Richmond to make loan for camp

Richmond will pull money from the construction budgets of the new city jail and schools to make a loan of up to $10 million to build a training camp for the Washington Redskins in time for the team to use it this summer, according to proposed legislation a City Council committee reviewed Thursday.

The shift, however, will have no impact on the schools or jail projects, city officials say. They also say the money loaned to the citys Economic Development Authority, which will be tasked with building and running the facility, will be fully repaid.

Two Harbors Investment Management Discusses Q3 2012 Results – Earnings …

Two Harbors Investment (TWO) Q3 2012 Earnings Call November 7, 2012 9:00 AM ET

Operator

Good day, ladies and gentlemen, and welcome to the Two Harbors Third Quarter 2012 Financial Results Conference Call. [Operator Instructions] As a reminder, todays conference is being recorded. I would now like to introduce your host for this conference call, Ms. July Hugen. You may begin.

July Hugen

Thank you, Kevin, and good morning. Welcome to Two Harbors Third Quarter 2012 Financial Results Conference Call. With me this morning are Tom Siering, President and Chief Executive Officer; Brad Farrell, Chief Financial Officer; and Bill Roth, Co-Chief Investment Officer.

After my introductory comments, Tom will provide some insights into the current macro environment and potential impact to our strategy. Then Brad will highlight some key items from our financial results, and Bill will review our portfolio performance. The press release and financial tables associated with todays conference call were filed yesterday with the SEC. If you do not have a copy, you may find them on our website.

This call is also being broadcast live over the Internet and may be accessed on our website in the Investor Relations section under the Events and Presentations link. In addition, wed like to encourage you to reference the accompanying presentation to this call, which can also be found on our website.

Before management begins its discussion of its third quarter results, we wish to remind you that remarks made by Two Harbors management during this conference call and the supporting slide presentation may include forward-looking statements. Forward-looking statements reflect our views regarding future events, and are typically associated with the use of words such as anticipate, target, expect, estimate, believe, assume, project and should or other similar words.

We caution investors not to rely unduly on forward-looking statements. They imply risks and uncertainties, and actual results may differ materially from expectations. We urge you to carefully consider the risks described in our filings with the SEC, which may be obtained on the SECs website at www.sec.gov. We do not undertake any obligation to update or correct any forward-looking statements if later events prove them to be inaccurate.

I would like to draw your attention to the second webinar in our ongoing series, which covers our views on Agency prepayments and is the first in a 2-part series. The webinar can be found on our website. We intend to post additional webinars in the future to provide investors and analysts with management insights regarding the market and our business.

Id also like to mention that an archived webcast of our Analyst and Investor Day, which took place in New York on October 10, can also be found on our webpage.

I will now turn the call over to Tom, who will provide some highlights as summarized on Slide 3.

Thomas Edwin Siering

Thanks, July. Good morning, everyone, and thank you for joining our third quarter earnings call. Before I comment on the quarter, I wish to take a moment to note our sadness with the passing of Annalys CEO, Mike Farrell. Mike was truly a pioneer in the mortgage REIT space. On behalf of everyone at Two Harbors, I would like to extend my deepest condolences to Mikes family, friends and colleagues. We are also thinking about the victims of Sandy, which has been dubbed by many the weather event of a lifetime. Our hearts go out to the families who suffered the loss of loved ones, and we are hopeful for a speedy cleanup of the East Coast.

Now moving to my prepared remarks. Ill begin with an overview of our performance this quarter. It was truly an exceptional period from a return perspective. During the third quarter, we recorded $524.4 million of comprehensive income. To put this metric into perspective, it represents over 4x our book value when we commenced operations 3 years ago, and represents an annualized return of over 70%. Our book value increased 15.1% to $11.44 per share during the third quarter, representing a total return of 18.7% when combined with our dividend of $0.36. We generated core earnings of $0.31 per share, which Brad will discuss in a few moments. Finally, we are pleased to report total stockholder return of approximately 90% since our launch in October 2009, including dividends and capital appreciation.

Next, Id like to talk about the capital we have recently raised. Early in the quarter, we completed a public offering, raising approximately $592 million in net proceeds. As previously discussed, we used these funds primarily to purchase Agency bonds, but also purchase non-Agency securities in single-family residential properties. Given the aforementioned investment results, the timing of this raise was fortuitous, as we have seen appreciation in investments that we have acquired. In September, some of our warrant holders exercised warrants for proceeds of roughly $175 million. Approximately 16 million warrants were exercised, leaving 17 million of the original 33 million warrants outstanding. As a reminder, the warrants are struck at $11 per share with an expiry date of November 7, 2013. So the warrants are currently in the money.

During the third quarter, Agency and non-Agency prices rallied, causing Two Harbors book value to rise significantly. While this is great for book value, a result of this as well is a flatter yield curve, and somewhat lower yields and net interest spreads on Agency and non-Agency RMBS that are currently available for investment.

Please turn to Slide 4. Ill next provide some insights on key macroeconomic events that could impact our business in the mortgage and housing sector. First, the situation in Europe, which we have discussed for several quarters, remains unsettled. While there have been positive developments, timing and political will seem uncertain. We believe dissolution of the euro or EU represents a significant risk to global markets.

Secondly, Id like to talk about — is home price performance, which is important to our non-Agency portfolio. We are continuing to see signs of stabilization and some improvement in housing prices, which is certainly encouraging. According to CoreLogic, home prices increased 6.1% as of October 1 on a rolling 12-month basis.

Thirdly, as it relates to interest rates, the so-called fiscal cliff has been a concern to investors and financial services institutions alike in recent months. With the presidential election behind us, we are certainly hopeful that this concern will abate, although we believe we are prudently hedging against a spike in interest rate risk — interest rates.

The Fed announced QE3 during the third quarter. While this wasnt a surprise in the market and low funding costs are good for our business, we dont think this is a proper time to be taking interest rate risk. We try to hedge our portfolio in such a way that changes in interest rates will have a modest impact on our book value. In light of low rates, which tend to stimulate refinancing activity, we remain ever vigilant about selecting Agency securities with prepayment protective characteristics, as Bill will discuss shortly.

And last, but certainly not least, current unemployment data is still concerning as next to loan-to-value ratio — the loan-to-value ratio, employment is the most powerful determinant of a homeowners ongoing likelihood to pay their mortgage. Obviously, we would all be pleased with the reduction in this metric going forward.

Despite what continues to be a murky macroeconomic backdrop, we believe there is an opportunity ahead for our business as we focus on security selection in Agency and non-Agency portfolios. We believe additional opportunities exist to measure diversification into attractive sectors, which is a nice segue into our next slide, Slide 5.

Ill next discuss our business diversification strategies. As you may recall, in September, we announced the proposed contribution of our portfolio of single-family homes to Silver Bay Realty Trust, concurrent with its IPO. Since this announcement, we have continued to make progress purchasing single-family residential properties. As of September 30, we have completed the acquisition of roughly $190 million in properties. Since quarter end, we have continued to purchase homes. We currently have a total portfolio, including accepted offers, of approximately $240 million in over 2,000 homes as of October 31. We are purchasing homes where we believe current yields are attractive, discounts or replacement costs exist and absorption metrics are favorable. We are currently invested in 9 markets in Arizona, California, Florida, Nevada, Georgia and North Carolina.

As some of you may know, in late 2011, we began acquiring prime jumbo mortgages as another business diversification initiative. As of September 30, 2012, we have acquired mortgage loans held for sale with a carrying value of $14.6 million, and have commitments to acquire an additional $319.9 million. Bill will comment more on this shortly.

Today, we announced the appointment of Bill as the sole CIO of Two Harbors, effective January 1, 2013. Steve Kuhn, who had shared this role with Bill since 2009, intends to devote his full attention to his role as partner and head of Fixed Income Trading at Pine River, the parent to our external adviser. This is a natural transition we believe best serves both Two Harbors shareholders and Pine Rivers private side investors. Bill and Steve are partners at Pine River, and will continue to collaborate with one another and the rest of the mortgage team. I would like to personally thank Steve for his considerable contributions to the success of Two Harbors.

As you may recall in the past few months, we have expanded our senior management team with the hiring of Nick Smith and Dan Koch both as Managing Directors. Nick was previously the CIO of Capital Markets at Green Tree, and has extensive experience in investing in residential loans and mortgage servicing rights. Dan was previously at Redwood Trust, where he was responsible for sourcing loan acquisitions and the development of new business initiatives.

We have also announced the promotion of Matt Koeppen to Managing Director. Matt has been an important member of our investment team since he joined Two Harbors in 2010. Most recently, we have added Bill Greenberg, also as a Managing Director. Bill was previously the head of Investment Bank Risk at UBS — Investment Bank Risk Control Strategy at UBS. We are excited about these new additions to the team, as these hires enhance our ability to diversify our business model and drive stockholder value over time. This was truly a remarkable quarter for our investment team, and we believe our performance speaks of the quality of our security selection, and the advantage of our structure is a hybrid mortgage REIT.

