Criimi Mae Inc.
11200 Rockville Pike
Rockville, Md. 20852
www.criimimaeinc.com Year founded: 1989 Industry: Real estate Revenue: $115.22 Million Net Income/Loss: $2.90 Million Earnings per share: ($0.27) Dividend: n/a Stockholder equity: $291.78 Million Auditor: Ernst & Young LLP Stock: CMM Assets: $1.07 Billion Market capitalization: $169.41 Million 52-week high: 12.1 7/31/2003 52-week low: 9.45 4/15/2003 Chairman and CEO: Barry S. Blattman President and COO: Mark R. Jarrell Employees: 81 Local employees: 81 Description: Criimi Mae is a real estate investment trust specializing in commercial mortgages. It buys, originates, underwrites, securitizes and services commercial real estate loans and commercial-mortgage-backed securities. Criimi Mae focuses on non-investment-grade commercial mortgage-backed securities, known as subordinated CMBS. These securities are higher risk but can bring higher returns. Developments: The firm changed top leadership early last year as part of a $344 million recapitalization. Barry S. Blattman, managing partner of Brascan Real Estate Financial Partners, which provided part of the funds, became chairman and chief executive, replacing William B. Dockser. Mark R. Jarrell, formerly senior vice president at Community Development Trust, became president in September. Jarrell and his new team now have operational responsibility for the REIT. Three years have passed since Criimi Mae emerged from Chapter 11 bankruptcy protection, and the firm's numbers are improving. Last year it earned its first profit in three years—much better than 2002, when it lost $56.1 million. Much of the improvement is due to lower borrowing costs, which in turn stem from the firm's January 2003 recapitalization. The firm completed two mid-sized refinancings of its government-insured loans, one in December and one March 8, and expects to finish refinancing its insured mortgage portfolios by the middle of the year. The firm is also finishing the process of resolving its biggest default, loans secured by a group of 27 hotel properties that have an outstanding principal balance of $133 million. The company's total exposure, including advances, was $176 million at the end of 2003. The loan modification agreement closed earlier this month. After a year of focusing on refinancing and working out troubled loans, Criimi Mae hopes to start adding more new assets. But competition is growing for low-grade loans, and Jarrell told analysts in March that had prompted the company to modify its strategy. In 2004, Criimi Mae plans to put more emphasis on originating loans than buying them. "We believe we've got a solid and achievable plan that will be appealing to our customers and that utilizes the strengths and experience of our management team and our employees," he said.
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