Opteum Inc. said second-quarter losses would be much higher than expected and added that its quarterly filing would be delayed as certain discontinued operations need to be included in its results for the period.
Chief Executive Jeffrey Zimmer attributed the expected higher quarterly losses to the turmoil in the secondary market for mortgage loans.
We were unable to immunize ourselves from these developments and our second-quarter results were significantly impacted as a result, Zimmer said in the statement.
Opteum sees a second-quarter loss from continuing operations of about $82.0 million and losses from discontinued operations, net of tax, of about $80.5 million. It expects a consolidated net loss of about $6.53 per Class A common share for the period.
Discontinued operations refer to the mortgage loan origination operations previously conducted by the company's Orchid Island TRS LLC (OITRS) unit.
OITRS' residential mortgage loan origination operations were discontinued, effective June 30, the company revealed in a filing with the U.S. Securities and Exchange Commission.
The real estate investment trust said it expects to file its quarterly report on Aug. 14, subject to the prior completion by Ernst & Young LLP of required procedures for interim quarterly filings.