Trez Capital Senior Mortgage Investment Corporation Reports Strong 2014 First Quarter Results and Increases Dividend by 8%

TORONTO, May 5, 2014 /CNW/ - Trez Capital Senior Mortgage Investment Corporation (TSX:TZS) (the "Company") is pleased to report strong financial results for the quarter ended March 31, 2014 and an increase of 8% to its annual dividend.

First Quarter Highlights

  • Net income totaled $1.2 million, up from a loss of $0.5 million in Q1 of 2013
  • Income from operations totaled $1.5 million, up from $0.4 million in Q1 of 2013
  • Basic and diluted earnings per share for the quarter was $0.16

Investment Portfolio Highlights

  • 100% of portfolio in first mortgages
  • Weighted average loan-to-value of the mortgage portfolio was 36.3%, well below the Company's 70% limit as provided for in the Company's Investment Guidelines
  • Weighted average interest rate and term to maturity on mortgage investments was 6.6% and 17 months, respectively
  • Well diversified portfolio across Canada's largest provinces: Ontario (59.3%), Alberta (24.3%), British Columbia (15.1%), and Nova Scotia (1.3%)

Dividend Increase

On May 2, 2014 at the recommendation of management, the Company received approval by its board of directors (the "Board of Directors") to raise its annual dividend from $0.50 to $0.54, representing an increase of 8%. Based on the closing price as of May 2, 2014 the new dividend results in an annualized yield of 6.6% for shareholders of the Company. The Board of Directors has determined that this new level of dividend is appropriate based on the Company's current and projected cash flow, earnings, financial position and other relevant factors. The Company pays dividends on a monthly basis, and the increased monthly dividend of $0.045 per Class A share will be paid on June 15, 2014 to holders of record on May 31, 2014.

"We are pleased with the operating results for the first quarter of 2014 and thrilled to be in a position to increase dividends for our shareholders", said Michael J.R. Nisker, President and CEO. "During our corporate transition we indicated that any increase in cash flow would be paid out to our shareholders and we are delivering on that promise. Our ongoing ability to continue to preserve investor capital and generate stable yield is predicated on our rigorous underwriting process, prudent governance and absolute commitment to risk management. We look forward to reporting on our progress in the quarters to come".

Conference Call

The Company will review the financial results for the quarter ended March 31, 2014 on Wednesday May 7, 2014 at 2:00pm EST.

Conference Call Details:

Dial-in-number: 416-764-8688 or toll free 888-390-0546

Event Conference ID: 78737650

A taped replay of the conference call will be available until June 7, 2014 by dialing 416-764-8677 or toll free 888-390-0541, passcode 737650.

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 outloo9ks (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 $1.65 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


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