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
Minimum Investment: $5,000 (500 units)
Redemptions: 30 days' notice, subject to 1% retraction penalty if redeemed within 1st year
Eligibility: RRSP / RRIF / TFSA / RESP / RDSP / DPSP
FundSERV Codes: Series A - TRZ100, Series F - TRZ110
DRIP Eligible: Yes
Fund Assets (09/30/2017): $499,332,190

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 F
4.6% 7.4% 7.3% 7.6% 8.1%
Trez Capital Yield Trust
Series A1
3.8% 6.3% 6.3% 6.6% 7.1%

1 A Series units were introduced on April 1, 2013.
Returns are reported as F Series returns less 100 bps.

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 F units and 1.25% on Series A 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
2017 F $0.15 $0.15 $0.15   $0.450   $0.450
  A2 $0.125 $0.125  $0.125   $0.375   $0.375
2016 F $0.15 $0.15 $0.15  $0.15 $0.600  $0.118 $0.718
  A2 $0.125 $0.125  $0.125  $0.125 $0.500  $0.118 $0.618
2015 F $0.15 $0.15 $0.15 $0.15 $0.60 $0.13 $0.73
  A2 $0.125 $0.125 $0.125 $0.125 $0.500 $0.125 $0.625
2014 F $0.15 $0.15 $0.15 $0.15 $0.60 $0.11 $0.71
  A2 $0.125 $0.125 $0.125 $0.125 $0.500 $0.107 $0.607
2013 F $0.15 $0.15 $0.15 $0.15 $0.60 $0.16 $0.76
  A2 $0.125 $0.125 $0.125 $0.125 $0.500 $0.159 $0.659
2012 F $0.15 $0.15 $0.15 $0.15 $0.60 $0.20 $0.80
2011 F $0.15 $0.15 $0.15 $0.15 $0.60 $0.25 $0.85
2010 F $0.15 $0.15 $0.15 $0.15 $0.60 $0.22 $0.82
2009 F - $0.07 $0.15 $0.15 $0.37 $0.21 $0.58

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 A Series units were introduced on April 1, 2013.

 

 

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 1.5% of the Average Annual Gross Assets relating to the F Series and A Series units.
Incentive Fee 10% of the Net Income for each unit series after deduction of the Management fee.

Minimum Investment

Province Minimum investment when relying on accredited investor exemption1 Minimum investment when relying on offering memorandum exemption2 Minimum investment amount exemption3
Alberta $5,000 $5,000 $150,000
British Columbia $5,000 $ 5,000 $150,000
Manitoba $5,000 N/A $150,000
New Brunswick $5,000 $5,000 $150,000
Newfoundland & Labrador $5,000 $5,000 $150,000
Nova Scotia $5,000 $5,000 $150,000
Ontario $5,000 $5,000 $150,000
Quebec $5,000 N/A $150,000

1 Accredited Investor Exemption: There is no regulatory minimum subscription amount for investors qualifying under the Accredited Investor Exemption. However, the minimum initial purchase amount established by the Manager is $5,000.

2 Offering Memorandum Exemption: There is no regulatory minimum subscription amount for investors qualifying under the Offering Memorandum Exemption. However, the minimum initial purchase amount established by the Manager is $5,000. (Only available for residents of British Columbia, Newfoundland & Labrador, Ontario, Alberta, Saskatchewan, Nova Scotia, and New Brunswick, subject to certain restrictions)

3 Minimum Amount Exemption (not available to individuals): The minimum initial subscription amount for investors qualifying under the Minimum Amount Exemption is $150,000 in each province listed above.

 

to invest, contact your financial advisor, or follow the procedure outlined below.

TREZ CAPITAL YIELD TRUST is sold BY offering memorandum and is available to:

  • Residents of British Columbia or Newfoundland & Labrador, who are provided with an offering memorandum and complete a risk acknowledgment form (45-106F4).  Investment relies on the Offering Memorandum exemption.
  • Residents of Ontario, Alberta, Saskatchewan, New Brunswick, or Nova Scotia, who are provided with an offering memorandum and complete a risk acknowledgement form (45-106F4) with Schedule I and Schedule II (Classification of Investors and Investment Limits).   Investment relies on the Offering Memorandum exemption.
  • Residents of Manitoba or Prince Edward Island, who are provided with an offering memorandum and complete a risk acknowledgment form (45-106F4) and an eligible investor certification.   Investment relies on the Offering Memorandum exemption.
  • Residents of Quebec who qualify as accredited investors and complete an accredited investor certification and a risk acknowledgement form (45-106F9 - for individual investors only).   Investment relies on the Accredited Investor exemption. or;
  • By investing a minimum of $150,000 (for entities only).  Investment relies on the Minimum Amount exemption.

How To Invest

Units may be purchased directly from Trez Capital, or through a self-directed registered plan administered by one of the following:

  • Olympia Trust Company
  • Blue Shore Financial
  • Computershare Trust Company
  • Canadian Western Trust
  • Scotia Private Client Group

Please follow the steps below to proceed with your investment:

1
Download a subscription package:

I am investing as a(n):

  1. Advisor / Investment Dealer
  2. Individual investor (or Jointly)
  3. Corporation, Partnership, or Trust
  4. Institution, Pension Plan, or Investment Fund
2
Complete the application.

For any assistance filling out the application, please contact Investor Services:

T: 604.689.0821
TF: 1.877.689.0821
Monday to Friday, 8:30am to 5:00pm PST

  investor-relations@trezcapital.com
3
Return completed application by Email or Post.

Email: Investor-Relations@trezcapital.com

   

Mailing Address:
Trez Capital LP
c/o Investor Services
#1550 - 1185 West Georgia St.
Vancouver, BC  V6E 4E6

A dealing representative will contact you upon receipt to discuss your application.

Fund Fact Sheets

  • Fund Fact Sheet (A Series)

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

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

Quarterly Unitholder Reports

  • September 2017 Quarterly Report

    September 2017 - TCYT Quarterly Report
    View/Download »

Subscription Documents

  • Corporate Investor Application Form

    October 2017 - Corporate Investor Application Form
    View/Download »
  • Exempt Market Dealers - Subscription Form (Corporate)

    October 2017 - Exempt Market Dealers - Subscription Form (Corporate)
    View/Download »
  • Exempt Market Dealers - Subscription Form (Individual)

    October 2017 - Exempt Market Dealers - Subscription Form (Individual)
    View/Download »
  • FundSERV Brokers - Subscription Form (Corporate)

    October 2017 - FundSERV Brokers - Subscription Form (Corporate)
    View/Download »
  • FundSERV Brokers - Subscription Form (Individual)

    October 2017 - FundSERV Brokers - Subscription Form (Individual)
    View/Download »
  • Individual Investor Application Form

    October 2017 - Individual Investor Application Form
    View/Download »
  • Institutional Investor Application Form

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

Financial Statements

  • Audited Financial Statements

    December 2016 - Trez Capital Yield Trust Audited Financial
    View/Download »

Offering Documents

  • Offering Memorandum

    Trez Capital Yield Trust Offering Memorandum
    View/Download »