TORONTO, April 1, 2019 /CNW/ - Trez Capital Mortgage Investment
Corporation (TSX: TZZ) (the "Company") today released its financial results for the quarter ended December
31, 2018. The financial statements and MD&A can be found at www.sedar.com or www.trezcapitalmic.com.
Financial Highlights
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 December 31, 2018, principal repayments and proceeds from
sales totaled $4.9 and $49.9 million ($13.2 and $59.8 million for the comparable period in 2017). The total of all paid
distributions was $48.6 million for the year ended December 31, 2018
($48.8 million for the comparable period in 2017).
For the three months and year ended December 31, 2018, net income remained relatively unchanged
and within $0.1 million compared to results in the same periods in 2017. Basic and diluted income
(loss) per share were $0.00 and $0.15 for the three months and year
ended December 31, 2018. For the three months and year ended December 31,
2018, as compared to the same periods in 2017, revenue decreased by $1.4 million and
$3.9 million as a result of reduced interest income. The reductions in interest income resulted
from a decrease in the average mortgage portfolio by $51.4 and $60.1
million for the three months and year ended December 31, 2018 compared to the same periods
in 2017.
Business Update
The Orderly Wind-Up of the Company commenced in June 2016. At the beginning of the Orderly-Wind
Up on June 30, 2016, the Company had total investments in mortgages of approximately $165.2 million comprised of 31 mortgages. As at December 31, 2018 all mortgages
have been successfully repaid or divested under the Orderly Wind-Up plan.
The Company is also currently involved in legal litigation with borrowers, advisors and other parties to try and recover
losses from loans where realized proceeds were less than outstanding owed principal amounts and interest. Due to the nature of
the proceedings, the Company, at this time, in unable to accurately estimate any possible future recoveries or the probability of
success of recoveries.
The Company is now entering the final stage of its Orderly Wind-up. The board expects to announce its final wind-up and
distribution plans early in the second quarter.
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
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