Mortgage & Realty Suffers $14-Million Quarterly Loss

Mortgage & Realty Trust, which recently emerged from bankruptcy reorganization, reported a $14.1-million loss for its fiscal second quarter, compared with year-earlier earnings of $4.67 million.

The real estate investment trust, which has executive offices in Burbank and Elkins Park, Pa., said the loss reflected continued deterioration in the commercial real estate market, where Mortgage & Realty invested and made loans.

In the quarter ended March 31, the trust set aside $12 million for real estate losses, of which $9 million was to cover losses on property in California, Texas and Massachusetts. However, the trust noted that its non-earning assets amounted to 12.3% of its total assets as of March 31, down from 16.9% three months earlier.

For the first half of its fiscal year, Mortgage & Realty lost $16.5 million, compared with a $9.63-million profit a year earlier.