Saxon Capital (NYSE:SAX)
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Saxon Capital, Inc. ("Saxon" or the "Company") (NYSE:
SAX), a residential mortgage lending and servicing real estate
investment trust (REIT), today announced that its Board of Directors
has declared a quarterly cash dividend for the quarter ended September
30, 2005 of $0.50 per share of common stock. The dividend is payable
on November 10, 2005 to shareholders of record at the close of
business on October 28, 2005.
As a REIT, the Company is required to distribute at least 90% of
its taxable income to the shareholders annually. For the fourth
quarter of 2005, Saxon expects to estimate its taxable income and
declare a dividend in December. From time to time special dividends
may be distributed in order to remain in compliance with REIT
requirements. This schedule is subject to change, and specific record
and payable dates will be announced each time dividends are declared
by the Board of Directors.
Saxon expects that a portion of its 2005 dividends will be
characterized as excess inclusion income. Therefore,
-- Tax-exempt shareholders will be subject to unrelated business
taxable income (commonly referred to as UBTI) with respect to
such excess inclusion income;
-- Non-U.S. shareholders will be subject to the 30 percent U.S.
federal withholding tax on this income without reduction under
any otherwise applicable income tax treaty; and
-- U.S. shareholders, including taxpaying entities, will not be
able to offset such excess inclusion income with net operating
losses.
Shareholders in any of these categories should consult a tax
advisor.
About Saxon
Saxon is a residential mortgage lender and servicer that manages a
portfolio of mortgage assets. Saxon purchases, securitizes, and
services real property secured mortgages and elects to be treated as a
real estate investment trust (REIT) for federal tax purposes. The
company is headquartered in Glen Allen, Virginia and has additional
primary facilities in Fort Worth, Texas and Foothill Ranch,
California.
Saxon's production subsidiaries, Saxon Mortgage, Inc., and
America's MoneyLine, Inc. originate and purchase loans through
wholesale, correspondent and retail business channels. Saxon currently
originates and purchases loans throughout the United States through
its network of brokers, correspondents, and retail branches. As of
June 30, 2005, Saxon's servicing subsidiary, Saxon Mortgage Services,
Inc., serviced a mortgage loan portfolio of $24.7 billion. For more
information, visit www.saxoncapitalinc.com.
Information Regarding Forward Looking Statements
Statements in this news release other than statements of historic
fact, are "forward-looking statements" that are based on current
expectations and assumptions. These expectations and assumptions are
subject to risks and uncertainty, which could affect Saxon's future
plans. Saxon's actual results and the timing and occurrence of
expected events could differ materially from its plans and
expectations due to a number of factors, such as (i) changes in
overall economic conditions and interest rates, (ii) Saxon's ability
to successfully implement its growth strategy, (iii) Saxon's ability
to sustain loan origination growth at levels sufficient to absorb
costs of production and operational costs, (iv) continued availability
of credit facilities and access to the securitization markets or other
funding sources, (v) deterioration in the credit quality of Saxon's
loan portfolio, (vi) lack of access to the capital markets for
additional funding, (vii) challenges in successfully expanding Saxon's
servicing platform and technological capabilities, (viii) Saxon's
ability to remain in compliance with federal tax requirements
applicable to REITs, (ix) Saxon's ability and the ability of its
subsidiaries to operate effectively within the limitations imposed on
REITs by federal tax rules, (x) changes in federal income tax laws and
regulations applicable to REITs, (xi) unfavorable changes in capital
market conditions, (xii) future litigation developments, (xiii)
competitive conditions applicable to Saxon's industry, and (xiv)
changes in the applicable legal and regulatory environment. You should
also be aware that all information in this news release is as of
October 18, 2005. Saxon undertakes no duty to update any
forward-looking statement to conform the statement to actual results
or changes in the company's expectations.