(Source: MARKETWIRE)
Crystal River Capital, Inc. ("Crystal River" or the "Company")
(OTCBB: CYRV) today announced its results for the quarter ended
September 30, 2009.
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. THIRD QUARTER UPDATE
- Operating results: The net loss for the quarter ended September 30,
2009 totaled $55.3 million, or $2.19 per share, compared to a net
loss of $56.7 million, or $2.28 per share, for the third quarter of
2008 and a net loss of $6.5 million, or $0.26 per share, for the
second quarter of 2009. The increase in the net loss from the second
quarter was primarily attributable to an increase in
other-than-temporary impairments on available-for-sale securities and
realized and unrealized loss on derivatives in the third quarter.
- Liquidity and leverage update: The amount drawn under the Company's
revolving credit facility remained unchanged as of September 30, 2009
from June 30, 2009 at $28.9 million.
- Special Committee: In August, the Company announced the formation
of a special committee comprised of its independent directors and
that the special committee has retained a financial advisor and legal
counsel to assist in a review of the Company's strategic
alternatives. However, given market conditions and their impact on
Crystal River's operations, the Board believes that it is appropriate
to assess a wide array of possible alternatives. At present, no such
decisions have been made and it is not yet possible to predict what
will result from the process. The Company does not intend to disclose
further developments until it has approved a course of action in
connection with the exploration of its strategic alternatives.
Dividend Information
The Board of Directors has elected to suspend the quarterly dividend
to holders of shares of the Company's common stock to preserve
liquidity in consideration of the large increase in the delinquency
rate on the Company's CMBS portfolio and the resulting uncertainty
regarding operating cash flows. Based on the Company's current
forecasts, Crystal River would not be required to make any further
distributions in 2009 in order to maintain its REIT status through
2009. The elimination of the common dividends for the remainder of
2009, assuming the same $0.10 quarterly dividend per share that was
paid in October 2009, equates to approximately $2.5 million in cash
flow savings each quarter. The Board of Directors will continue to
evaluate the Company's dividend policy in light of its portfolio
performance and relevant provisions of the Internal Revenue Code.
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 September 30, June 30, December 31,
and per share data) 2009 2009 2008
----------------------------------------------------------------------------
ASSETS
Investment securities, at fair value:
Available-for-sale securities $ 14,219 $ 14,540 $ 21,615
Held-for-trading securities 49,609 42,713 51,301
Real estate loans 2,520 2,517 9,034
Real estate loans held for sale 5,058 5,058 5,058
Commercial real estate, net 223,380 225,006 228,259
Other investments 1,550 1,550 1,550
Intangible assets 71,316 72,724 75,541
Cash and cash equivalents 3,335 1,930 6,239
Restricted cash 16,926 17,501 26,107
Receivables 9,309 7,733 7,297
Rent enhancement receivable,
related party 12,035 12,620 13,828
Prepaid expenses and other assets 1,186 1,965 939
Deferred financing costs, net 1,476 1,495 1,533
------------ ---------- ----------
Total Assets $ 411,919 $ 407,352 $ 448,301
------------ ---------- ----------
------------ ---------- ----------
LIABILITIES AND STOCKHOLDERS' EQUITY
(DEFICIT)
Liabilities
Accounts payable and accrued expenses $ 3,697 $ 2,863 $ 2,652
Dividends payable 2,526 2,522 2,511
Intangible liabilities 68,155 69,525 72,265
Collateralized debt obligations 43,248 40,538 45,429
Junior subordinated notes 51,550 51,550 51,550
Mortgages payable 219,380 219,380 219,380
Secured revolving credit facility,
related party 28,920 28,920 32,920
Interest payable 2,141 1,989 1,357
Derivative liabilities 40,996 31,184 57,646
