Resilient Yields in a Declining Rate Environment

Published: 2/3/2025

Author: FRC Analysts

Thumbnail of the report Resilient Yields in a Declining Rate Environment

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

Sector: Mortgage | Industry: Mortgage

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Report Highlights

The MIC remains focused on first mortgages on single family residential units in Ontario. At the end of Q1-FY2025 (September 2024), mortgage receivables surpassed $180M, the highest in CMI’s history.
In FY2024 (ended June 2024), revenue was up 23% YoY, amid higher mortgage receivables, and lending rates, falling just 0.3% short of our estimate. Net income was up 13% YoY, beating our estimate by 0.4%. The yield increased 0.1 pp to 8.8% vs our forecast of 9.0%.

At the end of FY2024, CMI had $21M (12% of the portfolio) in stage three (impaired) mortgages, spread across nine out of 52 properties, up from $10M (10% of the portfolio) at the end of FY202

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