Frontenac Mortgage Investment Corporation Provides Mortgage Portfolio Update

OTTAWA, ON, Jan. 28, 2026 /CNW/ - The financial information presented below is given as of December 31, 2025, and is management prepared and presented on an unaudited and unreviewed basis.

The portfolio consists of 46 remaining mortgage files totaling approximately $67.3M of principal outstanding, excluding any internally recorded provisions for loss and additional fees and interest that may or may not be collectible.

The 46 files are segmented as follows:

• 10 Residential mortgages totaling approximately $8.3M of outstanding principal;
• 26 Construction mortgages totaling approximately $41.1M of outstanding principal;
• 6 Vacant Land mortgages totaling approximately $2.1M of outstanding principal;
• 4 Residential Development mortgages totaling approximately $15.8M of outstanding principal, which are all related to the legacy large development property and are all currently in a court-appointed receivership.

File concentration is summarized as follows:

• Top 10 files by outstanding principal represent roughly 50% of the portfolio balance;
• Top 20 files by outstanding principal represent roughly 77% of the portfolio balance;
• Top 30 files by outstanding principal represent roughly 92% of the portfolio balance; and
• Bottom 16 files by outstanding principal represent roughly 8% of the portfolio balance, and carry an average principal balance of $268k.

Current actions being taken on the remaining 46 files are broken down as follows:

• 10 files ($16.1M) are being pushed towards Power of Sale (POS) to entice borrowers to hasten exit attempts that would likely yield a higher probability of full payout;
• 32 files ($35.4M) are in Power of Sale; however, we are awaiting possession of 22 currently, which may individually yield some full payouts, but are expected to incur losses overall; and
• 4 files (Residential Development loan - $15.8M) are in Power of Sale but are in a court-appointed receivership process, and the secured properties are actively being marketed for sale, which are expected to incur losses.

Some files have been identified as likely incurring losses overall, however a provision for estimated credit losses is present and has been accumulating through prior periods. A portion of this provision has already been factored into distributions of profit from earlier periods, and the realization of actual losses will be partially offset by this allowance.

Forward-Looking Statements

This press release contains certain forward-looking statements and forward-looking information (collectively referred to herein as "forward-looking statements") within the meaning of applicable Canadian securities laws, which may include, but are not limited to, information and statements in respect of MNP's completion of the audit of the Company's annual financial statements for the year ended December 31, 2024; the redemption of outstanding common shares pursuant to the pro rata redemption plan, and the anticipated timing of future redemptions; timing of the filing of the Annual Filings and Interim Filings, the Company's annual meeting, and the revocation of the failure-to-file cease trade order by the OSC; and the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "may", "will", "project", "should" or similar words, including negatives thereof, suggesting future outcomes.

Forward-looking statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors beyond FMIC's ability to predict or control, which may cause actual events, results, performance, or achievements of FMIC to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking statements herein. Forward-looking statements are not a guarantee of future performance. Although FMIC believes that any forward-looking statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such statements, there can be no assurance that any such forward-looking statements will prove to be accurate. Actual results may vary, and vary materially, from those expressed or implied by the forward-looking statements herein. Accordingly readers are advised to rely on their own evaluation of the risks and uncertainties inherent in forward-looking statements herein and should not place undue reliance upon such forward-looking statements. All forward-looking statements herein are qualified by this cautionary statement. Any forward-looking statements herein are made only as of the date hereof, and except as required by applicable laws, FMIC assumes no obligation and disclaims any intention to update or revise any forward-looking statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking statements herein, whether as a result of new information, future events or results, or otherwise.

SOURCE Frontenac Mortgage Investment Corporation

For more information, please contact: Amber Kehoe, Corporate Secretary, Frontenac Mortgage Investment Corporation, [email protected]