TORONTO, Sept. 6, 2017 /CNW/ - Firm Capital Mortgage
Investment Corporation (the "Corporation") (TSX: FC) is
pleased to provide shareholders with an update on its operating
line of credit, investment portfolio size and average interest rate
on its investments.
UPSIZING OF OPERATING LINE OF CREDIT TO $90 MILLION AND THE PROVISION OF US
BORROWINGS
The Corporation is pleased to report that it has
positively renegotiated the terms of its operating line of credit
with a Canadian Chartered Bank. First, the Corporation has
increased the operating line of credit to $90 million. Second, within the $90 million, upwards of US$20 million is available in US borrowings and
will pay interest based on LIBOR plus a spread. All other terms
within the operating line of credit remain unchanged.
PORTFOLIO EXCEEDS $517 MILLION
WITH 8.20% AVERAGE YIELD
The Corporation is also pleased to
report that as of August 31, 2017,
the investment portfolio stands at $517
million, which is a 6% increase over the $489 million investment portfolio reported as at
June 30, 2017. The investment
portfolio is well diversified, consisting of 263 mortgage
investments with an average yield on investments of 8.20%.
72% of the investment portfolio is in first mortgages with
approximately 68% of the investment portfolio maturing within the
next twelve months, which is consistent with the Corporation's
short term bridge financing strategy. Further investment portfolio
details are posted on our website at www.firmcapital.com.
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. The Corporation is a Mortgage Investment Corporation
(MIC) as defined in the Income Tax Act (Canada). 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
Corporation, available on the SEDAR website at www.sedar.com.
In addition, supplemental information is available on
Corporation's website at www.firmcapital.com.
Boutique Mortgage Lenders®
SOURCE Firm Capital Mortgage Investment Corporation