FIRM CAPITAL MORTGAGE INVESTMENT CORPORATION ANNOUNCES YEAR ENDED AND Q4/2019 RESULTS

TORONTO, March 18, 2020 (GLOBE NEWSWIRE) -- Firm Capital Mortgage Investment Corporation (the “Corporation”) (TSX FC) released its financial statements for the three and twelve months ended December 31, 2019.

YEAR END HIGHLIGHTS

• Income for the year is up 8.7% to $28.0 million.
• Fourth quarter income is up 9.5% to $6.7 million.
• Income for the year represents an annual return on shareholders’ equity of 9.09%.
• Equity offering of $23.0 million (including $3.0 million over-allotment).
• Equity offering, non-brokered private placement, of $2.8 million.

INCOME
For the three-month period ended December 31, 2019, income increased by 9.5% to $6,678,983 as compared to $6,097,699 reported for the three months ended December 31, 2018. For the year ended December 31, 2019, income increased by 8.7% to $28,002,051 compared to $25,750,696 reported for the year ended December 31, 2018.

Basic weighted average income per share for the three months ended December 31, 2019, was $0.237 compared to the $0.233 per share reported for the three months ended December 31, 2018. Basic weighted average income per share for the year ended December 31, 2019, was $1.008, which is higher than the $0.986 per share reported for the year ended December 31, 2018.

PORTFOLIO
The Corporation’s investment portfolio as at December 31, 2019, stood at $475.4 million which is lower than the $516.0 million as at December 31, 2018 (net of the principal impairment allowance of $5.48 million and $4.95 million, respectively).

RETURN ON EQUITY
The Corporation continues to exceed its yield objective of producing a return on shareholders’ equity in excess of 400 basis points over the average one-year Government of Canada Treasury bill yield.  For the quarter ended December 31, 2019, the annualized  return on shareholders’ equity (based on the average of the month end shareholders’ equity in the quarter) of 8.51%, representing a return on shareholders’ equity of 675 basis points per annum over the average one year Government of Canada Treasury bill yield of 1.76%. 

For the year ended December 31, 2019, the annualized  return on shareholders’ equity (based on the average of the month end shareholders’ equity in the quarter) of 9.09%, representing a return on shareholders’ equity of 733 basis points per annum over the average one year Government of Canada Treasury bill yield of 1.76%.

COMPLETION OF EQUITY OFFERINGS
On March 1, 2019, the Corporation completed an equity offering of 1,520,000 common shares at a price of $13.20 per share for gross proceeds of $20,064,000. The over-allotment option was exercised in full and the Corporation issued an additional 228,000 shares at a price of $13.20 per share for gross proceeds of $3,009,600. The total shares issued was 1,748,000.