Trez Capital continues to produce strong results for investors in both debt and equity funds
Q3 2022 Highlights
$5.3 CAD billion assets under management (AUM)
Net Asset Value (NAV) growth in TPREF
Third distribution increase announced in Q3 for debt funds in 2022
VANCOUVER, BC, Nov. 30, 2022 /CNW/ - Trez Capital, one of North America's leading non-bank commercial real estate lenders and asset managers, is proud to announce a successful third quarter in 2022. Trez Capital continues to expand its business and has reached over $5.3 billion CAD in assets under management (AUM).
Trez Capital is proud to announce a successful third quarter in 2022.
"Trez Capital continued to deliver excellent results to our investors in the third quarter of 2022, which was supported by strong growth in our asset management business and solid operational performance," said Morley Greene, Chairman & Chief Executive Officer, Trez Capital.
Dean Kirkham, President & Chief Operating Officer, Trez Capital shared, "we continue to grow our assets under management, invest in the business and our people, and look for opportunities that best serve our investors."
Since 1997, Trez Capital has been dedicated to building a world-class team to best serve its investors. As of Q3 of 2022, Trez Capital employs over 180 talented professionals amongst eight different offices across Canada and the U.S.
Q3 2022 marks Trez Capital's 25th anniversary. As the firm looks to the future, they will continue to present investors with the best opportunities for debt and equity real estate investing.
Debt Funds Update
The continued interest rate increases in Canada and the United States are having a positive impact on the floating-rate mortgage portfolio returns. As a result, there have been multiple distribution rate increases that went into for our open-ended debt funds, Trez Capital Prime Trust, Trez Capital Yield Trust, Trez Capital Yield Trust U.S. (CAD) and Trez Capital Yield Trust U.S. (USD) with the latest increase announced in September, effective as of this October.
Effective annual distribution yield, as of October 31, 2022 for each Trez Capital open-ended debt funds are as follows1:
Trez Capital Prime Trust to 5.5%
Trez Capital Yield Trust to 6.6%
Trez Capital Yield Trust U.S. (CAD) series to 7.2%
Trez Capital Yield Trust U.S. (USD) series to 7.2%
As we look forward and analyze our projected returns through 2023, we believe our rates in our open-ended debt funds will continue to trend upwards as follows2:
Trez Capital Prime Trust to 6.5%
Trez Capital Yield Trust to 8.0%
Trez Capital Yield Trust U.S. (CAD) series to 9.0%
Trez Capital Yield Trust U.S. (USD) series to 9.0%
Despite the extreme volatility in the equity and bond markets, Trez Capital continues to provide investors with strong, reliable, and rising returns that are uncorrelated to the volatility of other asset classes. Real estate markets continue to exhibit strong fundamentals in the key markets and asset classes to which Trez Capital lends.
Equity Fund Update
Trez Capital Private Real Estate Fund Trust (TPREF), the firm's real estate private equity development open-ended fund, saw its first asset stabilization in Q3 2022. With $210 million in assets under management (AUM), the fund has a projected stabilized value of assets in excess of $2 billion. TPREF has generated 15.42% since the fund launched on August 31, 2021 and Trez Capital will continue to leverage the equity platform that sources and executes real estate investment and development opportunities, mainly across the Sunbelt states.
About Trez Capital
Founded in 1997, Trez Capital is a diversified real estate investment firm and preeminent provider of commercial real estate debt and equity financing solutions in Canada and the United States. Trez Capital offers private and institutional investors strategies to invest in a variety of opportunistic, fully secured mortgage investment funds, syndication offerings and real estate joint-venture investments; and provides property developers with quick approvals on flexible short- to mid-term financing.
With offices across North America, Trez Corporate Group has over $5.3* billion CAD in assets under management and has funded over 1,700 transactions totalling more than $16.5 billion CAD since inception. For more information, visit www.trezcapital.com. (*Trez Corporate Group AUM includes assets held by all Trez-related entities as well as $2.9 billion Manager AUM (Trez Capital Fund Management Limited Partnership)).
1 Listed distribution rates are based off a $10 unit value. As at October 31, 2022, based on F series, effective annual distribution yield.
2 December 2023 monthly annualized target returns, based on F series.
These materials are for informational purposes only and do not constitute an offer to sell or a solicitation to buy securities. Past results are not indicative of future performance. Forward-looking statements are included. Actual results, performance and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained above. Such forward-looking statements are based on a number of assumptions which may prove to be incorrect including, but not limited to: the ability of the Funds to acquire and maintain a portfolio of mortgages capable of generating the necessary annual yield or returns to enable the Funds to achieve their investment objectives, the ability of the Funds to establish and maintain relationships and agreements with key financial partners, the maintenance of prevailing interest rates at favourable levels, the ability of borrowers to service their obligations under the mortgages, the ability of the Manager to effectively perform its obligations to the Funds, anticipated costs and expenses, competition, and changes in general economic conditions. While the Funds anticipate that subsequent events and developments may cause its views to change, the Manager specifically disclaims any obligation to update these forward-looking statements, except as required by applicable law.
SOURCE Trez Capital
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/November2022/30/c3854.html