Lehman Brothers Collection - Contemporary Business Archives

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Lehman Brothers Collection

Twentieth-Century Business Archives

Guardian Mortgage Investors - Lehman Brothers Collection

Guardian Mortgage Investors

List of Deals

Guardian Mortgage Investors was a real estate investment trust specializing in construction of real property and on first mortgage loans. It was organized as a trust in Massachusetts in 1969. Its principal offices, however, were in Jacksonville, Florida. Guardian Mortgage Investors was sponsored by Mortgage Growth Investors, a mortgage banking firm. Charter Advisory Company (CAC) administered the day-to-day operations of the trust. CAC was a wholly owned subsidiary of a public Florida mortgage bank, the Charter Company.

Guardian had income of $2.59 million in 1970 with net earnings of $1.1 million; income rose to $9.25 million and net earnings to $4.33 million in 1971. By 1971 Guardian had invested $196 million in land acquisition, development, and construction. It had another $8.7 million in short-term mortgage loans and $10.7 million in standby and gap commitments. At that time it issued $30 million in 6.75 percent subordinated debentures as warrants to purchase 900,000 shares of beneficial interest in the company.

Guardian's fortunes suffered from the soaring interest rates of the mid-1970s. Its earnings consistently dropped in 1974, 1975, and 1976. It reported operating losses of $1.5 million per month by 1975. In 1977 Guardian defaulted on some of its long-term bonds and was delisted from the NYSE and the ASE. In 1978 it declared Chapter 11 bankruptcy in Jacksonville, with a bank debt of $200 million. Guardian changed its name and incorporated as the Florida Companies in 1981.

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