Firm Capital Mortgage Investment Corporation
TSX : FC

Firm Capital Mortgage Investment Corporation

January 10, 2011 16:17 ET

Confirmation of Special Year-End Distribution Amount and Reminder to Shareholders of the DRIP and Share Purchase Plan Programs

TORONTO, ONTARIO--(Marketwire - Jan. 10, 2011) - Firm Capital Mortgage Investment Corporation (the "Company") (TSX:FC) confirmed Firm Capital Mortgage Investment Trust's ("the Trust") previously announced special year-end distribution of $0.07 per unit. The December and special year-end distribution, that total $0.148 per unit, will be payable on January 17, 2011 to Unitholders of record on December 31, 2010. 

The special year-end distribution recognizes that income generated exceeded regular distributions earned on the Trust's mortgage investments in 2010. Accordingly, a special year-end distribution is necessary to distribute all of the Trust's taxable income earned in the 2010 fiscal year. The Special Distribution is not indicative of future performance by the Company.

Total distributions paid to Unitholders in 2010, including the December and special year-end distributions, will amount to $1.006 per unit.

Shareholders are reminded that they can participate in the Company's Dividend Reinvestment Plan and Share Purchase Plan.

DIVIDEND REINVESTMENT PLAN (DRIP)

The plan allows participants to have their monthly cash dividends reinvested in additional share. The Price paid for share is the weighted average trading price calculated five trading days immediately preceding each dividend date with no commission cost.

SHARE PURCHASE PLAN

Once registered with the Plan, participants have the right to purchase additional Shares, totalling no greater than $12,000 per year and no less than $250 per month. Shareholders participating pay no commission.

For further information, including answers to frequently asked questions about the program, please refer to our website: www.Firmcapital.com, and tab under the banner Firm Capital Mortgage Investment Corporation. To enrol, please contact your investment advisor or if you are a registered Shareholder complete the Authorization Form located on our website and forward to our transfer Agent, Computershare Trust Company of Canada, at the address noted on the web site. You can also contact Investor Relations at the Trust by calling 416-635-0221, who will assist you in enrolling in the program.

ABOUT THE COMPANY

The Trust, through its mortgage banker, Firm Capital Corporation, is a non-bank lender providing residential and commercial short-term bridge and conventional real estate financing, including construction, mezzanine and equity investments. The Company's investment objective is the preservation of Shareholders' equity, while providing Shareholders with a stable stream of monthly dividends from investments. The Company achieves its investment objectives 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 Shareholders. Full reports of the financial results of the Trust for the year are outlined in the audited financial statements and the related management discussion and analysis of Firm Capital, available on the SEDAR website at www.sedar.com. In addition, supplemental information is available on Firm Capital's website at www.firmcapital.com.

Forward-Looking Statements

This news release contains forward-looking statements within the meaning of applicable securities laws including, among others, statements concerning our objectives, our strategies to achieve those objectives, our performance, our mortgage portfolio and our distributions, as well as statements with respect to management's beliefs, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intent", "estimate", "anticipate", "believe", "should", "plans" or "continue" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.

These statements are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described in our Annual Information Form under "Risk Factors" (a copy of which can be obtained at www.sedar.com), which could cause our actual results and performance to differ materially from the forward-looking statements contained in this circular. Those risks and uncertainties include, among others, risks associated with mortgage lending, dependence on the Company's trust manager and mortgage banker, competition for mortgage lending, real estate values, interest rate fluctuations, environmental matters, Shareholder liability and the introduction of new tax rules. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information include, among others, that the Company is able to invest in mortgages at rates consistent with rates historically achieved; adequate mortgage investment opportunities are presented to the Company, and adequate bank indebtedness and bank loans are available to the Company. Although the forward-looking information continued in this new release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results and performance will be consistent with these forward-looking statements. 

All forward-looking statements in this news release are qualified by these cautionary statements. Except as required by applicable law, the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information

  • Firm Capital Mortgage Investment Corporation
    Eli Dadouch
    President & Chief Executive Officer
    (416) 635-0221
    www.firmcapital.com