TORONTO, Jan. 8 /CNW/ - Home Equity Income Trust (TSX: HEQ.UN) (the
"Trust" or "HOMEQ") today announced preliminary, unaudited results for the
three months ended December 31, 2007.
During the quarter, the Trust further extended its growth trend and
achieved mortgage originations of $34 million, exceeding Q4 2006 by 36%. For
the year ended December 31, 2007 originations grew by 22% to $127 million. The
rate of growth of originations achieved in 2007 follows 18% growth in 2006.
During 2007, the Trust's total portfolio of reverse mortgages grew by 16% to
approximately $708 million.
"We are extremely excited with our performance during 2007," said
President and CEO, Steven Ranson. "The healthy rate of growth achieved during
the last 2 years is indicative of the increasing recognition of our product as
an important solution in retirement financial planning and wealth management.
Our intention is to offer a product to meet the individual needs and
requirements of as many customers as possible. We offer features that
specifically address customer preferences regarding short versus long interest
rates, interest rate fluctuations and equity preservation. During 2007 we
introduced several additional enhancements, including a feature which enables
customers to receive a predetermined sum of money on a monthly, quarterly,
semi-annual or annual basis for up to 15 years. We are confident that our
product offering is now unsurpassed anywhere in the world."
Mr. Ranson continued, "Over the years we have gained significant
experience in the profile of our customers and their needs and requirements.
Like most seniors, our customers are generally financially conservative and
aware. While they come from a broad cross-section of society, they share the
common desire to stay in their homes and experience a comfortable retirement.
Our sales force is carefully selected, well trained, and equipped with the
information, tools and technology to help prospective customers through the
decision and purchase process.
We are very gratified with the progress made this year and look forward
to continuing to meet the needs of Canadian seniors in the years to come."
The Trust anticipates issuing its audited Financial Statements and
Management Discussion and Analysis for the year ended December 31, 2007 during
the week of March 3, 2008. In that report the Trust will provide additional
details on its performance during the year.
Further information on HOMEQ's financial performance and its investing
and funding activities, including the Trust's September 30, 2007 Interim
Financial Statements and Management Discussion and Analysis, can be found on
the Trust's web site at www.homeq.ca and on the SEDAR website at
Forward Looking Statements
Home Equity Income Trust from time to time makes written and verbal
forward-looking statements about business objectives, operations, performance,
and financial condition, including, in particular, the forecast of cash
distributions and the likelihood of HOMEQ's success in developing and
expanding its business. These may be included in the Annual Reports,
regulatory filings, reports to unitholders, press releases, Trust
presentations and other communications. These forward-looking statements are
based upon a number of assumptions and estimates that are inherently subject
to significant uncertainties and contingencies, many of which are beyond the
control of HOMEQ. Actual results may differ materially from those expressed or
implied by such forward-looking statements. HOMEQ does not undertake to update
any forward-looking statement, whether written or verbal, that may be made
from time to time.
About Home Equity Income Trust
Home Equity Income Trust provides unitholders with stable monthly cash
distributions from a portfolio of reverse mortgages originated by its wholly
owned subsidiary Canadian Home Income Plan Corporation ("CHIP"). The Trust's
units are rated SR-2 by Standard and Poor's, which assigns this rating to
funds that have "a very high level of cash distribution stability relative to
other rated Canadian income funds." As of September 30, 2007, the portfolio
generating cash returns to the Trust comprised approximately 6,600 reverse
mortgages with an accrued value of $678.4 million, secured by residential
properties across Canada worth approximately $1.9 billion. CHIP (www.chip.ca),
has been the main underwriter of reverse mortgages in Canada since pioneering
the concept in 1986.
HOMEQ's units trade on the Toronto Stock Exchange under the symbol
HEQ.UN. Additional information on HOMEQ, including annual and quarterly
reports and the Trust's distribution reinvestment plan, can be viewed at
For further information:
For further information: Steven Ranson, President and Chief Executive
Officer, (416) 413-4663; or Gary Krikler, Senior Vice President and Chief
Financial Officer, (416) 413-4679