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Crystal River Reports First Quarter 2009 Financial Results

Declares Second Quarter 2009 Dividend Of $0.10 Per Share

NEW YORK, NEW YORK -- (Marketwire) -- 05/06/09 -- Crystal River Capital, Inc. ("Crystal River" or the "Company") (OTCBB: CYRV) -

Crystal River's management will host a dial-in teleconference to review its first quarter 2009 financial results on May 7, 2009 at 9:00 a.m. (EDT). The teleconference can be accessed by dialing 888-221-9542 or 913-312-0641 (International). A replay of the recorded teleconference will be available through May 21, 2009. The replay can be accessed by dialing 888-203-1112 or 719-457-0820 (International) and entering passcode 7542945. A live audio webcast of the call will be accessible on the Company's website, www.crystalriverreit.com, via a link from the Investor Relations section. A replay of the audio webcast will be archived in the Investor Relations section of the Company's website.

Crystal River Capital, Inc. ("Crystal River" or the "Company") (OTCBB: CYRV) today announced its results for the quarter ended March 31, 2009.

Separately, the Company announced that its Board of Directors has declared a second quarter 2009 dividend of $0.10 per share.

For additional information, please refer to Crystal River's letter to stockholders, which has been posted to the Investor Relations section of the Company's website at www.crystalriverreit.com.

I. FIRST QUARTER UPDATE

- Liquidity and leverage update: After eliminating its repurchase agreement debt in the fourth quarter of 2008, Crystal River continued its focus on reducing leverage by decreasing the amount drawn under the Company's revolving credit facility to $28.9 million at March 31, 2009 from $32.9 million at December 31, 2008.

- Operating results: The net loss for the quarter ended March 31, 2009 totaled $10.0 million, or $0.40 per share, compared to a net loss of $137.7 million, or $5.56 per share, for the first quarter of 2008 and a net loss of $37.1 million, or $1.48 per share, for the fourth quarter of 2008. The primary contributors to the first quarter 2009 net loss were a $5.8 million impairment charge against the Company's available-for-sale securities and a $9.9 million net decrease in assets and liabilities valued under fair value option, which was partially offset by realized and unrealized gains on derivatives totaling $3.9 million. Finally, the Company also recorded a $6.8 million loan loss allowance on its real estate loan holdings during the quarter ended March 31, 2009.

Operating Earnings (defined below) for the quarter ended March 31, 2009 totaled $8.5 million, or $0.34 per share, compared to $19.5 million, or $0.79 per share, for the first quarter of 2008 and $17.1 million, or $0.68 per share, for the fourth quarter of 2008. The decrease compared to the first quarter of 2008 was primarily attributable to lower interest income resulting from the sale of the Company's Agency MBS portfolio in 2008. The decrease compared to the fourth quarter of 2008 was primarily attributable to lower principal payment receipts on previously written-off residential mortgage-backed securities.

- Dividend coverage: Cash flow from operations for the first quarter of 2009 represented in excess of two times coverage of the current dividend of approximately $2.5 million, and the remainder was used to pay down liabilities.

Dividend Information

Crystal River announced that its Board of Directors declared a cash distribution for the quarter ended June 30, 2009 of $0.10 per share of common stock. The cash distribution will be paid on July 31, 2009 to stockholders of record as of the close of business on June 30, 2009.

In setting the dividend, the Board of Directors considered a number of factors, including, but not limited to, operating results, taxable income and REIT qualification requirements, available tax losses, economic conditions, capital requirements, liquidity, retention of capital and other operating trends. Given the variability of these considerations, the Board of Directors will continually reevaluate these factors when determining future dividends.

About Crystal River

Crystal River Capital, Inc. (OTCBB: CYRV) is a specialty finance REIT. The Company invests in commercial real estate, real estate loans, and real estate-related securities, such as commercial and residential mortgage-backed securities. For more information, visit www.crystalriverreit.com.

