SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934
SEPTEMBER 29, 1998
Date of report (Date of earliest event reported)
WILSHIRE REAL ESTATE INVESTMENT TRUST INC.
(Exact name of registrant as specified in its charter)
MARYLAND 0-23911 52-2081138
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(State or other Commission File Number (I.R.S. Employer
jurisdiction of dentification
incorporation) Number)
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1776 SW MADISON STREET, PORTLAND, OR97205
(Address of principal executive offices) (Zip Code)
(503) 223-5600
Registrant's telephone number, including area code
NOT APPLICABLE
(Former name or former address, if changed since last report)
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ITEM 2. SIGNIFICANT ACQUISITION.
On September 29, 1998, Wilshire Real Estate Investment Trust Inc. ("WREI")
purchased several pools of loans with an aggregate unpaid principal balance of
approximately $380.9 million from Salomon Smith Barney Inc., which were then
sold to Wilshire REIT Trust Series 1998-1 and securitized.
This securitization, Asset Backed Floating Rate Notes Series 1998-11, is
backed by $94,292,933 fixed rate and $286,561,031 adjustable rate residential
mortgage loans.
The $374.2 million of investment-grade, publicly offered securities, were
tranched into four classes and were underwritten by Salomon Smith Barney, Inc.
All of the publicly offered securities were rated by both Standard & Poor's
Ratings Services and Duff & Phelps Credit Rating Company, except the M-3 which
was rated by Duff & Phelps only.
Investment-Grade Securities:
Approximate
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Initial Note Note Interest
Class Rating Balance Rate Final Maturity
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A AAA/AAA $309,824,000 Variable Oct. 25, 2028
M-1 AA/AA 26,280,000 Variable Oct. 25, 2028
M-2 A/A 16,186,000 Variable Oct. 25, 2028
M-3 BBB 21,899,000 Variable Oct. 25, 2028
$374,189,000
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The mortgage pool consists of approximately 3,766 one-to-four- family fully
amortizing mortgage loans secured by first liens. The adjustable rate mortgage
loans are generally based on 6-month LIBOR and have a weighted average margin of
5.714%. The weighted average coupon on the mortgage loans is approximately
10.229%.
The weighted average remaining term to stated maturity for the mortgage
pool is approximately 29 years. The average principal balance of the mortgage
loans is $101,129 with a weighted average LTV of 79.96%.
This transaction will be accounted for as a financing. The above mentioned
loans will be reported in the financial statements of WREI along with the
related debt associated with the aforementioned bonds issued.
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All of the statements contained in this release which are not identified as
historical should be considered forward-looking. In connection with certain
forward-looking statements contained in this release and those that may be made
in the future by or on behalf of the company which are identified as
forward-looking, the company notes that there are various factors that could
cause actual results to differ materially from those set forth in any such
forward-looking statements. Such factors include but are not limited to, the
real estate market, the availability of pools of loans at acceptable prices, the
availability of financing for loan pool acquisitions, and interest rates and
overseas expansion. Accordingly, there can be no assurance that the
forward-looking statements contained in this release will be realized or that
actual results will not be significantly higher or lower. Readers of this
release should consider these facts in evaluating the information contained
herein. The inclusion of the forward-looking statements contained in this
release should not be regarded as a representation by the company or any other
person that the forward- looking statements contained in this release will be
achieved. In light of the foregoing, readers of this release are cautioned not
to place undue reliance on the forward-looking statements contained herein.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS.
(b) As of the date of this Form 8-K, the applicable pro forma financial
information is not available, but will be filed by the Company on Form 8-K
as soon as practicable.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
WILSHIRE REAL ESTATE
INVESTMENT TRUST INC.
Date: October 14, 1998 By: /S/ CHRIS TASSOS
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Chris Tassos
Executive Vice President and
Chief Financial Officer
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