Fisgard Capital Corporation
Navigating Market Headwinds with a Conservative Lending Strategy
Published: 5/15/2025
Author: FRC Analysts
Sector: Mortgage | Industry: Mortgage
Ticker Symbols:
Rating and Key Data
| Metrics | Value |
|---|---|
| Current Price | CAD $1 |
| Fair Value | CAD $ |
| Risk | 2 |
| 52 Week Range | CAD $ |
| Shares O/S (M) | N/A |
| Market Cap. (M) | CAD $ |
| Current Yield (%) | 7.20 |
| P/E (forward) | N/A |
| P/B | N/A |
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Report Highlights
- In 2024, mortgage receivables increased 2% YoY to $295M vs our estimate of $313M. Net income was up 29% to $24M, beating our estimate by 2%. The weighted average yield across all shares increased 1.1 pp (percentage points) to 8.2%, exactly matching our estimate from our previous report in May 2024.
- The MIC remains focused on low-LTV/first mortgages on single family residential units in B.C., AB, and ON. As of December 2024, first mortgages accounted for 95% of the portfolio. The weighted average loan-to-value was 53%. Unlike many comparable MICs, the fund does not use leverage to enhance yields.
- Since May 2024, the BoC has cut rates seven times (225 bp), with the potential for one or two more cuts this year, driven by high unemployment, escalating geopolitical/trade risks, and concerns over potential weakness in GDP growth. Consequently, we anticipate Fisgard’s transaction volumes to rise this year.
- We find high-yielding funds, like Fisgard, increasingly attractive in the current declining rate environment. This is because MIC lending rates are less elastic, meaning their yields tend to
