FORM 8-K
Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report: March 3, 1999
UNITED MORTGAGE TRUST
(a Maryland trust) Commission File Number 333-10109
IRS Employer Identification No. 75-6496585
1701 N. Greenville Avenue, Suite 403
Richardson TX 75081
(972) 705-9805
UNITED MORTGAGE TRUST
INDEX TO FORM 8-K
Page Number
Item 2. Acquisition or Disposition of Assets 3
Item 5. Other Information 4
Signatures 4
Item 2. Acquisition or Disposition of Assets
Between December 1, 1998 and February 28, 1999, United
Mortgage Trust ("UMT") acquired twenty-four first lien
mortgage notes (including contracts for deed) with a total
unpaid principal balance on the date of purchase of
$1,261,272, at a discount, for $1,186,479. Funds used to
acquire the notes were gross offering proceeds from the
closings during December 1998, January and February 1999.
The residential mortgages were chosen for purchase
following the investment objectives and policies as set
forth in the Declaration of Trust, as amended, dated August
15, 1996, and using the underwriting criteria set forth
therein.
All twenty-four of the mortgage notes were acquired from
South Central Mortgage, Inc., an affiliate of the Advisor,
Mortgage Trust Advisors, Inc.
The mortgage notes acquired during the period had a blended
annual interest rate of 11.30%, a current annual yield of
approximately 12.03%, and an investment-to-value ratio of
84.80%, as of the purchase date of the notes. On average
they had an unpaid principal balance of $52,450, a term
remaining of 356 months and were acquired for approximately
93.90% of the outstanding unpaid principal balance on the
notes purchase date.
The Company paid acquisition fees in the amount of $37,838
to the Advisor, Mortgage Trust Advisors, Inc., which
represented 3% of the unpaid principal balance of the
mortgages acquired.
As of February 28, 1999 the Company had investments in 111
interim mortgages for an aggregate investment of
$3,213,812. The interim mortgages had terms of no greater
than 12 months and were made to borrowers for the purchase,
renovation and sale of single family homes. These loans,
which were first lien mortgage notes secured by properties
in Texas, had a blended interest rate of 13.02%.
Funds used in the acquisition of the assets were offering
proceeds from the sale of shares of the Company.
Item 5. Other Information
Status of Offering
By a unanimous vote of the Trustees of United Mortgage
Trust, we have voted to extend the offering period to
December 31, 2000. The offering period was to expire on
March 5, 1999.
Thirty-six new shareholders were admitted to the Company
during the period December 1, 1998 through February 28,
1999, representing 57,527 shares, and increasing the total
number of beneficial owners of shares to 459. Total shares
sold during the offering increased to 761,690, and total
shares outstanding increased to 771,690, which includes the
shares owned by the Advisor, Mortgage Trust Advisors, Inc.
which were acquired prior to the offering.
Gross offering proceeds received from the sale of shares
during the period was $1,150,540 increasing the aggregate
gross offering proceeds received to $15,233,800. Proceeds
from the periods' closings were allocated as follows:
$1,029,573 to the Company; $115,054 or 10% to the Selling
Group Manager for selling commissions; $5,753 or 0.5% to
the Selling Group Manager for due diligence fees; and $160
to the Escrow Agent as compensation for distributing
interest accrued to subscribers.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be
signed on its behalf by the undersigned hereunto duly
authorized.
UNITED MORTGAGE TRUST
March 3, 1999 /S/Christine A. Griffin
Christine A. Griffin
President
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