Firm Capital Mortgage Investment Corporation Announces

Agency Capital Mortgage Funding Company Publicizes

TORONTO, Could 07, 2020 (GLOBE NEWSWIRE) — Agency Capital Mortgage Funding Company (the “Company”) (TSX FC, FC.DB.E, FC.DB.F, FC.DB.G, FC.DB,H, FC.DB.I and FC.DB.J) launched its monetary statements for the three months ended March 31, 2020.

Q1/2020 HIGHLIGHTS

  • Revenue for the quarter decreased by 5.3% to $6.24 million as in comparison with $6.59 million reported for a similar interval in 2019.
  • The funding portfolio as at March 31, 2020 elevated by $40.2 million to $521.1 million compared to $480.9 million as at December 31, 2019 (gross of provision).
  • Revenue for the quarter represents an annualized return on shareholders’ fairness of seven.88%.

INCOME
For the three-month interval ended March 31, 2020, earnings decreased by 5.3% to $6,236,442 as in comparison with $6,588,877 reported for the three months ended March 31, 2019.  The lower is principally a results of decrease curiosity earnings because of a smaller common portfolio dimension (on common $40 million decrease within the first quarter of 2020 vs the primary quarter of 2019) and a decrease weighted common portfolio rate of interest, over the comparable interval in 2019.  The lower within the Financial institution prime fee in the course of the quarter from 3.95% to 2.45% every year, impacted the Company’s funding portfolio weighted common rate of interest, which decreased from 8.58% at March 31, 2019 to eight.05% at March 31, 2020.  A number of of the Company’s investments have a Financial institution prime primarily based rate of interest system.

Primary weighted common revenue per share for the three months ended March 31, 2020, was $0.218 in comparison with the $0.246 per share reported for the three months ended March 31, 2019.

PORTFOLIO
The Company’s funding portfolio (the “Funding Portfolio”) elevated by $40.2 million to $521.1 million as at March 31, 2020, compared to $480.9 million as at December 31, 2019 (in every case, gross of impairment provision). The impairment provision as at March 31, 2020 was $5.51 million (December 2019 – $5.48 million).  There was a robust stage of latest funding funding in the course of the first quarter of 2020 within the quantity of $141.4 million (2019 – $51.7 million), whereas repayments have been at $101.2 million (2019 – $23.0 million), leading to a rise to the Funding Portfolio dimension. 

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RETURN ON EQUITY
The Company continues to exceed its yield goal of manufacturing a return on shareholders’ fairness in extra of 400 foundation factors over the common one-year Authorities of Canada Treasury invoice yield. Revenue for the  three months ended March 31, 2020, represents an  annual  return on shareholders’ fairness (primarily based on the common of the month finish shareholders’ fairness within the quarter) of seven.88%, representing a return on shareholders’ fairness of 751 foundation factors every year over the common one 12 months Authorities of Canada Treasury invoice yield of 0.37%.

PRUDENT IMPAIRMENT ALLOWANCE
Administration has at all times taken a proactive method to the Company’s loan impairment allowance. This can be a prudent method to defending the steadiness of dividends to shareholders within the occasion there are any future points with any of the investments throughout the Company’s funding portfolio. The impairment allowance as at March 31, 2020 stood at $5,514,000, which represents roughly 1% of Company’s funding portfolio at that date.

INVESTMENT PORTFOLIO DETAILS
Particulars on the Company’s funding portfolio as at March 31, 2020 are as follows:

  • Complete gross funding portfolio of $521,066,875, which is larger than the $480,925,143 reported at December 31, 2019.
  • Typical first mortgages, being these first mortgages with loan-to-values lower than 75%, comprise 72% of the entire portfolio, and whole standard mortgages with loan-to-values lower than 75%, comprise 79% of the entire portfolio.
  • Roughly 50% of the portfolio matures by December 31, 2020, with 93% maturing on or earlier than December 31, 2021.
  • The typical face rate of interest on the portfolio is 8.05% every year, as in comparison with 8.49% at December 31, 2019
  • Regionally, the mortgage funding portfolio is diversified roughly as follows: Ontario (88%), Quebec (3%), Western Canada (4%), and USA (5%).

