TSX Symbol FC
TORONTO, Feb. 12, 2015 /CNW/ - Firm Capital Mortgage
Investment Corporation (the "Corporation") (TSX: FC) would like to
provide details about its mortgage investments in Alberta as a result of inquiries from
shareholders, analysts and other members of the investment
community.
ALBERTA MORTGAGE
INVESTMENTS:
As at December 31,
2014, the Corporation's total investment portfolio stood at
$342.9 million (excluding loan loss
provisions) of which approximately $38.9
million (11.3%) was secured on properties located in
Alberta. The Alberta mortgage investment portfolio is well
diversified with 18 mortgages and an average investment size of
$2.2 million. The Alberta portfolio is very heavily concentrated
in first mortgages on residential properties. 94.9% of the
Alberta portfolio are first
mortgages, followed by non-conventional mortgages (2.7%) and
conventional non-first mortgages (2.4%). 96.9% of the
Alberta portfolio are residential
mortgages, while the remainder are commercial mortgages
(3.1%). The Loan-To-Value exposure for the Alberta mortgage investment portfolio stands
at a reasonable 61.0%.
The weighted average face interest rate on the Alberta portfolio stands at 7.7% per annum.
Un-advanced committed funds allocated to the Alberta portfolio stands at $15.9 million, subject to a pending reduction of
$11.9 million as outlined below.
We anticipate that by the end of this month one material
residential investment in the Alberta portfolio (the borrower being a
well-known financial sponsor) in the amount of $10.1 million is being repaid via a refinancing
from a Canadian Chartered Bank and that will reduce the un-advanced
funds by $11.9 million. The
portfolio of the remaining 17 investments is $28.8 million, with further advances of
$4 million.
As is the case with the majority of the Corporation's mortgage
investments, all of the Alberta
mortgage investments are shared with other syndicate partners to
diversify risk. In addition, all of the Corporation's Alberta mortgage investments are performing
and are not impaired.
OTHER NOTABLE INVESTOR INFORMATION:
- The December, 2014 dividends to shareholders was $0.112 per share, which includes the special
year-end dividend of $0.034 per
share. The total 2014 dividends totalled $0.97. It should be pointed out that the
Corporation has been paying this special year-end dividend since
its IPO in 1999.
- Loan loss provisions as at December 31,
2014 represents 1% of the total mortgage investment
portfolio.
- The mortgage investment portfolio as at January 31, 2015 was largely unchanged at
$341.8 million.
Shareholders are reminded that monthly investment portfolio
highlights are posted on our website at www.firmcapital.com under
the banner "Firm Capital Mortgage Investment Corporation".
ABOUT THE CORPORATION
The Corporation, through its
mortgage banker, Firm Capital Corporation, is a non-bank lender
providing residential and commercial short-term bridge and
conventional real estate financing, including construction,
mezzanine and equity investments. The Corporation's investment
objective is the preservation of Shareholders' equity, while
providing Shareholders with a stable stream of monthly dividends
from investments. The Corporation achieves its investment
objectives through investments in selected niche markets that are
under-serviced by large lending institutions. Lending activities to
date continue to develop a diversified mortgage portfolio,
producing a stable return to Shareholders. The Corporation is a
Mortgage Investment Corporation (MIC) as defined in the Income Tax
Act. Accordingly, The Corporation is not taxed on income provided
that its taxable income is paid to its shareholders in the form of
dividends within 90 days after December
31 each year. Such dividends are generally treated by
shareholders as interest income, so that each shareholder is in the
same position as if the mortgage investments made by the company
had been made directly by the shareholder. Full reports of the
financial results of the Corporation for the year are outlined in
the audited financial statements and the related management
discussion and analysis of Firm Capital, available on the SEDAR
website at www.sedar.com. In addition, supplemental
information is available on Firm Capital's website at
www.firmcapital.com.
Forward-Looking Statements
This news release contains forward-looking statements within the
meaning of applicable securities laws including, among others,
statements concerning our objectives, our strategies to achieve
those objectives, our performance, our mortgage portfolio and our
dividends, as well as statements with respect to management's
beliefs, estimates, and intentions, and similar statements
concerning anticipated future events, results, circumstances,
performance or expectations that are not historical facts.
Forward-looking statements generally can be identified by the use
of forward-looking terminology such as "outlook", "objective",
"may", "will", "expect", "intent", "estimate", "anticipate",
"believe", "should", "plans" or "continue" or similar expressions
suggesting future outcomes or events. Such forward-looking
statements reflect management's current beliefs and are based on
information currently available to management.
These statements are not guarantees of future performance and
are based on our estimates and assumptions that are subject to
risks and uncertainties, including those described in our Annual
Information Form under "Risk Factors" (a copy of which can be
obtained at www.sedar.com), which could cause our actual results
and performance to differ materially from the forward-looking
statements contained in this circular. Those risks and
uncertainties include, among others, risks associated with mortgage
lending, dependence on the Corporation's mic manager and mortgage
banker, competition for mortgage lending, real estate values,
interest rate fluctuations, environmental matters, Shareholder
liability and the introduction of new tax rules. Material
factors or assumptions that were applied in drawing a conclusion or
making an estimate set out in the forward-looking information
include, among others, that the Corporation is able to invest in
mortgages at rates consistent with rates historically achieved;
adequate mortgage investment opportunities are presented to the
Corporation; and adequate bank indebtedness and bank loans are
available to the Corporation. Although the forward-looking
information continued in this new release is based upon what
management believes are reasonable assumptions, there can be no
assurance that actual results and performance will be consistent
with these forward-looking statements.
All forward-looking statements in this news release are
qualified by these cautionary statements. Except as required
by applicable law, the Corporation undertakes no obligation to
publicly update or revise any forward-looking statement, whether as
a result of new information, future events or otherwise.
SOURCE Firm Capital Mortgage Investment Corporation