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.