Luminent Mortgage proposes restructuring, changing REIT status

By Lisa Kerner

Charlotte, N.C., March 31 - Luminent Mortgage Capital, Inc. said it believes that maintaining its status as a real estate investment trust is no longer beneficial to the company or its stockholders.

As a result, Luminent's board of directors approved a restructuring to convert the company from a Maryland corporation qualified as a REIT to a Delaware limited liability company that would be considered a publicly traded partnership taxable as a partnership, a company news release said.

Restructuring will enhance Luminent's flexibility for investment diversification and cash management, the company said.

Each share of currently issued and outstanding Luminent common stock would be exchanged for one-third of a newly issued common share of the partnership, under the proposed plan.

As a publicly traded partnership, Luminent said it plans to offer fee-based services, including credit risk management, asset management advisory services and sub-manager services for investment funds.

The restructuring is expected to be completed in the second quarter, subject to shareholder approval.

Luminent is a San Francisco-based real estate investment trust that invests in mortgage-backed securities and loans.

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