As of June 30, 2019, Antrim Balanced Mortgage Fund Ltd. (“fund”, “Antrim”) had $567 million in mortgage receivables (up 19% YoY) secured by 1,668 properties (average – $340k).
Antrim remains the largest private Mortgage Investment Corporation (“MIC’) in the country.
Revenues grew 32% YoY to $43 million in FY2019 (12 months ended June 30, 2019). Net Income grew 35% YoY to $34 million in FY Both figures are the company’s highest ever since inception in 2007.
Despite a 19% increase in portfolio size, we believe the MIC’s risk profile remains unchanged. The focus continues to be on first mortgages on owner-occupied single-family houses in the Greater Vancouver area.
We are slightly concerned over a significant increase in foreclosures, to 3.8% of the portfolio, by the end of FY2019 (1.4% at the end of FY2018). The fund had zero realized losses in FY2019.
With the Vancouver market showing signs of stabilization, we have a cautiously optimistic outlook for new originations over the next 12 months. This is likely to be partially offset by a lower interest rate environment.
We expect investors’ yield in 2020 to be in the 6% – 7% p.a. range depending on the type of shares held.
