TORONTO, Aug. 10, 2015 /CNW/ - Trez Capital Mortgage Investment Corporation (TSX: TZZ) (the "Company") is pleased to report financial results for the quarter ended June 30, 2015.
For the three months ended June 30th
- Income from operations totaled $3.0 million, a decrease from $3.2 million in Q2 of 2014
- Net income for the quarter totaled $2.7 million, a decrease from $3.0 million in Q2 of 2014
- Basic and diluted earnings per share were $0.140 while dividends declared were $0.175 per share
For the six months ended June 30th
- Income from operation totaled $5.9 million, a decrease from $7.3 million at June 30, 2014
- Net income totaled $5.4 million, a decrease from $6.9 million at June 30, 2014
- Basic and diluted earnings per share were $0.28, a decrease from $0.35 at June 30, 2014
The decline in income from operations, net income and consequently earnings per share both on a quarter over quarter basis, as well as the comparable six month period, were primarily driven by a combination of a competitive low interest rate environment as well as the impact of the non-performing mortgages. Management expects that the non-performing loans will be realized at their fair values in the near term. In this current low interest rate environment, Management is taking a very disciplined approach in the evaluation of lending opportunities to provide for an attractive risk-adjusted return. Pending the resolution of the non-performing loans and the ultimate impact on cash flow projections, a recommendation will be made to the Board in October 2015 pertaining to the sustainability of the current dividend rate.
Investment Portfolio Highlights
- 77% of the portfolio was invested in first mortgages
- Weighted average loan-to-value of the mortgage portfolio was 68%, below the Company's Investment Guideline of 75%
- Weighted average interest rate and term to maturity on mortgage investments was 6.97% and 10.4 months, respectively
- Geographically diversified portfolio across Canada: Ontario 41%, Alberta 26%, British Columbia 12%, New Brunswick 11% and Nova Scotia 10%
- 100% of equity remained fully invested throughout Q2
The Company will review the financial results for the quarter ended June 30, 2015 on August 14, 2015 at 1:00pm EST.
Conference Call Details:
Dial-in-number: 416-764-8688 or toll free 888-390-0546
Event Conference ID: 54922787
A taped replay of the conference call will be available until September 8, 2015 by dialing 416- 764-8677 or 1-888-390-0541, passcode: 922787 #.
Certain statements in this news release about Trez Capital Mortgage Investment Corporation (the "Company"), and its business, operations, investments and strategies, and financial performance and condition may constitute forward-looking information, future oriented financial information, or financial outlooks (collectively, "forward looking statements"). The forward-looking statements are stated as of the date of this news release and are based on estimates and assumptions made by Trez Capital Fund Management LP ("Trez") in light of its experience and perception of historical trends, current conditions and expected future developments, as well as other factors that Trez believes are appropriate and reasonable in the circumstances. There can be no assurance that such forward-looking statements will prove to be accurate, as actual results, performance and future events could differ materially from those anticipated in such statements. Past performance is not an indication of future returns, and there can be no guarantee that targeted returns or yields can be achieved. Trez refers you to the Company's public disclosure for information regarding these forward-looking statements, including the assumptions made in preparing forward-looking statements and management's expectations, and the risk factors that could cause the Company's actual results, yield, levels of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements. Such public disclosure is available on SEDAR and at the request of Trez. This news release does not represent an offer or solicitation to sell securities of the Company.
About the Company
The Company's objective is to acquire and maintain a diversified portfolio of mortgages in Canada that preserves capital and generates attractive returns in order to pay monthly distributions to its shareholders. The Company accomplishes its investment objectives through prudent investments in mortgages to qualified real estate investors and developers, focusing primarily on short-term bridge financing needs not serviced by traditional real estate lenders. Trez Capital Fund Management Limited Partnership is the Manager of the Company. The Manager has over 17 years of bridge financing experience in the real estate sector and currently manages $1.9 billion in assets.
SOURCE Trez Capital Junior Mortgage Investment Corporation
For further information: Karyn Phuong, Vice President, Investor Relations, Trez Capital, Tel: (647) 788-1788, E-mail: KarynP@trezcapital.com