Three Point Capital Corp.
Strong Performance and Resilient Yield Outlook Amid Declining Rates
Published: 12/3/2024
Author: FRC Analysts
Sector: Financial Services | Industry: Mortgage Finance
Ticker Symbols:
Rating and Key Data
| Metrics | Value |
|---|---|
| Current Price | CAD $ |
| Fair Value | CAD $ |
| Risk | 3 |
| 52 Week Range | CAD $ |
| Shares O/S (M) | N/A |
| Market Cap. (M) | CAD $ |
| Current Yield (%) | 8.2 |
| P/E (forward) | N/A |
| P/B | N/A |
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Report Highlights
In the first nine months of 2024, mortgage receivables were up 2% to $207M, the highest in Three Point’s history. In 2023, receivables were up 12% YoY to $203M vs our estimate of $185M.
The yield increased from 5.9% in 2022, to 8.1% in 2023 vs our forecast of 7.7%, driven by higher lending rates. Net income was up 49% YoY, beating our estimate by 2%. In 2024 (9M), net income was up 42% YoY, and the yield increased to 9.5%.
- Focus remains on first mortgages on single-family units. As of September 2024, 60% of mortgages were in B.C., and 31% in ON. First mortgages accounted for 91% of the portfolio.
