Date
of Report (Date of earliest event reported)
|
March 9, 2007 (March 8, 2007) |
Anthracite
Capital,
Inc.
|
||
(Exact
name of registrant as specified in its charter)
|
||
Maryland
|
001-13937
|
13-3978906
|
(State
or other jurisdiction of incorporation)
|
(Commission
File Number)
|
(IRS
Employer Identification No.)
|
40
East 52nd Street, New York, New York
|
10022
|
|
(Address
of principal executive offices)
|
(Zip
Code)
|
Registrant’s
telephone number, including area code
|
(212) 810-3333 |
N/A
|
|
(Former
name or former address, if changed since
last report)
|
Item
2.02.
|
|
Results
of Operations and Financial
Condition.
|
Item
8.01.
|
|
Other
Events.
|
·
|
Income
from commercial real estate assets increased $12,309, or 19%, from
the
quarter ended December 31, 2005 as a result of continued portfolio
growth.
|
·
|
The
Company sold seven CMBS held as collateral for three of its CDOs,
resulting in a realized gain of $28,520. The gain from these seasoned
CMBS
was a result of increased value of the securities due to multiple
credit
upgrades and spread tightening of approximately 475 basis points.
The net proceeds of the sales will be used to re-invest in higher
yielding assets. Investment grade CMBS owned by the Company outside
of its
CDOs were used to replace this collateral.
|
·
|
The
Company decided to increase its use of 90-day reverse repurchase
agreements as part of its financing strategy. This resulted in a
significant reduction of the Company’s 30-day reverse repurchase
agreements. As a result, certain interest rate swaps previously hedging
30-day reverse repurchase agreements no longer qualified as hedges
for
accounting purposes and required a charge of $12,661 for the fourth
quarter.
|
·
|
Eight
CMBS required an impairment charge totaling $2,085, of which $1,562
was
attributed to higher prepayment rates on a pool of Small Business
Administration commercial mortgages. The updated yields in the fourth
quarter 2006 that resulted in impairment charges were not related
to an
increase in losses but rather accelerated prepayments and changes
in the
timing of expected credit losses. During the quarter ended December
31,
2006, 55 of the Company’s Controlling Class CMBS experienced a weighted
average yield increase of 171 basis points and 20 experienced a weighted
average yield decrease of two basis
points.
|
·
|
The
Company’s recourse debt-to-capital ratio decreased to 1.8:1 at December
31, 2006 from 2.0:1 at December 31, 2005. The Company's debt-to-capital
ratio increased to 6.5:1 at December 31, 2006 from 5.9:1 at December
31,
2005. The year-over-year increase was primarily attributable to the
issuance of trust preferred securities, senior unsecured notes and
the
Company’s sixth and seventh collateralized debt
obligations.
|
·
|
Weighted
average cost of funds increased to 6.0% at December 31, 2006 from
5.7% at
December 31, 2005, which was primarily attributable to the issuance
of two
CDOs, $100,000 of trust preferred securities and $75,000 of senior
unsecured notes.
|
·
|
Exposure
to a 50 basis point move in short-term interest rates was less than
$0.01
per share at December 31, 2006.
|
December
31,
2006
|
December
31,
2005
|
||||||
Carbon
I
|
$
|
3,144
|
$
|
18,458
|
|||
Carbon
II
|
69,259
|
41,185
|
|||||
$
|
72,403
|
$
|
59,643
|
|
Commercial
Mortgage
Loan
Pools
|
Commercial
Real
Estate
Securities
|
Commercial
Real
Estate
Loans
|
Commercial
Real
Estate
|
Total
Commercial
Real
Estate
Assets
|
Total
Commercial
Real
Estate
Assets
(USD)
|
USD
|