II. CONSOLIDATED FINANCIAL STATEMENTS

            Condensed Consolidated Balance Sheets (Unaudited)
----------------------------------------------------------------------------
(in thousands, except share           March 31,    December 31,    March 31,
 and per share data)                      2009            2008         2008
----------------------------------------------------------------------------
ASSETS
 Available-for-sale securities,
  at fair value                    $    53,562     $    72,916  $   355,528
 Real estate loans                       2,514           9,034       50,768
 Real estate loans held for sale         5,058           5,058      107,345
 Commercial real estate, net           226,632         228,259      233,137
 Other investments                       1,550           1,550        1,550
 Intangible assets                      74,132          75,541       79,765
 Cash and cash equivalents               1,499           6,239        8,664
 Restricted cash                        25,186          26,107       27,455
 Receivables                             7,434           7,297       16,835
 Rent enhancement receivable,
  related party                         13,198          13,828       15,665
 Due from broker                             -               -      393,566
 Prepaid expenses and other assets         296             939        2,177
 Deferred financing costs, net           1,514           1,533        2,152
                                  -------------    ------------ ------------
 Total Assets                     $    412,575     $   448,301  $ 1,294,607
                                  -------------    ------------ ------------
                                  -------------    ------------ ------------
LIABILITIES AND STOCKHOLDERS'
 EQUITY (DEFICIT)
Liabilities
 Accounts payable, accrued
  expenses and other              $      3,826     $     2,652  $       728
 Due to manager                              -               -          693
 Due to affiliate                            -               -          439
 Dividends payable                       2,511           2,511       16,835
 Intangible liabilities                 70,895          72,265       76,375
 Repurchase agreements                       -               -      408,677
 Collateralized debt obligations        35,521          45,429      182,769
 Junior subordinated notes              51,550          51,550       51,550
 Mortgages payable                     219,380         219,380      219,380
 Senior mortgage-backed notes,
  related party                              -               -       99,143
 Secured revolving credit
  facility, related party               28,920          32,920       48,220
 Interest payable                        2,088           1,357        3,610
 Derivative liabilities                 47,067          57,646       53,545
                                  -------------    ------------ ------------
 Total Liabilities                     461,758         485,710    1,161,964
                                  -------------    ------------ ------------
                                  -------------    ------------ ------------
Commitments and Contingencies
Stockholders' Equity (Deficit)
 Preferred stock, par value
  $0.001 per share, 100,000,000
  shares authorized, no shares
  issued and outstanding                     -               -            -
 Common stock, $0.001 par value,
  500,000,000 shares authorized,
  24,905,253; 24,905,252; and
  24,704,945 shares issued and
  outstanding, respectively                 25              25           25
 Additional paid-in capital            564,615         564,560      563,064
 Accumulated other comprehensive
  loss                                  (9,152)         (9,815)     (20,135)
 Accumulated deficit                  (604,671)       (592,179)    (410,311)
                                  -------------    ------------ ------------
 Total Stockholders' Equity
  (Deficit)                            (49,183)        (37,409)     132,643
                                  -------------    ------------ ------------
 Total Liabilities and
  Stockholders' Equity (Deficit)  $    412,575     $   448,301  $ 1,294,607
                                  -------------    ------------ ------------
                                  -------------    ------------ ------------



        Condensed Consolidated Statements of Operations (Unaudited)

----------------------------------------------------------------------------
                                          Three months ended
(in thousands, except share
 and per share data)        March 31, 2009   Dec. 31, 2008   March 31, 2008
----------------------------------------------------------------------------

Revenues
Interest income - available
 -for-sale securities       $       13,888   $      24,092   $       39,937
Interest income - real
 estate loans                          458             812            2,612
Other interest and dividend
 income                                 19             124              669
                            ---------------  --------------  ---------------
 Total interest and
  dividend income                   14,365          25,028           43,218
Rental income, net                   5,604           5,614            5,662
                            ---------------  --------------  ---------------
 Total revenues                     19,969          30,642           48,880
                            ---------------  --------------  ---------------

Expenses
 Interest expense                    6,533           9,241           24,268
 Management fees, related
  party                                  -            (102)             667
 Professional fees                     444             948              668
 Depreciation and
  amortization                       3,022           3,022            3,022
 Insurance expense                     424             372              330
 Directors' fees                        85              85              153
 Public company expense                111             150              111
 Commercial real estate
  expenses                             393             356              417
 Provision for loss on
  real estate loans                  6,758           6,223            9,063
 Other expenses                         82             126              376
                            ---------------  --------------  ---------------
  Total expenses                    17,852          20,421           39,075
                            ---------------  --------------  ---------------

Other Revenues (Expenses)
 Realized net gain (loss)
  on sale of available-
  for-sale securities, real
  estate loans and other
  investments                           40            (215)          (3,785)
 Realized and unrealized
  gain (loss) on derivatives         3,871         (26,496)         (43,382)
 Impairment of available-
  for-sale securities               (5,784)        (30,576)         (67,154)
 Net change in assets and
  liabilities valued under
  fair value option                 (9,876)         10,800          (32,848)
 Loss from equity investments            -               -              (40)
 Other                                (349)           (857)            (282)
                            ---------------  --------------  ---------------
  Total other expenses             (12,098)        (47,344)        (147,491)
                            ---------------  --------------  ---------------

