Vestin Realty Mortgage I ("VRTA") was organized as a corporation on January 3, 2006
by Vestin Fund I, LLC (“Fund I”) to succeed to the
business of Vestin Fund I, a $100 million mortgage fund established in December
1999. VRTA is electing to be treated as a real estate investment trust, or REIT,
for U.S. federal income tax purposes. We are not a mutual fund or an investment
company within the meaning of the Investment Company Act of 1940, nor are we subject
to any regulation there under. Fund I merged into VRTA in
order to provide liquidity to Fund I's Unit Holders while maintaining the business
operations, investment objectives and assets of Fund I. As a REIT, VRTA is
not required to pay corporate income taxes as long as it pays at least 90%
of its REIT income to its shareholders as dividends.
To the extent practicable, we distribute
substantially all of our REIT taxable income, which is consistent
with Fund I’s practice of distributing all of its net income available
for distribution. Dividends will be paid from cash available for distribution (generally equal
to cash from operations, other than repayment of mortgage loan principal,
less an amount set aside for creation or restoration of reserves).
However, the actual amount and timing of any dividends will be determined
and declared by our board of directors.
Our board of directors decided to suspend dividends during June 2008. Our board of directors will closely
monitor our operating results in order to determine when dividends should be reinstated; however, we do not
anticipate paying dividends in the foreseeable future.
We are a publicly traded REIT, and our shares of common stock are listed
on the Nasdaq National Market under the symbol “VRTA”.
We primarily will invest in loans secured by real estate through deeds of
trust or mortgages which are defined in our management agreement as mortgage assets.
The loans typically fall into the following
categories: raw and unimproved land, acquisition and development,
construction, commercial and residential. From time to time we may
evaluate investment opportunities in local agency bonds and other
securities secured by real estate or interests in real estate and
may in the future invest in one or more of these instruments.
When making any investment decision, we will take into account the
rules and regulations applicable to a REIT, including the impact of an
investment on our qualification as a REIT.