Mr. Alexander Manson reports
TREZ CAPITAL SENIOR MORTGAGE INVESTMENT CORPORATION ANNOUNCES SECOND QUARTER 2019 RESULTS
Trez Capital Senior Mortgage Investment Corp. has released its financial results for the quarter ended June 30, 2019. The financial statements and MD&A (management's discussion and analysis) can be found on SEDAR and the company's website.
Financial highlights and business update
On June 16, 2016, the shareholders of the company approved the orderly windup of the company. As such, the financial results reflect the continuing reduction in the size of the portfolio as capital is returned to shareholders.
For the three and six months ended June 30, 2019, income from operations increased by $200,000 and $300,000 compared with the same periods in 2018. Net income in the period was equal to income from operations. Basic and diluted income per share was three cents and seven cents compared with one cent and three cents in the same periods in 2018. The increase in net income for the three and six months ended June 30, 2019, was attributable to lower general and administrative expenses as a result of reduced activity resulting from the orderly windup plan of the company.
At June 30, 2019, the company has two mortgages remaining to be liquidated. Of the mortgages remaining, the more significant one is set to mature in December, 2020.
Regular monthly and special distributions
In the third quarter of 2017, the board made a decision to suspend regular monthly distributions until further notice. This decision was premised on a review of the last remaining mortgages and cash requirements. One of the two remaining mortgages is shared with an external senior loan-sharing partner. Given the limited amount of principal and interest payments expected in the future, the company intends to maintain its current cash levels until the senior position is fully repaid by the borrower. The board anticipates making further special distributions as the two remaining mortgages in the portfolio mature or are sold, subject to reasonable expected operating expenditures and repayment of the senior loan participant.
About Trez Capital Senior Mortgage Investment Corp.
The company holds a portfolio of mortgages in Canada. Trez Capital Fund Management LP is the manager of and portfolio adviser to the company. On June 16, 2016, the shareholders of the company approved the orderly windup of the company. Under the orderly windup plan, the company will distribute the net proceeds through special distributions, the repurchase of shares pursuant to the normal course issuer bid or otherwise.
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