------------ ---------- ----------
Total Liabilities 460,613 448,471 485,710
------------ ---------- ----------
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,
24,909,255; 24,909,254; and
24,905,252 shares issued and
outstanding, respectively 25 25 25
Additional paid-in capital 564,762 564,690 564,560
Accumulated other comprehensive loss (14,097) (64,278) (9,815)
Accumulated deficit (599,384) (541,556) (592,179)
------------ ---------- ----------
Total Stockholders' Equity (Deficit) (48,694) (41,119) (37,409)
------------ ---------- ----------
Total Liabilities and Stockholders'
Equity (Deficit) $ 411,919 $ 407,352 $ 448,301
------------ ---------- ----------
------------ ---------- ----------
Condensed Consolidated Statements of Operations (Unaudited)
----------------------------------------------------------------------------
(in thousands, Three months ended Nine months ended
except share and Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
per share data) 2009 2009 2008 2009 2008
----------------------------------------------------------------------------
Revenues
Interest income
- investment
securities $ 6,314 $ 7,096 $ 21,069 $ 27,298 $ 85,361
Interest income
- real estate
loans 229 228 936 915 5,755
Other interest
and dividend
income 37 41 185 97 1,072
---------- ---------- ---------- ---------- -----------
Total interest
and dividend
income 6,580 7,365 22,190 28,310 92,188
Rental income, net 5,284 5,446 5,399 16,334 16,611
---------- ---------- ---------- ---------- -----------
Total revenues 11,864 12,811 27,589 44,644 108,799
---------- ---------- ---------- ---------- -----------
Expenses
Interest expense 5,919 6,195 9,302 18,647 44,302
Management fees,
related party - - 243 - 1,328
Professional fees 1,006 361 480 1,811 1,733
Depreciation and
amortization 3,022 3,022 3,022 9,066 9,066
Insurance expense 488 483 480 1,395 1,290
Directors' fees 209 86 86 380 366
Public company
expense 92 167 105 370 518
Commercial real
estate expenses 428 382 348 1,203 1,185
Provision for
loss on real
estate loans - - 4,401 6,758 20,850
Other expenses 85 82 237 249 1,158
---------- ---------- ---------- ---------- -----------
Total expenses 11,249 10,778 18,704 39,879 81,796
---------- ---------- ---------- ---------- -----------
Other Revenues
(Expenses)
Realized net gain
(loss) on sale
of investment
securities, real
estate loans
and other
investments 21 69 97 130 (4,951)
Realized and
unrealized gain
(loss) on
derivatives (13,078) 6,496 (6,152) (2,711) (44,183)
Total other-
than-temporary
impairments
on available-
for-sale
securities (56,374) (37,328) (26,876) (99,486) (112,340) Portion of
other-than-
temporary
impairments
recognized in
OCI 9,658 22,979 - 32,637 -
Net change in
assets and
liabilities
valued under
fair value
option 5,955 969 (32,305) (2,952) (134,508)
Loss from
equity
investments - - - - (40)
Other (2,093) (1,708) (397) (4,150) (950)
---------- ---------- ---------- ---------- -----------
Total other
expenses (55,911) (8,523) (65,633) (76,532) (296,972)
---------- ---------- ---------- ---------- -----------
Net Loss $ (55,296) $ (6,490) $ (56,748) $ (71,767) $ (269,969)
---------- ---------- ---------- ---------- -----------
---------- ---------- ---------- ---------- -----------
Net loss per
share - basic
and diluted $ (2.19) $ (0.26) $ (2.28) $ (2.85) $ (10.88)
---------- ---------- ---------- ---------- -----------
---------- ---------- ---------- ---------- -----------
Weighted average
shares of
common stock
outstanding:(1)
Basic and
diluted 25,230,669 25,189,825 24,882,612 25,184,316 24,813,649
---------- ---------- ---------- ---------- -----------
---------- ---------- ---------- ---------- -----------
Dividends
declared per
share of
common stock $ 0.10 $ 0.10 $ 0.10 $ 0.30 $ 1.08
---------- ---------- ---------- ---------- -----------
---------- ---------- ---------- ---------- -----------
----------------------------------------------------------------------------
(1) Including other participating securities.
