Tremont Mortgage Trust (NASDAQ:TRMT) Q4 2018 Earnings Conference Call Transcript

Feb 07, 2019 • 10:00 am ET


Tremont Mortgage Trust (NASDAQ:TRMT) Q4 2018 Earnings Conference Call Transcript


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Good morning and welcome to the Tremont Mortgage Trust Fourth Quarter Financial Results Conference Call. All participants will be in a listen-only mode. (Operator Instruction). Please note this event is being recorded.

I would now like to turn the conference over to Christopher Ranjitkar, Senior Director of Marketing & Investor Relations. Please go ahead, sir.

Christopher Ranjitkar

Thank you and good morning everyone. Thank you for joining us today. With me on the call are President and Chief Executive Officer, David Blackman and Chief Financial Officer and Treasurer, Doug Lanois. In just a moment, they will provide details about our business and our performance for the fourth quarter of 2018. We will then open the call to questions from research analysts.

First, I would like to note that the recording and re-transmission of today's conference call is strictly prohibited without the prior written consent of the Company. Also note that today's conference call contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other securities laws. These forward-looking statements are based on Tremont's beliefs and expectations as of today, February 7, 2019 and actual results may differ materially from those that we project.

The Company undertakes no obligation to revise or publicly release the results of any revisions to the forward-looking statements made in today's conference call. Additional information concerning factors that could cause those differences is contained in our filings with the Securities and Exchange Commission or SEC, which can be accessed from our website or the SEC's website. Investors are cautioned not to place undue reliance upon any forward-looking statements.

And now, I will turn the call over to David.

David M. Blackman

Thank you, Christopher and good morning. This morning Tremont Mortgage Trust announced fourth Quarter and full Year 2018 results. The business highlights are, our formation capital is fully invested. We declared a partial distribution in January with the expectation of declaring a more normalized distribution in April. And Tremont Realty Advisors, our manager has committed $25 million of fresh capital to our Company that provides us approximately $100 million of additional origination capacity. I believe this positions Tremont for 2019 with strong momentum and on more solid footing than this time last year. We are now two quarters in to a flatter leadership structure and continue to experience benefits from our more focused investment decision. In the past five months, our actionable deal volume has accelerated and we have closed more loans than in the first 12 months of our existence.

When we reported third quarter results in November, we articulated a reasonable expectation of having our capital fully invested by year-end and that we expect to declare at least a partial distribution in January of 2019. While a challenging diligence issue delayed our last loan closing until this week, our formation capital is fully invested. And as promised, we declared our first dividend of $0.11 per common share in January and provided guidance that in April we anticipate declaring a dividend of between