TORONTO, Oct. 20, 2015 /CNW/ - Trez Capital Mortgage Investment Corporation (TSX:TZZ) (the "Company") announced today that its board of directors has approved maintaining the current monthly dividend of $0.0583 per Class A share of the Company. The dividend will be paid on November 13, 2015 to holders of Class A shares of record on October 30, 2015. As of October 20, 2015, there were 19,236,354 Class A shares outstanding. The amount of the monthly dividends is equivalent to approximately $0.70 per Class A Share per annum. This represents a current yield of 10.3% based on the closing price of $6.80 for the Class A Shares on October 19, 2015.
"The Manager continues to work at stabilizing the cash flow of the Company including resolving non-performing loans in the portfolio, which has exerted some downward pressure on earnings. As these resolutions come to final fruition, earnings are projected to trend towards a normalized rate of $0.70 per Class A share," said Michael J.R. Nisker, President and Chief Executive Officer of the Company. "Today's dividend declaration remains consistent with our established dividend policy, which is to distribute 100% of normalized earnings, rather than adjusting the dividend in response to short-term variations between quarters."
Nisker added, "The quality of the portfolio remains strong with loans secured by income producing properties forming the core of the mortgage portfolio. As of September 30, 2015, 77% of the portfolio consisted of first ranking mortgages and the weighted average loan to value ratio is 68%. Management continues to focus on quality and projected earnings increases should be achieved without any compromise to credit quality."
The Company also offers a Dividend Reinvestment Plan (the "Plan") to eligible holders of Class A Shares, that provides eligible holders of Class A shares of the Corporation with a convenient means to purchase additional Class A Shares by reinvesting their cash dividends at a potential discount to the current market price.
Shares for the reinvestment of dividends will be acquired in the open market at prevailing market rates or, if lower than the current market price, issued from treasury at the greater of book value per share and 95 percent of the average market price. "Average market price" is defined in the Plan to be the volume weighted average trading price of Class A Shares on the Toronto Stock Exchange during the 10 trading days ending on the third business day immediately prior to the dividend payment date on which at least a board lot of Class A Shares is traded. Class A Shares acquired under the Plan will be automatically enrolled in the Plan. Beneficial shareholders who hold their Class A Shares through a broker, financial institution or other nominee must enroll for dividend reinvestment through their nominee holder.
Update on Special Committee Review Process
The Special Committee ("Committee") review process, announced on September 28, 2015, is well underway. As part of the review, the Committee's advisor has been engaged in detailed due diligence and has reached out to many stakeholders of the Company, including numerous shareholders and their advisors. There have been some inquiries regarding the timing of this process. Given the important nature of the review now underway, the Committee will take the time necessary to be prudent and diligent, with careful consideration of the range of feasible alternatives for the Company and its shareholders. The Committee is looking forward to seeing the process through to a successful conclusion in a prudent, professional and efficient manner. The Company will share further updates pertaining to the process when available.
About the Company
The Company's objective is to acquire and maintain a diversified portfolio of mortgages in Canada that preserves capital and generates attractive returns in order to pay monthly dividends 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 currently serviced by traditional real estate lenders. Trez Capital Fund Management Limited Partnership is the manager of and portfolio advisor to the Company.
SOURCE Trez Capital Junior Mortgage Investment Corporation
For further information: Karyn Phuong, Vice President, Investor Relations, Trez Capital, Tel: (647) 788-1788, E-mail: [email protected]