Thornburg Mortgage Asset Corp. reported third- quarter earnings of $11.2 million, up 59% from the year before.

The company said its portfolio of mortgage securities and whole loans grew to $4.52 billion, up 75% from a year earlier.

Although third-quarter results showed a profit, the real estate investment trust continues to be hurt by tight spreads that reduce returns.

Larry A. Goldstone, the company's president, said Thornburg will continue its strategy of adding "high quality" securities and loans to its portfolio. It has already targeted $230 million of adjustable-rate mortgages for purchase in the fourth quarter.

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