An opportunistic, short-term commercial financing strategy focused on core U.S. markets.  Trez Capital Yield Trust US participates primarily in large scale residential lot development projects in major urban centres of Texas.  In addition to its commercial loan portfolio, up to 20% of net assets may be invested in equity positions and 10% may be invested in mezzanine loans.  Investors can purchase U.S. dollar units or Canadian dollar hedged units.  The investment objective is to preserve invested capital, while generating an attractive rate of income in U.S. dollars for distribution to unitholders.

Fund Summary

Fund Manager: Trez Capital Fund Management Limited Partnership
Asset Class: Open-ended pooled mortgage fund
Inception Date: June 2013
Redemptions: 30 days' notice, subject to 1% retraction penalty if redeemed within 1st year
Eligibility: RRSP / RRIF / TFSA / RESP / RDSP / DPSP
FundSERV Codes: Series I - TRZ320 (USD); Series I - TRZ350 (CAD)
DRIP Eligible: Yes
Fund Assets (9/30/2016): US$ 202,636,312

Case Studies

  • Dallas Mixed-Use Repositioning
     
    Dallas Mixed-Use Repositioning
    Loan: US$20,000,000 (Tranche B: US$10,000,000)
    Security Rank:1st mortgage (Deed of Trust)6 months (with extension option)
    Term:6 months (with extension option)
    Interest Rate:15.0% (on B Tranche)
    Loan-to-Value:38.0% (on B Tranche)
    Description:
    Investment in the Junior (B) tranche of a first mortgage secured by a mixed use property undergoing repositioning.
  • Dallas Lot Development
     
    Dallas Lot Development
    Loan: US$10,500,000
    Security Rank:1st mortgage (Deed of Trust)
    Term:36 months
    Interest Rate:10.0%
    Loan-to-Value:64.0%
    Description:
    Investment in a first mortgage secured by a 96.5 acre site. The subject property will be developed into 299 lots in two phases. 100% of the lots were presold to three prominent homebuilders prior to the mortgage funding date.
  • Conroe Lot Development
     
    Conroe Lot Development
    Loan: Loan Amount: US$17,200,000 Preferred Equity: US$2,200,000
    Security Rank:1st mortgage (Deed of Trust)
    Term:36 months
    Interest Rate:Fixed rate: 8.5%. Projected IRR: 23.3% (includes profit participation)
    Loan-to-Value:69.0%
    Description:
    Quasi joint venture financing for the servicing and development of 272 lots on a 111 acre site. 91% of the Phase I lots were presold.

Portfolio Composition

Mortgage Loan Portfolio US $ 181,148,293
Cash (and Equivalents) US$ 6,330,034
Limited Partnership Investments US $ 9,357,521
Other Assets US $ 5,800,463
Total Fund Assets US $ 202,636,312
No. of Mortgage Investments 48
Average Mortgage Size US $ 3,773,923
Average Loan-to-Value 66.5%
Total Units Outstanding 18,971,486.803

Geographic Region

Dallas
60%
Houston
14.8%
Austin
5.3%
San Antonio
3.4%
Nashville, TN
1.4%
Denver
4.5%
Cash and Other Assets
10.6%

Asset Class

Residential
88.3%
Retail
1.1%
Cash
3.1%
Other Assets
7.5%

Security Rank

First Mortgages
79.5%
Second Mortgages
8.2%
Cash and Other Assets
12.3%

Weighted Average Term to Maturity

Zero to 6 Months
23.9%
6 Months - 12 Months
6.9%
12 Months - 18 Months
31.8%
18 Months - 24 Months
14%
24 Months - 36 Months
23.4%

Historical Performance

  1 Year 3 Year 5 Year Since Inception
Trez Capital Yield Trust US
Series I1
10.1% 10.7% N/A 10.7%

1 I Series returns are reported as F Series returns, plus 35bps to account for the reduction in management fee. To discuss eligibility, please contact Trez Capital Fund Management Limited Partnership.

2 Due to the inception of the fund in January 2013, the return for 2013 is an annualized return.

Growth of $10,000

 

Trez Capital Yield Trust US distributes 100% of its net income annually. Unitholders receive quarterly distributions at a rate of 2.0% on Series I units, payable fifteen days following each calendar quarter end. Distributions are paid in the currency of the units denomination. All residual income attribuable to each unit series is distributed by way of an annual top-up distribution, which is paid in mid-March following the conclusion of the annual audit of the Trust.