I will now turn the call over to Brad.

Brad Farrell

Thank you, Tom, and good morning. Ill begin my prepared comments with an overview of our financials, provide a quick update on repo financing, and finally, wrap up with comments about book value.

Please turn to Slide 6. Core earnings at $0.31 represented an 11.3% annualized return on average equity. As a reminder, core earnings is largely a function of our portfolio size, our investment spread, our cost of hedges and our expense management.

On July 18, we completed an accretive public offering of 57.5 million shares for net proceeds of approximately $592 million. Consistent with our expectations and historical experience, we completed the deployment of proceeds by the end of September. This deployment process during the quarter impacted core earnings.

As we have seen — as we have been discussing for some months, we saw lower projected yields on securities recently acquired, driving a marginally lower net interest margin. Bill will comment further on this shortly, but importantly, the CPR on our current portfolio has remained low and stable despite low interest rates. That said, the somewhat lower net interest margin on newly invested capital does have an impact on core earnings.

Next, similar to last quarter, our hedging strategy and extension of repo maturities, especially for non-Agencies, contributed to lower core earnings. The hedging impact is primarily a result of the cost of credit default swaps, hedging our non-Agency RMBS portfolio and amortization runoff in our interest-only securities, which hedged interest rate risk on our Agency RMBS portfolio. While these amortization costs pressure core earnings, they represent a hedge to protect book value over time.

Finally, our expense ratio, as a percent of average equity, ticked slightly higher to 0.9% from 0.8% in the second quarter due largely to expenses related to real estate investments.

Excluding the investment and real estate expenses, our expense ratio would have been 0.6%, which was historically low due to strong fair market value appreciation and capital raised during the third quarter. As we mentioned during our Analyst Day, the size of our investment portfolio and new business diversification initiatives will likely impact this metric in future quarters.

Besides the impact of core earnings, GAAP net income of $26.8 million for the quarter was negatively impacted by losses on swaps, which hedged our interest rate exposure and swaptions. As we have previously discussed, because the fair value changes in our hedging instruments are recorded in earnings while the offsetting fair value changes in our RMBS portfolio are in equity, GAAP net income will experience volatility quarter-to-quarter. This is illustrated in the appendix on Slide 13. In addition, other-than-temporary impairments on our non-Agency RMBS were an adjustment of $0.6 million this quarter. This adjustment continues to represent an immaterial amount relative to our overall holdings.

As it relates to our financing profile, our total number of counter parties remain unchanged at 23. While we did not add any new counter parties, we continue to take steps to extend our maturity profile, including the addition of long-term repo. As of September 30, our days maturity had extended significantly to an average of 123 days from an average of 86 days at the end of the second quarter. It is worth noting that this extends the majority of our repo past year end, a period of time that we can see a pullback in available lending capacity by counter parties. We also have $100 million non-Agency repos with a 3-year term and another $100 million with 4 years, which complements our overall financing profile.

Now please turn to Slide 7, which contains a quarterly book value roll-forward. As Tom noted, our book value per diluted share was $11.44 this quarter, a significant increase relative to book value per share of $9.94 at the end of the second quarter of this year. This increase was driven by significant fair value strengthening in both our Agency and non-Agency strategies net of hedges. As of quarter end, you will note that the remaining warrants have a slight negative impact on a fully diluted basis.

Now Ill turn the call over to Bill for a portfolio update.

William Meyer Roth

Thanks, Brad. And thank you, everyone, for joining us today. The search for yield dominated the investment landscape during the third quarter. This drove valuations higher across credit-sensitive asset classes, including both Agency and non-Agency mortgage-backed securities. Several key headlines served as a backdrop to this rally. First, as Tom noted, the Fed committed to keeping the funds rate low into 2015. In conjunction with this, the Fed also committed to open-end purchases of an additional $40 billion in MBS per month. The announcement had a tremendous impact on the Agency RMBS market, as spreads tightened by roughly 50 basis points before recently retracing about half of this move. The Fed also sold the remainder of its Maiden Lane III assets, primarily CDOs. These sales were well-received by investors, and this was additionally encouraging, in that it removed another source of supply of distressed assets from the market.

Mortgage-backed securities had an incredible quarter, as you will note on the bottom left of Slide 8. A simple duration hedged Agency strategy returned 3.8% — 3.6%, while the ABX 06-2 AAA index appreciated by 12.1%. We estimate that a simple capital allocation strategy of 50% Agency and 50% non-Agency subprime would have generated a blended return of 7.9%.

We are extremely proud of our portfolios performance this quarter. Our hybrid strategy outperformed these benchmarks and delivered a total return on book value of 18.7%. Both our Agency portfolio and non-Agency portfolio significantly contributed to this performance, delivering $114 million and $330 million in unrealized gains, respectively, net of hedges. We believe that our opportunistic approach towards capital allocation and our security selection process drove this performance.

During the quarter, prepayment protected pools outperformed generics, while our non-Agency bond holdings experienced greater appreciation in comparison to many other non-Agency securities, as well as the ABX index, as shown.

Please take a look at the chart in the lower right-hand quadrant of Slide 8. The portfolios asset yield was in line with our expectations at 4.2%. Net interest spread for the quarter was also in line with expectations at 3.1%, down from the previous quarter spread of 3.6%. As Tom previously mentioned, we continue to manage an RMBS portfolio in a lower yield and tighter spread environment. While this environment has been beneficial to our book value, it has led to lower spreads on reinvestment. As a result, the quarter-over-quarter change in net interest spread was impacted by lower yields on Agency securities acquired in recent months, including securities acquired during the deployment of our July capital raise. The Agency portfolio, inclusive of inverse IOs, yielded 3.1%, representing a compelling return on equity when applying our target leverage of between 6x and 7x. Our non-Agency portfolio continued to generate an attractive yield for our stockholders at 9.6%, which remains unchanged from the prior quarter.

This consistency, as you can see in the top — in the chart on the top right, has been quite beneficial to our overall portfolio yield. At quarter end, subprime bonds represented 86% of our $2.5 billion non-Agency portfolio. We continue to benefit from historically low funding and hedging costs. These costs, as you can see in the chart on the bottom right, ticked up 10 basis points this quarter to 1.1%. This marginal increase is primarily attributed to the costs associated with lengthening of our repo terms, including the 3- and 4-year non-Agency repos Brad mentioned, as well as maintaining our interest rate hedging strategy, as we increase the size of our Agency holdings by approximately $3.8 billion.

Please turn to Slide 9. Our RMBS portfolio increased appropriately $4.3 billion to $15.3 billion this quarter. Our portfolio is comprised of approximately $12.8 billion in Agency securities, including inverse IOs, and $2.5 billion in non-Agency securities at quarter end. This translates to an 84-16 asset mix, favoring Agencies. This increase in our portfolio is primarily due to the deployment of proceeds from our July capital raise and strong appreciation experienced by both our Agency and non-Agency securities. In line with our expectations, we deployed the capital — we deployed the proceeds from our July capital raise, primarily to the Agency sector, while remaining opportunistic in non-Agencies, and continuing to buy single-family properties. As Tom noted, we are pleased with the timing of our capital raise, as the assets we bought helped drive our total return this quarter.

For our Agency portfolio, we continue to favor prepayment protected stories. High LTV holdings, which are pools that consist predominantly of borrowers who have refinanced through HARP, also known as the Making Homeownership Affordable (sic) [Making Home Affordable] or MHA program, increased by over $2.1 billion during the quarter. These pools represented 31% of our Agency holdings, up from 21% in the prior quarter. We also allocated capital to low loan balance, low FICO and HECM pools. As I previously mentioned, we were opportunistic in deploying capital in the non-Agency sector, and I am pleased to report that we were successful in purchasing subprime bonds that met our investment criteria.

As Tom noted, we had $190 million in single-family properties at September 30, up from $72 million as of the end of June. As of quarter end, our capital allocation was 57% to Agencies, 36% to non-Agencies and 7% to residential real properties. More details on our portfolio are shown in the appendix.

As we turn to Slide 10, I would like to highlight a few key metrics of the portfolio. The overall profile of our portfolio remains fairly consistent with prior quarters. Our Agency prepayment experience, including inverse IOs, remains low and stable at 6%, which is in line with the prior quarter. We believe this prepayment experience is a direct result of our dedication to stringent security selection approach when purchasing assets. Owning a portfolio which consists of prepayment protected securities has become increasingly more important in todays environment of low interest rates and tighter spreads. Slow prepayments in this low-rate environment help sustain our portfolio yield and reduce reinvestment risks. Furthermore, we anticipate that overall prepayment speeds will continue to be fast due to todays low-rate environment, as well as the high volume of refinancings being conducted through the various government programs, particularly HARP.

As a result of this keen focus on managing prepayment risk, 98% of our Agency securities had either implicit or explicit prepayment protection as of quarter end. The debt-to-equity ratio for the third quarter was 3.8x. Leverage for the quarter was impacted by the timing of proceeds received for the issuance of common stock in connection with warrants exercised in September. As a reminder, we continue to target a leverage ratio of 6x to 7x for the Agency portfolio and 1x to 1.5x for non-Agencies.

