TORONTO, May 11, 2017 /CNW/ - Trez Capital Senior Mortgage Investment Corporation (TSX: TZS) (the "Company") today released its financial results for the quarter ended March 31, 2017.
On June 16, 2016 the shareholders of the Company approved the orderly wind-up of the Company. As such, the financial results will reflect the ongoing reduction in the size of the portfolio as capital is returned to shareholders.
For the three months ended March 31st
- Income from operations totaled $0.37 million, compared to income from operations of $0.80 million in Q1 of 2016
- Net income totaled $0.37 million, compared to net income of $0.74 million in Q1 of 2016
- Basic and diluted earnings per share were $0.05 and distributions declared were $1.476 per share
- Cash and equivalents totaled $8.7 million
- Book value per share is $5.49
For the three months, ended March 31, 2017, revenue declined by $0.7 million as a result of reduced interest revenue of $0.7 million, compared to the same period in 2016. The reduction was primarily attributable to a reduction in the average mortgage portfolio of $38.3 million. Income from operations decreased by $0.4 million for the three months ended March 31, 2017 compared to the same period in 2016. The decrease was the result of the previously mentioned reduction in revenue combined with decreased expenditures of $0.2 million. Cash flow from operations decreased by $1.1 million for the three months ended March 31, 2017 compared to the same period in 2016, primarily the result of reduced interest income.
Investment Portfolio Highlights
- 100% of the portfolio was invested in first mortgages
- Weighted average loan-to-value of the mortgage portfolio was 57.7%
- Weighted average interest rate and term to maturity on mortgage investments was 6.1% and 15.9 months, respectively
- Geographical exposure: Ontario 49.2%, Alberta 47.0%, and Nova Scotia 3.8%
The Orderly Wind-Up of the Company continues to progress with one mortgage maturing in the quarter. Since the Orderly Wind-Up was announced on July 21, 2016, the Manager was able to reduce the outstanding loan portfolio balance at July 31, 2016 from $57.5 million to $35.8 million as at April 1, 2017, a total reduction of $21.7 million. Two special distributions were paid in connection with the Orderly Wind-Up. The first special distribution was paid on October 15, 2016 in the amount of $1.981 per Class A share, a total distribution amount of $15.0 million. The most recent special distribution was paid on February 21, 2017 in the amount of $1.33 per Class A share for a total distribution of $10.0 million. In addition, to date, as approved by the Board, the Company continues to pay a distribution (return of capital) at an annual rate of $0.58/share.
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 holds a diversified portfolio of mortgages in Canada. Trez Capital Fund Management Limited Partnership is the manager of and portfolio advisor to the Company. On June 16, 2016 the Shareholders of the Company approved the orderly wind-up of the Company. Under the orderly wind-up plan the Company will distribute the net proceeds through special distributions, the repurchase of shares pursuant to the normal course issuer bid, or otherwise.
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