Apex Reports $81.2MM Loss

Apex Mortgage Capital Inc., Los Angeles, has reported a net loss of $81.2 million ($2.72 per share) for the third quarter, compared with net income of $9.5 million ($0.32 per share) a year earlier.The net loss from investment and derivative activities totaled $80.7 million, while the net loss from operations was only $532,000, the real estate investment trust said. "Due to unprecedented interest and prepayment rate volatility during the quarter, management determined that preserving book value was critical in this environment," said Philip A. Barach, Apex's chief executive officer. "In order to reduce volatility of the portfolio, the mix of assets in the portfolio was changed and leverage was reduced." As a result, fixed-rate securities declined from 85.3% of the company's portfolio as of June 30 to 51.1% as of Sept. 30, he said. Apex said a special stockholders' meeting is scheduled for Nov. 21 to vote on a previously announced merger agreement with American Home Mortgage. The REIT can be found online at http://www.apexreit.com.