At Two Harbors, it is our intent to minimize interest rate exposure, especially given where rates are today. Although the Fed anticipates keeping the Fed funds rate low for the foreseeable future, it did caveat its projections by adding that the forecast is subject to change as economic conditions improve. As I reviewed in our Analyst Day presentation, rates can move extremely quickly and violently, as we experienced in the early 90s and again in the early 2000s. With this in mind, we feel that it is beneficial to our stockholders to maintain low exposure to interest rate volatility in order to protect book value. The graph in the upper right-hand corner illustrates this. As you can see, our book is very close to duration neutral as of quarter end.

Protecting our portfolio against higher interest rates makes a lot of sense to us, especially given that the cost of hedging with swaps, as well as long-dated protection in the form of swaptions, remain key. We have approximately $12 billion in notional protection via swaps, with an average pay rate of 0.84% and average maturity of 3 years. In addition, we increased the notional protection of our swaptions book to over $5 billion. These swaptions have an average time to expiry of over 4 years. We believe that incorporating long-dated swaptions as part of our hedging strategy will prove to be prudent when rates start moving higher. More details on our hedging positions are in the appendix on Slide 17.

Please turn to Slide 11. We are very pleased with the composition of our portfolio. We have assembled an Agency portfolio that we believe has low and stable prepayment characteristics, and that is fairly neutral to interest rate movement. On the non-Agency side, declines in severe delinquencies and better overall borrower performance have been continuing trends. Also, as Tom mentioned, home prices have been moving higher. We believe that our strategy of purchasing deeply discounted bonds with improving collateral performance will benefit our investors, particularly as housing recovers, especially at the lower end of the market.

As a result of higher asset prices, lower yields and tighter spreads, the current environment for investing today is more challenging than in recent quarters. While book value has appreciated, and we are pleased about that, it is also our goal to continue delivering attractive returns to stockholders. With this in mind, it is worth noting that the hybrid model provides us the flexibility to extract value from the market by taking an opportunistic approach to the residential sector, which does not just mean Agency and non-Agency securities. As a hybrid mortgage REIT, our investment universe of potential opportunities is great in that it encompasses all real estate asset classes, including unsecured-type assets. Our recent move into single-family properties is evident of this.

You will note on the bottom of Slide 11 a variety of potential opportunities that dovetail with our core competencies of credit and prepayment risk management. While some of these may make sense to pursue and some will not, continuing to build our team with high-quality talent, we believe, gives us of the ability to explore and expand into areas that will deliver value to shareholders.

One opportunity we have been working on and worth mentioning is securitization. You will note that we have commitments to acquire several hundred million in jumbo whole loans, with an eye on doing a securitization. The math around creating subordinate bonds in IOs via securitizations has become more attractive recently, and we believe that this initiative will be beneficial to our shareholders over the coming years, as the opportunity to create attractive mortgage credit investments expands. With that said, I would caution that in todays world, the non-Agency securitization market is still in recovery mode. The government is still financing over 90% of housing. And even as our initial efforts expand, it might, in the near term, represent a relatively small and immaterial portion of our portfolio. Some other potential opportunities are listed as well, and we will certainly keep you informed when and if we progress further on any of them.

To conclude, we are optimistic about the investment opportunities we see going forward in the residential space. We look forward to leveraging our expertise in those sectors of the market that we believe utilize our core competencies and that can be beneficial for our stockholders.

At this time, I would like to turn it back to the operator.

CAPLEASE, INC. : CapLease Announces Third Quarter 2012 Results

 

For the quarter ended September 30, 2012, the Company grew total
revenues two percent to $41.8 million. The increase in total revenues
reflects growth in the owned property portfolio, offset in part by the
impact of the collateralized debt obligation and other mortgage asset
sales during 2011. Rental revenue was up nine percent for the 2012
period, reflecting the new properties acquired.

FFO adjusted for items that affect comparability was $11.5 million, or
$0.17 per share, compared to $10.4 million, or $0.15 per share, in the
comparable period in 2011. The approximate 13% FFO per share increase
was driven primarily by the improvement in revenue due to property
portfolio growth and the benefit from a reduction in interest expense.

Net loss to common stockholders for the third quarter of 2012 was $(1.3)
million, or $(0.02) per share, compared to net loss of $(14.8) million,
or $(0.22) per share, in the comparable period in 2011. 2011 results
included $13.4 million of net losses from discontinued operations,
reflecting properties that have been disposed of.

New Property Investment:

During the third quarter, the Company entered into a new build-to-suit
arrangement to construct a state-of-the-art 311,730 square foot
distribution warehouse in Ashland, Virginia outside of Richmond for
Vitamin Shoppe Industries, Inc. (NYSE: VSI).

The Company entered into a net lease with Vitamin Shoppe for a 15 year
term which will commence upon completion of construction. Acquisition of
the approximately 43 acre land site along with the commencement of
construction occurred during the third quarter. The project is expected
to be completed during the second quarter of 2013. When complete, the
Companys total investment is expected to be about $20 million and its
average capitalization rate will be approximately 8% over the lease term.

The Company also continued to fund construction of a Tulsa, Oklahoma
build-to-suit project for Cimarex Energy Co. during the third quarter of
2012. Construction of the 324,000 square foot Class A office building
remains on budget and on schedule with delivery of floors to the tenant
scheduled to begin later this year, and completion of construction
scheduled for the first quarter of 2013. The Company has funded its
entire $24 million commitment to the total $55 million project, and the
remaining project costs are being funded through a non-recourse
construction loan obtained from the Bank of Oklahoma. When complete, the
Companys average capitalization rate will be in excess of 10% over a 12
year lease term.

Nestlé Warehouse/Distribution Properties and Mortgage Debt:

During the third quarter, the Company extended the mortgage debt on
three Nestlé warehouses located in Breinigsville, PA, Lathrop, CA and
Fort Wayne, IN. The Company obtained an up to five year extension on the
$106 million securitized first mortgage note that was scheduled to
mature in August. The five year term includes borrower extension
options, with the last two years of borrower options subject to
re-tenanting the Fort Wayne property by August 2015. The Company is
continuing to actively market the Fort Wayne property for re-lease to
several potential prospects at the end of Nestlés lease term in
December 2012.

New $10 Million Term Loan:

During October, the Company added a new banking relationship with
KeyBank National Association by obtaining a new three year $10 million
secured term loan from the bank. Proceeds from the new term loan were
used to replace and terminate the Companys borrowing facility with
Wells Fargo that was scheduled to mature in July 2013. The new term loan
includes two successive one year extension options that will allow the
Company to further extend the loan until October 2017, and is secured
principally by fully amortizing mortgage notes on various Company owned
real properties.

Capital Activity:

During the third quarter and early part of the fourth, the Company
raised approximately $25.4 million of net proceeds through the sale of
preferred stock through its at-the-market (ATM) offering program. The
Company issued 242,282 shares of 8.125% Series A Cumulative Redeemable
Preferred Stock, and 776,073 shares of 8.375% Series B Cumulative
Redeemable Preferred Stock. The Company utilized some of the offering
proceeds to retire a portion of the convertible senior notes, and
expects to use the remaining proceeds to continue to grow its investment
portfolio and for other general corporate purposes. The Company did not
issue any common stock through its ATM or otherwise during the quarter.

Convertible Senior Notes:

The Companys only other 2012 debt maturity was the remaining $35
million of its 7.5% convertible senior notes which could be put to the
Company by the holders on October 1. We tendered for the notes during
September, and $15.8 million of the notes were validly surrendered by
the holders and purchased by us and retired on the put date. The
remaining approximately $19.2 million of notes remain outstanding and
cannot be put to us again for another five years though we may call the
debt at any time.

Nine Month Results:

Erie County Real Estate Transactions

ALDEN

#x2022; 1815 Arlington Drive, Jenni Kaus Tellers; Peter M. Tellers to Melissa A. Oliver; Curtis J. Oliver, $120,000.

#x2022; Vacant Land – Crittenden Road, Samuel P. Guida Jr. to Michael E. Pieszala, $90,000.

#x2022; Vacant Land – 1320 Savage Road, Peter Skowron to Mark J. Marino, $16,000.

AMHERST Highest price: $438,500 Average price: $177,305 Median price: $156,500 Number of Sales: 32

#x2022; 57 Harbridge Manor, Kristen Leigh Conwell; Linda Culligan to Adriene Wilson-Otey; Ricky L. Otey, $438,500.

#x2022; 200 Lebrun Road, William E. Pelham; Maureen C. Pelham to Cassie Gruber-Matheny; Samuel L. Matheny; Betsy A. Hansen, $385,000.

#x2022; 114 Collins Lane, Natale Building Corp. to Scott N. Horton; Christine M. Horton, $362,246.

