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
