lande, 212-705-5034 Company website: http://www.jerinvestorstrust.com/trust.aspx
As of November 30, 2010, the registrant had issued and outstanding 5,831,029 shares of common stock with a par value $0.01 per share and trading price of $0.05 per share. The aggregate market value of the registrants 5,831,029 shares of common stock on November 30, 2010 was $291,551. SEC FILING LINK
The stock has already been reorganized to begin a new future.
Reverse Stock Split and Stock Dividend. All figures in this paragraph reflect the 1-for-10 reverse stock split effected by us on February 20, 2009. On December 16, 2008, our board of directors approved the declaration of a total common stock dividend of $8.80 per share, consisting of a regular quarterly dividend on our common stock of $3.00 per common share for the quarter ending December 31, 2008 as well as a special 2008 dividend of $5.80 per common share (together the "2008 Year End Dividend"). The 2008 Year End Dividend was payable in a combination of cash and shares of our common stock. The 2008 Year End Dividend consisted of approximately $2.3 million in cash and 2,397,891 (as adjusted) shares of common stock and was paid on January 30, 2009 to common stockholders of record on December 30, 2008.
On February 13, 2009, the board of directors approved the declaration of a 1-for-10 reverse stock split effective February 20, 2009. As of November 30, 2010, 5,831,029 shares were outstanding after the impact of the stock dividend and reverse stock split. All share and per share amounts included in this Annual Report on Form 10-K have been restated to reflect the 1-for-10 reverse stock split effected by us on February 20, 2009, unless otherwise noted....There were no dividends declared during the twelve months ended December 31, 2009.