Trez Capital Senior Mortgage Investment Corporation Announces First Quarter 2016 Results

TORONTO, May 12, 2016 /CNW/ - Trez Capital Senior Mortgage Investment Corporation (TSX: TZS) (the "Company") today released its financial results for the quarter ended March 31, 2016.

Financial Highlights

For the three months ended March 31st

  • Income from operations totaled $0.8 million, down from $1.4 million in Q1 of 2015
  • Net income totaled $0.7 million, down from $1.1 million in Q1 of 2015
  • Basic and diluted earnings per share were $0.10 and dividends declared were $0.146 per share

During the first quarter income from operations and net income declined primarily as a result of lower commitment fees and interest revenue resulting from a reduction in the average size of the mortgage portfolio. In addition, there was also an increase in expenses, primarily related to governance fees.

Investment Portfolio Highlights

  • 100% of the portfolio was invested in first mortgages
  • Weighted average loan-to-value of the mortgage portfolio was 38.5%, well below the Company's Investment Guideline of 70%, and the lowest among all Canadian publicly traded mortgage investment corporations
  • Weighted average interest rate and term to maturity on mortgage investments was 6.2% and 13.3 months, respectively
  • Geographically diversified portfolio across Canada: Ontario 36.3%, Alberta 44.0%, British Columbia 17.8%, and Nova Scotia 1.9%

Special Committee Review Update

On Monday May 9, 2016 the Special Committee issued a press release announcing the completion of its strategic review process and a go-forward plan to maximize value for all shareholders by way of an orderly wind-up of the Company's assets and the return of capital to shareholders (the "Orderly Wind-Up Plan"). The Orderly Wind-Up Plan will be put forward for shareholder approval by way of a special resolution at the Company's upcoming annual and special meeting, which has been rescheduled from May 30, 2016 to June 16, 2016 (the "Meeting"). Further details are contained in the press release which can be found at www.trezcapital.com or www.sedar.com

Forward Looking Statements

Certain statements in this news release about Trez Capital Senior 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 relatively conservative and well diversified portfolio of first 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 Senior Mortgage Investment Corporation

For further information: Karyn Phuong, Vice President, Investor Relations, Trez Capital, Tel: (647) 788-1788, E-mail: KarynP@trezcapital.com


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