Comprehensive Loss (Unaudited)
----------------------------------------------------------------------------
Three months ended Nine months ended
Sept. 30, June 30, Sept. 30, Sept. 30, Sept. 30,
(in thousands) 2009 2009 2008 2009 2008
----------------------------------------------------------------------------
Net Loss $ (55,296) $ (6,490) $ (56,748) $ (71,767) $ (269,969)
Cumulative effect
of the adoption
of new accounting
principle - (72,126) - (72,126) -
Changes in OCI
- securities
available for
sale 49,881 16,699 (1,033) 66,775 (7,232)
Realization of
deferred
unrealized losses
on cash flow hedges - - - - 13,181
Amortization of
net realized
losses on cash
flow hedges into
interest expense 301 301 586 1,069 1,031
----------------------------------------------------------------------------
Comprehensive
Loss $ (5,114) $ (61,616) $ (57,195) $ (76,049) $ (262,989)
----------------------------------------------------------------------------
SUPPLEMENTAL INFORMATION
Total Investment Portfolio at September 30, 2009
The following table summarizes the Company's investment portfolio at
September 30, 2009, June 30, 2009, and September 30, 2008:
----------------------------------------------------------------------------
September 30, 2009 June 30, 2009 September 30, 2008
($ in Carrying Carrying Carrying
millions) Value % Total Value % Total Value % Total
----------------------------------------------------------------------------
Investment
securities
CMBS $ 58.5 19.7% $ 50.3 17.3% $ 158.7 34.9%
Prime RMBS 3.7 1.3% 4.8 1.6% 22.7 5.0%
Subprime RMBS 1.6 0.5% 2.2 0.8% 10.0 2.2%
Preferred stock - - - - - -
Direct real
estate loans
Construction
loans - - - - 2.7 0.6%
Mezzanine loans 5.1(1) 1.7% 5.1(1) 1.7% 26.2(1) 5.8%
Whole loans 2.5 0.9% 2.5 0.9% 2.5 0.6%
Commercial
real estate-
owned(2) 223.4 75.4% 225.0 77.2% 229.9 50.6%
Other 1.6 0.5% 1.6 0.5% 1.6 0.3%
----------------------------------------------------------------------------
Total $ 296.4 100.0% $ 291.5 100.0% $ 454.3 100.0%
----------------------------------------------------------------------------
(1) Includes one loan in the amount of $5.1 million and $20.4 million held
for sale for the quarter ended September 30 and June 30, 2009 and
September 30, 2008 respectively.
(2) Excludes intangible assets.
Third 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 investment securities during the third quarter of 2009:
----------------------------------------------------------------------------
(in millions) CMBS Prime RMBS Subprime RMBS Total Portfolio
----------------------------------------------------------------------------
Carrying Value
June 30, 2009 $ 50.3 $ 4.8 $ 2.2 $ 57.3
Principal paydowns - (0.3) (0.1) (0.4)
Principal loss (0.1) (1.3) (0.6) (2.0)
Amortization (3.9) (1.1) (0.1) (5.1)
Market value
adjustments:
CDO assets 10.2 0.6 0.1 10.9
Non-CDO assets (45.2) (0.5) (1.0) (46.7)
OCI 47.2 1.5 1.1 49.8
----------------------------------------------------------------------------
Carrying Value
September 30,
2009 $ 58.5 $ 3.7 $ 1.6 $ 63.8
----------------------------------------------------------------------------
COMMERCIAL REAL ESTATE ("CRE") INVESTMENT PORTFOLIO
At September 30, 2009, Crystal River's CRE investment portfolio
totaled $226.5 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 September 30, 2009:
-----------------------------------------------------------------------
-----
Year of Total Book Mortgage Net Book
Lease Area Value(1) Debt Equity
Location Tenant Expiry (000s Sq. Ft.) (Millions) (Millions)(Millions)
----------------------------------------------------------------------------
Houston, JPMorgan
Texas Chase 2021 428.6 $ 58.9 $ 53.4 $ 5.5
Arlington, JPMorgan
Texas Chase 2027 171.5 21.0 20.9 0.1
Phoenix, JPMorgan
Arizona Chase 2021 724.0 146.6 145.1 1.5
----------------------------------------------------------------------------
Total CRE 1,324.1 $ 226.5 $ 219.4 $ 7.1
----------------------------------------------------------------------------
(1) Book value includes intangible assets and intangible liabilities, but
excludes rent-enhancement and straight-line rent receivables.
