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Firm Capital Mortgage Investment Corporation Announces Q1/2024 Results, as Well as the Declaration of July, August, and September Monthly Cash Dividends
TORONTO, May 08, 2024 (GLOBE NEWSWIRE) -- Firm Capital Mortgage Investment Corporation (the “Corporation”) (TSX FC, FC.DB,H, FC.DB.I, FC.DB.J ,FC.DB. K and FC.DB.L) released its financial statements for the three months ended March 31, 2024.
NET INCOME For the three months ended March 31, 2024, net income decreased by 1.6% to $8,569,784 as compared to $8,711,896 reported for the same period in 2023. The decrease is primarily a result of a lower average interest rate on the Corporation’s Investment Portfolio (March 31, 2024 – 10.89% vs March 31, 2023 – 11.15%).
EARNINGS PER SHARE Basic weighted average profit per share for the three months ended March 31, 2024, was $0.248, as compared to the $0.253 per share reported for the three months ended March 31, 2023.
PORTFOLIO The Corporation’s Investment Portfolio increased by $15.1 million to $613.2 as at March 31, 2024, in comparison to $598.1 million as at December 31, 2023 (in each case, gross of impairment allowance, fair value adjustment, and unamortized fees). During the first quarter of 2024, new investment funding was $47.7 million (2023 – $41.6 million), and repayments were $32.6 million (2023 – $50.7 million). On March 31, 2024, the Investment Portfolio was comprised of 246 investments (2023 – 243). The average gross investment size was approximately $2.5 million, with 15 investments individually exceeding $7.5 million.
PRUDENT IMPAIRMENT ALLOWANCE
The allowance for impairment and fair value adjustment as of March 31, 2024 was $25.2 million (2023 – 22.7 million), comprising (i) $11.43 million (December 31, 2023 – $10.65 million) representing the total amount of management’s estimate of the shortfall between the investment balances and the estimated recoverable amount from the security under the specific loans, (ii) $11.75 million (2023 – $10.38 million) representing the total amount of management’s estimate of fair value adjustment on an investment stated at fair value through profit or loss; and (iii) a collective allowance balance of $2.0 million (2023 – $1.7 million).
INVESTMENT PORTFOLIO DETAILS
Details on the Corporation’s investment portfolio as at March 31, 2024, are as follows:
Total gross investment portfolio of $613,187,958, which is higher by 2.5% than the $598,110,536 reported at December 31, 2023.
Conventional first mortgages, being those first mortgages with loan-to-values less than 75%, comprise 86.7% of the total portfolio (87.5% as at December 2023), and total conventional mortgages with loan-to-values less than 75%, comprise 94.0% of the total portfolio (94.1% as at December 2023).
Approximately 65.2% of the portfolio matures by December 31, 2024.
The average face interest rate on the portfolio is 10.89% per annum, as compared to 11.15% at March 31, 2023.
Regionally, the mortgage investment portfolio is diversified as follows: Ontario (87.9%), Quebec (5.6%), Western Canada (3.2%), USA (3.1%) and Nova Scotia (0.2%).
Of the 246 investments, 204 were underwritten (as part of a renewal process or for a new fundings) in the past 15 months, representing 72% of the investment portfolio, while the remaining 27% were underwritten in 2022 or prior to that.
CASH DIVIDEND DISTRIBUTION The Corporation is pleased to announce that its board of directors has declared a monthly cash dividend of $0.078 per common share (subject to adjustment at the discretion of the board of directors) payable on each dividend payment date set out below to holders of common shares of record at the close of business on each record date set out below:
Record Date
Dividend Payment Date
July 31, 2024
August 15, 2024
August 30, 2024
September 16, 2024
September 30, 2024
October 15, 2024
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 $14.85) 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.
For the three months ended March 31, 2024, the Corporation declared dividends on its common shares totaling $8,070,602 or $0.234 per share, versus $8,069,798 respectively, or $0.234 per share for the three months ended March 31, 2023. The number of common shares outstanding at March 31, 2024, was 34,489,955, as compared to 34,486,550 at March 31, 2023.
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 year are outlined in the audited consolidated financial statements and the related management discussion and analysis of the Corporation, available on the SEDAR+ website at www.sedarplus.ca. In addition, supplemental information is available on the 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 investment 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 current Annual Information Form under “Risk Factors” (a copy of which can be obtained at www.sedarplus.ca), which could cause our actual results and performance to differ materially from the forward-looking statements contained in this news release.
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, and shareholder liability. 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 contained in this news 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.
For further information, please contact:
Firm Capital Mortgage Investment Corporation Eli Dadouch President & Chief Executive Officer (416) 635-0221
