Pasadena, California – (BUSINESS WIRING) – Western Asset Mortgage Capital Corporation (the “Company”) (NYSE: WMC) announced today that its board of directors has announced a cash dividend of $ 0.06 per share for the second quarter of 2021. Today’s dividend is due on July 26th. 2021 – to ordinary shareholders registered as of July 2, 2021, with a dividend payment date of June 30, 2021.
In addition, the Company estimated its GAAP book value per share as of May 31, 2021 at approximately US $ 3.49. The GAAP book value as of May 31, 2021 has not been reviewed, reviewed or verified by any third party and is subject to regular quarterly reconciliation and other procedures. In addition, the estimated carrying amount is shown as at 31 May 2021 and does not include dividends announced today.
The estimated decrease in the carrying amount during the first two months of the second quarter of 2021 compared to the carrying amount reported as at 31 March 2021 in the Company’s Quarterly Report on Form 10-Q is primarily due to a decrease in the fair value of the commercial property. a mezzanine real estate loan owned by the Company with an outstanding balance of US $ 90 million. The underlying property is a Class A retail and entertainment complex located in the northeastern United States. The unprecedented global pandemic has negatively impacted the operating performance of this large asset, which was scheduled to open in March 2020, but has been severely impacted by COVID-19-related shutdowns and restrictions. As previously reported, the Company received interest payments on this loan from the reserve, which was depleted in May, and the loan became non-performing after the reserve was depleted.
The Company is currently in talks with the borrower and other lenders about a possible restructuring of the borrower’s debt, and there are a number of possible outcomes from this large complex project. There is no guarantee that these discussions will lead to a positive outcome for the Company and the Company may incur additional losses in relation to the mezzanine investment.
The rest of the portfolio (excluding the loan mentioned above) generally experienced an improvement in valuation from March 31, 2021 to May 31, 2021.
GAAP carrying amount will fluctuate depending on market conditions, the Company’s results of operations and other factors. The Company’s current GAAP carrying amount may differ materially from the estimated GAAP carrying amount as of May 31, 2021.
ABOUT WESTERN ASSET MORTGAGE CAPITAL CAPITAL
Western Asset Mortgage Capital Corporation is a real estate investment fund that invests, purchases and manages a diverse portfolio of assets consisting of whole home loans, commercial loans, non-agent CMBS, non-agent RMBS, GSE Risk Transfer Securities and other securities. RMBS Agency, TsMBS Agency and ABS. The Company’s investment strategy may change in accordance with the Company’s established investment guidelines and is based on the views of its manager, Western Asset Management Company, LLC, on which portfolio asset mix it believes will provide the Company with the best risk reward opportunities at any given time. … The company is under the external control and advice of Western Asset Management Company, LLC, an investment advisor registered with the Securities and Exchange Commission and a wholly owned subsidiary of Franklin Resources, Inc. Please visit the company’s website at www.westernassetmcc.com…
This press release contains statements that may constitute “forward-looking statements”. With respect to these statements, the Company seeks protection from the forward-looking statements contained in such sections. Forward-looking statements involve significant risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company. In particular, it is difficult to fully assess the impact of COVID-19 at this time due to, among other things, uncertainties about the severity and duration of the outbreak domestically and internationally, and the effectiveness of federal, state and local government efforts to contain the spread of COVID. 19 and respond to its direct and indirect impact on the US economy and economic activity. Other factors are described in the “Risk Factors” section of the Company’s 10-K annual report for the period ended December 31, 2020, filed with the Securities and Exchange Commission (“SEC”). The company assumes no obligation to update these statements for corrections or changes after the date of this release, except as required by law.