#x2022; 115 Walton Drive, Carol Ann Bankowski; James A. Bankowski to Tracey Seeley Wenner; Curt Alan Wenner, $296,500.

#x2022; 147 Burroughs Drive, Justin T. Webb; Julie M. Barefoot to Nicholas A. Gentile; Allison E. Gentile, $277,500.

#x2022; 183 Oakbrook Drive, Robert Grisanti; Jennifer Grisanti to Jason L. Blumberg, $265,000.

#x2022; 41 Cobblestone Lane, Luis A. Valls to John Zintl, $259,000.

#x2022; 40 Plantation Court, Tareg M. Odeh; Rania S. Odeh to Matthew S. Roland; Briana B. Roland, $239,000.

#x2022; 191 Autumnview Road, Kathleen L. Gargiulo; Gary P. Gargiulo to Karen R. Abel; Douglas M. Abel, $202,000.

#x2022; 39 North Drive, Celeste V. Mallia to Thomas A. Mendola; Kathryn J. Kowalski, $198,900.

#x2022; 55 Foxhunt Lane, Sandra Rita Joseph; Ronald Bruce Joseph to Joann T. Howe; David H. Howe, $195,000.

#x2022; 2 Fairlawn, Nancy J. Stubbe to Kenny Redfern; Marsha Itson, $165,000.

#x2022; 109 Berryman Drive, Erkan Baykan to Grsw Stewart Real Estate, $164,000.

#x2022; 109 Berryman Drive, Grsw Stewart Real Estate to Kenneth W. Pask, $164,000.

#x2022; Vacant Land – 50 Sanctuary Court, Vijay Kumar to Prashant Pendyala; Rajitha Mallela, $162,500.

#x2022; 83 Seabrook Drive, Irene M. Marvin; George T. Marvin to Ryan D. Freeman; Denise L. Freeman, $158,000.

#x2022; 5 Coolidge Drive, Anthony L. Lopes to Jeffrey R. Martin, $155,000.

#x2022; 20 Oakview Drive, Joseph Baskin to Reverse Mortgage Solutions Inc., $151,130.

#x2022; 47 Sanctuary Court, John R. Yurtchuk to Sirisha S. Cheruvu; Raja S. Cheruvu, $150,000.

#x2022; 64 Siegfried Drive, Keren R. Cenname; Douglas M. Abel Jr. to Richard K. Ertel; Bradley R. Ertel, $135,000.

#x2022; 129 Ranch Trail W, Rengachary Parthasarathy; Ranganayaki Parthasarathy to Melanie J. French; Joel T. French, $133,500.

#x2022; 144 Barberry Lane, Judith K. Summer to Paul R. Stefano; Augusta E. Stefano, $133,000.

#x2022; 53 Emerson Drive, Joseph W. Daity to Gary M. Dziamski, $133,000.

#x2022; 247 Rosedale Blvd., Jonathan O#x2019;Rourke to Michael T. Matisz; Elizabeth T. Matisz, $125,000.

#x2022; 906 Charlesgate Circle, Patricia A. Cole to Ronald Kapturowski; Janice Kapturowski, $125,000.

#x2022; 63 Harding Road, Krystal L. Floss to Joshua M. Floss, $117,000.

#x2022; 65 Guilford Lane #2, Paul Cefaly; Patricia Cefaly; Mary Beth Hauger; Edith Cefaly to Paul S. Sciabarrasi; Carol A. Sciabarrasi, $107,000.

#x2022; 116 Springville Ave., Deborah D. Olear to Nirendra K. Singha; Bina R. Chanu, $98,500.

#x2022; 43 Leonore Road, Mary Jane Anderson; Peter A. Anderson; Paul L. Anderson to Brian R. Swierczynski; Nicole M. Horton, $84,500.

#x2022; 3901 Main St. 10B, Janeann Haggerty to Jared C. Skinner, $50,000.

#x2022; 238 Burroughs Drive, Randall B. Kramer; Lisa A. Kramer to Randall B. Kramer, $26,000.

#x2022; 26 Shady Oaks Court, Andrea P. Weissenburg to Golf Country Clubs Inc., $18,000.

AURORA/EAST AURORA

#x2022; 1943 Lapham Road, Isabel R. Hunt to Judith S. Frutchey; Robert C. Brunel Sr., $215,000.

#x2022; 442 Prospect Ave., Elizabeth M. Marmion; Todd M. Bosworth to Zachary M. Taggart; Caroline A. Taggart, $205,000.

#x2022; 1200 Center St., Jill A. Tiebor-Franz; John E. Tiebor; Eileen M T. Stirling; Susan L. Burghardt to Philip Alan Carey; Colleen Fay Carey, $195,000.

#x2022; 266 Old Glenwood Road, Jon R. Luellen to Meredith M. Abel; Justin J. Abel, $195,000.

#x2022; 175 Gypsy Lane, Wanda Jones to Shawna L. Colgrove, $167,000.

#x2022; 64 Idlewood Drive, Richard C. Schroeder to Laura Piccillo; Brian Piccillo, $120,000.

BOSTON

#x2022; Vacant Land – Boston Colden Road, James A. Spors to Kim U. Jacobi; Kevin H. Jacobi, $120,000.

BUFFALO Highest price: $533,765 Average price: $81,086 Median price: $38,700 Number of Sales: 57

#x2022; 320 Rivermist, Susan E. Smith; Burton J. Smith to Judith M. Dean; Anthony J. Colucci III, $533,765.

#x2022; 800 West Ferry 9B, Elizabeth Marchetti to Maureen F. Bartley, $265,000.

#x2022; 1088 Delaware Ave. Unit 7J, Janice C. Boneberg to Leslie Curtiss, $259,000.

#x2022; 581 Richmond Ave., Katarzyna Kaczor; Ronald Hajewski to Raghunandana Venkatapathy, $255,400.

#x2022; 246 Parker Ave., Kathryn A. Foster to Christopher T. Johnston, $215,000.

#x2022; 526 Linwood Ave., Claudia Santomieri to Brenda M. Shaw, $215,000.

#x2022; 843 Potomac, Karen Fogarty to Michael Grant Graves, $205,000.

#x2022; 253 Norwalk Ave., James S. Alfieri to Joseph Dangelo; Lauren E. Jones, $183,000.

#x2022; 800 West Ferry St. U11B, Maureen F. Bartley to Sarah R. Dorn, $177,160.

#x2022; 459 Huntington Ave., Matthew G. Blinkoff; Andrew D. Blinkoff to Cassandra A. Cammarata, $177,000.

#x2022; 152 Crestwood Ave., Sarah Jeanne Salvy to Carol A. Molfese, $162,000.

#x2022; 746 McKinley Parkway, Nicole Bobel to Edward Roberts; Joan Roberts, $124,000.

#x2022; 60 Cunard Road, Michele R. Boncore to Sj Griffen Llc, $113,500.

#x2022; 63 Densmore St., Sandra A. Pierscinski; Shirley J. Hodil to Garry K. Connors; Edna B. Connors, $112,000.

#x2022; 13 Mariner, Delores Leon to Stanley Llc, $110,000.

#x2022; 15 Mariner, Beverly Leone to Stoshu Llc, $110,000.

#x2022; 877 Woodlawn Ave., True Community Development Corporation to Lacole Brumfield, $95,000.

#x2022; 122 Ramona Ave., Gail M. Kaminski; Keith R. Gemerek; Beth C. Donnelly; Barbara L. Gemerek; Kevin R. Gemerek; Robert S. Gemerek;to Matthew T. Clifford, $88,500.

#x2022; 38 Nineteenth St., Homefront Inc. to Rachel P. White, $83,421.

#x2022; 73 Carlyle Ave., Philip A. Benware; Kathleen A. Benware to Bethany Hojnacki; Jared Hojnacki, $83,000.

#x2022; 131 Kimberly Ave., John P. Glavey to David E. Wilds, $75,000.

#x2022; 129 Richfield, Patrick G. Kwiatkowski to Susan M. Terzian; Steven J. Hirsch, $74,600.

#x2022; 555 La Salle Ave., Shaun Maddox; Cornelius Collins to Fannie Mae, $57,752.

#x2022; 329 Linden Ave., Susan A. McCartney to Thomas B. McCartney II, $50,000.

#x2022; 69 Rachel Vincent Way, Dato Development Llc to Mari E. Ilkiwskyj; Jason J. Ilkiwskyj, $47,000.

#x2022; 226 Ontario St., Albert M. Litto to Depaul Properties Inc., $40,000.

#x2022; 2313 Niagara St., Patrick Klinck to Aileen Gonzalez, $40,000.

#x2022; 25 Gorski St., Jason C. Quast to Benjamin S. Quast, $40,000.

#x2022; 129 Royal, Property Dec11 Llc to Equity Trust Company; Edwin B. Ochs, $38,700.

#x2022; 91 Schiller St., Mildred Castro to Traci J. Crouse, $38,000.

