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Trez Capital Mortgage Investment Corporation Announces Third Quarter 2018 Results

Canada NewsWire

TORONTO, Nov. 13, 2018 /CNW/ - Trez Capital Mortgage Investment Corporation (TSX: TZZ) (the "Company") today released its financial results for the quarter ended September 30, 2018.  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 reflect the ongoing reduction in the size of the portfolio as capital is returned to shareholders.

For the three and nine months ended September 30, 2018, principal repayments and proceeds from sales totaled $0.4 and $45.0 million ($7.6 and $41.2 million for the comparable period in 2017).  On September 17th, the Company paid the second special distribution of 2018 representing a return of capital totaling $28.0 million, or $2.40 per Class A share.  The total of all paid distributions was $48.6 million for the nine months ended September 30, 2018 ($36.7 million for the comparable period in 2017).

For the three and nine months ended September 30, 2018, income from operations decreased by $0.5 million and increased by $0.2 million compared to the same periods in 2017. Basic and diluted income (loss) per share were $(0.01) and $0.16 for the three and nine months ended September 30, 2018. For the three and nine months ended September 30, 2018, as compared to the same periods in 2017, revenue decreased by $0.6 million and $2.4 million as a result of reduced interest income. The reductions in interest income resulted from a decrease in the average mortgage portfolio by $61.8 and $63.0 million for the three and nine months ended September 30, 2018 compared to the same periods in 2017.  

At September 30, 2018 the Company had 1 mortgage remaining to be liquidated, down from 9 as at December 31, 2017. The mortgage totaling $5.0 million is expected to mature prior to the end of the first quarter of 2019.

Regular Monthly & Further Special Distributions

In the first quarter of 2018, the Board made a decision to suspend regular monthly distributions. This decision was premised on a review of the last remaining mortgages and cash requirements. The Board anticipated making further special distributions as the remaining mortgage matures and Orderly Wind Up concludes.

Forward Looking Statements

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.

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

View original content: http://www.newswire.ca/en/releases/archive/November2018/13/c7309.html



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