Firm Capital Mortgage Investment Trust announces second quarter 2008 results

About this update from Firm Capital Mortgage Investment Corporation

[{"type":"text","content":"\n\n\n\nTSX Symbol FC.UN\n\n\nTORONTO, July 16 /CNW/ - Firm Capital Mortgage Investment Trust (the\n"Trust") (TSX FC.UN), released today its financial statements for the second\nquarter ended June 30, 2008.\n\n\nNet earnings for the second quarter ended June 30, 2008 increased to\n$3,917,718 from $3,155,115 for the same period last year. Basic weighted\naverage earnings per unit for the second quarter amounted to $0.303 versus\n$0.250 last year. Net earnings for the six month period ended June 30, 2008\nincreased to $7,492,005 from $6,513,723 for the same period last year. Basic\nweighted average earnings per unit for the six month period ended June 30,\n2008 increased to $0.586 versus $0.517 last year.\n\n\nFor the six month period ended June 30, 2008, net earnings exceeded\ndistributions by $1,502,708, representing $0.115 per unit, based on the number\nof units outstanding at June 30, 2008. The Trust distributes the balance of\nits net earnings, less distributions made up to November 30 of that year, to\nUnitholders of record as at December 31. Net earnings for the six month period\nended June 30, 2008 represented an annualized return on average Unitholders'\nequity of 12.61% per annum. This return on Unitholders' equity equates to 975\nbasis points per annum over the average One Year Government of Canada Treasury\nBill yield for the related period, and is well in excess of the Trust's target\nyield objective of 400 basis points per annum over the One Year Treasury Bill\nyield.\n\n\nAs at June 30, 2008, the Trust's mortgage portfolio, net of fair value\nadjustment, stood at $244,645,057 as compared to $233,731,967 as at\nDecember 31, 2007. The portfolio continued to be heavily concentrated in first\nmortgages.\n\n\nThe Trust, through its Mortgage Banker, Firm Capital Corporation, is a\nnon-bank lender providing residential and commercial short-term bridge and\nconventional real estate finance, including construction, mezzanine and equity\ninvestments. The Trust's investment objective is the preservation of\nUnitholders' equity, while providing Unitholders with a stable stream of\nmonthly distributions from investments. The Trust achieves its investment\nobjectives by pursuing a strategy of growth through investments in selected\nniche markets that are under-serviced by large lending institutions. Lending\nactivities ...

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