The Company intends to invest in CMBS, which are securities that are secured by or evidence interests in a pool of mortgage loans secured by commercial properties. These securities may be senior or subordinate and may be either investment grade or non-investment grade. The Company expects that the majority of its CMBS investments will be rated by at least one nationally recognized rating agency. The Company intends to purchase subordinate interests referred to as B notes from third parties. Subject to maintaining its qualification as a REIT, the Company anticipates acquiring or making mezzanine loans that are senior to the borrower’s equity in, and subordinate to a first mortgage loan on, a property.

The Company invests in adjustable rate and hybrid adjustable rate agency RMBS, which are securities representing interests in mortgage loans secured by residential real property in which payments of both principal and interest are generally made monthly, net of any fees paid to the issuer, servicer or guarantor of the securities. In general, the Company’s agency RMBS will be AAA-rated and will consist of mortgage pools in which the Company has the entire interest. The Company also will invest in non-agency RMBS.

Subject to maintaining its qualification as a REIT, the Company intends to acquire senior and subordinated, secured and unsecured loans made by banks or other financing entities. The Company expects that some amount of these loans will be secured by real estate mortgages or liens on other assets. The Company intends to invest in other ABS, principally CDOs backed by small business loans and trust preferred securities of financial institutions such as banks, savings and thrift institutions, insurance companies, holding companies for these institutions and REITs. The Company intends to invest in small- and middle-ticket equipment leases. These leases will be direct financing leases, which are leases in which the rent over the term of the lease returns invested capital plus an appropriate premium without consideration of the residual, that is, the value of selling or re-leasing the equipment at the end of the lease term.

The Company intends to invest in trust preferred securities, with an emphasis on securities of small- to middle-market financial institutions, including banks, savings and thrift institutions, insurance companies, holding companies for these institutions and REITS.

The Company intends to invest in the debt tranches of CDOs collateralized by CMBS, non-agency RMBS, other ABS and bank loans.

To a lesser extent, subject to maintaining its qualification as a REIT, the Company also may invest from time to time in equity securities, which may or may not be related to real estate. These investments may include direct purchases of private equity as well as purchases of interests in private equity funds. The Company expects that any such investments will consist primarily of private equity securities issued by financial institutions, particularly banks and savings and thrift institutions.

For the period from March 8, 2005 (date operations commenced) through March 31, 2005, net loss was $48.0 thousand or $0.00 per weighted-average share outstanding (basic and diluted).

Net interest income for the period totaled $484.0 thousand and reflected both the non-diversified nature of the investment portfolio and a use of leverage that, as a result of short operating period, did not meet leverage target of eight to 12 times.

Non-investment expense for the period totaled $532.0 thousand.

Management fees for the period totaled $208.0 thousand