REAL ESTATE LOAN INVESTMENT PORTFOLIO
At September 30, 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 $7.6 million and
had a weighted average interest rate of 9.3%.
Real estate loan portfolio at September 30, 2009:
-----------------------------------------------------------------------
-----
Construction
($ in Mezzanine Loans Loans Whole Loans Total / WA(1)
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 - - - - 2.5 5.1 2.5
Amortized Cost 17.4 - 14.6 - - 2.5 32.0 2.5
Number of
Loans 2 - 1 - - 1 3 1
Number of
loans
that are
delinquent 1 - 1 - - - 2 -
WA Fixed Rate 10.1% - 16.0%(3) - - n/a 10.1%(4) n/a
WA Floating
Rate: Spread
over LIBOR(2) n/a - n/a - - 3.3% n/a 3.3%
----------------------------------------------------------------------------
(1) Weighted Average ("WA").
(2) London Interbank Offered Rate ("LIBOR").
(3) Construction loan has been placed on non-accrual status.
(4) Excludes 16.0% WA fixed rate for construction loan.
CMBS INVESTMENT PORTFOLIO
CMBS portfolio by credit rating at September 30, 2009:
----------------------------------------------------------------------------
Weighted Average
--------------------------
($ in millions) Amortized Cost Carrying Value Yield(1) Term (Yrs)(2)
----------------------------------------------------------------------------
BBB $ 32.1 $ 8.6 37.7% 6.8
BB 7.4 3.8 22.4% 5.4
B 19.3 16.1 (17.6)% 3.1Below B 18.6 30.0 (19.1)% 1.4
----------------------------------------------------------------------------
Total CMBS $ 77.4 $ 58.5 (7.6)% 2.9
----------------------------------------------------------------------------
(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 September 30, 2009:
CDO Assets:
----------------------------------------------------------------------------
Orig- Outstan- Delin- Cumul-
inal ding Carry- Principal quency ative
WA Face Face ing Subord- 60+/FC Loss to
Vintage Rating(1) Amount Amount Value ination /REO(2) Date(3)
----------------------------------------------------------------------------
Pre-2005 B- $ 2.8 $ 2.8 $ 0.7 3.66% 1.72% 0.00%
2005 CCC+ 244.8 244.8 23.0 2.63% 4.29% 0.00%
2006 CCC 248.3 248.0 20.0 2.28% 3.87% 0.15%
2007 CCC+ 27.9 27.9 2.6 2.68% 3.38% 0.00%
----------------------------------------------------------------------------
Total
CMBS CCC+ $ 523.8 $ 523.5 $ 46.3 2.47% 4.03% 0.07%
----------------------------------------------------------------------------
(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:
----------------------------------------------------------------------------
Orig- Outstan- Delin- Cumul-
inal ding Carry- Principal quency ative
WA Face Face ing Subord- 60+/FC Loss to
Vintage Rating Amount Amount Value ination /REO Date
----------------------------------------------------------------------------
2005 NR $ 50.8 $ 43.3 $ 2.4 0.21% 3.56% 14.82%
2006 CC 119.6 117.8 4.8 0.61% 3.78% 1.47%
2007 CC 132.8 132.8 5.0 1.17% 2.75% 0.00%
----------------------------------------------------------------------------
Total
CMBS CC $ 303.2 $ 293.9 $ 12.2 0.79% 3.28% 3.06%
----------------------------------------------------------------------------
PRIME RMBS INVESTMENT PORTFOLIO
Prime RMBS portfolio by credit rating at September 30, 2009:
----------------------------------------------------------------------------
Weighted Average
--------------------------
($ in millions) Amortized Cost Carrying Value Yield Term (Yrs)
----------------------------------------------------------------------------
BB and above $ - $ - -% -
B 0.6 0.1 61.8% 8.5
Below B 14.6 3.6 287.5% 4.0
----------------------------------------------------------------------------
Total Prime RMBS $ 15.2 $ 3.7 280.0% 4.1
