TSX Symbol FC.UN
TORONTO, Aug. 14 /CNW/ - Firm Capital Mortgage Investment Trust (the
"Trust") (TSX FC.UN).
In light of the recent publicity relating to the sub-prime mortgage
industry, management of the Trust feels it is important to clarify that the
Trust is not involved in the sub-prime mortgage investment marketplace and has
no exposure to the securitization market. The Trust's investments are
comprised of mortgages registered on properties primarily for short-term
bridge and interim financing purposes, secured on residential, development and
investment properties. Residential single family owner occupied housing
mortgage investments have loan to values not exceeding 75%, and these
investments represent a very small percentage of the Trust's portfolio.
Management's primary objective is the preservation of Unitholders' equity
with a focus on maintaining a strong balance sheet. The Trust's mortgage
portfolio profile as at August 14, 2007 is as follows:
- Weighted average loan to value estimated at 66% (calculated at the
- $212 million portfolio widely spread out over 212 individual
- 79% of the portfolio secured by property located in Ontario with the
balance being in Alberta, Quebec, British Columbia, Manitoba and
In order to maintain a strong balance sheet, the Trust carries a loan
loss provision which currently totals $1,520,000.
Unitholders are encouraged to read the Trust's June 30, 2007 Interim
Financial Statements and related Management Discussion and Analysis to gain an
appreciation of the Trust's business operations and practices which is
reflective of the Trust not being involved in the sub-prime lending market.
Consequently, the Trust does not face the liquidity issues that are being
reported by entities in that industry.
The Trust, through its Mortgage Banker, Firm Capital Corporation, is a
non-bank lender providing residential and commercial conventional real estate
finance and short-term bridge, including construction, mezzanine and equity
investments. The Trust's investment objective is the preservation of
Unitholders' equity, while providing Unitholders with a stable stream of
monthly distributions from investments. The Trust 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 Unitholders.
Additional information about the Trust, including the Management's
Discussion and Analysis relating to the financial statements, is available on
the SEDAR website at www.sedar.com.
For further information:
For further information: Eli Dadouch, President & Chief Executive
Officer, (416) 635-0221, www.firmcapital.com