Total revenue and other operating income for the quarter ending this year was $119.9 million, down slightly from $122.5 million the year before. The $2.7 million, or 2%, decrease was a result of lower interest income because of a lower average level of CMBS investments, and lower rental income from a smaller stabilized property portfolio in much of the 2004 first quarter, the company states.

However, declines were offset in part by higher gains on sales of real estate securities and real estate property assets this past quarter. So far this year, the company has purchased or identified more than $800 million in new investments, including the recent closing with Lennar Corp. of the Newhall Land and Farming Co. acquisition.

Krasnoff says in a statement: "Not only does Newhall provide us an excellent opportunity to grow our income-producing property portfolio, it also allows us to combine our commercial real estate skills with Lennar's residential expertise and appetite for home sites in one of the country's most land supply-constrained markets. This one transaction alone should add substantial earnings and cash flows for our company for many years to come."