Opteum Inc. Declares $0.25 Second Quarter 2006 Cash Dividend
31 Mai 2006 - 1:00PM
Business Wire
Opteum Inc. (NYSE: OPX), a real estate investment trust (REIT) that
operates an integrated mortgage-related securities investment
portfolio and mortgage origination platform, today announced that
its Board of Directors has declared a regular quarterly cash
dividend of $0.25 per share on the Company's Class A and Class B
Common Stock for the quarter ending June 30, 2006. The dividend is
payable July 7, 2006, to stockholders of record on June 21, 2006.
The Board of Directors estimates that this dividend will be paid
entirely from REIT taxable earnings and that this payment
represents no return of capital. Additionally, based on the
Company's current earnings estimates, REIT taxable income for the
second quarter of 2006 is expected to be approximately $0.35 per
share. As of June 1, 2006, no capital gains or losses have been
recorded for the REIT during the second quarter of 2006. This
dividend announcement and REIT taxable earnings estimate does not
take into account operating results from the Company's taxable REIT
subsidiary (TRS), Opteum Financial Services. At this time, the
Board of Directors has elected to retain any earnings that may be
recorded at the TRS. An earnings call will be announced at a later
date. Commenting on the announcement, Chief Executive Officer,
Jeffrey J. Zimmer, said, "We are extremely pleased to be reporting
a solid dividend in what continues to be a very tough operating
environment. The Company's portfolio allocation strategy of
investing in short duration assets, particularly adjustable rate
mortgage backed securities (ARM's) which have coupon reset
frequencies that are one year or less, has enabled the Company to
increase its dividend this quarter over the previous two quarters.
The ARM assets have increased in yield due to two factors. First,
adjustable rate mortgage indices have gone up following the
increases in short term rates orchestrated by the Federal Reserve
which has increased the coupons on many of the mortgage loan pools
the Company owns. Second, prepayment rates on the Company's
portfolio of ARM's have been slower than originally projected by
the Company at the time of purchase. As a result, the Company has
extended the period over which the premium price paid over par is
amortized, thereby causing the yield the Company projects on the
ARM portfolio to increase. "However, we recognize that this level
of dividend may not be sustainable if increases in the Federal
Funds Target Rate persist. In particular, while yields on our
adjustable rate assets will ultimately move in response to
movements in short term rates, they have most recently done so at a
rate slower than the increase in the cost of our funding rates."
Operating results for Opteum Financial Services, the Company's
residential mortgage origination platform and taxable REIT
subsidiary, will be available at the time of the quarterly earnings
call. About Opteum Opteum Inc. is a real estate investment trust
(REIT), which operates an integrated mortgage-related investment
portfolio and mortgage origination platform. The REIT invests
primarily in, but is not limited to, residential mortgage-related
securities issued by the Federal National Mortgage Association
(Fannie Mae), the Federal Home Loan Mortgage Corporation (Freddie
Mac) and the Government National Mortgage Association (Ginnie Mae).
It earns returns on the spread between the yield on its assets and
its costs, including the interest expense on the funds it borrows.
Opteum's mortgage origination platform, Opteum Financial Services,
originates, buys, sells, and services residential mortgages from 34
offices throughout the United States and operates as a taxable REIT
subsidiary. Statements herein relating to matters that are not
historical facts are forward-looking statements as defined in the
Private Securities Litigation Reform Act of 1995. The reader is
cautioned that such forward-looking statements are based on
information available at the time and on management's good faith
belief with respect to future events, and are subject to risks and
uncertainties that could cause actual performance or results to
differ materially from those expressed in such forward-looking
statements. Important factors that could cause such differences are
described in Opteum Inc.'s filings with the Securities and Exchange
Commission, including Opteum Inc.'s most recent Annual Report on
Form 10-K or Quarterly Report on Form 10-Q. Opteum Inc. assumes no
obligation to update forward-looking statements to reflect
subsequent results, changes in assumptions or changes in other
factors affecting forward-looking statements.
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