FOR IMMEDIATE RELEASE Contact:
Christopher Ranjitkar, Director, Investor Relations
Tremont Mortgage Trust Reports Fourth Quarter and Year End 2018 Results
Income From Investments, Net, For The Fourth Quarter of $1.0 Million
Fourth Quarter Loan Originations of $66.3 Million
Declared First Quarterly Distribution in January 2019
Newton, MA (February 7, 2019): Tremont Mortgage Trust (Nasdaq: TRMT) today announced its financial results for the quarter and year ended December 31, 2018.
David Blackman, President and Chief Executive Officer of TRMT, made the following statement:
“Our primary business strategy is to deploy capital principally as investments in first mortgage loans secured by middle market and transitional commercial real estate and to return cash to our shareholders by paying a quarterly distribution. We closed three loans totaling $66.3 million during the fourth quarter of 2018 and we closed two additional loans totaling $47.5 million since year end, increasing our total loan commitments to $202.2 million. Also, in January 2019 we declared our first distribution of $0.11 per common share, and we expect to declare a distribution of between $0.20 and $0.24 per common share in the second quarter of 2019. Our origination activity remains robust, with our manager having committed to us $25.0 million of additional capital. We believe, with leverage, that this additional capital will support approximately $100.0 million of additional loan originations. We remain confident in our business model and long term prospects.”
Results for the Quarter and Year Ended December 31, 2018:
For the quarter ended December 31, 2018, net income was $0.2 million, or $0.06 per diluted share. For the quarter ended December 31, 2018, TRMT generated interest income of $1.8 million and incurred interest and related expenses of $0.8 million, which resulted in $1.0 million of income from investments, net.
For the year ended December 31, 2018, net loss was $1.6 million, or $0.51 per diluted share. For the year ended December 31, 2018, TRMT generated interest income of $3.9 million and incurred interest and related expenses of $1.5 million, which resulted in $2.4 million of income from investments, net.
Recent Investment Activities:
In November 2018, TRMT closed a $12.8 million first mortgage bridge loan to finance the acquisition of a 123,000 square foot retail center in Phoenix, AZ at an as is loan to value ratio, or LTV, of approximately 48%. This loan requires the borrower to pay interest at a per annum floating rate of LIBOR plus a premium of 425 basis points. This loan funded $5.9 million at closing, includes a future funding allowance of $6.9 million for building improvements and leasing capital and has a two year initial term with two, one year extension options subject to the borrower meeting certain conditions. As of December 31, 2018, TRMT had not advanced any of the future funding allowance.
The following information was filed by Tremont Mortgage Trust (TRMT) on Thursday, February 7, 2019 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.