NEWTON, Mass.--(BUSINESS WIRE)--RMR Mortgage Trust (Nasdaq: RMRM) today provided an update on its business transition to a mortgage real estate investment trust.
RMRM announced the closing of a $21.5 million first mortgage bridge loan it provided for the acquisition of The Lab at RTP, a 72-acre life science and agriculture technology campus in the Research Triangle submarket of Durham, North Carolina.
This floating rate loan includes initial funding of approximately $13.5 million to fund the acquisition and a future funding allowance of approximately $8.0 million for expansion. The loan is structured with a three-year initial term and two one-year extension options, subject to the borrower meeting certain requirements.
In addition, RMRM continues to realign its portfolio consistent with its new business as a mortgage REIT and divest legacy assets. As of December 18, 2020, legacy positions in investment securities represented less than 10 percent of RMRM’s total assets. Furthermore, RMRM recently repaid all outstanding borrowings and terminated its revolving credit facility with BNP Paribas Prime Brokerage International, Ltd.
RMRM’s application to deregister as an investment company is currently pending with the Securities and Exchange Commission, or SEC. RMRM expects the deregistration process to be completed in January 2021.
RMR Mortgage Trust (Nasdaq: RMRM) historically operated as a registered closed end investment company advised by RMR Advisors LLC but is in the process of transitioning to a mortgage real estate investment trust. 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.
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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 states RMRM expects its deregistration process with the SEC to be completed in January 2021. However, RMRM’s deregistration process may not successfully be completed as planned.
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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.