Net Loss                    $       (9,981)  $     (37,123)  $     (137,686)
                            ---------------  --------------  ---------------
                            ---------------  --------------  ---------------

 Net loss per share
  - basic and diluted       $        (0.40)  $       (1.48)  $        (5.56)
                            ---------------  --------------  ---------------
                            ---------------  --------------  ---------------
 Weighted average shares of
  common stock
  outstanding:(1)

  Basic and diluted             25,131,361      25,022,733       24,750,048
                            ---------------  --------------  ---------------
                            ---------------  --------------  ---------------
  Dividends declared per
   share of common stock    $         0.10   $        0.10   $         0.68
                            ---------------  --------------  ---------------
                            ---------------  --------------  ---------------
----------------------------------------------------------------------------

(1) Including other participating securities.



                     Net Investment Income (Unaudited)

----------------------------------------------------------------------------
                                          Three months ended
(in thousands, except share
 and per share data)        March 31, 2009   Dec. 31, 2008   March 31, 2008
----------------------------------------------------------------------------

Total interest and dividend
 income                     $       14,365   $      25,028   $       43,218
Rental income, net                   5,604           5,614            5,662
Loss from equity investments             -               -              (40)
Interest expense                    (6,533)         (9,241)         (24,268)
                            ---------------  --------------  ---------------

Net Investment Income       $       13,436   $      21,401   $       24,572
                            ---------------  --------------  ---------------
                            ---------------  --------------  ---------------
Net Investment Income Per
 Share                      $         0.53   $        0.86   $         0.99
                            ---------------  --------------  ---------------
                            ---------------  --------------  ---------------
Weighted average shares of
 common stock outstanding:
 Basic and diluted              25,131,361      25,022,733       24,750,048
                            ---------------  --------------  ---------------
                            ---------------  --------------  ---------------

----------------------------------------------------------------------------



       Reconciliation of Net Loss to Operating Earnings (Unaudited)

----------------------------------------------------------------------------
                                          Three months ended
(in thousands, except share
 and per share data)        March 31, 2009   Dec. 31, 2008   March 31, 2008
----------------------------------------------------------------------------

Net Loss                    $       (9,981)  $     (37,123)  $     (137,686)

 Realized net (gain) loss on
  sale of available-for-sale
  securities, real estate
  loans, and other
  investments                          (40)            215            3,785

 Realized and unrealized
  (gain) loss on derivatives        (3,871)         26,496           43,382

 Impairment of available-
  for-sale securities                5,784          30,576           67,154

 Net change in assets and
  liabilities valued under
  fair value option                  9,876         (10,800)          32,848

 Provision for loss on real
  estate loans                       6,758           6,223            9,063

 Depreciation and
  amortization                       3,022           3,022            3,022

 Cash settlements on
  economic hedges that did
  not qualify for hedge
  accounting treatment              (3,051)         (1,530)          (2,044)
                            ---------------  --------------  ---------------

Operating Earnings          $        8,497   $      17,079   $       19,524
                            ---------------  --------------  ---------------
                            ---------------  --------------  ---------------

Operating Earnings Per
 Share                      $         0.34   $        0.68   $         0.79
                            ---------------  --------------  ---------------
                            ---------------  --------------  ---------------
Weighted average number of
 shares outstanding:
 Basic and diluted              25,131,361      25,022,733       24,750,048
                            ---------------  --------------  ---------------
                            ---------------  --------------  ---------------

----------------------------------------------------------------------------



                     Comprehensive Loss (Unaudited)

----------------------------------------------------------------------------
                                          Three months ended

(in thousands)              March 31, 2009   Dec. 31, 2008   March 31, 2008
----------------------------------------------------------------------------

Net Loss                    $       (9,981)  $     (37,123)  $     (137,686)

Changes in OCI - securities
 available for sale                    195            (112)          (7,983)
Realization of deferred
 unrealized losses on cash
 flow hedges                             -               -            4,854
Amortization of net realized
 losses on cash flow hedges
 into interest expense                 468             468              145
----------------------------------------------------------------------------
Comprehensive Loss          $       (9,318)  $     (36,767)  $     (140,670)
----------------------------------------------------------------------------



   Reconciliation of Net Loss to Estimated REIT Taxable Income (Unaudited)

----------------------------------------------------------------------------
                                            Three months       Three months
(in thousands, except share                        ended              ended
 and per share data)                      March 31, 2009     March 31, 2008
----------------------------------------------------------------------------

