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Trez Capital Mortgage Investment Corporation Announces Third Quarter 2017 Results

Canada NewsWire

TORONTO, Nov. 10, 2017 /CNW/ - Trez Capital Mortgage Investment Corporation (TSX: TZZ) (the "Company") today released its financial results for the quarter ended September 30, 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 will 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 $7.6 million for the quarter and $41.2 million for the year to September 30, 2017 ($28.8 million and $74.8 million for the comparable periods in 2016).  Consequently, during the quarter the Company paid a special distribution of $29.8 million, and the Company continued to pay return of capital distributions at the rate of $0.0583 per share monthly until November.  The total of all paid distributions is $36.7 million for the year to September 30, 2017 ($10.0 million for the comparable period in 2016). 

For the three months ended September 30, 2017, income from operations totaled $0.4 million, compared to income from operations of $1.7 million in Q3 of 2016.  Net income for the quarter totaled $0.4 million, compared to net income of $1.7 million in Q3 of 2016. Basic and diluted earnings per share were $0.03 versus distributions declared of $0.175 per share.  During the third quarter, as compared to the same period in 2016, revenue decreased by $1.8 million as a result of reduced interest income, which was slightly offset by lower interest expense on mortgage syndications.  The reduction in interest income was a result of a decrease in the average mortgage portfolio by $79.5 million for the three months ended September 30, 2017 compared to the same period in 2016.  

At September 30, 2017 the Company had 12 mortgages remaining to be liquidated, down from 18 as at December 31, 2016 and 21 as at September 30, 2016.  Of the 12 remaining mortgages expected to mature or be sold, 5 mortgages totaling $37.2 million are expected to do so prior to the end of the year and 2 additional mortgages totaling $14.7 million prior to the end of the first quarter of 2018.

The Board anticipates making further special distributions as the mortgages in the portfolio mature or are sold and subject to reasonable expected operating expenditures.

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 Junior Mortgage Investment Corporation

View original content: http://www.newswire.ca/en/releases/archive/November2017/10/c1425.html



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