B&C REIT Cuts Dividend Guidance

Fieldstone Investment Corp., a Columbia, Md.-based real estate investment trust whose primary subsidiary originates subprime mortgage loans, has cut its 2006 dividend guidance for 2006.Previously, the company expected to pay out between $1.84 and $2.04 per share this year in dividends; it now expects to pay between $1.60 and $1.80. Michael J. Sonnenfeld, president and chief executive, said the change "reflects the current market conditions: stable originations in a competitive market and the impact of slowing home price appreciation on prepayments and prepayment fees. Fieldstone has continued to focus on building its origination franchise, lowering its cost to originate and managing its investment portfolio for quality of assets and income." The company said it expects annual nonconforming mortgage fundings of between $5.0 billion and $6.0 billion; previously the high end was $6.2 billion. In its first quarter operating results issued in May, the company had reaffirmed that prior dividend guidance.