GAAP net loss                              $      (9,981)     $    (137,686)
                                           --------------     --------------

Adjustments to GAAP net loss:
 Net loss of taxable REIT subsidiary                   -                495
 Share-based compensation                             49               (182)
 Net tax adjustments related to interest
  income                                           5,602             (2,621)
 Book derivative loss in excess of tax
  loss (income in excess of tax income)           (7,090)            12,875
 Deductible REMIC losses                          (9,004)               284
 Capital-loss limitation                           4,067             33,749
 Impairment losses not deductible for
  tax purposes                                     5,784             67,154
 Net change in assets and liabilities
  valued under fair value option                   9,876             32,848
 Loan loss allowance not deductible
  for tax purposes                                 6,718              9,063
 GAAP-to-tax difference on rent
  escalation and lease amortization                 (331)              (381)
 Other                                                 -                (22)
                                           --------------     --------------
 Net adjustments from GAAP net loss to
  estimated REIT taxable income                   15,671            153,262
                                           --------------     --------------

Estimated REIT Taxable Income                      5,690             15,576
                                           --------------     --------------

Estimated REIT Taxable Income per share(1) $        0.23      $        0.63
                                           --------------     --------------
                                           --------------     --------------

 Weighted average number of shares
  outstanding:
   Basic and diluted                          25,131,361         24,750,048
                                           --------------     --------------
                                           --------------     --------------
----------------------------------------------------------------------------
(1) As a REIT, Crystal River is required to distribute the greater of 90% of
    (a) its REIT taxable income and (b) the excess inclusion income
    generated by its CDOs.

III. SUPPLEMENTAL INFORMATION

Total Investment Portfolio at March 31, 2009

The following table summarizes the Company's investment portfolio at March 31, 2009, December 31, 2008, and March 31, 2008:

----------------------------------------------------------------------------
                       March 31, 2009  December 31, 2008     March 31, 2008
($ in millions)     Carrying           Carrying           Carrying
                       Value  % Total     Value  % Total     Value  % Total
----------------------------------------------------------------------------
Available for
 sale securities
  CMBS               $  44.6     15.4%  $  58.1     18.3%  $ 271.1     36.2%
  Prime RMBS             6.1      2.1%      9.2      2.9%     56.3      7.5%
  Subprime RMBS          2.9      1.0%      5.6      1.8%     28.0      3.7%
  Preferred stock        0.0      0.0%      0.0      0.0%      0.1      0.0%
Direct real estate
 loans
  Construction loans       -        -       0.4      0.1%     16.4      2.2%
  Mezzanine loans        5.1(1)   1.8%     11.2(1)   3.5%     31.9      4.3%
  Whole loans            2.5      0.9%      2.5      0.8%    109.8     14.7%
Commercial real
 estate-owned(2)       226.6     78.2%    228.3     72.1%    233.1     31.2%
Other                    1.6      0.6%      1.6      0.5%      1.6      0.2%
----------------------------------------------------------------------------
Total                $ 289.4    100.0%  $ 316.9    100.0%  $ 748.3    100.0%
----------------------------------------------------------------------------
(1) Includes one loan in the amount of $5.1 million held for sale.
(2) Excludes intangible assets.

First Quarter 2009 Securities Roll-Forward Table

The table below details the impact of purchases and sales, principal paydowns, premium and discount amortization, and market value adjustments on our available-for-sale securities during the first quarter of 2009:

----------------------------------------------------------------------------
(in millions)       CMBS   Prime RMBS    Subprime RMBS      Total Portfolio
----------------------------------------------------------------------------
Carrying Value
 December 31,
 2008             $ 58.1        $ 9.2            $ 5.6               $ 72.9
Sales                  -            -                -                    -
Principal paydowns     -            -                -                    -
Principal loss         -         (0.3)            (0.1)                (0.4)
Amortization         0.6          0.5                -                  1.1
Market value
 adjustments:
 CDO assets        (11.0)        (1.7)            (1.7)               (14.4)
 Non-CDO assets     (3.3)        (1.6)            (0.9)                (5.8)
 OCI                 0.2            -                -                  0.2
----------------------------------------------------------------------------
Carrying Value
 March 31, 2009   $ 44.6        $ 6.1            $ 2.9               $ 53.6
----------------------------------------------------------------------------

COMMERCIAL REAL ESTATE ("CRE") INVESTMENT PORTFOLIO

At March 31, 2009, Crystal River's CRE investment portfolio totaled $229.9 million. The CRE portfolio consists of three high-quality office buildings 100% leased on a triple-net basis to JPMorgan Chase. The buildings are financed with long-term fixed-rate mortgage loans.

