Three Point Capital Corp.
Strong Performance and Resilient Yield Outlook Amid Declining Rates
Published: 12/3/2024
Author: FRC Analysts
*See important disclosures at the bottom of this reportSector: Financial Services | Industry: Mortgage Finance
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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.