Criimi Mae Reports Earnings Drop

Criimi Mae, Rockville, Md., has reported net income of $2.5 million ($0.16 per share) for the first quarter, a 42% decline from $4.3 million ($0.28 per share) for the first quarter of 2003.The net income for the first quarter includes net interest margin of $10.9 million; writedowns of about $3.1 million on some of the mortgage real estate investment trust's noncore assets; a $700,000 loss on extinguishment of debt; and $500,000 of impairment on a subordinated commercial mortgage-backed securities piece, Criimi Mae said. Mark Jarrell, Criimi Mae's president and chief operating officer said the REIT is beginning to realize "significant annualized interest savings" related to the refinancings of its insured mortgage portfolios. "And we executed loan modifications on the largest borrowing relationship in our special servicing portfolio during the first quarter of 2004 and expect to return those loans to the master servicers later this year," he said.