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.
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.
For further information:
Chief Executive Officer
Tel: (604) 630-0775