TSX Symbol FC
TORONTO, Sept. 25, 2013 /CNW/ - Firm Capital Mortgage Investment Corporation (the "Corporation" or "Firm Capital") (TSX:FC) is pleased to announce that it is not affected by the recently announced changes to the Canadian securities regulations.
The Canadian Securities Administrators reviewed Mortgage Investment Corporations in Canada and concluded that certain Mortgage Investment Corporations should not be characterized as investment funds under applicable Canadian securities laws due to the nature of their investment activities. The Corporation has always been a regular reporting issuer, and not an investment fund, under applicable Canadian securities laws and, as such, is already in compliance with those new requirements. Although certain funds may be required to reorganize, no action is required by Firm Capital.
Furthermore, the Canadian Securities Administrators have recently published proposed regulatory changes that would prevent any investment fund from investing in mortgages other than mortgages that are fully and unconditionally guaranteed by the government of Canada, the government of a province or territory of Canada or by an agency of such government, among other things. As the Corporation is not an investment fund, those proposed regulatory changes will not apply to Firm Capital.
Firm Capital, and its predecessor entities, have been public since 1999, and have provided shareholders with the following investment attributes:
- Trailing 12 month dividend yield including year-end and special dividends of 8.25% per annum based on current dividends (Per annum based on Unit closing price @ $12.00 September 23, 2013);
- Monthly income and investment liquidity - traded on Toronto Stock Exchange (symbol FC);
- 12 month average trading volume of 451,406 shares per month;
- Diversified portfolio of mortgage investments;
- Dividend Reinvestment Plan ("DRIP");
- Experienced management and Board of Directors;
- Average Annual Yield to shareholders since inception in 1999 is 9.3%;
- Monthly Trailing Dividend of $0.078 per share, $0.936 per annum plus special dividends. 2012 total dividends of $0.990 per share; and
- Rigid Governance, Investment & Operating policies.
For an Investor Fact Sheet and to review the Corporations publicly filed disclosure documents visit www.FirmCapital.com and tab 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 by pursuing a strategy of growth 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 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.
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 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
President & Chief Executive Officer