CRE investment portfolio at March 31, 2009:

----------------------------------------------------------------------------
                                     Total
                          Year of     Area       Book   Mortgage   Net Book
                            Lease    (000s    Value(1)      Debt     Equity
Location          Tenant   Expiry  Sq. Ft.) (Millions) (Millions) (Millions)
----------------------------------------------------------------------------
Houston,
 Texas    JPMorgan Chase     2021    428.6     $ 59.9     $ 53.4      $ 6.5
Arlington,
 Texas    JPMorgan Chase     2027    171.5       21.3       20.9        0.4
Phoenix,
 Arizona  JPMorgan Chase     2021    724.0      148.7      145.1        3.6
----------------------------------------------------------------------------
Total CRE                          1,324.1    $ 229.9    $ 219.4     $ 10.5
----------------------------------------------------------------------------
(1) Book value includes intangible assets and intangible liabilities, but
    excludes rent-enhancement and straight-line rent receivables.

REAL ESTATE LOAN INVESTMENT PORTFOLIO

At March 31, 2009, Crystal River's real estate loan portfolio, which consists of two mezzanine loans (one of which is held for sale), a construction loan and a whole loan, totaled $7.6 million and had a weighted average interest rate of 9.3%. Crystal River recorded a $6.8 million loan loss allowance on its real estate loan holdings during the quarter ended March 31, 2009.

Real estate loan portfolio at March 31, 2009:

----------------------------------------------------------------------------
                               Construction
             Mezzanine Loans       Loans      Whole Loans     Total / WA(1)
($ in
 millions)    Fixed Floating  Fixed Floating Fixed Floating  Fixed Floating
----------------------------------------------------------------------------
Outstanding
 Face Amount $ 17.4     $  - $ 14.6      $ -   $ -    $ 2.5 $ 32.0    $ 2.5
Carrying
 Value          5.1        -    0.0        -     -      2.5    5.1      2.5
Amortized
 Cost          17.4        -   14.6        -     -      2.5   32.0      2.5
Fair Value      5.1        -    0.0        -     -      1.8    5.1      1.8
Number of
 Loans            2        -      1        -     -        1      3        1
Number of
 loans that
 are
 delinquent       1        -      1        -     -        -      2        -
WA Fixed
 Rate         10.12%       -  16.00%(3)    -     -      n/a  10.12%(4)  n/a
WA Floating
 Rate:
 Spread over
 LIBOR(2)       n/a        -    n/a        -     -     3.25%   n/a     3.25%
----------------------------------------------------------------------------
(1) Weighted Average ("WA").
(2) London Interbank Offered Rate ("LIBOR").
(3) Construction loan has been placed on non-accrual status.
(4) Excludes 16.00% WA fixed rate for construction loan.



CMBS INVESTMENT PORTFOLIO

CMBS portfolio by credit rating at March 31, 2009:

----------------------------------------------------------------------------
                                                        Weighted Average
                                                ----------------------------
($ in millions)  Amortized Cost  Carrying Value    Yield(1)    Term (Yrs)(2)
----------------------------------------------------------------------------
BBB                      $  9.4          $  9.8     63.3%            8.4
BB                          6.8             6.8     94.6%            9.7
B                          11.3            11.3    118.8%            7.7
Below B                    15.7            16.7    154.8%            3.8
----------------------------------------------------------------------------
Total CMBS               $ 43.2          $ 44.6    116.5%            6.7
----------------------------------------------------------------------------
(1) Yield is the implied loss-adjusted yield based on our expectation of
    future cash flows and the fair value of the security.
(2) Refers to the loss-adjusted weighted average remaining life.



Credit Characteristics of CMBS portfolio by vintage at March 31, 2009:

CDO Assets:

----------------------------------------------------------------------------
                                                   Princ-
                                                    ipal    Delin-    Cumul-
                   Original Outstanding           Subord-  quency     ative
          WA           Face        Face Carrying    inat-  60+/FC   Loss to
Vintage   Rating(1)  Amount      Amount    Value     ion   /REO(2)   Date(3)
----------------------------------------------------------------------------
Pre-2005  B         $   2.8     $   2.8   $  0.5    3.63%    1.54%    0.00%
2005      B+          244.8       244.8     18.3    2.61%    1.40%    0.00%
2006      B-          248.3       248.3     12.4    2.29%    1.10%    0.00%
2007      CCC-         27.9        27.9      1.3    2.69%    0.64%    0.00%
----------------------------------------------------------------------------
Total
CMBS      B         $ 523.8     $ 523.8   $ 32.5    2.47%    1.22%    0.00%
----------------------------------------------------------------------------
(1) Rounded to nearest rating.
(2) "60+" means that a payment on an underlying collateral loan is more than
    60 days past due; "FC" means that the collateral underlying the loan is
    under foreclosure; "REO" means that the collateral underlying the loan
    has been foreclosed and is owned by the issuing trust. Delinquency rates
    refer to the entire securitization.
(3) Actual losses against securities in Crystal River's portfolio, based on
    original face amount.



