RMR Mortgage Trust Closes $34.3 Million First Mortgage Bridge Loan Refinancing of an Office and Industrial Property in Colorado Springs, Colorado

Rhea-AI Summary

RMR Mortgage Trust (Nasdaq: RMRM) announced a $34.3 million first mortgage floating-rate bridge loan for refinancing a 191,000 square foot office and a 97,000 square foot industrial property in Colorado Springs, Colorado. An initial advance of approximately $29 million was funded at closing, with an option for further advances of up to $5.3 million. This marks RMRM's ninth loan closing, expanding its portfolio of committed capital to over $250 million. The loan is structured with a three-year term and a one-year extension option, contingent on borrower requirements.

Positive

• Closing of $34.3 million loan demonstrates execution of new business plan.
• Portfolio expansion to over $250 million with this loan closing.
• Availability of future advances up to $5.3 million for property improvements.

Negative

• Business growth depends on ability to close additional loans and secure capital.
• Risks of competition and external factors like the COVID-19 pandemic may hinder future plans.

RMR Mortgage Trust (Nasdaq: RMRM) today announced the closing of a $34.3 million first mortgage floating-rate bridge loan to refinance a property comprised of a 191,000 square foot office building and a 97,000 square foot industrial building located at 10125 and 10205 Federal Drive in Colorado Springs, Colorado. RMRM’s manager, Tremont Realty Capital, was introduced to the transaction by Essex Financial Group, which advised the sponsor, Flywheel Capital of Denver.

An initial advance of approximately $29 million was funded at closing with future advances of up to $5.3 million available for tenant improvements, leasing commissions and capital expenditures. The loan is structured with a three-year initial term and a one-year extension option, subject to the borrower meeting certain requirements.

Tom Lorenzini, President of RMRM, made the following statement:

“The closing of this loan further demonstrates our successful execution of RMRM’s new business plan to provide first mortgage loans secured by middle market and transitional commercial real estate. Through the efforts of our manager, Tremont Realty Capital, this is our ninth loan closing, increasing our portfolio of committed capital to more than $250 million. We look forward to further expanding our portfolio as we continue to pursue our investment objective to balance capital preservation with generating attractive, risk adjusted returns.”

RMR Mortgage Trust (Nasdaq: RMRM) is a real estate finance company that originates and invests in first mortgage loans secured by middle market and transitional commercial real estate. RMRM is managed by an affiliate of The RMR Group Inc. (Nasdaq: RMR). Substantially all of RMR’s business is conducted by its majority owned subsidiary, The RMR Group LLC, which is an alternative asset management company with $32 billion in assets under management and more than 35 years of institutional experience in buying, selling, financing and operating commercial real estate. For more information about RMRM, please visit www.rmrmortgagetrust.com.

Tremont Realty Capital, on behalf of its capital sources, Tremont Mortgage Trust (Nasdaq: TRMT) and RMR Mortgage Trust (Nasdaq: RMRM), is a direct lender that invests in loans secured by middle market and transitional commercial real estate. Tremont Realty Capital is the trade name of Tremont Realty Advisors LLC, which is an affiliate of The RMR Group (Nasdaq: RMR). For more information about Tremont Realty Capital please visit www.tremontcapital.com.

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:

• This press release references recent loans closed and future plans to expand RMRM’s new business as a commercial mortgage REIT and pursue its investment objective, which may imply that RMRM will close additional loans, that it will achieve its investment objective and that its business will continue to improve as a result. However, RMRM’s business and ability to execute loans and realize its investment objective are subject to various risks, including the competitive nature of the industry in which it operates, as well as other factors, many of which are outside its control, such as the current COVID-19 pandemic. These risks and other factors may prevent RMRM from successfully closing additional loans, executing its new business and realizing its investment objective. Further, once RMRM invests or commits its remaining capital, its ability to continue to grow and fund loans will be subject to its ability to obtain additional cost-effective capital or its redeploying proceeds from repayments of its loan investments.

The information contained in our “Summary of Principal Risk Factors” included in our Current Report on Form 8-K filed on March 24, 2021 with the Securities and Exchange Commission, or SEC, 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210412005048/en/

FAQ

What is the recent loan closing by RMR Mortgage Trust (RMRM)?

RMR Mortgage Trust closed a $34.3 million first mortgage floating-rate bridge loan for refinancing a property in Colorado Springs.

How much capital has RMRM committed to its portfolio after the new loan?

After the latest loan closing, RMRM's portfolio of committed capital has surpassed $250 million.

What are the terms of the new mortgage loan by RMRM?

The loan features an initial funding of approximately $29 million, with future advances up to $5.3 million, a three-year term, and a one-year extension option.

What are the risks associated with RMRM's business expansion?

RMRM faces risks from competitive pressures and external factors like the COVID-19 pandemic that may affect loan closures and capital sourcing.