----------------------------------------------------------------------------
Credit Characteristics of Prime RMBS portfolio by vintage at September 30,
2009:
CDO Assets:
----------------------------------------------------------------------------
Orig- Outstan- Delin- Cumul-
inal ding Carry- Principal quency ative
WA Face Face ing Subord- 60+/FC Loss to
Vintage Rating Amount Amount Value ination /REO Date
----------------------------------------------------------------------------
2003 CCC $ 1.9 $ 1.7 $ 0.2 0.23% 0.65% 0.00%
2004 CCC- 18.8 10.6 0.3 0.58% 18.40% 5.88%
2005 CCC- 79.5 54.7 1.8 0.75% 16.82% 9.61%
----------------------------------------------------------------------------
Total Prime
RMBS CCC- $ 100.2 $ 67.0 $ 2.3 0.71% 16.66% 8.99%
----------------------------------------------------------------------------
Non-CDO Assets:
----------------------------------------------------------------------------
Orig- Outstan- Delin- Cumul-
inal ding Carry- Principal quency ative
WA Face Face ing Subord- 60+/FC Loss to
Vintage Rating Amount Amount Value ination /REO Date
----------------------------------------------------------------------------
2003 NR $ 1.9 $ 1.4 $ 0.1 0.00% 0.67% 12.35%
2004 NR 0.4 0.3 0.0 0.00% 3.78% 8.73%
2005 C 56.0 35.3 1.2 0.43% 9.23% 11.36%
2006 C 4.0 3.8 0.1 0.64% 4.61% 0.00%
2007 C- 5.9 4.4 0.0 0.00% 6.72% 23.90%
----------------------------------------------------------------------------
Total Prime
RMBS C- $ 68.2 $ 45.2 $ 1.4 0.39% 8.29% 10.53%
----------------------------------------------------------------------------
SUBPRIME RMBS INVESTMENT PORTFOLIO
Subprime RMBS portfolio by credit rating at September 30, 2009:
----------------------------------------------------------------------------
Weighted Average
--------------------------
($ in millions) Amortized Cost Carrying Value Yield Term (Yrs)
----------------------------------------------------------------------------
BBB $ 2.3 $ 0.7 75.8% 4.8
BB - - -% -
B 1.4 0.1 115.6% 18.0
Below B 3.1 0.8 436.3% 5.2
----------------------------------------------------------------------------
Total Subprime RMBS $ 6.8 $ 1.6 263.8% 5.7
----------------------------------------------------------------------------
Credit Characteristics of Subprime RMBS portfolio by vintage at September
30, 2009:
CDO Assets:
----------------------------------------------------------------------------
Orig- Outstan- Delin- Cumul-
inal ding Carry- Principal quency ative
WA Face Face ing Subord- 60+/FC Loss to
Vintage Rating Amount Amount Value ination /REO Date
----------------------------------------------------------------------------
2005 DDD+ $ 50.1 $ 37.7 $ 0.7 3.16% 34.43% 1.21%
----------------------------------------------------------------------------
Total
Subprime
RMBS DDD+ $ 50.1 $ 37.7 $ 0.7 3.16% 34.43% 1.21%
----------------------------------------------------------------------------
Non-CDO Assets:
----------------------------------------------------------------------------
Orig- Outstan- Delin- Cumul-
inal ding Carry- Principal quency ative
WA Face Face ing Subord- 60+/FC Loss to
Vintage Rating Amount Amount Value ination /REO Date
----------------------------------------------------------------------------
2005 BBB- $ 6.6 $ 5.4 $ 0.3 0.86% 27.76% 63.30%
2006 BB- 9.2 8.3 0.5 3.91% 23.19% 0.00%
2007 C 1.1 1.1 0.1 0.51% 37.61% 0.00%
----------------------------------------------------------------------------
Total
Sub-prime
RMBS BB $ 16.9 $ 14.8 $ 0.9 2.54% 25.96% 40.42%
----------------------------------------------------------------------------
Financing Details
The following table shows the Company's investment securities, real
