Firm Capital Mortgage Investment Trust announces third quarter 2007 results

About this update from Firm Capital Mortgage Investment Corporation

[{"type":"text","content":"\n\n\n\nTSX Symbol FC.UN\n\n\nTORONTO, Oct. 23 /CNW/ - Firm Capital Mortgage Investment Trust (the\n"Trust") (TSX FC.UN), released today its financial statements for the third\nquarter ended September 30, 2007.\n\n\nNet earnings for the third quarter ended September 30, 2007 increased to\n$3,221,939 from $3,150,562 for the same period last year. Basic weighted\naverage earnings per unit for the third quarter amounted to $0.255 versus\n$0.250 last year. Net earnings for the nine month period ended September 30,\n2007 increased to $9,735,662 from $9,161,537 for the same period last year.\nBasic weighted average earnings per unit for the nine month period ended\nSeptember 30, 2007 increased to $0.772 versus $0.729 last year. For the nine\nmonth period ended September 30, 2007, net earnings exceeded distributions by\n$1,008,044, representing $0.08 per unit. 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 nine month\nperiod ended September 30, 2007 represented an annualized return on average\nUnitholders' equity of 10.84% per annum. This return on Unitholders' equity\nequates to 660 basis points per annum over the average One Year Government of\nCanada Treasury Bill yield for the related period, and is well in excess of\nthe Trust's target yield objective of 400 basis points per annum over the One\nYear Treasury Bill yield.\n\n\nAs at September 30, 2007, the Trust's mortgage portfolio, net of loan\nloss provision, stood at $210,194,972 as compared to $208,102,557 as at\nDecember 31, 2006. The portfolio continues to be heavily concentrated in first\nmortgages based in Ontario.\n\n\nThe Trust is not involved in the sub-prime mortgage investment\nmarketplace and has no exposure to the securitization market. The Trust's\ninvestments are comprised of mortgages registered on properties primarily for\nthe short-term bridge financing and interim financing purposes, secured on\nresidential, development and investment properties. Residential single family\nowner occupied housing mortgage investments have loan to values not exceeding\n75%, and these investments represent a very small percentage of the Trust's\nportfolio. The Trust's investment objective is the preservation of\nUnitholders' equity, while pro...

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