Expects to Complete Deregistration Process by the First Half of 2021
Closes on $30 Million First Mortgage Bridge Loan for the Acquisition of Finley Point Office Building in Downers Grove, IL
RMRM to Provide Month-End NAV Data Until Deregistration is Complete
RMR Mortgage Trust (Nasdaq: RMRM) today provided an update on its business transition to a Mortgage REIT.
RMRM today announced the closing of a $30.0 million first mortgage bridge loan it provided to finance the acquisition of Finley Point, a 223,771 square foot multi-tenant office building located in Downers Grove, IL.
This floating rate loan includes initial funding of approximately $29.5 million and a future funding allowance of approximately $0.5 million for leasing capital. The loan is structured with a 38-month initial term and a one-year extension option, subject to the borrower meeting certain requirements.
Fernando Diaz, President and Senior Portfolio Manager of RMR Mortgage Trust, made the following statement:
"RMRM has taken an important step in our transformation to a Mortgage REIT and converting our investment portfolio from securities in real estate companies to first mortgage whole loans secured by middle market and transitional commercial real estate. We believe that the loan closing of Finley Point in conjunction with other prospective opportunities positions us to convert our investment portfolio to loans and complete the deregistration process during the first half of 2021."
In addition, RMRM announced that, beginning with September 30, 2020, it will provide monthly net asset value, or NAV, data following the completion of the month until the de-registration process is complete. The NAV will be posted to the following page on RMRM’s website: https://www.rmrmortgagetrust.com/investors/stock-information/default.aspx.
RMRM’s deregistration application is currently pending with the SEC.
RMR Mortgage Trust (Nasdaq: RMRM) has historically operated as a closed end investment company advised by RMR Advisors LLC but is in the process of transitioning to a mortgage REIT. RMR Advisors LLC is a wholly owned subsidiary of The RMR Group LLC, an alternative asset management company that is the majority owned operating 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 RMRM uses words such as "believe", "expect", "anticipate", "intend", "plan", "estimate", "will", "may" and negatives or derivatives of these or similar expressions, RMRM is making forward-looking statements. These forward-looking statements are based upon RMRM’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 RMRM’s forward looking statements as a result of various factors. Forward looking statements involve known and unknown risks, uncertainties and other factors, some of which are beyond RMRM’s control. For example,
- Mr. Diaz states that this first loan closing of Finley Point in conjunction with other prospective opportunities positions RMRM to convert its investment portfolio to loans and complete the deregistration process during the first half of 2021. However, these additional opportunities may not exist or continue and RMRM may fail to successfully execute on any such opportunity and the deregistration process may not successfully be completed as planned.
The information contained in RMRM’s filings with the SEC, including under "Risk Factors" in RMRM’s periodic reports or incorporated therein, identifies other important factors that could cause RMRM’s actual results to differ materially from those stated in or implied by RMRM’s forward looking statements. RMRM’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, RMRM does not intend to update or change any forward looking statements as a result of new information, future events or otherwise.
Kevin Barry, Manager, Investor Relations