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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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FORM 8-K
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CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
October 1, 1998
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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 Identification Number)
incorporation)
1776 SW Madison Street, Portland, OR 97205
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(Address of principal executive offices)(Zip Code)
(503) 223-5600
Registrant's telephone number, including area code
Not Applicable
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(Former name or former address, if changed since
last report)
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Item 5. Other Events.
The news release of Wilshire Real Estate Investment Trust Inc. (the
"Company"), dated October 1, 1998, responds to claims of Southern
Pacific Funding Corp. ("SFC"), is incorporated herein by reference and
filed herewith as Exhibit 99.
Subsequent to the Company's press release dated October 1, 1998, SFC filed a
Chapter 11 liquidation proceeding. The Company anticipates that either through
court proceedings or agreement with SFC, the securities or servicing rights
either will be awarded to the Company or will be sold and the Company paid all
amounts to which it is entitled.
Item 7. Financial Statements and Exhibits.
(c) Exhibits.
99 News release of Wilshire Real Estate Investment Trust Inc.
dated October 1, 1998.
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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 8, 1998 By: /s/ Chris Tassos
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Chris Tassos
Executive Vice President and
Chief Financial Officer
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EXHIBIT 99
Wilshire Real Estate Investment Trust Inc.
Responds to Claims of Southern Pacific Funding Corp.
October 1, 1998 06:33 AM
PORTLAND, Ore.--(BUSINESS WIRE)--Oct. 1, 1998--Wilshire Real Estate Partnership
L.P., the operating partner of Wilshire Real Estate Investment Trust Inc. WREI
("Wilshire") announced that as part of its ordinary business of entering into
repurchase agreements with specialty finance companies, it entered into a
repurchase agreement with Southern Pacific Funding Corp. ("SFC") in which
certain mortgage-backed securities have been sold to Wilshire by SFC.
Wilshire believes the value of the securities is sufficient to protect Wilshire
if SFC is unable to repurchase the securities at a later date.
SFC also has transferred the master servicing rights for the loans underlying
the securities purchased by Wilshire to Wilshire and to Wilshire Funding
Corporation, a Wilshire Financial Services Group Inc. (WFSG) subsidiary.
Without notifying Wilshire, SFC obtained a temporary court order until Oct. 9,
1998 that prevents Wilshire from liquidating the securities without 10 days'
notice. The court order, even if continued, will have no effect on the value of
the securities and servicing rights already transferred to Wilshire.
Wilshire Real Estate Investment Trust was formed to invest in real properties
and in distressed commercial and multifamily mortgage loans in the United
States, mortgage-backed securities, and international mortgage loans and real
properties. The company's business and investment affairs are managed by
Wilshire Realty Services Corp., a subsidiary of Wilshire Financial Services
Group Inc. WFSG which specializes in loan portfolio acquisition and
securitization, mortgage banking and loan servicing.
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor"
for forward-looking statements so long as those statements are identified as
forward-looking and are accompanied by meaningful cautionary statements
identifying important factors that could cause
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actual results to differ materially from those projected in such statements. 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, and
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.
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