First Circle Mortgage Investment Corporation
Steady Performance, Promising Outlook Amidst Rate Cuts
Published: 12/16/2024
Author: FRC Analysts
*See important disclosures at the bottom of this reportSector: Financial Service | Industry: REIT-Mortgage
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- 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