• In FY2022 (year ended June 2022), mortgage receivables increased 23% YoY to $938M (the highest in Antrim’s history) vs our estimate of $800M. This company maintains its spot as the second largest MIC in the country, behind Timbercreek Financial (TSX: TF).

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  • FY2022 dividend yield was 5.7% vs 5.9% in FY2021 (our estimate was 5.6%). Focus remains on first mortgages on single-family units. At the end of FY2022, 19% of mortgages were in Ontario, up from 11% at the end of FY2021. Exposure to B.C. declined YoY from 84% to 72%, implying enhanced geographical diversification.
  • We are expecting lower repayments as borrowers are likely to renew their loans due to increased difficulty in obtaining loans from traditional lenders. As a result, we believe MICs should be able to expand their loan portfolios in the coming 12 months. Although this company expects to exit FY2023 with $1B+ in mortgages, we are conservatively modeling $950M.
  • Management is targeting a yield of 6.5% in FY2023 vs 5.7% in FY2022. Based on our conservative estimates mentioned above, we are projecting 6.1% in FY2023. We believe low-duration funds, such as MICs, offer attractive opportunities in a rising interest rate environment.


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