estate loans, other investments and other assets as of September 30,
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 $ 58.5 $ 40.4 $ - $ 3.2
Prime RMBS 3.7 2.1 - -
Subprime RMBS 1.6 0.7 - -
Real estate loans 7.6 - - 6.1Commercial real estate 223.4 - 219.4 19.6
Trust Preferred Securities 1.6 - 51.6 -
Other 115.5 - - -
----------------------------------------------------------------------------
Total $ 411.9 $ 43.2 $ 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 investment securities
between assets held by non-recourse securitization subsidiaries
financed by CDO debt and assets held directly at September 30,
2009:
-----------------------------------------------------------------------
-----
Consolidated
($ in millions) Carrying Value CDO Assets Non-CDO Assets
----------------------------------------------------------------------------
CMBS $ 58.5 $ 46.3 $ 12.2
Prime RMBS 3.7 2.3 1.4
Subprime RMBS 1.6 0.7 0.9
----------------------------------------------------------------------------
Total $ 63.8 $ 49.3 $ 14.5
----------------------------------------------------------------------------
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 September 30, 2009:
-----------------------------------------------------------------------
-----
Consolidated Consolidated
Outstanding Carrying
($ in millions) Face Amount Value CDO I CDO II
----------------------------------------------------------------------------
CMBS $ 817.4 $ 46.3 $ 8.2 $ 38.1
Prime RMBS 112.2 2.3 2.3 -
Subprime RMBS 52.5 0.7 0.7 -
Receivables, cash and
other assets - 4.4 1.8 2.6
Collateralized debt
obligations (457.5) (43.2) (10.6) (32.6)
Derivative and other
liabilities, net - (31.1) (3.8) (27.3)
----------------------------------------------------------------------------
Net Equity $ 524.6 $ (20.6) $ (1.4) $ (19.2)
----------------------------------------------------------------------------
OTHER INFORMATION
The Company will file a Form 10-Q for the quarter ended September 30,
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.
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, economic
conditions generally and in the real estate market specifically,
including further deterioration of the current global economic
downturn and the extent of its effect on our industry, general
volatility of the capital markets and the market price of shares of
our common stock, our liquidity and refinancing demands, continued
credit performance of our investments, changes in interest rates,
changes in the yield curve,
changes in prepayment rates, the effectiveness of our hedging
strategies, the availability of 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, the recovery of financing markets and our ability to
obtain or refinance debt, changes in business conditions and the
general economy, changes in the delinquency rates for the loans
underlying our securitized debt assets, what, if anything, results
from the Special Committee's review of strategic alternatives,
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, changes in generally accepted accounting
principles 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 Exhibit 99.1 to
our Form 10-Q for the period ended June 30, 2009, which we filed with
the SEC on August 10, 2009, and the risk factors in Exhibit 99.1 to
our Form 10-Q for the period ended September 30, 2009, which we
expect to file with the SEC by November 9, 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:
Crystal River Capital, Inc.
Jody Sheu
(212) 549-8346
jsheu@crystalriverreit.com
(CRZ-F)
SOURCE: Crystal River Capital, Inc.
A service of YellowBrix, Inc.
