Firm Capital Mortgage Investment Trust announces year-end 2005 results

About this update from Firm Capital Mortgage Investment Corporation

[{"type":"text","content":"\n\n\n\n\nTSX Symbol FC.UN\n\nTORONTO, March 8 /CNW/ - Firm Capital Mortgage Investment Trust (the\n\"Trust\") (TSX FC.UN), released today its financial statements for the fiscal\nyear ended December 31, 2005.\nNet earnings for the year ended December 31, 2005 totaled $10,466,611,\nbeing the amount that was distributed to Unitholders for the year. Net\nearnings per unit based on the weighted average number of units outstanding\nduring the year totaled $0.939. Net earnings represented a return on weighted\naverage Unitholders' equity of 10.16% per annum. This return on Unitholders'\nequity equates to 709 basis points per annum over the average One Year\nGovernment of Canada Treasury Bill yield and is well in excess of the Trust's\ntarget yield objective of 400 basis points per annum over the One Year\nTreasury Bill yield. Distributions to Unitholders for the 2005 year totaled\n$0.935 per unit.\nAs at December 31, 2005, the Trust's mortgage portfolio increased to\n$164,981,562 as compared to $120,347,225 as at December 31, 2004, representing\nan increase of 37%. The portfolio continued to be heavily concentrated in\nfirst mortgages. As at December 31, 2005, the average portfolio face interest\nrate was 9.29%. Management continues to reduce risk by syndicating investments\nto ensure that the Trust is not significantly exposed to any single mortgage\ninvestment.\nThe Trust has in place a Distribution Reinvestment Plan (DRIP) and Unit\nPurchase Plan that is available to its Unitholders. The plans allow\nparticipants to have their monthly cash distributions reinvested in additional\nTrust units and grants participants the right to purchase additional units.\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 to date continue to develop a diversified mortgage portfolio,\nproducing a s...

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