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TORONTO, March 20, 2024 (Globe Newswire) — Farm Capital Mortgage Investment Corporation (the “Corporation”) (TSX FC, FC.DB,H, FC.DB.I, FC.DB.J, FC. DB. K) and FC.DB.L) have published their financial statements for the three and twelve months ended December 31, 2023.
Net income
Net income for the three months ended December 31, 2023 increased 4.8% to $8,335,525 compared to $7,955,086 for the same period in 2022. Net income for the year ended December 31, 2023 increased 6.0% to $34,164,416 compared to $32,234,067. Year ended December 31, 2022.
This increase was primarily due to an increase in interest income due to higher weighted average interest rates (2023 weighted average interest rate – 11.15% vs. 2022 weighted average interest rate – 9.28%), offset by a reduction in overall portfolio size. This is due to
Earnings per share
Basic weighted average earnings per share for the three months ended December 31, 2023 was $0.242, compared to $0.231 per share reported for the three months ended December 31, 2022. It was dollars. Basic weighted average earnings per share for the year ended December 31, 2023 was $0.991. This compares to $0.939 per share for the year ended December 31, 2022.
portfolio
Our investment portfolio decreased $63 million to $598.1 million as of December 31, 2023, compared to $661 million as of December 31, 2022 (in both cases). (also the total amount of impairment allowances, fair value adjustments, and unamortized fees). In 2023, new investment capital was $249.5 million (2022 – $461.8 million) and repayments were $312.3 million (2022 – $443 million). As of December 31, 2023, the investment portfolio consisted of 243 investments (2022-252). The average total investment size was approximately $2.4 million, with 14 investments exceeding $7.5 million.
Prudent impairment allowance
At December 31, 2023, the impairment and fair value adjustment allowance was $22.7 million (2022 – $10.16 million), consisting of (i) management’s estimate of shortfalls between investment balances; The total amount is $10.65 million (2022 – $3.7 million). (ii) $10.38 million (2022 – $4.70) representing management’s total estimated fair value adjustments for investments presented at fair value through profit or loss. (iii) Collective allowance balance of $1.7 million (2022 – $1.76 million).
Investment portfolio details
Details of our investment portfolio as of December 31, 2023 are as follows:
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Total investment portfolio totaled $598,059,570, a decrease of 9.5% from the reported $661,003,596 as of December 31, 2022.
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Conventional first mortgages are first mortgages with a loan-to-value of less than 75% and represent 87.5% of the total portfolio (83.5% as of December 2022), with a loan-to-value of less than 75%. Less than 75% conventional mortgages total. It accounts for 94.1% of the total portfolio (88.6% as of December 2022).
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The weighted average par interest rate on our investment portfolio as of December 31, 2023 and December 31, 2022 was 10.99% per annum.
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Regionally, the mortgage investment portfolio is diversified as follows: Ontario (86.8%), Quebec (7.1%), Western Canada (3.0%), and the United States (3.1%).
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96% of the portfolio consists of floating rate investments. These rates are calculated as the higher of (i) Bank Prime plus a spread (referred to as the “base rate”) or (ii) a fixed floor rate.
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Approximately 80% of the portfolio matures by December 31, 2024.
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Of the 243 investments, 90% were underwritten between 2022 and 2023 (either as part of a renewal process or as new funding), while only 10% were underwritten in 2021 or earlier. .
Distribution of cash dividends
We are pleased to announce that our Board of Directors has declared a monthly cash dividend of $0.078.
Each share of common stock (subject to adjustment at the discretion of the board of directors) will be paid to holders of base common stock at the close of business on each record date set forth below on each dividend payment date set forth below.
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Dividend payment date |
Dividend and stock purchase plan
We have implemented a dividend reinvestment plan (DRIP) and stock purchase plan available to our shareholders. DRIP allows participants to reinvest monthly cash dividends into additional shares. The price paid per share is 97% (if the stock price is greater than $14.85) of the weighted average trading price calculated on the five business days immediately preceding each dividend date, without commission. By enrolling in the Stock Purchase Plan, participants have the right to purchase additional shares totaling up to $12,000 per year and not less than $250 per month. There are no fees for participating shareholders.
For the year ended December 31, 2023, the Company declared total dividends on its common stock of $34,142,921, or $0.990 per share. In comparison, common stock dividends for the year ended December 31, 2022 were $32,631,802, or $0.950 per share, respectively. The number of common shares outstanding as of December was 34,485,740 as of December 31, 2022, compared to 34,489,308 as of December 31, 2023.
About the company
Where mortgage transactions take place®
We are a non-bank lender that provides short-term residential and commercial bridge and traditional real estate financing, including construction, mezzanine and equity investments, through our mortgage banking company, Farm Capital Corporation. Our investment objective is to provide our shareholders with stable monthly dividends from their investments while preserving their capital. We achieve our investment goals by investing in specific niche markets that are underserved by large financial institutions. Our lending activities to date continue to build a diversified portfolio of mortgage loans and provide stable returns to our shareholders. A complete report of our annual financial results, outlined in our audited consolidated financial statements and our related management’s discussion and analysis, is available on the SEDAR+ website (www.sedarplus.ca). Additionally, supplemental information is available from our website at www.firmcapital.com.
Forward-looking statements
This news release contains forward-looking statements within the meaning of applicable securities laws that include, among other things, our goals, our strategies for achieving those goals, our performance, our Includes statements regarding investment portfolios and dividends, as well as statements regarding management’s plans. Beliefs, estimates, intentions and similar statements regarding anticipated future events, results, conditions, performance or expectations that are not historical facts. Forward-looking statements generally include statements such as “outlook,” “objective,” “may,” “will,” “expected,” “intend,” “estimate,” “anticipate,” “believe,” and so on. “is,” “should,” “plans,” “continues,” or similar expressions suggesting future results 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 the Company’s estimates and assumptions that are subject to risks and uncertainties. This includes those listed in our current annual information form under ‘Risk Factors’ (a copy of which is available at www.sedarplus). ca), which could cause our actual results and performance to differ materially from the forward-looking statements contained in this news release.
These risks and uncertainties include, but are not limited to, risks associated with mortgage financing, our dependence on our management and mortgage bankers, competition for mortgage financing, real estate values, interest rate fluctuations, environmental issues, and shareholder liability. It is included. Important factors or assumptions applied in drawing the conclusions or making the estimates contained in the forward-looking information include, among other things: Includes what you can do. Suitable mortgage investment opportunities are presented to the Corporation. The Corporation also has access to appropriate bank debt and bank financing. Although the forward-looking information contained in this news release is based on what management believes to be reasonable assumptions, there can be no assurance that actual results or performance will be consistent with these forward-looking statements. there is no.
All forward-looking statements contained in this news release are qualified by these cautionary statements. Except as required by applicable law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. yeah.
For more information, please contact us below.
Farm Capital Mortgage Investment Corporation
Eli Dadush
Representative Director and President
(416) 635-0221
Boutique Mortgage Agent®
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