Strategic Mortgage Profits Down 39% in 1st Quarter

Strategic Mortgage Investments, a real estate investment trust that buys home mortgage loans, said its earnings dropped 39% to $1.8 million in the first quarter that ended March 31 from the year-earlier period.

The Glendale company said results were affected by rising interest rates. Strategic Mortgage said the rates at which it borrows increased 2% in the quarter to 9.8%.