Non-CDO Assets:

----------------------------------------------------------------------------
                                                   Princ-
                                                    ipal    Delin-    Cumul-
                   Original Outstanding           Subord-  quency     ative
          WA           Face        Face Carrying    inat-  60+/FC   Loss to
Vintage   Rating     Amount      Amount    Value     ion     /REO      Date
----------------------------------------------------------------------------
2005      NR        $  50.8     $  43.3   $  2.6    0.21%    1.18%    14.82%
2006      CC+         119.6       119.6      4.7    0.60%    1.37%     0.00%
2007      CC+         132.8       132.8      4.8    1.17%    1.06%     0.00%
----------------------------------------------------------------------------
Total
CMBS      CC+       $ 303.2     $ 295.7   $ 12.1    0.78%    1.20%     2.48%
----------------------------------------------------------------------------



PRIME RMBS INVESTMENT PORTFOLIO

Prime RMBS portfolio by credit rating at March 31, 2009:

----------------------------------------------------------------------------
                                                         Weighted Average
                                                    ------------------------
($ in millions)     Amortized Cost Carrying Value     Yield       Term (Yrs)
----------------------------------------------------------------------------
BB and above                 $ 1.2          $ 1.2     116.1%           10.8
B                              1.8            1.8     137.3%            6.1
Below B                        3.0            3.1     290.9%            3.3
----------------------------------------------------------------------------
Total Prime RMBS             $ 6.0          $ 6.1     210.3%            5.7
----------------------------------------------------------------------------



Credit Characteristics of Prime RMBS portfolio by vintage at March 31, 2009:

 CDO Assets:

----------------------------------------------------------------------------
                                                   Princ-
                                                    ipal    Delin-    Cumul-
                   Original Outstanding           Subord-  quency     ative
          WA           Face        Face Carrying    inat-  60+/FC   Loss to
Vintage   Rating     Amount      Amount    Value     ion     /REO      Date
----------------------------------------------------------------------------
2003      B         $   1.9      $  1.8    $ 0.5    0.23%    0.54%     0.00%
2004      CCC-         18.8        12.5      0.6    1.25%   12.46%     0.65%
2005      CCC          92.9        71.0      2.3    1.02%   14.30%     2.66%
----------------------------------------------------------------------------
Total
Prime
RMBS      CCC       $ 113.6      $ 85.3    $ 3.4    1.04%   13.74%     2.36%
----------------------------------------------------------------------------



 Non-CDO Assets:

----------------------------------------------------------------------------
                                                   Princ-
                                                    ipal    Delin-    Cumul-
                   Original Outstanding           Subord-  quency     ative
          WA           Face        Face Carrying    inat-  60+/FC   Loss to
Vintage   Rating     Amount      Amount    Value     ion     /REO      Date
----------------------------------------------------------------------------
2003      CC+      $   1.9       $  1.7    $ 0.2    0.00%    0.54%     0.76%
2004      CC+          3.0          1.1        -    0.00%    2.24%    61.17%
2005      CC+         93.5         61.2      1.9    0.44%    8.48%     7.18%
2006      CC+          4.0          3.8      0.2    0.43%    1.91%     0.00%
2007      CC+         17.1         14.2      0.4    0.14%    2.93%    20.32%
----------------------------------------------------------------------------
Total
Prime
RMBS      CC+      $ 119.5       $ 82.0    $ 2.7    0.37%    6.97%     8.40%
----------------------------------------------------------------------------



SUBPRIME RMBS INVESTMENT PORTFOLIO

Subprime RMBS portfolio by credit rating at March 31, 2009:

----------------------------------------------------------------------------
                                                         Weighted Average
                                                    ------------------------
($ in millions)     Amortized Cost Carrying Value     Yield       Term (Yrs)
----------------------------------------------------------------------------
BBB                          $ 0.9          $ 0.9      58.0%            4.5
BB                             0.1            0.1     191.2%            2.4
B                              0.2            0.2      33.1%           16.1
Below B                        1.6            1.7     333.2%            4.0
----------------------------------------------------------------------------
Total Subprime RMBS          $ 2.8          $ 2.9     223.0%            4.9
----------------------------------------------------------------------------



