Firm Capital Mortgage Investment Corporation Announces Q1/2020 Results - Seite 2

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. Income for the  three months ended March 31, 2020, represents an  annual  return on shareholders’ equity (based on the average of the month end shareholders’ equity in the quarter) of 7.88%, representing a return on shareholders’ equity of 751 basis points per annum over the average one year Government of Canada Treasury bill yield of 0.37%.

PRUDENT IMPAIRMENT ALLOWANCE
Management has always taken a proactive approach to the Corporation’s loan impairment allowance. This is a prudent approach to protecting the stability of dividends to shareholders in the event there are any future issues with any of the investments within the Corporation’s investment portfolio. The impairment allowance as at March 31, 2020 stood at $5,514,000, which represents approximately 1% of Corporation’s investment portfolio at that date.

INVESTMENT PORTFOLIO DETAILS
Details on the Corporation’s investment portfolio as at March 31, 2020 are as follows:

• Total gross investment portfolio of $521,066,875, which is higher than the $480,925,143 reported at December 31, 2019.
• Conventional first mortgages, being those first mortgages with loan-to-values less than 75%, comprise 72% of the total portfolio, and total conventional mortgages with loan-to-values less than 75%, comprise 79% of the total portfolio.
• Approximately 50% of the portfolio matures by December 31, 2020, with 93% maturing on or before December 31, 2021.
• The average face interest rate on the portfolio is 8.05% per annum, as compared to 8.49% at December 31, 2019
• Regionally, the mortgage investment portfolio is diversified approximately as follows: Ontario (88%), Quebec (3%), Western Canada (4%), and USA (5%).

DIVIDEND AND SHARE PURCHASE PLAN
The Corporation has in place a Dividend Reinvestment Plan (DRIP) and Share Purchase Plan that is available to its shareholders. The DRIP allows participants to have their monthly cash dividends reinvested in additional shares. The price paid per share is 97% (if the share price is higher than $14.10) of the weighted average trading price calculated five trading days immediately preceding each dividend date with no commission cost. Once registered with the Share Purchase Plan, participants have the right to purchase additional shares, totaling no greater than $12,000 per year and no less than $250 per month. Shareholders participating pay no commission.