2023 Stock Repurchase Announcement
To First Commonwealth Mortgage Trust Shareholders:
The time period for submitting a repurchase tender expired June 30, 2023. Pursuant to the Stock Repurchase Program for 2023 the Trust will be repurchasing 56,956 shares, 5% of the outstanding shares of the Trust’s stock, for a total of $333,192.60. The purchase price is $5.85 per share, which is 90% of the Net Book Value of the shares as of December 31, 2022, less the May 2023 dividend paid of $0.14 per share.
The amount of shares tendered (172,873) exceeds 5% of the Trust’s outstanding shares. 13,326 shares will be redeemed for shareholders with less than 1,000 shares. For the remaining participating shareholders, there will be a proration buying back 43,360 shares or approximately 27.35% of the shares tendered.
Robert W. Scharar
President
First Commonwealth Mortgage Trust (the "Trust") is a Texas real estate investment trust. It was originally organized as a Massachusetts business trust in 1984 and was reformed in Texas as a real estate investment trust in 2008. The Trust was formed for the purpose of originating and purchasing real estate loans, trust deeds, mortgages or real estate lien promissory notes associated with real properties ("Mortgage Loans") located in the continental United States.
The Trust's primary investment objective is to maximize cash distributions to its shareholders based on funds available for distribution, which includes funds provided from operations and, from time to time, gains realized on the sale of investments.
The Trust was organized and has qualified as a real estate investment trust ("REIT") in accordance with federal tax laws and regulations. So long as the Trust complies with such laws and regulations, with limited exceptions, the Trust will not be taxed under federal income tax laws on that portion of its taxable income that it distributes to its shareholders. The Trust intends to distribute substantially all of its real estate investment trust taxable income to its shareholders.