VANCOUVER, Sept. 10, 2013 /CNW/ - Trez Capital Mortgage Investment Corporation ('Trez Junior MIC") announced today that the board of directors has determined to maintain the Corporation's current monthly distributions per Class A Shares at $0.70 per annum for the period October 2013 to September 2014 based on the current market conditions. The intended distribution rate represents a yield of 7% per annum on the $10 price at which the Class A Shares were issued, or 8% per annum based on the $8.74 closing price per Class A Share on the Toronto Stock Exchange on September 9, 2013.
"Given that we achieved all our targets since going public in 2012, we are confident in maintaining this level of distributions for the coming 12 months," said Michael Nisker, President & CEO of Trez Junior MIC. "We made the targeted distributions to our shareholders, stayed disciplined in our loan underwriting and built a fully deployed portfolio of quality high-yielding mortgages."
Trez Junior MIC has built-in yield-enhancing and interest risk mitigation features that Management expects will enable it to continue to deliver a consistent distribution level, even in a rising interest rate environment. These features include structuring all loans with a floating interest rate over the bank prime rate along with a fixed minimum rate, as well as limiting duration risk by writing loans with an average term to maturity of just 20 months. As well, Trez Junior MIC has maintained a low loan-to-value ratio on the portfolio which speaks to the relative risk adjusted return we are paying to our shareholders.
Trez Junior MIC is managed by Trez Capital, one of Canada's largest and most experienced private commercial mortgage lenders. Since inception, Trez Capital has originated over 836 commercial mortgages totaling more than $3.1 billion.
About the Trez Capital Junior MIC
The objective of the Trez Capital Junior MIC is to acquire and maintain a diversified portfolio of mortgages in Canada that preserves capital and generates attractive returns in order to pay monthly distributions to its shareholders. Trez Capital Junior MIC 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 and portfolio advisor to the Trez Capital Junior MIC.
SOURCE: Trez Capital Mortgage Investment Corporation
For further information:
Mr. Michael J.R. Nisker
President & Chief Executive Officer
Trez Capital Mortgage Investment Corporation
Tel: (416) 350-1299
E-mail: [email protected]