FIRM CAPITAL MORTGAGE INVESTMENT TRUST
TSX : FC.UN

FIRM CAPITAL MORTGAGE INVESTMENT TRUST

December 16, 2010 17:43 ET

Firm Capital Mortgage Investment Trust-December and Estimated Special Year-End Distribution Amounting to $0.148 Per Unit and Year End Update

TORONTO, ONTARIO--(Marketwire - Dec. 16, 2010) - Firm Capital Mortgage Investment Trust (the "Trust") (TSX:FC.UN) announced its monthly distribution for December in the amount of $0.078 per unit. The Trust also announced an estimated special year-end distribution (the "Special Distribution") of $0.07 per unit. These distributions, totaling an estimated $0.148, are payable on January 17, 2011, to Unitholders of record on December 31, 2010. 

The unpaid costs of converting the Trust from an income trust to a mortgage investment corporation have been fully accrued and expensed by the Trust during the fourth quarter of 2010. The 2010 distribution is net of the conversion costs, which is estimated at $500,000, representing $0.035 per unit.

The precise amount of the Special Distribution will be announced prior to the payment date. The estimated Special Distribution recognizes that income generated exceeds year-to-date distributions earned on the Trust's mortgage investments. The Special Distribution is not indicative of future performance.

DISTRIBUTION OVERVIEW 2010:

Monthly distributions for 2010 equalled $.078 per month, for a total $0.936 per unit, which, together with the year end Special Distribution of $0.07, represents total distributions for 2010 of $1.006 per unit.

MORTGAGE PORTFOLIO HIGHLIGHTS:

As the year end approaches, the Trust is pleased to provide the following information with respect to its mortgage investment portfolio, as at December 16, 2010;

  • Total Gross Mortgage Portfolio equals $221,470,253.
  • Conventional first mortgages, being those mortgages with loan to values less than 75%, comprise 86% of our total portfolio, and total Conventional mortgages with loan to values under 75% comprise 92% of our total portfolio.
  • Non-conventional mortgages and related investments total 8% of the portfolio.
  • Approximately 71% of the portfolio matures within 12 months. This results in a continuously revolving portfolio, allowing management to assess market conditions.
  • The Average Face Interest Rate on the portfolio is 9.27% per annum.
  • Regionally, the portfolio is diversified approximately as follows: Ontario 77.5%, Alberta 14.6%, British Columbia 3.5%, with the balance being in other provinces.

ABOUT THE TRUST

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 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 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. 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 Trust's trust manager and mortgage banker, competition for mortgage lending, real estate values, interest rate fluctuations, environmental matters, Unitholder 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 Trust is able to invest in mortgages at rates consistent with rates historically achieved; adequate mortgage investment opportunities are presented to the Trust; and adequate bank indebtedness and bank loans are available to the Trust. 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 Trust 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 Trust
    Eli Dadouch
    President & Chief Executive Officer
    (416) 635-0221
    www.firmcapital.com