TORONTO, March 29, 2018 /CNW/ - Trez Capital Mortgage Investment Corporation (TSX: TZZ) (the "Company") today released its financial results for the year ended December 31, 2017. The financial statements and MD&A can be found at www.sedar.com or www.trezcapitalmic.com.
Financial Highlights & Business Update
On June 16, 2016 the shareholders of the Company approved the orderly wind-up of the Company ("Orderly Wind-Up"). As such, the financial results reflect the ongoing reduction in the size of the portfolio as capital is returned to shareholders.
Towards the objective of an Orderly Wind-Up, principal repayments or sold mortgages were $10.5 million for the quarter and $51.6 million for the year ended December 31, 2017 ($32.9 million and $107.7 million for the comparable periods in 2016). During the quarter the Company paid a special distribution of $10.0 million, and paid monthly return of capital distributions at the rate of $0.0583 per share. The total of all paid distributions is $48.8 million for the year ended December 31, 2017 ($12.9 million for the comparable period in 2016). In addition, $37.6 million of shares were repurchased ($23.1 million in 2016).
For the three months ended December 31, 2017, net loss and loss from operations both totaled $28 thousand compared to net loss and loss from operations of $2.8 million in Q4 of 2016. Basic and diluted losses per share were $0.002. During the fourth quarter, as compared to the same period in 2016, revenue decreased by $1.1 as a result of reduced interest income. The reductions in interest income resulted from a decrease in the average mortgage portfolio by $57.6 million for the three months ended December 31, 2017 compared to the same period in 2016.
For the year ended December 31, 2017, net income and income from operations both totaled $1.6 million compared to net loss of 3.4 million and loss from operations of $3.3 million in the same periods in 2016. Basic and diluted earnings per share were $0.13. During 2017, as compared to the same period in 2016, revenue decreased by $7.1 million as a result of reduced interest income and commitment fees. The reduction in interest income resulted from a decrease in the average mortgage portfolio by $75.5 million for the year ended December 31, 2017 compared to the same period in 2016.
At December 31, 2017 the Company had 9 mortgages remaining to be liquidated, down from 18 as at December 31, 2016. Of the 9 remaining mortgages expected to mature or be sold, 7 mortgages totaling $39.0 million are expected to do so prior to the end of 2018 and 2 mortgages totaling $12.7 million prior to the end of the first half of 2019.
The board of directors anticipates making further special distributions as the mortgages in the portfolio mature or are sold and subject to reasonable expected operating expenditures.
Forward Looking Statements
Certain statements in this news release about Trez Capital Mortgage Investment Corporation, 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 Limited Partnership ("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
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
For further information: Alexander Manson, Chief Executive Officer & Chief Financial Officer, Trez Capital, Tel: (604) 630-0775, E-mail: [email protected]