Capital Alliance Income Trust Ltd., a residential mortgage REIT, today announced it has unanimously approved its transition to a â€œSelf Advisedâ€? REIT and the unanimous appointment of Richard J. Wrensen as President and Chief Executive Officer.
â€œCAIT needs to focus on reversing its losses, creating earnings, restoring the dividend and enhancing shareholder value," Wrenson said. "Our success will require strategic changes to our existing business model, investment policies and a tremendous amount of hard work.â€?
The transition to self management has produced significant transition and termination expenses, the company said. The former advisor received a termination payment of approximately $500,000.
For the year ended December 31, 2005 CAIT, reported a net loss of $307,308 and for the year ended December 31, 2006 expects its net loss to exceed $900,000, including one time transition and termination expenses.
CAIT is a specialty residential lender that has invested in conforming and high yielding, non-conforming residential mortgage loans on one-to-four unit residential properties located primarily in California.