Firm Capital Mortgage Investment Trust Unitholder Update

About this update from Firm Capital Mortgage Investment Corporation

[{"type":"text","content":"\n\n\n\nTSX Symbol FC.UN\n\n\nTORONTO, Aug. 14 /CNW/ - Firm Capital Mortgage Investment Trust (the\n"Trust") (TSX FC.UN).\n\n\nIn light of the recent publicity relating to the sub-prime mortgage\nindustry, management of the Trust feels it is important to clarify that the\nTrust is not involved in the sub-prime mortgage investment marketplace and has\nno exposure to the securitization market. The Trust's investments are\ncomprised of mortgages registered on properties primarily for short-term\nbridge and interim financing purposes, secured on residential, development and\ninvestment properties. Residential single family owner occupied housing\nmortgage investments have loan to values not exceeding 75%, and these\ninvestments represent a very small percentage of the Trust's portfolio.\n\n\nManagement's primary objective is the preservation of Unitholders' equity\nwith a focus on maintaining a strong balance sheet. The Trust's mortgage\nportfolio profile as at August 14, 2007 is as follows:\n\n\n- Weighted average loan to value estimated at 66% (calculated at the\n funding date);\n- $212 million portfolio widely spread out over 212 individual\n investments;\n- 79% of the portfolio secured by property located in Ontario with the\n balance being in Alberta, Quebec, British Columbia, Manitoba and\n Saskatchewan.\n\n\nIn order to maintain a strong balance sheet, the Trust carries a loan\nloss provision which currently totals $1,520,000.\n\n\nUnitholders are encouraged to read the Trust's June 30, 2007 Interim\nFinancial Statements and related Management Discussion and Analysis to gain an\nappreciation of the Trust's business operations and practices which is\nreflective of the Trust not being involved in the sub-prime lending market.\nConsequently, the Trust does not face the liquidity issues that are being\nreported by entities in that industry.\n\n\nThe Trust, through its Mortgage Banker, Firm Capital Corporation, is a\nnon-bank lender providing residential and commercial conventional real estate\nfinance and short-term bridge, 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...

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