SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 12b-25
Commission File Number 0-23911
NOTIFICATION OF LATE FILING
(Check One): |_| Form 10-K |_| Form 11-K |_| Form 20-F |X| Form 10-Q
|_| Form N-SAR
For Period Ended: September 30, 1999
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|_| Transition Report on Form 10-K |_| Transition Report on Form 10-Q
|_| Transition Report on Form 20-F |_| Transition Report on From N-SAR
|_| Transition Report on Form 11-K
For the Transition Period Ended:
Read attached instruction sheet before preparing form. Please print or
type.
Nothing in this form shall be construed to imply that the Commission has
verified any information contained herein.
If the notification related to a portion of the filing checked above,
identify the item(s) to which the notification relates:_______________________
PART I
REGISTRANT INFORMATION
Full name of registrant: Wilshire Real Estate Investment Inc.
Former name if applicable Wilshire Real Estate Investment Trust Inc.
Address of principal executive office (Street and number):1310 SW 17th Street
City, state and zip code: Portland, OR 97201
PART II
RULE 12b-25 (b) AND (c)
If the subject report could not be filed without unreasonable effort or
expense and the registrant seeks relief pursuant to Rule 12b-25(b), the
following should be completed. (Check box if appropriate.) (a) The reasons
described in reasonable detail in Part III of this form could not be eliminated
without unreasonable effort or expense; (b) The subject annual report,
semi-annual report, transition report on Form 10-K, 20-F, 11-K or Form N-SAR, or
portion thereof will be filed on or before the 15th calendar |X|
________________________ day following the prescribed due date; or the subject
quarterly report on transition report on Form 10-Q, or portion thereof will be
filed on or before the fifth calendar day following the prescribed due date; and
(c) The accountant's statement or other exhibit required by Rule 12b-25(c) has
been attached if applicable.
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PART III
NARRATIVE
Wilshire Real Estate Investment Inc. (the "Company") recently decided to
become internally managed and has resulted in disputes between the Company, on
the one hand, and Wilshire Realty Services Corporation ("WRSC") and Wilshire
Financial Services Group Inc. ("WFSG"), on the other. The Company's business and
investment affairs had been managed by WRSC pursuant to a management agreement
and the Company had received managerial and administrative services from WRSC
thereunder.
On November 12, 1999, the Board of Directors of the Company appointed the
firm of Ernst & Young LLP to replace Arthur Andersen LLP as the principal
accountant to audit the Company's financial statements. Arthur Andersen LLP was
replaced due to a potential conflict of interest with the services it performs
for WRSC, the Company's former manager, and WFSG, the parent of WRSC.
Due to the significant amount of time that it will require for Ernst &
Young LLP to complete their review of the accounting and other financial
documents, the Company will be unable to file by November 15, 1999 without
unreasonable effort and expense.
<PAGE>
PART IV
OTHER INFORMATION
(1) Name and telephone number of person to contact in regard to this
notification
Chris Tassos (503) 721-6500
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(Name) (Area Code) (Telephone Number)
(2) ______ Have all other periodic reports required under Section 13 or
15(d) of the Securities Exchange Act of 1934 or Section 30 of the Investment
Company Act of 1940 during the preceding 12 months or for such shorter period
that the registrant was required to file such report(s) been filed? If the
answer is no, identify report(s).
________________________________________________________________________________
|X|Yes |_| No
(3) ______ Is it anticipated that any significant change in results of
operations from the corresponding period for the last fiscal year will be
reflected by the earnings statements to be included in the subject report or
portion thereof?
|X| Yes |_| No
If so: attach an explanation of the anticipated change, both narratively
and quantitatively, and, if appropriate, state the reasons why a reasonable
estimate of the results cannot be made.
In response to adverse market conditions in the second half of 1998 and the
resulting effect on the Company's operations, the Company refocused its efforts
on stabilizing its existing asset base and greatly reduced acquisition
activities during the nine months ended September 30, 1999. General market
conditions and the availability of financing for certain of the Company's asset
categories, especially subordinated mortgage-backed securities and mezzanine
loans, continue to be uncertain. The Company's results of operations for the
three and nine months ended September 30, 1999 will reflect this continued
difficult marketplace, which include further impairment write downs of
mortgage-backed securities.
Due to the replacement of its principal accountant, the Company is unable,
at this time, to provide a reasonable estimate of results for the nine months
ended September 30, 1999.
Wilshire Real Estate Investment Inc.
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(Name of Registrant as Specified in Charter)
Has caused this notification to be signed on its behalf by the undersigned
thereunto duly authorized.
Date: November 12, 1999 By:/s/ Lawrence Mendelsohn
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Lawrence Mendelsohn
President
By:/s/ Chris Tassos
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Chris Tassos
Executive Vice President and
Chief Financial Officer
