TORONTO, March 30, 2017 /CNW/ - Trez Capital Senior Mortgage Investment Corporation (TSX: TZS) (the "Company") financial results for the three months and year ended December 31, 2016 are as follows:
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.
The financial results reflect the ongoing reduction in the size of the portfolio as capital is returned to shareholders.
For the three months ended December 31, 2016
- Net income from operations totaled $0.4 million, versus $0.5 million at Q4 2015
- Net comprehensive income totaled $0.4 million, versus net comprehensive income of $0.3 million at Q4 2015
- Basic and diluted earnings per share were $0.06, versus $0.04 per share at Q4 2015
For the year ended December 31, 2016
- Net income from operations totaled $1.0 million, versus $4.8 million at December 31, 2015
- Net comprehensive income totaled $1.0 million, versus net comprehensive income of $3.8 million at December 31, 2015
- Basic and diluted earnings per share were $0.13, versus earnings per share of $0.51 at December 31, 2015
- Dividends declared totaled $2.563 per share (including special distributions), up from $0.58 per share for the year ended December 31, 2015
For the three months and year ended December 31, 2016 revenue declined by $0.9 and $2.9 million as a result of reduced commitment fees of $0.1 and $0.5 million and reduced interest revenue of $0.8 and $2.4 million, compared to the same periods in 2015. The reductions were primarily attributable to a reduced average mortgage portfolio of $40.4 million for the year ended December 31, 2016 compared to 2015. The decline was partially offset by an increase in the yield on average mortgage portfolio of 0.19% and 0.26% for the three months and year ended December 31, 2016.
Income from operations decreased by $0.1 and $3.8 million for the three months and year ended December 31, 2016 compared to the same periods in 2015. The decreases were the result of the previously mentioned reductions in revenue combined with decreased expenditures of $0.8 and increased expenditures of $0.9 million respectively.
Investment Portfolio Highlights as of December 31, 2016
- 100% of the portfolio was invested in first mortgages
- Weighted average loan-to-value of the mortgage portfolio was 51%
- Weighted average interest rate and remaining term to maturity on mortgage investments was 6.2% and 14.9 months, respectively
- Geographical exposure: Ontario 42%, Alberta 55%, and Nova Scotia 3%
- Aggregate fair value adjustments of $1 million are included in the net investments in mortgages of $41.4 million, and realized investment losses for the past two years sum to $nil
Subsequent to year end, on January 12, 2017 the Company announced that its board of directors had declared a special distribution of $1.33 per Class A share of the Company. The special distribution, which constitutes a return of capital pursuant to the winding-up of the Company's business as approved by Shareholders on June 16, 2016, was paid on February 21, 2017 to holders of Class A shares of record on February 6, 2017. The Special Distribution was in addition to the Company's monthly distributions (also constituted as returns of capital), which the Company intends to continue until further notice.
Certain statements in this news release about Trez Capital 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.
SOURCE Trez Capital Senior Mortgage Investment Corporation
For further information: Karyn Phuong, Vice President, Investor Relations, Trez Capital, Tel: (647) 788-1788, E-mail: [email protected]