Western Asset Mortgage Capital Corporation Declares Second Quarter Dividend of $0.06 Per Share
June 22 2021 - 4:15PM
Business Wire
Western Asset Mortgage Capital Corporation (the “Company”)
(NYSE: WMC) announced today that its Board of Directors has
declared a cash dividend of $0.06 per share for the second quarter
of 2021. Today’s dividend is payable on July 26, 2021 to common
shareholders of record as of July 02, 2021, with an ex-dividend
date of June 30, 2021.
In addition, the Company estimates that its GAAP book value per
share, as of May 31, 2021, was approximately $3.49. The May 31,
2021 estimated GAAP book value is unaudited, has not been verified
or reviewed by any third party and is subject to normal quarterly
reconciliation and other procedures. Further, the estimated book
value is as of May 31, 2021 and does not include the dividend
announced today.
The estimated decline in book value during the first two months
of the second quarter of 2021 from the book value reported as of
March 31, 2021 in the Company’s Quarterly Report on Form 10-Q was
primarily due to a decline in fair value in a commercial real
estate mezzanine loan held by the Company with an outstanding
balance of $90 million. The underlying property is a class A retail
and entertainment complex located in the North East US. The
unprecedented global pandemic has adversely impacted the operating
performance of this major asset that was scheduled to open in March
2020, but was severely impacted by COVID-19 related shutdowns and
restrictions. As previously disclosed, the Company was receiving
interest payments on this loan from a reserve that was exhausted in
May and the loan became non-performing upon depletion of the
reserve.
The Company is currently in discussions with the borrower and
other lenders on potential restructuring of the borrower’s debt and
there are a number of possible outcomes for this major complex
project. There can be no assurance that these discussions will
result in a positive outcome for the Company and the Company may
suffer further losses with respect to the mezzanine investment.
The rest of the portfolio (excluding the loan discussed above)
has generally experienced improved valuations from March 31, 2021
to May 31, 2021.
GAAP book value will fluctuate with market conditions, the
results of the Company’s operations and other factors. The
Company’s current GAAP book value may be materially different from
the May 31, 2021 estimated GAAP book value.
ABOUT WESTERN ASSET MORTGAGE CAPITAL CORPORATION
Western Asset Mortgage Capital Corporation is a real estate
investment trust that invests in, acquires and manages a diverse
portfolio of assets consisting of Residential Whole Loans,
Commercial Loans, Non-Agency CMBS, Non-Agency RMBS, GSE Risk
Transfer Securities and to a lesser extent Agency RMBS, Agency CMBS
and ABS. The Company’s investment strategy may change, subject to
the Company’s stated investment guidelines, and is based on its
manager Western Asset Management Company, LLC's perspective of
which mix of portfolio assets it believes provide the Company with
the best risk-reward opportunities at any given time. The Company
is externally managed and advised by 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.
FORWARD-LOOKING STATEMENTS
This press release contains statements that may constitute
"forward-looking statements" For these statements, the Company
claims the protections of the safe harbor for forward-looking
statements contained in such sections. Forward-looking statements
are subject to substantial risks and uncertainties, many of which
are difficult to predict and are generally beyond the Company’s
control. In particular, it is difficult to fully assess the impact
of COVID-19 at this time due to, among other factors, uncertainty
regarding the severity and duration of the outbreak domestically
and internationally and the effectiveness of federal, state and
local governments’ efforts to contain the spread of COVID-19 and
respond to its direct and indirect impact on the U.S. economy and
economic activity. Other factors are described in Risk Factors
section of the Company’s annual report on Form 10-K for the period
ended December 31, 2020 filed with the Securities and Exchange
Commission (“SEC”). The Company undertakes no obligation to update
these statements for revisions or changes after the date of this
release, except as required by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20210622005990/en/
Investor Relations Contact: Larry Clark Financial Profiles, Inc.
(310) 622-8223 lclark@finprofiles.com
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