A diversified, balanced short-term commercial mortgage strategy.  Trez Capital Yield Trust invests across the capital stack, including first position and second position mortgages, sub-tranches of mortgages, and blanket mortgages secured by multiple properties.  Loans may be secured by property located in Canada or the United States.  The investment objective is to preserve capital, while generating an attractive, stable rate of interest income for distribution to unitholders.

Fund Summary

Fund Manager: Trez Capital Fund Management Limited Partnership
Asset Class: Open-ended pooled mortgage fund
Inception Date: June 2009
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 - TRZ120
DRIP Eligible: Yes
Fund Assets (12/31/2016): $502,483,586

Case Studies

  • 409 Granville Street
     
    409 Granville Street
    Loan: $10,000,000
    Security Rank:Blanket 2nd Mortgage + Mezz.
    Term:13 months
    Interest Rate:Greater of 6.50% and (P+3.80%)
    Loan-to-Value:57%
    Description:
    Investment in a 2nd mortgage loan to be secured by 218,895 sf 17-story office building with ground floor retail.
  • West 43rd Avenue
     
    West 43rd Avenue
    Loan: $9,500,000
    Term:13 months
    Interest Rate:6.50%
    Loan-to-Value:62%
    Description:
    Investment in a 1st mortgage on a 0.3-acre site located in the Kerrisdale neighborhood of Vancouver with the plan of constructing a 4-storey, 29,883 sf luxury mixed-use building with one level of units and 3,372 sf of retail space.
  • 3005 Bloor Street West
     
    3005 Bloor Street West
    Loan: $9,100,000
    Term:19 months
    Interest Rate:7.00%
    Loan-to-Value:82%
    Description:
    A 1st mortgage on two adjacent properties in the Kingsway neighborhood of Toronto for an eight-storey concrete building featuring 88 residential unit, 8,064 sf of retail space and a separate 3,040 sf townhouse.
  • Burnaby Mixed Use Development
     
    Burnaby Mixed Use Development
    Loan: $60,000,000
    Security Rank:Blanket (2nd/3rd)
    Term:37 months
    Interest Rate:11.875%
    Loan-to-Value:59.3%
    Description:
    Investment in a blanket construction mortgage secured by a 49 storey mixed-use development with a 12 storey office/retail building and a second development site as additional collateral.
  • Scarborough Retail
     
    Scarborough Retail
    Loan: $5,500,000
    Security Rank:2nd mortgage
    Term:25 months
    Interest Rate:9.05%
    Loan-to-Value:71.5%
    Description:
    Investment in a second mortgage secured by a 104,000 s.f. retail plaza. The property is 100% leased with 94% of the net rentable area subject to a lease expiring in 2027.
  • Edmonton Industrial
     
    Edmonton Industrial
    Loan: $23,000,000
    Security Rank:1st mortgage
    Term:19 months
    Interest Rate:Greater of 8% and P + 5%
    Loan-to-Value:78.0%
    Description:
    Investment in a first mortgage secured by a 302,000 s.f. industrial property on an 11.5 acre site. The property is fully leased and will be undergoing significant value-add renovations.

Portfolio Composition

Cash (and Equivalents) $42,869,164
Other Assets $14,554,019
Mortgage Investments $423,411,380
Property Held for Sale $675,637
Limited Partnership Investments $17,821,990
Total Fund Assets $499,332,190
Number of Loans 108
Average Loan Size $3,920,476
Weighted Average LTV 72.9%
Weighted Average Term-to-Maturity (Months) 11.7
Weighted Average Interest Rate 8.80%

Geographic Region

Alberta
37.8%
British Columbia
16.4%
Texas
3.6%
Florida
%
United States - Other
8.9%
Ontario
8.9%
Nova Scotia
1.3%
Cash & Other Assets
15.2%

Asset Class

Residential
42.6%
Industrial
20.7%
Office
10.8%
Retail
4.4%
Other
6.3%
Cash & Other Assets
2.7%

Security Rank

First Mortgages
60.1%
Second Mortgages
19.5%
Third
2.2%
Blanket
3%
Cash & Other Assets
15.2%

Weighted Average Term to Maturity

Month-to-Month
6.5%
1 Day - 90 Days
16.2%
91 days - 120 Days
5.6%
121 Days - 240 Days
22.1%
241 Days - 365 Days
13.5%
Over 365 Days
36.1%

Historical Performance

  2017 YTD 1 Year 3 Year 5 Year Since Inception
Trez Capital Yield Trust
Series I
3.0% 7.7% 7.7% 8.0% 8.5%

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 June 2009, the return for 2009 is an annualized return.

Growth of $10,000

 

Trez Capital Yield Trust distributes 100% of its net income annually. Unitholders receive quarterly distributions at a rate of 1.5% on Series I units, payable fifteen days following each calendar quarter end. All residual income 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

Year Series Q1 Q2 Q3 Q4 Total Quarterly Distribution Top-up1 Annual Distribution
2015 I2 $0.150 $0.150 $0.150 $0.150 $0.600 $0.160 $0.760
2014 I2 $0.150 $0.150 $0.150 $0.150 $0.600 $0.142 $0.742
2013 I2 $0.150 $0.150 $0.150 $0.150 $0.600 $0.194 $0.794

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.

2  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.

 

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:

Daniel Marchand 
Senior Vice President, Head of Investor Global Sales
P: 647.778.1780
E: DanielM@trezcapital.com

 

Fund Fact Sheets

  • Fund Fact Sheet (I Series)

    Fund Fact Sheet (I Series)
    September 2017 - Trez Capital Yield Trust Fund Fact Sheet (I Series)
    View/Download »

Quarterly Unitholder Reports

  • September 2017 Quarterly Report

    September 2017 - TCYT Quarterly Report
    View/Download »

Subscription Documents

  • Institutional Investor Application Form

    October 2017 - Fund Application form for Institutional, Pension Plan, or Investment Fund
    View/Download »

Financial Statements

  • Audited Financial Statements

    December 2015 - Trez Capital Yield Trust Audited Financial Statements
    View/Download »

Offering Documents

  • Offering Memorandum

    Trez Capital Yield Trust Offering Memorandum
    View/Download »