TSX Symbol FC
TORONTO, Nov. 10, 2016 /CNW/ - Firm Capital Mortgage
Investment Corporation (the "Corporation") (TSX FC) today released
its financial statements for the three and nine months ended
September 30, 2016.
HIGHLIGHTS
PROFIT
Income and profit (referred to herein as "Profit") for the three
months ended September 30, 2016
increased by approximately 7% to $5,406,432 as compared to $5,056,752 for the same period in the prior year.
Profit for the nine months ended September
30, 2016 increased by approximately 8% to $15,821,762 compared to $14,705,051 for the nine months ended
September 30, 2015.
Basic weighted average profit per share for the three months
ended September 30, 2016 was
$0.241, compared to $0.249 per share reported for the same period in
2015. Basic weighted average profit for the nine months ended
September 30, 2016 was $0.733, compared to $0.727 per share reported for the same period in
2015.
PORTFOLIO GROWTH
The Corporation's investment portfolio (the "Investment Portfolio")
as at September 30, 2016 increased by
$30.6 million to approximately
$433.5 million compared to
$402.9 million as at December 31, 2015 (before the impairment
provision of $4.23 million for both
period ends).
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 September 30, 2016 represents an annualized
return on shareholders' equity (based on the month end average
shareholders' equity in the quarter) of 9.08%, which is 854 basis
points per annum over the average one year Government of Canada
Treasury bill yield of 0.54%.
INVESTMENT PORTFOLIO DETAILS
Details on the Corporation's investment portfolio as at
September 30, 2016 are as
follows:
- Total gross investment portfolio of $433,491,936, which is an 8% increase over
December 31, 2015.
- Conventional first mortgages, being those first mortgages with
loan to values less than 75%, comprise 73% of our total portfolio,
and total conventional mortgages, with loan to values under 75%,
comprise 86% of our total portfolio.
- Approximately 75% of the portfolio matures by September 30, 2017.
- The average face interest rate on the portfolio is 8.06% per
annum.
- Regionally, the portfolio is diversified approximately as
follows: Ontario (81%),
Quebec (4%), Alberta (9%), and Other (6%).
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 plan allows
participants to have their monthly cash dividends reinvested in
additional shares of the 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 select niche markets that are
under-serviced by large lending institutions. 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.
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 distributions, 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 the
Corporation's Annual Information Form under "Risk Factors" (a copy
of which can be obtained at www.sedar.com). Those risks and
uncertainties include, among others, risks associated with mortgage
lending, dependence on the Corporation's 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.
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SOURCE Firm Capital Mortgage Investment Corporation