Credit Characteristics of Subprime RMBS portfolio by vintage at March 31,
2009:

 CDO Assets:

----------------------------------------------------------------------------
                                                   Princ-
                                                    ipal    Delin-    Cumul-
                   Original Outstanding           Subord-  quency     ative
          WA           Face        Face Carrying    inat-  60+/FC   Loss to
Vintage   Rating     Amount      Amount    Value     ion     /REO      Date
----------------------------------------------------------------------------
2005      CC+        $ 78.8      $ 53.6    $ 1.1    4.92%   32.07%    11.41%
----------------------------------------------------------------------------
Total
Subprime
RMBS      CC+        $ 78.8      $ 53.6    $ 1.1    4.92%   32.07%    11.41%
----------------------------------------------------------------------------



 Non-CDO Assets:


----------------------------------------------------------------------------
                                                   Princ-
                                                    ipal    Delin-    Cumul-
                   Original Outstanding           Subord-  quency     ative
          WA           Face        Face Carrying    inat-  60+/FC   Loss to
Vintage   Rating     Amount      Amount    Value     ion     /REO      Date
----------------------------------------------------------------------------
2005      BB         $ 23.6      $ 16.2    $ 0.6    0.30%   35.50%    15.87%
2006      B-           25.2        22.0      0.7    2.54%   30.68%    12.27%
2007      NR            9.1         9.1      0.5    2.13%   28.46%     0.00%
----------------------------------------------------------------------------
Total
Subprime
RMBS      CCC-       $ 57.9      $ 47.3    $ 1.8    1.70%   31.90%    11.79%
----------------------------------------------------------------------------

Financing Details

The following table shows the Company's available-for-sale securities, real estate loans, other investments and other assets as of March 31, 2009 and the different lines used to finance such assets, categorized by (i) CDO debt, (ii) other term debt, such as mortgage loans on commercial real estate and trust preferred securities and (iii) the Company's secured revolving credit facility:

----------------------------------------------------------------------------
                                Assets                  Debt
----------------------------------------------------------------------------
                                            CDO      Other Term      Funding
($ in millions)         Carrying Value     Debt(1)         Debt     Facility
----------------------------------------------------------------------------
CMBS                           $  44.6   $ 31.3         $     -       $    -
Prime RMBS                         6.1      3.2               -            -
Subprime RMBS                      2.9      1.0               -            -
Real estate loans                  7.6        -               -          9.3
Commercial real estate           226.6        -           219.4         19.6
Trust Preferred
 Securities                          -        -            51.6            -
Other                            124.8        -               -            -
----------------------------------------------------------------------------
Total                          $ 412.6   $ 35.5         $ 271.0       $ 28.9
----------------------------------------------------------------------------
(1) CDO debt has been allocated based upon the asset mix within the
    Company's CDOs.

CDO and Non-CDO Assets

The table below summarizes the breakdown of our available-for-sale securities between assets held by non-recourse securitization subsidiaries financed by CDO debt and assets held directly at March 31, 2009:

----------------------------------------------------------------------------
                               Consolidated
($ in millions)              Carrying Value    CDO Assets    Non-CDO Assets
----------------------------------------------------------------------------
CMBS                                 $ 44.6        $ 32.5            $ 12.1
Prime RMBS                              6.1           3.4               2.7
Subprime RMBS                           2.9           1.1               1.8
----------------------------------------------------------------------------
Total                                $ 53.6        $ 37.0            $ 16.6
----------------------------------------------------------------------------

Our securitized assets are held by two non-recourse securitization subsidiaries financed by CDO debt. The table below details the assets and liabilities of these securitizations at March 31, 2009:

----------------------------------------------------------------------------
                    Consolidated
                     Outstanding         Consolidated
($ in millions)      Face Amount       Carrying Value      CDO I     CDO II
----------------------------------------------------------------------------
CMBS                     $ 523.8              $  32.5     $  7.5     $ 25.0
Prime RMBS                  85.3                  3.4        3.4          -
Subprime RMBS               53.6                  1.1        1.1          -
Receivables, cash
 and other assets              -                  4.4        1.8        2.6
Collateralized debt
 obligations              (461.7)               (35.5)     (11.1)     (24.4)
Derivative and other
 liabilities, net              -                (31.9)      (4.4)     (27.5)
----------------------------------------------------------------------------
Net Equity               $ 201.0              $ (26.0)    $ (1.7)   $ (24.3)
----------------------------------------------------------------------------

OTHER INFORMATION

The Company will file a Form 10-Q for the quarter ended March 31, 2009 with the Securities and Exchange Commission. Please read the Form 10-Q carefully as it will contain Crystal River's consolidated financial statements and notes thereto and Management's Discussion and Analysis of Financial Condition and Results of Operations. The Form 10-Q also will be made available under the Investor Relations section of Crystal River's website at www.crystalriverreit.com.

