TSX Symbol FC.UN
TORONTO, Aug. 14 /CNW/ - Firm Capital Mortgage Investment Trust (the "Trust") (TSX FC.UN).
In light of the recent publicity relating to the sub-prime mortgage industry, management of the Trust feels it is important to clarify that the Trust is not involved in the sub-prime mortgage investment marketplace and has no exposure to the securitization market. The Trust's investments are comprised of mortgages registered on properties primarily for short-term bridge and interim financing purposes, secured on residential, development and investment properties. Residential single family owner occupied housing mortgage investments have loan to values not exceeding 75%, and these investments represent a very small percentage of the Trust's portfolio.
Management's primary objective is the preservation of Unitholders' equity with a focus on maintaining a strong balance sheet. The Trust's mortgage portfolio profile as at August 14, 2007 is as follows:
- Weighted average loan to value estimated at 66% (calculated at the
funding date);
- $212 million portfolio widely spread out over 212 individual
investments;
- 79% of the portfolio secured by property located in Ontario with the
balance being in Alberta, Quebec, British Columbia, Manitoba and
Saskatchewan.
In order to maintain a strong balance sheet, the Trust carries a loan loss provision which currently totals $1,520,000.
Unitholders are encouraged to read the Trust's June 30, 2007 Interim Financial Statements and related Management Discussion and Analysis to gain an appreciation of the Trust's business operations and practices which is reflective of the Trust not being involved in the sub-prime lending market. Consequently, the Trust does not face the liquidity issues that are being reported by entities in that industry.
The Trust, through its Mortgage Banker, Firm Capital Corporation, is a non-bank lender providing residential and commercial conventional real estate finance and short-term bridge, including construction, mezzanine and equity investments. The Trust's investment objective is the preservation of Unitholders' equity, while providing Unitholders with a stable stream of monthly distributions from investments. The Trust achieves its investment objectives by pursuing a strategy of growth through investments in selected niche markets that are under-serviced by large lending institutions. Lending activities to date continue to develop a diversified mortgage portfolio, producing a stable return to Unitholders.
Additional information about the Trust, including the Management's Discussion and Analysis relating to the financial statements, is available on the SEDAR website at www.sedar.com.