VANCOUVER, April 30, 2013 /CNW/ - Trez Capital Senior Mortgage Investment Corporation (the "Company" or "Senior MIC") announced today that the net proceeds from its Initial Public Offering ("IPO") have been fully deployed in 22 Canadian first mortgage loans.
The Senior MIC completed its IPO in late December 2012 with net proceeds of $83.7 million. The investment focus of the Company is on conservative first ranking mortgages (both whole loans and senior tranches) on real property in Canada with the goal of generating attractive returns while preserving capital. The targeted yield on the Senior MIC's shares is 5 percent, based on an issue price of $10 per Class A share. As of April 26, 2013, the Company had $95.8 million invested in a mortgage portfolio that is comprised of over 50 percent residential loans with an average loan-to-value of 37.8%. To date the Company has utilized $13.0 million of its line of credit facility. The average interest rate on the mortgages is 6.1 percent (excluding commitment fees). Monthly updates of the mortgage portfolio summary are posted on the Senior MIC's website www.trezcapitalseniormic.com.
"With the Senior MIC now fully invested in a diverse portfolio of conservative first mortgages, we have a secure income stream to support distributions and meet our target yield without any return of capital," said Michael Nisker, President and CEO of the Company. "As well, we are continuing to see a growing deal stream which we expect will enable us to maintain and ultimately grow the Company's asset base."
"The Canadian multi-residential and commercial real estate sectors remain strong from a fundamentals perspective. There continues to be strong demand across all asset classes for short-term bridge financing. Trez continues to take a conservative and disciplined approach to deal selection and underwriting standards", Michael Nisker added.
The Senior MIC is currently paying annualized distributions of $0.50 per share; based on the April 26, 2013 closing price of $9.27 for the Company's shares listed on the TSX (Symbol: TZS), the current yield is 5.4 percent.
About the Company
The Senior MIC's objective is to acquire and maintain a diversified portfolio of conservative first mortgages in Canada that preserves capital and generates attractive returns in order to pay monthly distributions to its shareholders. The Company pursues its investment objectives through prudent investments in first 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.
This press release contains forward-looking statements that involve a number of risks and uncertainties. Among the important factors that could cause actual results to differ materially from those indicated by such forward-looking statements are market and general economic conditions and the risk factors detailed from time to time in the Corporation's periodic reports filed with the Canadian securities regulatory authorities and on SEDAR at www.sedar.com. Readers are cautioned not to rely on forward-looking statements. Except as required under continuous disclosure obligations, the Corporation undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE: Trez Capital Senior Mortgage Investment Corporation
For further information:
Mr. Michael J.R. Nisker
President and Chief Executive Officer
Trez Capital Senior Mortgage Investment Corporation
Tel: (416) 350-1299
Mr. Drew de Wynter
Senior Director, Finance
Trez Capital Fund Management Limited Partnership
Tel: (604) 678-3698