NEWPORT BEACH — MIP Properties Inc., a Newport Beach real estate investment trust, said Thursday that it would not pay stockholders a fourth-quarter dividend and may put itself up for sale.
The company blamed its troubles on the slow real estate market and several non-earning loans it has made, including one $11-million loan to a partnership the company belongs to and that developed an industrial building in San Dimas. That building was vacant for more than a year before a third of it was recently leased, the company said.
A $12-million loan went to a developer who bought land in San Diego and is now in bankruptcy.
The company has since got out of the mortgage-lending business to concentrate solely on investing in real estate.
The company recently reported profits of $2 million for the first nine months of the year, down from $3.7 million last year.
MIP's directors voted Thursday to hire Merrill Lynch Capital Markets to advise the company on whether to seek a merger partner, restructure or sell itself. The stock closed Thursday at $1.75 a share, up 12.5 cents in American Stock Exchange trading.