United Mortgage Trust is a real estate investment trust (REIT). We invest in residential real estate loans. Investor funds are pooled to acquire and own these assets that might otherwise be outside the means of a typical investor. We seek to produce net interest income from our mortgage investments while maintaining strict cost controls in order to generate net income for monthly distribution to our shareholders.
We intend to continue to operate in a manner that will permit us to qualify as a Real Estate Investment Trust ("REIT") for federal income tax purposes.
We intend to continue to operate in a manner that will permit us to qualify as a Real Estate Investment Trust ("REIT") for federal income tax purposes.
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Our management team seeks to provide our shareholders with the highest stable, secure and predictable dividend consistent with maintaining shareholder value. We acquire mortgage investments from several sources, including from affiliates. The amount of mortgage investments acquired depends upon the mortgage investments available at the time we have funds to invest.
The Trust had not listed its securities for trading on any exchange. The Trust may apply for theregistration of the shares upon meeting all periodic report filing requirements. As has been communicated to our shareholders, UMT is being slowly liquidated as capital is returned to shareholders.
We have accomplished this primarily through the sale of non-performing assets, distribution of cash received from deficiency notes and recourse obligation payments from affiliates and revenue from the UMT Home Finance programs.These cash sources allowed us to sustain our distribution rate as our investment portfolio and associated earnings declined.
We have accomplished this primarily through the sale of non-performing assets, distribution of cash received from deficiency notes and recourse obligation payments from affiliates and revenue from the UMT Home Finance programs.These cash sources allowed us to sustain our distribution rate as our investment portfolio and associated earnings declined.
Our Declaration of Trust provides for not less than three nor more than nine Trustees, a majority of whom must be Independent Trustees. Each Trustee serves for a one-year term. The Trustees establish written policies on investments and borrowings and monitor our administrative procedures and investment operations and also monitor the performance of our resident and the Advisor to assure that those policies are carried out.
The DRP had provided an efficient means by which shareholders could reinvest distributions received to purchase additional shares of beneficial interest. Optimal benefits of participation in the DRP were realized when the distributions represented payments of dividends on invested capital.
Because of the low interest rate environment and the other effects of the financial crisis that impacted the credit markets beginning in 2008, we have only been able to keep up a satisfactory cash flow to our shareholders by including an increasing amount of returned capital as part of our distributions.
Because of the low interest rate environment and the other effects of the financial crisis that impacted the credit markets beginning in 2008, we have only been able to keep up a satisfactory cash flow to our shareholders by including an increasing amount of returned capital as part of our distributions.
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