Henderson, Nev., (November 15, 2005)—Desert Capital REIT, Inc. today announced that its net income for the third quarter of 2005 totaled $1,311,625 or $0.25 per share, as compared to a net loss of $71,979 or $0.30 per share reported for the third quarter of 2004. Net income for the nine months ended September 30, 2005, totaled $2,933,409, or $0.78 per share, as compared to a net loss of $136,834 or $1.45 per share for the same period in 2004.

Total revenues for the quarter ended September 30, 2005, totaled $4.1 million, as compared to $64,557 in the same period in 2004. Interest income for the third quarter was $1.3 million, as compared to $64,557 reported for the same period in 2004. For the nine months ended September 30, 2005, total revenues and interest income were $12.5 million and $2.9 million respectively. Total revenues and interest income for the same period in 2004 were $64,557 and $64,557 respectively.

Todd B. Parriott, CEO and Chairman of the Board of Directors of Desert Capital REIT, Inc., said, “This has been a tremendous quarter for our company. With the recent consolidation of all of our business divisions to our new corporate headquarters and the completed acquisition of Consolidated Mortgage, now a wholly owned subsidiary of Desert Capital REIT, we are in a solid financial position moving into the fourth quarter and look for continued growth across all segments of our business.”

Portfolio Activity
During the third quarter of 2005, DCR funded all or a portion of 52 loans totaling $35.6 million. Of the new loans, 32 were acquisition and development loans totaling $29 million, and 20 were construction loans totaling $6.6 million. At September 30, 2005, DCR's loan portfolio balance was $47.3 million, with an average interest rate of 12.5%.

Subsequent To The Quarter End
DCR purchased an additional 22% of the outstanding equity of Consolidated Mortgage LLC, bringing its ownership of Consolidated Mortgage to 100%. Consolidated Mortgage is a mortgage broker whose principal business activity is the origination and servicing of mortgage loans for DCR and over 3,000 private investors.

Earnings Guidance
Based on the current expectations of management, DCR expects earnings per share for the fourth quarter of 2005 to be between $0.31 and $0.34 per share, and be between $1.09 and $1.12 per share for the full-year 2005.

About Desert Capital REIT, Inc.
Desert Capital REIT, Inc., is a Henderson, Nev.-based real estate investment trust that invests in loans to owners and developers of real estate properties. Formed in December 2003, Desert Capital’s portfolio of mortgage loans consists of acquisition and development, construction, commercial property and residential loans. For more information, please call (800) 419-2855 or visit www.desertcapitalreit.com.

About Consolidated Mortgage, LLC
With more than 27 years of continuous real estate investment success, Consolidated Mortgage, LLC is one of the largest private trust deed investment firms in Nevada, with over $340 million in currently brokered loans. The company is located at 1291 Galleria Drive, Suite 220, Henderson, NV 89104. For information, please call (702) 739-9090.

Safe Harbor Statement
Statements included herein that state the company's or management's intentions, hopes, beliefs, expectations or predictions of the future are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 which by their nature, involve known and unknown risks and uncertainties. The company’s actual results, performance or achievements could differ materially from those expressed or implied by such statements.

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