#x2022; 54 St. Florian St., Thomas P. Pustulka; Evelyn A. Pustulka to Brenda L. Pustulka, $35,000.

#x2022; 74 Fernhill, Bernard Lee to Oleander Real Estate Llc, $35,000.

#x2022; 137 Germain St., Evelyn Phillips to Keith Canazzi; Equity Trust Company, $33,000.

#x2022; 456 Berkshire Ave., Evelyn Phillips to Keith Canazzi; Equity Trust Company, $33,000.

#x2022; 341 Parkridge, Bernard Lee to Datura Real Estate Llc, $31,000.

#x2022; 148 Breckenridge St., Todd Neubauer; Marcus J. Gottsche to Frank Coggins; Helen Coggins, $30,000.

#x2022; 83 Schreck, John Koons; John W. Koons; James W. Walker VII to Christopher Wilson, $30,000.

#x2022; 129 Fisher, Bernard Lee to Oleander Real Estate Llc, $29,000.

#x2022; 343 Parkridge, Bernard Lee to Datura Real Estate Llc, $28,000.

#x2022; 74 Mayer Ave., Edward Blaszowiak; Helen A. Blaszowiak to Clcre Llc, $25,000.

#x2022; 758 Prospect Ave., Joanna N. Wallace to Adriana Favier; Armando Gonzalez, $25,000.

#x2022; Laforce Place, Hamza W. Hamoudi to Ali Alroumi, $25,000.

#x2022; 19 Benzinger St., Diane Schlager-Bardet; Bruno G. Bardet; Diane Bardet to Moonbeam Enterprises Llc, $21,500.

#x2022; 30 Thornton Ave., Lacan-Gen Kinyera to Lynice V. Carter, $21,000.

#x2022; 180 Mackinaw St., Wayne Melbrod to Peter King, $20,000.

#x2022; 284 Potomac Ave., Cindy L. Demarti; Charles S. Demarti to Bibi M. Faqi, $20,000.

#x2022; 215 14th St., Miguel Saldana to Elizabeth Ramos; Jimmy Ortiz, $18,000.

#x2022; 1415 Fillmore Ave., Powerhouse Church Of God In Christ Of Buffalo New York to Jawani Inc., $13,000.

#x2022; 155 Auburn Ave., Mohammad Musleh to Zahra Mohamed; Abdalla S. Mohamud, $12,000.

#x2022; 54 Sweet Ave., Shamsul Ghuznavi to Afsarul Alam, $12,000.

#x2022; 27 Eller, Cynthia Shriver to Jeriesha Thomas, $10,500.

#x2022; 39 Freeman St., Natesha Ward to Schenita McCray, $10,000.

#x2022; 248 Gold St., Federal Home Loan Mortgage Corporation to ME International Real Estate Llc, $9,600.

#x2022; 88 Haven, Frank E. Bartscheck; Edwina S. Bartscheck to KC Erie Niagara Properties Llc, $9,500.

#x2022; 163 Lombard, Stanislaw F. Kasak to Bradsville Properties Holdings Llc, $7,000.

#x2022; 55 Dart St., Noel V. Bright to Elba Flores, $6,000.

#x2022; 69 St Joseph, Richard James Poynton to Bradsville Properties Holdings Llc, $5,000.

CHEEKTOWAGA Highest price: $225,000 Average price: $105,335 Median price: $93,750 Number of Sales: 22

#x2022; Vacant Land – Transit Road, Stanislaw A. Nowacki to 4968 Transit Rd Llc, $225,000.

#x2022; 19 Garnet Drive, Khanh P. Nguyen to Brad M. Zukowski, $220,000.

#x2022; 66 Parktrail Lane, Ruth M. Vanghel; Ruth M. Daley to Gretchen M. Schmidt-Notaro; Anthony C. Notaro, $179,000.

#x2022; 17 Creek Walk, Joseph Sharon Venema; Thomas J. Klun; Joy A. Klun to Richard W. Knight, $152,000.

#x2022; 76 Jeffrey Drive, Eileen Ann Kryszczuk to Harold J. McDonald, $144,400.

#x2022; 16 Rondelay Court, Michael R. Wegner; Louise A. Reichert to Samuel Webster, $135,000.

#x2022; 124 South Seine Drive, Patricia L. Mailhot; Joseph A. Mailhot to Mary Nizzaro; Susan M. Guzowski; Frank A. Guzowski, $132,500.

#x2022; 28 Lois, Mark Kuczka to Alicia M. Mowry, $107,350.

#x2022; 542 Roycroft Blvd., Mary C. Dziarnowski to Ganga R. Kharel; Bhakti R. Adhikari, $102,700.

#x2022; 56 Satin Drive, Lucy M. McCarthy to Thomas Panek, $100,000.

#x2022; 180 Treehaven Road, Jeffrey J. Overmyer; Angela F. Overmyer to Kevin Buckley, $97,500.

#x2022; 183 Gould Ave., John Reinard Jr.; Kathryn A. Reinard to Gregory M. Bauerlein, $90,000.

#x2022; 20 Colden Court, M Julie Tomchick; Julie M. Tomchick; Jean Felton to Gloria Roetzer; John A. Roetzer, $90,000.

#x2022; 56 Liberty Terrace, Thomas J. Wessel; Marlene M. Wessel to Emily R. Schaeper, $89,900.

#x2022; 22 Vegola Ave., Mary Straker; Robert C. Straker to Charlene Francis Montgomery, $87,765.

#x2022; 116 Allendale Road, Michah James to Anna L. Baroudi, $85,750.

#x2022; 949 Borden Road, Judith Ann Foote to Matthew A. Dunning, $80,000.

#x2022; 19 Penwood Drive, Keybank to Russell J. Scherrer III, $72,000.

#x2022; 134 Clearvale Drive, Carolyn Drylewski; Paul Drylewski to Edward J. Schemm, $54,000.

#x2022; 21 McNaughton, Justin J. Jarnot; Florence C. Jarnot to Crestview Property Holdings Llc, $40,000.

#x2022; 150 Wanda Ave., Chau D. Le to Ton Ut, $25,000.

#x2022; 379 Rowley Road, Dina Dellaneve-Reuvain; Anthony R. Reuvain to Dina Dellaneve-Reuvain, $7,500.

CITY OF TONAWANDA

#x2022; 83 Broad St., Jeanne R. Arnold; Jean R. Arnold to Darlene M. Merritt, $135,000.

#x2022; 27 Fuller Ave., Peter J. Kelch; Michael W. Kelch; Gisela L. Kelch to Joanne M. Dibello, $62,000.

#x2022; 138 Highland Ave., Susan J. Donner; Harold W. Donner to Karen J. Hoelscher, $42,750.

#x2022; 75 King St., Susan J. Donner; Harold W. Donner to Karen J. Hoelscher, $42,750.

CLARENCE Highest price: $370,000 Average price: $167,519 Median price: $129,950 Number of Sales: 8

#x2022; 5865 Strickler Road, Jill Catalano; Michael Catalano to Karen J. Wescott; Ali K. Cameron, $370,000.

#x2022; 5915 Monaghan Lane, Ryan Homes Of New York; Nvr Inc. to Shawn M. Regian; Amy S. Regian, $322,255.

#x2022; 8170 Westphalinger Road, Lynn M. Kobee; Charles J. Kobee to Neal P. Jones, $272,500.

#x2022; 6205 Heise Road, Sandy L. Pellegrino; James J. Pellegrino to Joseph A. Swiatek; Grace P. Swiatek, $175,000.

#x2022; Vacant Land – Rosecroft Drive 9890 Greiner Road, Courts At Spaulding Green Llc to Rockwell Construction Inc., $84,900.

#x2022; Vacant Land – Heise Road, Kelly Kuntz to Mary E. Haddad; Edward B. Haddad, $75,000.

#x2022; 6295 Strickler Road, Vincent B. Leising; Jean B. Leising to Alix Homes Llc, $32,500.

#x2022; 4200 Gunnville, David M. Wyatt to Tim B. Hammer, $8,000.

COLDEN

#x2022; 61 Erie Ave., Anke Giron to Melinda A. Spire; Mark A. Spire, $127,000.

CONCORD

#x2022; 78 Tarn Trail, Trisha M. Young; Kevin A. Young; Keith A. Young; Trisha M. Douds to Patrick M. Hilfiger, $210,000.

#x2022; 405 South Cascade Rte 219, Sun Refining Marketing Company Inc.; Sun Oil Company Of Pennsylvania; Sun Oil Company; Sun Company Inc. to 405 S Cascade Llc, $200,000.

#x2022; 125 Waverly St., Beatrice A. Sommer to Christina L. Murphy; Jeremy R. Hobbins, $93,000.

EDEN

#x2022; 8700 Jennings Road, Joshua Davis; Judith A. Wach; Sheryl L. Tait; Christy A. Gutierrez to Verna F. Elling; Henry C. Elling, $325,000.

#x2022; 3873 Eckhardt Road, Caroline Taggart; Zachary M. Taggart to Susan C. Bell; John E. Bell, $202,000.

