Real Estate Loans and Purchase Money Mortgages

9 Months Ended

Jun. 30, 2011

Real Estate Loans and Purchase Money Mortgages

Real Estate Loans and Purchase Money Mortgages

Note 4 - Real Estate Loans and Purchase Money Mortgages

At June 30, 2011, information relating to real estate loans and purchase money mortgages, is summarized as follows (dollars in thousands):

	EarningInterest			Non-EarningInterest			Total Real Estate Loans
Multi-family residential	$	22,218		$	—		$	22,218
Condominium units (existing multi-family)	6,244			8,488			14,732
Office	24,975			—			24,975
Retail	8,066			—			8,066
Hotel and Cooperative Apartment	12,469			—			12,469
Industrial	11,919			—			11,919
	85,891			8,488			94,379
Deferred fee income	(1,053		)	(42		)	(1,095		)
Real estate loans, net	84,838			8,446			93,284
Purchase money mortgage loans:
Multi-family residential	1,295			—			1,295
Real estate loans and purchase money mortgage loans, net	$	86,133		$	8,446		$	94,579

At June 30, 2011, the Trust had one non-earning loan outstanding, which was originated in October 2008.  The loan has an aggregate outstanding principal balance of $8,488,000, and represents 9.0% of total real estate loans and 4.5% of total assets.  This collateral dependent loan, secured by condominium units, is recourse to the borrower.  The loan is not impaired and no allowance for loan loss has been established.  This loan represents a pari passu interest in a loan with a principal balance of $16,976,000.  The borrower filed for protection under Chapter XI of the Federal Bankruptcy Code in December 2009.  In July 2011, the borrower, the Trust, and the Trust’s participant filed a joint plan of reorganization which was subsequently approved by the Federal Bankruptcy Court, pursuant to which the collateral will be conveyed to the Trust and its participant for an aggregate payment of $1.5 million.

The Trust recognized cash basis interest of $149,000 and $145,000 on non-earning loans in the three months ended June 30, 2011 and 2010 and $452,000 and $422,000 in the nine months ended June 30, 2011 and 2010, respectively.

At June 30, 2011, three separate, unaffiliated borrowers had loans outstanding in excess of 5% of total assets. Information regarding these loans is set forth in the table below (dollars in thousands):

	Gross Loan Balance		# of Loans	% of Gross Loans		% of Assets		State	Status
Office building	$	22,800	1	23.8	%	12.1	%	NY	Performing
Hotel and Co-op Apartment	$	12,469	1	13.0	%	6.6	%	FL/NY	Performing
Industrial	$	11,919	1	12.5	%	6.3	%	MD	Performing

The Trust’s portfolio consists primarily of senior mortgage loans, secured by residential and commercial property, 61% of which are located in New York, 16% in Florida, 13% in Maryland and 10% in 3 other states.