The REIT is a subsidiary of Accredited Home Lenders Holding Co., the former high-flying subprime mortgage lender which filed for bankruptcy in 2009 (the case is still active). Accredited Home created the REIT in May 2004 to hold its mortgage assets.
It has received additional payment from the bankruptcy’s liquidating trust. Accredited REIT’s board has declared a partial liquidating distribution to the holders of its 9.75% Series A perpetual cumulative preferred shares of almost $20.5 million, or $5 per share. The distribution will be paid on Feb. 22.
With this payment, Accredited REIT will have given its preferred shareholders $59 million, or $14.50 per share.
Although the release says the REIT has received its last payment from the liquidating trust, it may get more money from the consolidated holding company’s estate but the timing and amount is beyond its control.