Definition of Operating Earnings

This press release and accompanying financial information make reference to Operating Earnings on a total and per share basis. The Company considers its Operating Earnings to be income after operating expenses but before loan loss provisions, realized and unrealized gains and losses, hedge ineffectiveness, foreign currency exchange impact, loss on impairment of assets, commercial real estate depreciation and amortization and net change in assets and liabilities valued under fair value option. The Company believes that Operating Earnings provides useful information to investors because it views Operating Earnings as an effective indicator of the Company's profitability and financial performance over time. Operating Earnings can and will fluctuate based on changes in asset levels, funding rates, available reinvestment rates, expected losses on credit-sensitive positions and the return on the Company's investments as the underlying assets are carried at estimated fair value. The Company has provided the components of Operating Earnings and a full reconciliation from net loss to Operating Earnings with the financial statements accompanying this press release. Operating Earnings is a non-GAAP measure that does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.

Definition of Net Investment Income

This press release and accompanying financial information make reference to Net Investment Income. The Company considers its Net Investment Income to be total revenues, including income (loss) from equity investments, less interest expense. The Company believes that Net Investment Income provides useful information to investors because it represents the largest component of the Company's Operating Earnings, which management believes is an effective indicator of the Company's profitability and financial performance over time. The Company provides the components of Net Investment Income with the financial statements accompanying this press release. Net Investment Income is a non-GAAP measure that does not have any standard meaning prescribed by GAAP and therefore may not be comparable to similar measures presented by other companies.

Definition of Estimated REIT Taxable Income

Estimated REIT Taxable Income is a non-GAAP financial measure and does not purport to be an alternative to net loss determined in accordance with GAAP as a measure of operating performance or to cash flows from operating activities as a measure of liquidity. Estimated REIT Taxable Income excludes the net loss of Crystal River's domestic taxable REIT subsidiary. This non-GAAP financial measure is important to Crystal River and its stockholders because, as a real estate investment trust, we are required to pay substantially all of our REIT taxable income in the form of distributions to our stockholders and Estimated REIT Taxable Income is an effective indicator of the total amount of REIT taxable income available for distributions. Because not all REITs use identical calculations, this presentation of Estimated REIT Taxable Income may not be comparable to other similarly titled measures prepared and reported by other companies. The Company provides a full reconciliation from net loss to Estimated REIT Taxable Income with the financial statements accompanying this press release.

Forward-Looking Information

This news release, and our public documents to which we refer, contain or incorporate by reference certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements relating to our future financial results and future dividend payments. Forward-looking statements that are based on various assumptions (some of which are beyond our control) may be identified by reference to a future period or periods or by the use of forward-looking terminology, such as "may," "will," "believe," "expect," "anticipate," "continue," "should," "intend," or similar terms or variations on those terms or the negative of those terms. Although we believe that the expectations contained in any forward-looking statement are based on reasonable assumptions, we can give no assurance that our expectations will be attained. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to, changes in interest rates, changes in the yield curve, changes in prepayment rates, the effectiveness of our hedging strategies, the availability of mortgage-backed securities and other targeted investments for purchase and origination, the availability and cost of capital for financing future investments and, if available, the terms of any such financing, changes in the market value of our assets, future margin reductions and the availability of liquid assets to post additional collateral, changes in business conditions and the general economy, competition within the specialty finance sector, changes in government regulations affecting our business, our ability to maintain our qualification as a real estate investment trust for federal income tax purposes, and other risks disclosed from time to time in our filings with the Securities and Exchange Commission. For more information on the risks facing the Company, see the risk factors in Part I, Item 1A of our Annual Report on Form 10-K for the fiscal year ended December 31, 2008, which we filed with the SEC on March 3, 2009, and the risk factors in Exhibit 99.1 to our Form 10-Q for the period ended March 31, 2009, which we expect to file with the SEC on or before May 11, 2009. We do not undertake, and specifically disclaim any obligation, to publicly release any update or supplement to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

Contacts:
Jody Sheu
Crystal River Capital, Inc.
(212) 549-8346
[email protected]
(CRZ-F)

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