TORONTO, May 5, 2014 /CNW/ - Trez Capital Senior Mortgage Investment
Corporation (TSX:TZS) (the "Company") is pleased to report strong
financial results for the quarter ended March 31, 2014 and an increase
of 8% to its annual dividend.
First Quarter Highlights
Net income totaled $1.2 million, up from a loss of $0.5 million in Q1 of
Income from operations totaled $1.5 million, up from $0.4 million in Q1
Basic and diluted earnings per share for the quarter was $0.16
Investment Portfolio Highlights
100% of portfolio in first mortgages
Weighted average loan-to-value of the mortgage portfolio was 36.3%, well
below the Company's 70% limit as provided for in the Company's
Weighted average interest rate and term to maturity on mortgage
investments was 6.6% and 17 months, respectively
Well diversified portfolio across Canada's largest provinces: Ontario
(59.3%), Alberta (24.3%), British Columbia (15.1%), and Nova Scotia
On May 2, 2014 at the recommendation of management, the Company received
approval by its board of directors (the "Board of Directors") to raise
its annual dividend from $0.50 to $0.54, representing an increase of
8%. Based on the closing price as of May 2, 2014 the new dividend
results in an annualized yield of 6.6% for shareholders of the Company.
The Board of Directors has determined that this new level of dividend
is appropriate based on the Company's current and projected cash flow,
earnings, financial position and other relevant factors. The Company
pays dividends on a monthly basis, and the increased monthly dividend
of $0.045 per Class A share will be paid on June 15, 2014 to holders of
record on May 31, 2014.
"We are pleased with the operating results for the first quarter of 2014
and thrilled to be in a position to increase dividends for our
shareholders", said Michael J.R. Nisker, President and CEO. "During our
corporate transition we indicated that any increase in cash flow would
be paid out to our shareholders and we are delivering on that promise.
Our ongoing ability to continue to preserve investor capital and
generate stable yield is predicated on our rigorous underwriting
process, prudent governance and absolute commitment to risk management.
We look forward to reporting on our progress in the quarters to come".
The Company will review the financial results for the quarter ended
March 31, 2014 on Wednesday May 7, 2014 at 2:00pm EST.
Conference Call Details:
Dial-in-number: 416-764-8688 or toll free 888-390-0546
Event Conference ID: 78737650
A taped replay of the conference call will be available until June 7,
2014 by dialing 416-764-8677 or toll free 888-390-0541, passcode
Forward Looking Statements
Certain statements in this news release about Trez Capital Senior
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 outloo9ks (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
The Company's objective is to acquire and maintain a relatively
conservative and well diversified portfolio of first mortgages in
Canada that preserves capital and generates attractive returns in order
to pay monthly distributions to its shareholders. The Company
accomplishes its investment objectives through prudent investments in
mortgages to qualified real estate investors and developers, focusing
primarily on short-term bridge financing needs not serviced by
traditional real estate lenders. Trez Capital Fund Management Limited
Partnership is the Manager of the Company. The Manager has over 17
years of bridge financing experience in the real estate sector and
currently manages $1.65 billion in assets.
SOURCE Trez Capital Senior Mortgage Investment Corporation