TSX Symbol FC
TORONTO, May 2, 2017 /CNW/ - Firm Capital Mortgage
Investment Corporation (the "Corporation") (TSX FC) today released
its financial statements for the three months ended March 31, 2017.
HIGHLIGHTS
PROFIT
Income and profit (referred to herein as "Profit") for the quarter
ended March 31, 2017 increased by
approximately 40% to $7,026,716 as
compared to $5,014,757 reported for
the same period in 2016. The increase is primarily derived
from special income as described further below.
Basic weighted average profit per share for the three months
ended March 31, 2017 was $0.311 or 26% increase, compared to $0.246 per share reported for the same period in
2016. The increase is primarily derived from special income as
described further below.
SIGNIFICANT SPECIAL INCOME
Special income recorded in the quarter ended March 31, 2017 totaled $2,835,385 as compared to $126,336 for the same period last year.
$2,737,500 of special income was
recognized in the quarter from one of the Corporations'
non-conventional mortgage investments. Collection of the
special income component of this $3,450,000 investment has been determined to be
fully collectable, with receipt of the full principal investment
amount, accrued interest and $2,737,500 of special income expected before the
end of the year.
PORTFOLIO GROWTH
The Corporation's investment portfolio (the "Investment Portfolio")
as at March 31, 2017 increased by
$16.58 million to approximately
$465.33 million spread over 248
investments compared to $448.75
million spread over 245 investments as at December 31, 2016 (before the impairment
provision of $5.09 million and
$4.46 million respectively).
RETURN ON EQUITY
The Corporation continues to exceed its yield objective of
producing a return on shareholders' equity in excess of 400 basis
points over the average one year Government of Canada Treasury bill
yield. Profit for the quarter ended March
31, 2017 represents an annualized return on shareholders'
equity (based on the month end average shareholders' equity in the
quarter) of 11.37%, representing return on shareholders' equity of
1,074 basis points per annum over the average one year Government
of Canada Treasury bill yield of 0.63%.
INVESTMENT PORTFOLIO DETAILS
Details on the Corporation's investment portfolio as at
March 31, 2017 are as follows:
- Total gross investment portfolio of $465,325,609 which is a 4% increase over
December 31, 2016.
- Conventional first mortgages, being those first mortgages with
loan to values less than 75%, comprise 75.1% of our total
portfolio, and total conventional mortgages with loan to values
under 75% comprise 85.4% of our total portfolio.
- Approximately 67% of the portfolio matures by March 31, 2018.
- The average face interest rate on the portfolio is 7.85% per
annum.
- Regionally, the mortgage portfolio is diversified approximately
as follows: Ontario (82%),
Alberta (8%), Quebec (5%), and Other (5%).
- 228 of the 248 investments, individually represent less than 1%
of the total Investment Portfolio with 194 of the 248 investments
being less than $2.5 million:
|
|
|
|
|
|
|
|
|
|
Amount
|
|
Number of
Investments
|
|
%
|
|
Total Amount
(before provision)
|
|
%
|
$0 -
$2,500,000
|
|
194
|
|
78%
|
|
$
|
161,866,557
|
|
36%
|
$2,500,001 -
$5,000,000
|
|
38
|
|
15%
|
|
|
137,137,750
|
|
29%
|
$5,000,001 -
$7,500,000
|
|
4
|
|
2%
|
|
|
25,415,031
|
|
5%
|
$7,500,001
+
|
|
12
|
|
5%
|
|
|
140,906,271
|
|
30%
|
|
|
248
|
|
100%
|
|
$
|
465,325,609
|
|
100%
|
DIVIDEND AND SHARE PURCHASE PLAN
The Corporation has
in place a Dividend Reinvestment Plan (DRIP) and Share Purchase
Plan that is available to its Shareholders. The DRIP allows
participants to have their monthly cash dividends reinvested in
additional shares. The Price paid per share is 97% (if the share
price is higher than $12.95) of the
weighted average trading price calculated five trading days
immediately preceding each dividend date with no commission cost.
Once registered with the Share Purchase Plan, participants have the
right to purchase additional shares, totaling no greater than
$12,000 per year and no less than
$250 per month. Shareholders
participating pay no commission.
ABOUT THE CORPORATION
Where Mortgage Deals Get Done®
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. Full reports of the financial results of the
Corporation for the three month period ended March 31, 2017 are outlined in the unaudited
financial statements and the related management's 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.
Boutique Mortgage Lenders®
SOURCE Firm Capital Mortgage Investment Corporation