The pandemic year had a major influence on the MIC's operations
Trez Capital Senior Mortgage Investment Corporation has reported its Q1 results, weathering significant burdens brought about by the pandemic year.
Operational income during the three months ending March 31 proved lower on an annual basis, falling by $0.46 million during the period “due to a favorable adjustment of incentive fee and higher average mortgage portfolio in Q1 of 2020.”
Trez also reported that as of the end of Q1 2021, “the company had two mortgages outstanding. Of the two mortgages remaining, the more significant one is set to mature in December 2022. During the second quarter of 2020, the borrower requested a three month deferral of mortgage payments, due to the inability of tenants to pay rent as a result of the COVID-19 economic and health crisis. The deferral was granted.”
Trez added that regular payments for this account “resumed during the third quarter of 2020, and the company made certain amendments to this mortgage in December 2020, including extending the term through December 2022 in consideration of certain lump-sum repayments which commenced in December 2020.
“As of March 31, 2021, the company did not make any fair market value adjustments based on the management’s assessment of the fair market value of its investment in both mortgages.”
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Trez offered assurances that the company would monitor and adapt to the overall situation accordingly, as the shockwaves of the pandemic-induced shutdowns continue to reverberate.
“The situation has continued to be dynamic and the duration and magnitude of the impact on the economy and our business are not fully known at this time,” Trez said. “These impacts could include further decreases in the fair value of our mortgage investments or potential future decreases in revenue or profitability of our ongoing operations. It is not possible to reliably estimate the length and severity of these developments and the impact on the financial results and condition of the company.”
