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. The investment objective is to preserve invested capital, while generating an attractive rate of income.

Fund Summary

Fund Type Open-Ended pooled mortgage fund
Inception January 1, 2017
Eligibility RRSP, RRIF, DPSP, RDSP, RESP, TFSA, IPP
Unit Value $10
Purchase T + 2
Redemption T + 20, subject to 1% retraction penalty if redeemed within 1st year.
Management Fee 1.15%
Incentive Fee 10% of Net Operating Income
Distribution Frequency Monthly
Target Return 8.35% per annum

Manager Summary

Manager Trez Capital Fund Management Limited Partnership
Manager AUM CAD 3.0 Billion
Fund AUM $466,508,222

Portfolio Metrics

Number of Loans 81
Weighted Average LTV 70.3%
Weighted Average Term-to-Maturity (Months) 19.2
Weighted Average Interest Rate 11.7%

Geographic Region

Dallas/Ft.Worth
43.2%
Houston
20.3%
Florida
19%
United States - Other
9.6%
San Antonio
5.9%
Austin
1.9%
Denver
0.1%

Asset Class

Residential
96.2%
Office
2.8%
Retail
1%

Security Rank

First Mortgages
89.4%
Second Mortgages
8.9%
Third Mortgages
0.2%
Preferred Equity Loan
1.5%

Historical Performance

  2018 1 Year 3 Year 5 Year Since Inception
Trez Capital Yield Trust US (CAD)
Series I
8.6% 8.6% 8.9% 10.2% 10.3%

1 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.

3 The fund was established on Dec 8, 2016 and assets were transferred from Trez Capital Yield Trust US ("TCYT US") pursuant to a unitholder-approved reorganization of TCYT US whereby the CAD denominated units of TCYT US were cancelled and an equal number of units of Trez Capital Yield Trust US (Canadian $) were issued to unitholders.

Growth of $10,000

 

Trez Capital Yield Trust US (CAD) distributes 100% of its net income annually. Unitholders receive quarterly distributions at a rate of 2.0% on Series F units and 1.75% on Series A 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

Year Series Q1 Q2 Q3 Q4 Total Quarterly Distribution Top-up1 Annual Distribution
2018 I2 $0.200 $0.200 $0.200 $0.200 $0.800 $0.035 8.6% (DRIP)
2017 I2 $0.200 $0.200 $0.200 $0.200 $0.800 $0.035 $0.835
2016 I2 $0.200 $0.200 $0.200 $0.200 $0.800 $0.127 $0.927

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.

3 This return is based on all distributions throughout the year being re-invested into the fund. This is a compounded return from the distribution re-investment program.

 

Distribution Schedule

  Record Date Expected Pay Date
January January 31 February 7
February February 28 March 8
March March 31 April 9
April April 30 May 9 
May May 31 June 7 
June June 30 July 9
July July 31 August 9
August August 31 September 9
September September 30 October 8
October October 31 November 8
November November 30 December 9
December December 31 January 8
Annual Top Up December 31 March 17

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 US 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 Wealth Management

 

Fund Fact Sheets

  • Fund Fact Sheet (I Series) CAD

    Fund Fact Sheet (I Series) CAD
    December 2018 - Trez Capital Yield Trust US Fund Fact Sheet (I Series) CAD
    View/Download »

Subscription Documents

  • Institutional Investor Application Form

    November 2018 - Fund Application form for Institutional, Pension Plan, or Investment Fund
    View/Download »

Financial Statements

  • Audited Financial Statements

    December 2018 - Trez Capital Yield US Trust Audited Financial Statements ($C)
    View/Download »

Offering Documents

  • Trez Capital Yield Trust US ($CAD) Offering Memorandum

    May 2018 - Trez Capital Yield Trust US ($CAD) Offering Memorandum
    View/Download »
  • TCYTUS(CAD) notice d'offre

    May 2018 - TCYTUS(CAD) notice d'offre
    View/Download »
  • Declaration of Trust

    December 2016 - Trez Capital Yield Trust US ($CAD) Declaration of Trust
    View/Download »

The Declaration of Trust for Trez Capital Yield Trust US (Canadian $) has been posted for informational purposes in connection with the special meeting of unitholders of Trez Capital Yield Trust US to be held on December 9, 2016, and remains subject to further change and finalization prior to the effective date of the reorganization of Trez Capital Yield Trust US, which is conditional upon, among other things, receipt of unitholder approval.

Investments