TORONTO, Aug. 10, 2015 /CNW/ - Trez Capital Senior Mortgage Investment Corporation (TSX: TZS) (the "Company") is pleased to report continued strong financial results for the quarter ended June 30, 2015.
For the three months ended June 30th
- Income from operations totaled $1.4 million, a decrease from $1.6 million in Q2 of 2014
- Net income totaled $1.2 million, a decrease from $1.3 million in Q2 of 2014
- Basic and diluted earnings per share were $0.155 while dividends declared were $0.146 per share
- The Company continues to earn in excess of dividends paid
For the six months ended June 30th
- Income from operations totaled $2.8 million, a decrease from $3.1 million at June 30, 2014
- Net income totaled $2.3 million, a decrease from $2.5 million at June 30, 2014
- Basic and diluted earnings per share were $0.30, a decrease from $0.33 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 over the six month comparable period, were driven by lower revenue as a result of non-performing loans. Management expects the non-performing loans will be resolved in the coming months and that the realizable value of the properties will be sufficient to cover the outstanding principal and accrued interest.
Investment Portfolio Highlights
- 100% of the portfolio invested in first mortgages
- Weighted average loan-to-value of the mortgage portfolio was 37%, well below the Company's Investment Guideline of 70% and one of the industry's lowest
- Weighted average interest rate and term to maturity on mortgage investments was 5.27% and 13.2 months, respectively
- Geographically diversified portfolio across Canada: Ontario 58%, Alberta 24%, British Columbia 17%, and Nova Scotia 1%
The Company will review the financial results for the quarter ended June 30, 2015 on August 14, 2015 at 11:00am EST.
Conference Call Details:
Dial-in-number: 416-764-8609 or toll free 888-390-0605
Event Conference ID: 88678962
A taped replay of the conference call will be available until September 8, 2015 by dialing 416-764-8677 or toll free 888-390-0541, passcode 678962 #.
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