DISTRIBUTION HISTORY

  2015 2014 2013
  I Series I Series I Series
Quarter 1 $0.200 $0.200 $0.200
Quarter 2 $0.200 $0.200 $0.200
Quarter 3 $0.200 $0.200 $0.200
Quarter 4 $0.200 $0.200 $0.200
Quarterly Distribution $0.800 $0.800 $0.800
Top-up1 $0.709 $0.303 $0.235
Total Distribution $1.509 $1.103 $1.035

1 Based on a weighted average return to Unitholders, this amount is an estimate of the average top up distribution paid. Those invested for less than a full one year period will receive a prorated allocation, and those invested in the dividend reinvestment plan will receive a slightly higher top up due to the effects of compounding.

DISTRIBUTION SCHEDULE

  Record Date Expected Pay Date
First Quarter March 31 April 15
Second Quarter June 30 July 15
Third Quarter September 30 October 15
Fourth Quarter December 31 January 15
Annual Top Up December 31 March 15

Note: Distributions are taxed in the year that they are earned. T3 slips are distributed to all unitholders in March of each year following completion of the year end audit and payment of the annual top-up distribution.

Fees

Management Fee Percentage negotiated by the Manager and the Unitholder of the Average Annual Gross Assets of the I Series units.
Incentive Fee 10% of the Net Income for each unit series after deduction of the Management fee.

Minimum Investment

To discuss minimum investment amounts and eligibility, please contact Trez Capital Fund Management L.P.

How To Invest

Institutional Investors form a core part of our investor base.  As investors seek ways to diversify away from equities and traditional fixed income to both enhance income while mitigating risks, alternative investments such as private mortgage pools provide for an attractive solution.

To learn more about our private mortgage pools for institutional clients please contact:

Michael Steepe, National Sales Manager
P: 647-788-1783
E: Michaels@trezcapital.com

 

Fund Fact Sheets

  • Fund Fact Sheet (I Series) CAD

    Fund Fact Sheet (I Series) CAD
    September 2016 - Trez Capital Yield Trust US Fund Fact Sheet (I Series) CAD
    View/Download »
  • Fund Fact Sheet (I Series) USD

    Fund Fact Sheet (I Series) USD
    September 2016 - Trez Capital Yield Trust US Fund Fact Sheet (I Series) USD
    View/Download »
  • Fund Fact Sheet (I Series) CAD

    Fund Fact Sheet (I Series) CAD
    June 2016 - Trez Capital Yield Trust US Fund Fact Sheet (I Series) CAD
    View/Download »
  • Fund Fact Sheet (I Series) USD

    Fund Fact Sheet (I Series) USD
    June 2016 - Trez Capital Yield Trust US Fund Fact Sheet (I Series) USD
    View/Download »
  • Fund Fact Sheet (I Series) CAD

    Fund Fact Sheet (I Series) CAD
    March 2016 - Trez Capital Yield Trust US Fund Fact Sheet (I Series) CAD
    View/Download »
  • Fund Fact Sheet (I Series) USD

    Fund Fact Sheet (I Series) USD
    March 2016 - Trez Capital Yield Trust US Fund Fact Sheet (I Series) USD
    View/Download »

Quarterly Unitholder Reports

  • September 2016 Quarterly Report

    September 2016 - TCYT US Quarterly Report
    View/Download »
  • June 2016 Quarterly Report

    June 2016 - TCYT US Quarterly Report
    View/Download »
  • March 2016 Quarterly Report

    March 2016 - TCYT US Quarterly Report
    View/Download »
  • December 2015 Quarterly Report

    December 2015 - TCYT US Quarterly Report
    View/Download »

Subscription Documents

  • Institutional Investor Application Form

    May 2016 - Fund Application form for Institutional, Pension Plan, or Investment Fund
    View/Download »

Financial Statements

  • Audited Financial Statements

    December 2015 - Trez Capital Yield US Trust Audited Financial Statements
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Offering Documents

  • Offering Memorandum

    Trez Capital Yield US Trust Offering Memorandum
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