Steady Performance, Promising Outlook Amidst Rate Cuts

Published: 12/16/2024

Author: FRC Analysts

Thumbnail of the report Steady Performance, Promising Outlook Amidst Rate Cuts

*This report and research coverage is paid for and commissioned by First Circle Mortgage Investment Corporation - See the bottom of this report for other important disclosures rating, and risk definitions. All figures in C$ unless otherwise specified.

Sector: Financial Service | Industry: REIT-Mortgage

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Rating and Key Data

Metrics	Value
Current Price	CAD $
Fair Value	CAD $
Risk	2
52 Week Range	CAD $
Shares O/S (M)	N/A
Market Cap. (M)	CAD $
Current Yield (%)	N/A
P/E (forward)	8.5
P/B	N/A

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Report Highlights

In FY2024 (ended September 2023), mortgage receivables were down 5% YoY to $184M. The yield declined 0.1 pp to 9.7%, but exceeded our estimate by 0.6 pp, driven by higher than anticipated lending rates. FCMIC has been able to raise lending rates quickly, as 70% of its mortgages are floating rate.
The MIC remains focused on first mortgages on single family residential units in B.C.

As of September 2024, FCMIC had $12M (6.3% of the portfolio) in stage three (impaired) mortgages, spread across nine out of 275 properties, largely unchanged from the end of FY2023. We

Rating and Key Data