Criimi Mae Boosts CMBS Loss Estimate

Criimi Mae Inc., Rockville, Md., has announced that it expects to raise the estimated losses over the life of its commercial mortgage-backed securities portfolio from $448 million to approximately $500 million and, as a result, to report an impairment charge for the fourth quarter.The company said its projected cash flows are still "well in excess" of the amount needed to cover its preferred dividends and provide funds for other aspects of its business. "This higher estimate of losses is warranted by difficult conditions in the commercial real estate market, particularly the hotel sector, and the estimate is in the range of expectations held by Brascan Real Estate Finance when Criimi Mae was recapitalized in January," said Barry S. Blattman, president and chief executive officer of Criimi Mae. The company also reported that its board of directors has declared the payment on March 31 of dividends on series B, F, and G preferred stock that were deferred from the second quarter of last year. It also announced the appointment of Craig M. Lieberman to the newly created post of senior vice president and chief portfolio risk officer. Criimi Mae can be found online at http://www.criimimaeinc.com.