Angeles Mortgage Investment Trust: This was a Mortgage Investment trust that invested in mortgages and equities. Angeles Mortgage Investment Trust started trading on the American stock exchange in 1989, and in 1997 the company had loans and real estate totalling $43 million dollars US. Making them one of the larger mortgage investors at that time.
Angeles Mortgage Investment Trust was bought by Insignia Properties Trust in 1998 for $16.25 per market share, as well as exchanged for 1.65 shares of Insignia Properties Trust common stock. The two companies would continue to be publicly traded throughout the merger.
Insignia Properties trust is headquartered in South Carolina, and is the largest mortgage investment trust in the United States, with over 27,000 residential units to manage and run and 146.7 million square feet of commercial and retail space in 48 different states. This kind of equity and buying power is what the stock market is based on in regard to REIT’s.
Angeles Mortgage Investment Trust was run as a REIT therefore it was taxed as a commercial business, and most of the profit went to share holders at the end of each quarter.
The reason that Angeles Mortgage Investment Trust sold to Insignia Properties Trust is because from 1993 the Angeles Corp. had been fighting off bankruptcy, there stocks were down by 96% and all the trading of stock had ceased, in fact a staff that was once 200 was down to 20, Angeles Mortgage Investment Trust was a branch of this company that operated even after Angeles Corp. Filed for chapter 11 bankruptcy, in 1993.
Angeles Mortgage Investment Trust was then happy to be merged with a company like Insignia Properties Trust that was thriving and able to invest time and money into the company, rather than deplete it as Angeles Corp. Had once done when it was required to sell any liquid assets it might have.
Angeles Mortgage Investment Trust is no longer a publicly traded company or a company at all, although given the fate of the rest of Angeles Corp. It went a much better way, for the stocks to still be worth so much in the merger it says something about the company itself as well as its holdings.
The Insignia Properties Trust company is still a publicly traded company, on the American Stock Exchange it is traded under the symbol FAO, The company is still seeing good financial statements and is happy to have acquired the Angeles Mortgage Investment Trust assets when it did, meaning that it has more equity and shares when the market fell once again in 2006, giving the company a more solid grasp on the mortgage trust market share.
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|Posted in Investing, Real Estate, Strategies|