DIVIDEND AND SHARE PURCHASE PLAN
The Company has in place a Dividend Reinvestment Plan (DRIP) and Share Buy Plan that’s accessible to its shareholders. The DRIP permits contributors to have their month-to-month money dividends reinvested in extra shares. The value paid per share is 97% (if the share value is larger than $14.10) of the weighted common buying and selling value calculated 5 buying and selling days instantly previous every dividend date with no fee value. As soon as registered with the Share Buy Plan, contributors have the proper to buy extra shares, totaling no better than $12,000 per 12 months and at least $250 per 30 days. Shareholders collaborating pay no fee.

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Concerning the Company
The place Mortgage Offers Get Carried out®

The Company, via its mortgage banker, Agency Capital Company, is a non-bank lender offering residential and business short-term bridge and standard actual property financing, together with development, mezzanine, and fairness investments. The Company’s funding goal is the preservation of shareholders’ fairness, whereas offering shareholders with a secure stream of month-to-month dividends from investments. The Company achieves its funding aims via investments in chosen area of interest markets which might be under-serviced by massive lending establishments. Lending actions to this point proceed to develop a diversified mortgage portfolio, producing a secure return to shareholders. Full reviews of the monetary outcomes of the Company for the 12 months are outlined within the unaudited interim condensed consolidated monetary statements and the associated administration dialogue and evaluation of the Company, accessible on the SEDAR web site at www.sedar.com.  As well as, supplemental info is offered on the Company’s web site at www.firmcapital.com.

Ahead-Trying Statements
This information launch incorporates forward-looking statements throughout the which means of relevant securities legal guidelines together with, amongst others, statements regarding our aims, our methods to realize these aims, our efficiency, our funding  portfolio and our dividends, in addition to statements with respect to administration’s beliefs, estimates, and intentions, and comparable statements regarding anticipated future occasions, outcomes, circumstances, efficiency, or expectations that aren’t historic info.  Ahead-looking statements usually could be recognized by way of forward-looking terminology corresponding to “outlook”, “goal”, “could”, “will”, “anticipate”, “intent”, “estimate”, “anticipate”, “consider”, “ought to”, “plans”, or “proceed”, or comparable expressions suggesting future outcomes or occasions.  Such forward-looking statements replicate administration’s present beliefs and are primarily based on info at present accessible to administration.

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These statements are usually not ensures of future efficiency and are primarily based on our estimates and assumptions which might be topic to dangers and uncertainties, together with these described in our present Annual Data Type below “Danger Elements” (a duplicate of which could be obtained at www.sedar.com), which may trigger our precise outcomes and efficiency to vary materially from the forward-looking statements contained on this information launch.. 

These dangers and uncertainties embrace, amongst others, dangers related to the affect of the COVID-19 pandemic, mortgage lending, dependence on the Company’s supervisor and mortgage banker, competitors for mortgage lending, actual property values, rate of interest fluctuations, environmental issues, shareholder legal responsibility, and the introduction of latest tax guidelines.  Materials elements or assumptions that have been utilized in drawing a conclusion or making an estimate set out within the forward-looking info embrace, amongst others, that the Company is ready to spend money on mortgages at charges in step with charges traditionally achieved; sufficient mortgage funding alternatives are introduced to the Company;  sufficient financial institution indebtedness and financial institution loans can be found to the Company; and a non-material affect ensuing from the COVID-19 pandemic.  Though the forward-looking info contained on this information launch relies upon what administration believes are cheap assumptions, there could be no assurance that precise outcomes and efficiency shall be in step with these forward-looking statements. 

All forward-looking statements on this information launch are certified by these cautionary statements.  Besides as required by relevant regulation, the Company undertakes no obligation to publicly replace or revise any forward-looking assertion, whether or not on account of new info, future occasions, or in any other case.

For additional info, please contact:

Agency Capital Mortgage Funding Company
Eli Dadouch
President & Chief Government Officer
(416) 635-0221

Boutique Mortgage Lenders®