$1,271,014
|
$2,312,503
|
$310,771
|
$105,894
|
$4,000,182
|
$4,000,182
|
GBP
|
-
|
£27,532
|
£28,977
|
-
|
£56,509
|
110,681
|
EURO
|
-
|
€80,923
|
€141,422
|
-
|
€222,345
|
293,408
|
Canadian
Dollars
|
-
|
$24,339
|
-
|
-
|
$24,339
|
20,885
|
Indian
Rupees
|
-
|
-
|
-
|
Rs169,823
|
Rs169,823
|
3,850
|
Total
USD Equivalent
|
$1,271,014
|
$2,494,100
|
$554,148
|
$109,744
|
$4,429,006
|
$4,429,006
|
12/31/2006
|
9/30/2006
|
12/31/2005
|
||||
Total
Stockholders' Equity
|
$656,109
|
$652,166
|
$598,018
|
|||
Less:
|
||||||
Series
C Preferred Stock Liquidation
Value
|
(57,500)
|
(57,500)
|
(57,500)
|
|||
Common
Equity
|
$598,609
|
$594,666
|
$540,518
|
|||
Shares
Outstanding
|
57,830,964
|
57,638,033
|
56,338,540
|
|||
Book
Value Per Share
|
$10.35
|
$10.32
|
$9.59
|
December
31, 2006
|
December
31, 2005
|
|||||||||||
ASSETS
|
||||||||||||
Cash
and cash equivalents
|
$
|
66,762
|
$
|
40,556
|
||||||||
Restricted
cash equivalents
|
59,427
|
1,246
|
||||||||||
Residential
mortgage-backed securities (“RMBS”)
|
276,343
|
259,026
|
||||||||||
Commercial
mortgage loan pools
|
1,271,014
|
1,292,407
|
||||||||||
Commercial
real estate securities
|
2,494,100
|
2,005,383
|
||||||||||
Commercial
real estate loans
|
554,148
|
425,453
|
||||||||||
Commercial
real estate
|
109,744
|
51,003
|
||||||||||
Total
commercial real estate
|
4,429,006
|
3,774,246
|
||||||||||
Interest
rate swap agreements, at fair value
|
27,795
|
31,172
|
||||||||||
Other
assets
|
66,492
|
58,013
|
||||||||||
Total
Assets
|
$
|
4,925,825
|
$
|
4,164,259
|
||||||||
LIABILITIES
AND STOCKHOLDERS' EQUITY
|
||||||||||||
Liabilities:
|
||||||||||||
Short
term borrowings:
|
||||||||||||
Secured
by pledge of RMBS
|
$
|
266,731
|
$
|
249,122
|
||||||||
Secured
by pledge of commercial real estate securities
|
575,420
|
616,661
|
||||||||||
Secured
by pledge of commercial mortgage loan pools
|
6,395
|
5,977
|
||||||||||
Secured
by pledge of commercial real estate loans
|
26,570
|
229,556
|
||||||||||
Total
short term borrowings
|
875,116
|
1,101,316
|
||||||||||
Long
term borrowings:
|
||||||||||||
Collateralized
debt obligations
|
1,812,574
|
1,066,930
|
||||||||||
Secured
by pledge of commercial mortgage loan pools
|
1,250,503
|
1,272,931
|
||||||||||
Junior
subordinated notes to subsidiary trust issuing
preferred
securities
|
180,477
|
77,380
|
||||||||||
Senior
unsecured notes
|
75,000
|
-
|
||||||||||
Total
long term borrowings
|
3,318,554
|
2,417,241
|
||||||||||
Total
borrowings
|
4,193,670
|
3,518,557
|
||||||||||
Payable
for investments purchased
|
23,796
|
-
|
||||||||||
Distributions
payable
|
17,669
|
16,673
|
||||||||||
Interest
rate swap agreements, at fair value
|
12,549
|
8,907
|
||||||||||
Other
liabilities
|
22,032
|
22,104
|
||||||||||
Total
Liabilities
|
4,269,716
|
3,566,241
|
||||||||||
Stockholders'
Equity:
|
||||||||||||
Common
Stock, par value $0.001 per share; 400,000 shares authorized;
57,830,964
shares issued and outstanding in 2006; and
56,338,540
shares issued and outstanding in 2005
|
58
|
56
|
||||||||||
9.375%
Series C Preferred Stock, liquidation preference $57,500
|
55,435
|
55,435
|
||||||||||
Additional
paid-in capital
|
629,785
|
612,368
|
||||||||||
Distributions
in excess of earnings
|
(120,976
|
)
|
(130,038
|
)
|
||||||||
Accumulated
other comprehensive income
|
91,807
|
60,197
|
||||||||||
Total
Stockholders’ Equity
|
656,109
|
598,018
|
||||||||||
Total
Liabilities and Stockholders' Equity
|
$
|
4,925,825
|
$
|
4,164,259
|
For
the Three Months Ended
December