ELMA

#x2022; 200 Creek Road, Donald Balcerzak; Cheryl A. Balcerzak to Michael J. Schmidt; Lisa A. Schmidt, $350,000.

#x2022; Vacant Land – Porterville Road, Randolph Marks; Sally Marks; Sally M. Marks; Randolph A. Marks to Thomas I. Dilamarter Jr., $250,000.

#x2022; 6501 Seneca St., Kenneth E. Nuwer to Jeffrey A. Wyzykiewicz, $141,000.

#x2022; Vacant Land – Bullis, Robert T. Hesse to Judette Dahleiden; Frederick Dahleiden, $50,000.

EVANS

#x2022; 9200 Lakeside Ave., Sharie Loretz-Basile; Ralph A. Basile to Lura Hessbechtel; Johanna V. Hess, $405,000.

#x2022; 1365 Wisconsin Road, Linda Grody; Timothy M. Grody to Erika Diberardino; John J. Diberardino, $184,000.

#x2022; 9185 Applewood St., Darryl P. Allen to Brian J. Lester, $120,000.

GRAND ISLAND

#x2022; 4720 East River Road, Marlene L. McCarthy; John A. McCarthy to Erin M. Tower; Darren C. Tower, $219,900.

#x2022; 35 West Park Road, Robert A. Keitz; Bernadette T. Keitz to Luis Ezquerro; Regina M. Guenther, $81,500.

#x2022; 220 Park Place, Loay Abdellatif; Enas Abdellatif to Stephen Anderson; Erika L. Anderson, $53,500.

#x2022; 303 Waterford Park, Isle Landings Llc to Ryan Homes Of New York; Nvr Inc., $41,900.

HAMBURG Highest price: $2,700,000 Average price: $214,931 Median price: $120,000 Number of Sales: 32

#x2022; 3701 McKinley Parkway, Erie Hansa Investment Associates to Ronald Benderson, $2,700,000.

#x2022; 5112 Woodway Court, Ryan Homes Of New York; Nvr Inc. to Mindy L. Cervoni; Jonathan M. Cervoni, $359,905.

#x2022; 5083 Woodway Court, Ryan Homes Of New York; Nvr Inc. to Julie Aminoff; Jared Aminoff, $295,130.

#x2022; 2352 Agassiz Drive, Marrano/Marc Equity Corporation to James D. Hacic, $274,943.

#x2022; 5665 Southwestern Blvd. U45B, Villas At Brierwood Llc to Srinivas T. Mukkamala; Laura L. Ford-Mukkamala, $249,900.

#x2022; 5665 Southwestern Blvd., Villas At Brierwood Llc to Marie Battaglia, $249,900.

#x2022; 2212 Hunters Hollow Lane, Hsbc Mortgage Services Inc. to Kevin J. Cuddahee; Brittany L. Brown, $207,000.

#x2022; 2233 Foxchase Road, Wendy M. Lacki; James J. Lacki to Christine Sherman; Matthew Sherman, $184,900.

#x2022; 4725 Lilydale St., Janet A. Steinbruckner; Carol A. Steinbruckner to James Arthur Wright; Laura Lee Wright, $179,000.

#x2022; 6024 Shoreham Drive, David J. Biddlecom; Barbara A. Biddlecom to Pasquale Zephro; Camille Zephro, $170,000.

#x2022; 2877 Pleasant Ave., Kathy L. Terryberry to George S. Almeter, $167,000.

#x2022; 87 Pleasant Ave., Patrick J. Ginley; Donna M. Ginley; Patrick J. Ginley II to Susan M. Lang, $167,000.

#x2022; 5131 Lake Shore Road, Amanda Ripton; Jonathan Ripton to Jonathan M. Wright, $165,000.

#x2022; 6740 Castle Ridge, Bevilacqua Tasseff Homes Llc to Joann Eichler; Donald Eichler, $130,000.

#x2022; 28 Browning, Craig A. Haynes to Jessica Domogala; Nancy K. Mildenberger, $129,900.

#x2022; S-3586 Fuller Ave., Conrad C. Grandoni to Joseph J. Grandoni, $125,000.

#x2022; 5084 Stewart Parkway, Bridget Peters to Dennis Kahi, $115,000.

#x2022; 4120 Dean St., Lori A. Krautsack to Justine Schaper, $104,000.

#x2022; 22 Huron, Elizabeth J. Brown to Heather K. Henry, $100,700.

#x2022; 3884 Columbus St., Kathy M. Piniewski to Thomas J. Ellis, $95,000.

#x2022; 5004 Chapman Parkway, Marilyn Hacic; Lynn Hacic; Karen Martin; Michael Hacic to Susannah L. Alexander, $94,000.

#x2022; 4580 Oxford Terrace, Anna R. Delaughter to Frederick J. Ramos, $89,100.

#x2022; 43 Long Ave., Village Of Hamburg to Agricultural Products Extension Llc, $85,000.

#x2022; 4919 Mount Vernon Blvd., Federal Home Loan Mortgage Corporation to Steven V. Jermain, $78,400.

#x2022; 5042 Woodway Court, Marrano/Marc Equity Corporation to Ryan Homes Of New York; Nvr Inc., $72,000.

#x2022; 5079 Woodway Court, Marrano/Marc Equity Corporation to Ryan Homes Of New York; Nvr Inc., $65,000.

#x2022; Vacant Land – Kenton Place, David W. Wojtowicz; David A. Wojtowicz to Holdings Arr, $60,000.

#x2022; 44 South Buffalo St., Joseph H. Zoyhofski to Daniel A. Regan, $47,000.

#x2022; 5128 Richmond Ave., Buffalo Postal Community Federal Credit Union to Russell Huttenlocker, $40,000.

#x2022; Lakeview Road, Hamburg Village-Line Development Inc. to Barbara S. Perry; James P. Kelleher, $38,500.

#x2022; 3751 Lakeshore Road, Mary Ann Knisely to David McDowell; Donna R. Kobiolka; Michael L. Kobiolka; Diane M. McDowell, $19,750.

#x2022; 3751 Lakeshore Road, Robert Kobiolka; Robert L. Kobiolka to David McDowell; Donna R. Kobiolka; Diane M. McDowell; Michael L. Kobiolka, $19,750.

HOLLAND

#x2022; 7714 Vermont Hill Road, Raymond S. Hess; Barbara A. Hess to Rosemarie E. Decker, $239,000.

#x2022; 9501 South Protection Road, Gail M. Wanderlich; Nelson G. Rauch to Colleen F. Mahoney, $190,500.

#x2022; Vacant Land – Day Road, Carlson M. Simmons to Michael J. Drum, $25,300.

#x2022; H6 Hemlock Loop, Ralph H. Cotterill; Charlene E. Cotterill to Russell J. Delbert, $8,675.

LACKAWANNA

#x2022; 53 Cheryl Drive, Pasquale B. Zephro; Camille S. Zephro to Ali Alarshi, $130,000.

#x2022; 108 Sandra Drive, Kire Jancevski; Sofija Jancevski; Sofia Jancevski to Patrick M. Burke, $92,500.

#x2022; 14 Date St., Franklin A. McGavis to Fadhl Afif, $45,000.

#x2022; 103 Spruce St., Shirley M. Pauly; Shirley M. Pauley to Clarence C. Yeager, $35,000.

#x2022; 75 Madison, Violeta Santiago; Giovannie Arroyo to Nguyen Anh Qt, $29,000.

LANCASTER Highest price: $376,900 Average price: $203,383 Median price: $205,000 Number of Sales: 13

#x2022; 59 Chestnut Corner, Windsor Ridge Partners Llc to Joseph M. Manganaro; Elizabeth M. Manganaro, $376,900.

#x2022; 63 Middlebury Lane, Ryan Homes Of New York; Nvr Inc. to Debra Fox-Schurkus, $320,820.

#x2022; 72 Old Post, Maria Chowaniec; Brian Chowaniec to Ronald Komara; Sandra L. Komara, $274,500.

#x2022; 2 Carlisle St., Steven J. Giardina; Christine A. Giardina to William C. Zinno; Janice L. Zinno, $239,000.

#x2022; 63 Hanover St., Marrano/Marc Equity Corporation to Dolores M. Grad-Totaro, $215,475.

#x2022; 435 Pleasant View Drive, Elvin E. Lopez to Fannie Mae, $209,900.

#x2022; 1 Huntington Court, Michael J. Schmidt; Lisa A. Schmidt to Kimberly M. Wear; David C. Wear, $205,000.

#x2022; 59 Hanover St., Marrano/Marc Equity Corporation to David W. Kasprzyk, $197,490.

#x2022; 182 Brunck Road, Harold Frey; Harold F. Frey to Michael R. Georges, $169,000.

#x2022; 36 Park Place, Olive Flick; Chester C. Flick to Kevin E. Kegler; April A. Kegler, $154,900.

