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04/16/2018

Tremont Mortgage Trust Announces Closing of $18.1 Million Acquisition Bridge Loan Financing of Office Tower

NEWTON, Mass.--(BUSINESS WIRE)-- Tremont Mortgage Trust (Nasdaq: TRMT) today announced the closing of an $18.1 million first mortgage bridge loan to finance the acquisition of an 184,000 square foot, 14-story office tower located in Metairie, Louisiana.

This floating rate loan includes initial funding of approximately $15.8 million and an as-is LTV ratio of approximately 80%. This loan also includes future funding allowance of $2.3 million for tenant improvements, leasing commissions, marketing and capital expenditures. The loan has a three-year initial term and two one-year extension options.

“The execution of this acquisition bridge loan underscores the opportunity we see for TRMT to provide debt capital for owners of middle market and transitional commercial real estate,” said David Blackman, Chief Executive Officer of TRMT. “We ultimately expect to leverage this loan with borrowings under our repurchase facility, creating additional capacity for loan originations.”

Tremont Mortgage Trust (Nasdaq: TRMT) is a real estate finance company that focuses primarily on originating and investing in first mortgage loans secured by middle market and transitional commercial real estate. Tremont Mortgage Trust is managed by Tremont Realty Advisors LLC, an SEC registered investment adviser, which is an indirect subsidiary of The RMR Group Inc.

WARNING CONCERNING FORWARD LOOKING STATEMENTS

THIS PRESS RELEASE CONTAINS STATEMENTS THAT CONSTITUTE FORWARD LOOKING STATEMENTS WITHIN THE MEANING OF THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995 AND OTHER SECURITIES LAWS. ALSO, WHENEVER TRMT USES WORDS SUCH AS “BELIEVE”, “EXPECT”, “ANTICIPATE”, “INTEND”, “PLAN”, “ESTIMATE”, “WILL”, “MAY”, AND NEGATIVES OR DERIVATIVES OF THESE OR SIMILAR EXPRESSIONS, TRMT IS MAKING FORWARD LOOKING STATEMENTS. THESE FORWARD LOOKING STATEMENTS ARE BASED UPON TRMT’S PRESENT INTENT, BELIEFS OR EXPECTATIONS, BUT FORWARD LOOKING STATEMENTS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR. ACTUAL RESULTS MAY DIFFER MATERIALLY FROM THOSE CONTAINED IN OR IMPLIED BY TRMT’S FORWARD LOOKING STATEMENTS AS A RESULT OF VARIOUS FACTORS. FOR EXAMPLE:

  • MR. BLACKMAN STATES THAT TRMT SEES AN OPPORTUNITY FOR IT TO PROVIDE DEBT CAPITAL FOR OWNERS OF MIDDLE MARKET AND TRANSITIONAL COMMERCIAL REAL ESTATE. HOWEVER, THAT PERCEIVED OPPORTUNITY MAY NOT EXIST OR CONTINUE AND TRMT MAY FAIL TO SUCCESSFULLY EXECUTE ON ANY SUCH OPPORTUNITY.
  • MR. BLACKMAN STATES THAT TRMT EXPECTS TO LEVERAGE THE ANNOUNCED LOAN WITH BORROWINGS UNDER ITS REPURCHASE FACILITY. HOWEVER, BORROWINGS UNDER TRMT’S REPURCHASE FACILITY ARE SUBJECT TO TRMT’S SATISFYING CERTAIN COVENANTS AND OTHER CONDITIONS THAT TRMT MAY BE UNABLE TO SATISFY.
  • MR. BLACKMAN REFERENCES TRMT’S EXPECTATION THAT LEVERAGING THE ANNOUNCED LOAN WITH BORROWINGS UNDER TRMT’S REPURCHASE FACILITY WILL CREATE ADDITIONAL CAPACITY FOR LOAN ORIGINATIONS. THIS MAY IMPLY THAT TRMT WILL BE ABLE TO SUCCESSFULLY ORIGINATE ADDITIONAL LOANS. TRMT’S ABILITY TO ORIGINATE ADDITIONAL LOANS IS SUBJECT TO VARIOUS UNCERTAINTIES AND CONDITIONS, INCLUDING THOSE BEYOND TRMT’S CONTROL, SUCH AS MARKET CONDITIONS. TRMT MAY NOT SUCCEED IN MAKING ADDITIONAL INVESTMENTS IN THE FUTURE.

THE INFORMATION CONTAINED IN TRMT’S FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION, OR SEC, INCLUDING UNDER “RISK FACTORS” IN TRMT’S PERIODIC REPORTS, OR INCORPORATED THEREIN, IDENTIFIES OTHER IMPORTANT FACTORS THAT COULD CAUSE TRMT’S ACTUAL RESULTS TO DIFFER MATERIALLY FROM THOSE STATED IN OR IMPLIED BY TRMT’S FORWARD LOOKING STATEMENTS. TRMT’S FILINGS WITH THE SEC ARE AVAILABLE ON THE SEC’S WEBSITE AT WWW.SEC.GOV.

YOU SHOULD NOT PLACE UNDUE RELIANCE UPON FORWARD LOOKING STATEMENTS.

EXCEPT AS REQUIRED BY LAW, TRMT DOES NOT INTEND TO UPDATE OR CHANGE ANY FORWARD LOOKING STATEMENTS AS A RESULT OF NEW INFORMATION, FUTURE EVENTS OR OTHERWISE.

A Maryland Real Estate Investment Trust with transferable shares of beneficial interest listed on the Nasdaq.
No shareholder, Trustee or officer is personally liable for any act or obligation of the Trust.

Source: Tremont Mortgage Trust

Tremont Mortgage Trust

Christopher Ranjitkar, 617-796-7651

Director, Investor Relations

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