Firm Capital Mortgage Investment Corporation Provides Details on its Alberta Mortgage Investment Portfolio

TSX Symbol FC

TORONTO, Feb. 12, 2015 /CNW/ - Firm Capital Mortgage Investment Corporation (the "Corporation") (TSX: FC) would like to provide details about its mortgage investments in Alberta as a result of inquiries from shareholders, analysts and other members of the investment community.

ALBERTA MORTGAGE INVESTMENTS:
As at December 31, 2014, the Corporation's total investment portfolio stood at $342.9 million (excluding loan loss provisions) of which approximately $38.9 million (11.3%) was secured on properties located in Alberta. The Alberta mortgage investment portfolio is well diversified with 18 mortgages and an average investment size of $2.2 million. The Alberta portfolio is very heavily concentrated in first mortgages on residential properties.  94.9% of the Alberta portfolio are first mortgages, followed by non-conventional mortgages (2.7%) and conventional non-first mortgages (2.4%).  96.9% of the Alberta portfolio are residential mortgages, while the remainder are commercial mortgages (3.1%).  The Loan-To-Value exposure for the Alberta mortgage investment portfolio stands at a reasonable 61.0%.

The weighted average face interest rate on the Alberta portfolio stands at 7.7% per annum. Un-advanced committed funds allocated to the Alberta portfolio stands at $15.9 million, subject to a pending reduction of $11.9 million as outlined below.

We anticipate that by the end of this month one material residential investment in the Alberta portfolio (the borrower being a well-known financial sponsor) in the amount of $10.1 million is being repaid via a refinancing from a Canadian Chartered Bank and that will reduce the un-advanced funds by $11.9 million.  The portfolio of the remaining 17 investments is $28.8 million, with further advances of $4 million.

As is the case with the majority of the Corporation's mortgage investments, all of the Alberta mortgage investments are shared with other syndicate partners to diversify risk. In addition, all of the Corporation's Alberta mortgage investments are performing and are not impaired.

OTHER NOTABLE INVESTOR INFORMATION:

  1. The December, 2014 dividends to shareholders was $0.112 per share, which includes the special year-end dividend of $0.034 per share.  The total 2014 dividends totalled $0.97. It should be pointed out that the Corporation has been paying this special year-end dividend since its IPO in 1999.
  2. Loan loss provisions as at December 31, 2014 represents 1% of the total mortgage investment portfolio.
  3. The mortgage investment portfolio as at January 31, 2015 was largely unchanged at $341.8 million.

Shareholders are reminded that monthly investment portfolio highlights are posted on our website at www.firmcapital.com under the banner "Firm Capital Mortgage Investment 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 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. 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 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.

SOURCE Firm Capital Mortgage Investment Corporation

For further information: Firm Capital Mortgage Investment Corporation, Eli Dadouch, President & Chief Executive Officer, (416) 635-0221

RELATED LINKS
www.firmcapital.com

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