#x2022; 20 Doe Haven Circle, Ronald A. Kapturowski; Linda D. Kapturowski to Christopher J. McCrossan, $152,000.

#x2022; 23 Benson Drive, Gail M. Rick; Norma A. Measer; Mark E. Measer to William D. Johnson; Lynne M. Johnson, $89,000.

#x2022; 134 Burlington Ave., Richard Evan Obermeier; Susan M. Obermeier to Harold William Hammond; Martha A. Hammond, $40,000.

MARILLA

#x2022; 11341 Bullis Road, Cmk Builders Of Alden Inc. to Nicole L. Drechsel; Carl A. Drechsel III, $326,213.

#x2022; 1035 Eastwood Road, Renita Boniak to William A. Wypij, $269,500.

NEWSTEAD

#x2022; 5010 Hjavens Road, KK Development Of Alden Llc to Marc J. Bristow; Heather M. Bristow, $265,500.

#x2022; Vacant Land – Pohl Road, Marlo Biernacki to Roger Baranyi, $82,500.

#x2022; Vacant Land – Keller Road, Paul M. Muck; Aaron J. Muck to Randall S. Schaefer; Donna L. Schaefer, $40,000.

ORCHARD PARK Highest price: $335,000 Average price: $196,270 Median price: $168,475 Number of Sales: 10

#x2022; 17 Silent Meadow Lane, Gary A. Sleggs; Rita M. Ryan to Danielle Bucella; Steven D. Witter, $335,000.

#x2022; 48 Midway Drive, John Morrison; Denice L. Morrison to Melissa Haak; Kyle Haak, $290,000.

#x2022; 3 Chase Road, Robert Blackmon; Jill Galarza to Trisha M. Young; Keith A. Young, $289,500.

#x2022; 1 Brookins Green Drive, Nancy H. Gandy to Marianne Mazzella, $250,000.

#x2022; 114 Woodview Drive, Melissa A. Haak; Kyle J. Haak to Jennifer J. Fitscher; Adam J. Fitscher, $182,000.

#x2022; 5741 Powers Road, Kimberly M. Wear; David C. Wear to Thomas Hoy, $154,950.

#x2022; 70 Stepping Stone Lane, Patricia Griffin to Pamela Giannicchi, $125,000.

#x2022; 5128 Lake Ave., John Gugino to Andrew Schwab; Ashley Emerling, $122,500.

#x2022; 42 Bridle Path, Nancy Lee Illig; Peter J. Illig; Leon E. Illig; Susan M. Certo to Kelly P. Chimera, $113,750.

#x2022; 9 Conway Circle, Pleasant Acres West Llc to Ryan Homes Of New York; Nvr Inc., $100,000.

SARDINIA

#x2022; 10099 Olean Road, Tamora L. Casper to Todd G. Zelasko, $173,500.

#x2022; 12289 West Ave., Deborah Wodowski to Ryan W. McGinnis, $60,000.

TOWN OF TONAWANDA Highest price: $199,900 Average price: $114,484 Median price: $112,500 Number of Sales: 27

#x2022; 2338 Elmwood Ave., William Michael Smith to Anthony J. Sordetto, $199,900.

#x2022; 52 Dixon Drive, Katherine D. Lauria; Angelo D. Lauria to Community Services For The Developmentally Disabled Inc., $194,999.

#x2022; 171 Southwood Drive, Scott N. Horton; Christine M. Horton to Susan L. Sperrazza; John S. Sperrazza, $180,000.

#x2022; 49 Glendale Drive, Salvatore Sciandra II; Salvatore Schiandra II to Diane Dempsey; Thomas S. Myszka, $174,500.

#x2022; 180 Deimant Terrace, Rosann Bavisotto to Kristina M. Gnacinski, $167,000.

#x2022; 435 Moore Ave., Leonard M. Radka to Sandra L. Lepore; Joseph F. Lepore, $143,000.

#x2022; 96 Courier Blvd., Vincent J. Merlino; Allison A. Merlino to Talia J. Barbero, $137,900.

#x2022; 467 Thorncliff Road, Barbara S. Bumbar to Denise M. Brown, $136,000.

#x2022; 145 Mang Ave., Jeremy Heng to Katharine E. Kirchmeyer, $126,000.

#x2022; 331 Wrexham Court N, William Richard McMaster; William R. McMaster to Kelly Abbott; Chad Abbott, $125,000.

#x2022; 25 Parkhurst Blvd., Gary M. Jobson to Deborah Moore, $120,000.

#x2022; 54 Hampton Parkway, Susan L. Tomsic; John S. Sperrazza to Joseph T. Osika III, $118,000.

#x2022; 463 Traverse Blvd., Kathleen P. Schrader; Gary A. Pulbrook; Ruth M. Pulbrook to Tyler M. Pulbrook, $115,000.

#x2022; 2772 Colvin Blvd., Shawn Crowley; Richard Crowley; Karen Fagyas to Maria Teresa Francoforte, $112,500.

#x2022; 165 Dalton Drive, Erin Fischer; David Fischer; Sharon D. Przybysz; Dale W. Przybysz to Camp Corina Van, $109,000.

#x2022; 141 Moulton Ave., Matthew C. Mackey to Andrew McCabe; Jenny M. Kuwicki, $106,000.

#x2022; 136 Fries Road, Thomas A. Mendola to Nancy Sciandra, $103,000.

#x2022; 174 Euclid Ave., Carrie J. Goodman; Jonathan G. Fox; Carrie J. Fox to Kimberlee M. Fox, $102,000.

#x2022; 2015 Colvin Blvd., Sharron Border to Matthew R. Reinig, $95,000.

#x2022; 2466 Colvin Blvd., Marguerite B. Hurley; William J. Hurley Jr. to Madeline M. Amoretti, $89,000.

#x2022; 221 Claremont, Melissa A. Chester to Rebecca C. Osborne; David J. Lukacz; David J. Lukacz Jr., $87,000.

#x2022; 397 Hamilton Blvd., Karen Brown to Patricia Morrow; Christopher Morrow, $72,000.

#x2022; 48 Treadwell, Michael J. Walters; Martin J. Walters to Fengxia Li, $71,000.

#x2022; 48 Wendel Ave., William J. Zindel; James H. Kane to Jr Property Management Llc, $67,000.

#x2022; 226 Wellington Ave., Richard Claude Manley; Marilyn A. Manley; Richard C. Manley to Deborah L. Green, $50,280.

#x2022; 70 Pullman Ave., Edward P. Antczak to Cheryl A. Morningstar; Bruce A. Morningstar, $45,000.

#x2022; 70 Pullman Ave., Kelly L. Antczak to Cheryl A. Morningstar; Bruce A. Morningstar, $45,000.

WALES

#x2022; 6860 Hunters Creek Road, John W. Lamar; Deborah A. Lamar to Ronald H. Smith, $250,000.

WEST SENECA Highest price: $282,151 Average price: $129,143 Median price: $116,000 Number of Sales: 9

#x2022; 9 Lockhart Road, Marrano/Marc Equity Corporation to Michael B. George; Krista L. George, $282,151.

#x2022; 10 Conner Drive, Ryan Homes Of New York; Nvr Inc. to Lisa M. Conrad; Jeffrey M. Conrad, $255,340.

#x2022; 70 Hillcrest Heights, Mary Louise Godfryd to Lynn M. Leas, $134,000.

#x2022; 110 Willowdale Drive, Barbara Glondys; Karen Brader; Deborah Mahoney; Millie M. Kuberka to Patricia R. Waszak; Gerald J. Waszak, $121,500.

#x2022; 59 Louis, Victoria Logrippo to Angel Bustamante, $116,000.

#x2022; 257 Mill Road, Rosel Ladziak; Lucy Staley to William Black, $112,000.

#x2022; 135 Wildwood Place, Mark A. Sanetick to Marie E. Barnes, $84,800.

#x2022; 298 Fisher Road, Tps Real Properties Inc. to Regan D. Stefanik, $40,000.

#x2022; 4592 Seneca St., 4592 Seneca Street Llc to Lisa Marie Dulak, $16,500.

Reducing tax on your rental income

(c) some of the real properties is a business source and some is a non-business source, income from both sources shall be assessed separately under s 4(a) and (d) respectively (see Example 3).

Redevelopment worries seep into daily life at Palo Alto mobile home park

It’s business as usual at Palo Alto’s Buena Vista Mobile Home Park, other than the nervous whispers among residents. The winds of redevelopment blowing throughout the Peninsula are getting closer to their trailer doors.

Last month, the Palo Alto Weekly first reported that the property owners were exploring redevelopment. The Peninsula Press has confirmed that Prometheus Real Estate Group contacted the owners of the mobile home park on El Camino Real about building a 187-unit housing complex that would be marketed to wealthy, young tech workers.

In response to the news, 10 Buena Vista residents addressed the Palo Alto City Council at its Oct. 1 meeting, expressing fears of losing their homes. Below is audio of the remarks that one elderly resident made at the meeting.