31,
|
For
the Year Ended
December
31,
|
||||||||||||
2006
|
2005
|
2006
|
2005
|
||||||||||
Income:
|
|||||||||||||
Commercial
real estate securities
|
$
|
45,136
|
$
|
39,392
|
168,271
|
$
|
142,634
|
||||||
Commercial
mortgage loan pools
|
13,174
|
13,408
|
52,917
|
54,025
|
|||||||||
Commercial
real estate loans
|
14,520
|
10,827
|
52,205
|
35,258
|
|||||||||
Commercial
real estate
|
3,405
|
299
|
15,763
|
299
|
|||||||||
RMBS
|
2,788
|
2,012
|
11,858
|
9,851
|
|||||||||
Cash
and cash equivalents
|
657
|
606
|
2,403
|
2,077
|
|||||||||
Total
Income
|
79,680
|
66,544
|
303,417
|
244,144
|
|||||||||
Expenses:
|
|||||||||||||
Interest
expense:
|
|||||||||||||
Short-term
borrowings
|
16,839
|
12,206
|
66,604
|
40,056
|
|||||||||
Collateralized
debt obligations
|
23,734
|
19,271
|
81,337
|
69,794
|
|||||||||
Commercial
mortgage loan pools
|
12,568
|
12,703
|
50,440
|
50,988
|
|||||||||
Junior
subordinated notes
|
3,343
|
1,477
|
12,447
|
1,543
|
|||||||||
Senior
unsecured notes
|
1,299
|
-
|
1,299
|
-
|
|||||||||
General
and administrative expense
|
1,151
|
1,226
|
4,533
|
3,917
|
|||||||||
Management
fee
|
3,278
|
2,936
|
12,617
|
10,975
|
|||||||||
Incentive
fee
|
-
|
159
|
2,708
|
159
|
|||||||||
Incentive
fee - stock based
|
908
|
-
|
2,761
|
-
|
|||||||||
Total
Expenses
|
63,120
|
49,978
|
234,746
|
177,432
|
|||||||||
Other
income:
|
|||||||||||||
Net
realized and unrealized gain (loss)
|
16,943
|
(286
|
)
|
19,626
|
(2,097
|
)
|
|||||||
Incentive
fee attributable to other gains
|
(3,211
|
)
|
(4,131
|
)
|
(3,211
|
)
|
(4,131
|
)
|
|||||
Net
realized gain attributable to CDO HY2
|
-
|
16,523
|
-
|
16,523
|
|||||||||
Foreign
currency gain (loss)
|
1,164
|
123
|
2,161
|
(134
|
)
|
||||||||
Hedge
ineffectiveness
|
(663
|
)
|
478
|
(262
|
)
|
(1,188
|
)
|
||||||
Loss
on impairment of assets
|
(2,085
|
)
|
(1,857
|
)
|
(7,880
|
)
|
(5,088
|
)
|
|||||
Total
other income
|
12,148
|
10,850
|
10,434
|
3,885
|
|||||||||
Income
from Continuing Operations
|
28,708
|
27,416
|
79,105
|
70,597
|
|||||||||
Income
from Discontinued Operations
|
-
|
-
|
1,366
|
-
|
|||||||||
Net
Income
|
28,708
|
27,416
|
80,471
|
70,597
|
|||||||||
Dividends
on preferred stock
|
1,348
|
1,348
|
5,392
|
5,392
|
|||||||||
Net
Income available to Common Stockholders
|
$
|
27,360
|
$
|
26,068
|
$
|
75,079
|
$
|
65,205
|
|||||
Net
Income available to Common Stockholders per share:
|
|||||||||||||
Basic
|
$
|
0.47
|
$
|
0.47
|
$
|
1.31
|
$
|
1.20
|
|||||
Diluted
|
$
|
0.47
|
$
|
0.47
|
$
|
1.31
|
$
|
1.20
|
|||||
Net
Income from continuing operations per share of common stock,
after
preferred dividends
|
|||||||||||||
Basic
|
$
|
0.47
|
$
|
0.47
|
$
|
1.29
|
$
|
1.20
|
|||||
Diluted
|
$
|
0.47
|
$
|
0.47
|
$
|
1.29
|
$
|
1.20
|
|||||
Income
from discontinued operations per share of common stock
|
|||||||||||||
Basic
|
$
|
-
|
$
|
-
|
$
|
0.02
|
$
|
-
|
|||||
Diluted
|
$
|
-
|
$
|
-
|
$
|
0.02
|
$
|
-
|
|||||
Weighted
average number of shares outstanding:
|
|||||||||||||
Basic
|
57,813,016
|
55,838,060
|
57,182,434
|
54,144,243
|
|||||||||
Diluted
|
58,105,352
|
55,844,461
|
57,401,664
|
54,152,820
|
|||||||||
Dividend
declared per share of Common Stock
|
$
|
0.29
|
$
|
0.28
|
$
|
1.15
|
$
|
1.12
|
Item
9.01.
|
|
Financial
Statements and Exhibits.
|
Exhibit
Number
|
Description
|
99.1
|
Press
release, dated March 8, 2007, of the
Company
|
ANTHRACITE
CAPITAL, INC.
|
||
|
|
|
By: | /s/ James J. Lillis | |
Name:
James J. Lillis
Title:
Chief
Financial Officer
|
||
Dated: March 9, 2007 |