Prometheus has filed a pre-screening application for the project, which would require the land to be rezoned, according to Jon Moss, the firm’s executive vice president and partner. The City Council has scheduled a public discussion of the issues at a December meeting, Moss said.

An influx of money from the most recent technology boom has driven up demand for high-end housing in Palo Alto and throughout Silicon Valley. This puts pressure on land dedicated to affordable housing projects.

The scenario is not new. In 1970, the City Council helped establish the nonprofit Palo Alto Housing Corporation in response to concerns over a lack of affordable housing. Currently, the corporation maintains 20 properties with a combined 652 units, ranging from single-occupancy studios to four-bedroom family homes.

Alma Place, the largest of these properties, has 106 studio units. Assistant Property Manager Omajel Serrano said the demand for such homes is much higher than the supply. The wait for an available unit at Alma Place can be one to two years, she said.

It’s a similar story for Leticia Jimenez, property manager at Webster Wood and Arastradero Park apartments, with 68 and 66 units respectively. The waiting list there is closed at this time, but in the past new residents have waited one to five years, she said.

Buena Vista, which is not operated by the Palo Alto Housing Corporation, is a community comprised of mostly low-income families, senior citizens, single mothers and people with disabilities. The tenants pay between $800 and $1,300 per month in rent, which is consistent with the rent range of the corporation’s affordable housing units. Estimates suggest the mobile home park’s utilities will need revamping in the next three to five years.

Buena Vista residents are appealing to the Palo Alto City Council at a time when there is momentum to redevelop El Camino Real properties. Over the past few years, public and private parties — including elected officials from 19 cities along El Camino Real — have joined together on what’s known as the Grand Boulevard Initiative. The initiative’s task force is working to rethink the corridor’s potential for housing and urban development. Palo Alto City Council Karen Holman is a task force member.

Due to the scale of the Prometheus proposal and the necessity of a rezoning vote by the council, Moss predicts there will be no final resolution for about a year.

Pyxis’ Ross: Senior Loan ETF Close To Home

 

When IndexUniverse.com Correspondent Cinthia Murphy caught up with Pyxis Capital President Brad Ross at the “Schwab Impact” conference in Chicago this week, he told her that his company is pleased with the timing of the launch of its Pyxis/iBoxx Senior Loan ETF (NYSEArca: SNLN). Indeed, such funds are clearly playing a role in satisfying investors intensifying quest for income in this era of ultra-low bond yields.

Pyxis, the mutual fund arm of private-equity and distressed-debt firm Highland Capital, stayed safely inside of its area of expertise when it launched that ETF earlier this month, its first. After all, Pyxis has been serving up exposure to senior loans in an actively managed mutual fund wrapper for the better part of 10 years.

Looking ahead, Ross said Pyxis, a firm that makes up $3 billion of Highland Capital’s $20 billion in assets under management, is likely to stick close to its knitting as it continues to develop a niche presence in the $1.254 trillion US ETF market.

 

Murphy: Pyxis Capital is a mutual fund shop and has just launched its first ETF, the Pyxis/iBoxx Senior Loan ETF (NYSEArca: SNLN). Can you tell me a little bit about the decision to bring out this ETF now?

Ross: We’ve been involved in the senior floating-rate loan investment world for over a decade. That’s something Pyxis Capital does. That’s one of our specialties. We have one of the older open-end mutual funds, one of the better-performing ones, so for us it was natural to do an ETF. In fact, we’ve had this in registration since late 2008.

Murphy: So you’ve been eyeing the ETF market for a while, but the timing of this launch seems ideal given the rising popularity of senior loans with investors. We’ve been seeing a shift of assets moving from junk bonds into senior loans recently.

Ross: We had hoped to get exemptive relief to have done this sooner, but it just so happens that we think the timing is even better now because what’s happened since 2008 is that the high-yield market had a wonderful run–it’s up something like 115 percent between 2008 and today–and it’s at the top.

But people are stretching for yield. Getting anywhere between 5 to 6 percent in the floating-rate loan space is roughly what the high-yield space is doing now, except that high yield is at the top of the risk spectrum right now. So the loan marketplace is very timely, and it’s something we do well.

Murphy: In other words, the slow pace of the regulatory process wasn’t necessarily all bad for you.

Ross: It took longer than we expected. But this is what we do. We are a distressed-debt firm and a senior-loan firm. It was natural for us to do this, and we wish, frankly, that this ETF had been out two years ago. But the timing is still great, and in fact, it might be better now because people are taking a broader look at this space. We’ve seen a demand for an ETF, but there’s going to be an even greater demand for everyone who has an open-end fund on this as well.

Murphy: It’s also a space where there’s little competition. SNLN only faces the PowerShares Senor Loan Portfolio (NYSEArca: BKLN), aside from, I believe, three others, including the iShares Floating Rate Note Fund (NYSEArca: FLOT).

Ross: That’s right.

 

Loan officer Michael Kelleher joins LACC

Loan Officer for American Trust Mortgage, Inc. Michael Kelleher recently joined the Lynn Area Chamber of Commerce and celebrated with a ribbon cutting to welcome him to the organization of over 400 business professionals.

I think the Lynn Area Chamber of Commerce is very important for the promotion of business and community, said Kelleher. The LACC being an area Chamber represents Lynn and Swampscott, where my family resides, and is where my business is located so it makes sense to join a business organization looking out for the area that I live and work in.

Kelleher adds the networking opportunities allow him to meet all kinds of people from a variety of businesses; most who live locally so its easy to make solid connections and listen to how people feel about the economy, their housing needs etc.

I have been involved with the LACC for several years through American Trust Mortgage, Inc. The people I meet are incredibly friendly and everyone is serious about doing business, said Kelleher. This is a natural fit for my sales goals and I know the LACC can help me market and promote me and my idea. They are my low-cost marketing arm of my business and it makes sense for me to join.

American Trust Mortgage is located at 324 Essex St., Swampscott. To speak with Michael Kelleher about your home and mortgage needs please call866-477-0110 x132.

For more information about the Lynn Area Chamber of Commerce please call 781-592-2900, email the office at 781-592-2900 or go to www.LynnAreaChamber.com.

Audit Finds West Sacramento RDA in compliance, Hercules Owes $51.1M

State Controller John Chiang announced completing reviews of the assets transferred by redevelopment agencies (RDAs) in Hercules and West Sacramento prior to their dissolution. In Hercules, the review found $51.1 million of the RDAs real properties, cash, and invested funds were either inappropriately transferred to the City or unlawfully retained by the former RDA. In West Sacramento, however, all asset transfers made by the Citys RDA were lawfully executed.

West Sacramento is the first city yet to be found in full compliance with AB 126.

By dissolving RDAs, the Governor and Legislature made the choice to redistribute their assets and property taxes to schools, public safety and other local services across the State, said Chiang. My office is tasked with making sure RDA assets go where they belong: retiring RDA debt and funding critical services at the local level.

The Controllers review is mandated by AB1x 26 and AB 1484. These recently-enacted laws require all RDAs to cease operations by February 1, 2012. Their assets and liabilities must be transferred to a successor agency and placed under the direction of an oversight board to dispose of the assets, pay off obligations, and redistribute excess cash to fund schools, public safety, and other local public services.

The law requires that all RDA assets transferred to a city, county or other public agency after January 1, 2011, must be returned to its successor agency unless the assets were committed to a private third party by June 28 of that year.

In Hercules, the citys RDA transferred $124.1 million in assets to the City between January 1, 2011, and January 31, 2012. Of that amount, the Controllers review found that existing law prohibits $35.5 million of the transfers. In addition, the review found another $15.6 million worth of RDA assets that were never transferred to the successor agency. In total, the review determined that $51.1 million in RDA assets are owed to the successor agency, and the City is ordered to transfer those assets, which include land, property improvements, and cash accounts, to its successor agency.

Existing law empowers a successor agencys oversight board, made up of local appointees, to return assets and property to a local government if it serves a legitimate governmental purpose and if there is no objection by the State Department of Finance. For example, during the course of the review of West Sacramento, the Controllers office identified 12 RDA assets that were transferred to the city itself, rather than to its successor agency. The oversight board then quickly decided those assets should stay in the Citys possession because they serve a governmental purpose.

The Controller recently completed similar asset reviews in the cities of Milpitas and Morgan Hill . As required by AB1x 26 and AB 1484, the Controller will perform reviews of the other 398 dissolved redevelopment agencies across the State.­­

How to make extra money in campus

Are you in college and constantly broke? The pocket money from your parents or loan from the High Education Loans Board is hardly enough to meet all your financial needs. It is time to put your creativity to use to supplement your income, writes ALLAN OLINGO

Students havent been spared from the difficult financial times and many have to contend with the bare minimum throughout the semester. However, the creative ones have realised they can do more than wait for pocket money from their parents to meet their many financial needs. Here is what some of them are doing to make ends meet.

Dennis Munyasi, a First Year Quantity Survey student at the University of Nairobi. He does part-time activities to make quick money.