Disclosure: Antrim Investments Ltd. has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
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Mortgage Investment Corporations (MICs) by AUM – June 2025
Antrim remains one of the largest MICs in Canada
Antrim’s yield is lower due to its relatively conservative risk profile, including higher exposure to first mortgages and limited use of leverage
The fund also has significantly fewer impaired mortgages, suggesting a healthier portfolio
Portfolio Update
In FY2025, mortgage advancements increased 33% YoY, while repayments increased 13% YoY
As a result, mortgage receivables rose 3% YoY to $912M, closely aligning with our September 2024 estimate of $910M
Exposure to first mortgages increased 2 pp to 84%, indicating reduced portfolio risk
The average mortgage size increased 5% YoY to $451k. Remains focused on single-family residential units
No material change in LTV. Exposure to ON and AB increased, while B.C. exposure declined, enhancing portfolio diversification
As Antrim's mortgages are fixed-rate, the average lending rate declined at a slower pace compared to market rates
No realized losses
Foreclosures and delinquent mortgages rose slightly, from 2.4% to 2.6% of receivables, but remain well below the sector average of 6.0%, reflecting strong portfolio quality
Debt-to-capital declined YoY from 12% to 5%, reflecting management’s mandate for limited leverage. By comparison, other MICs typically employ higher leverage (35%-45%) to boost yields
In summary, we believe the portfolio’s risk profile has decreased (two red vs three green signalsFinancials: YE: June 30th
FY2025 revenue was up 9% YoY, beating our estimate by 3%, due to higher than expected lending rates
Net income was up 25% YoY, beating our estimate by 10%
Distributions as a percentage of invested capital increased 1.30 pp to 8.45% due to higher lending rates vs our forecast of 8.03%
FRC Rating
With rates trending downward, we expect yields to have peaked in FY2025, and decline through FY2026 and FY2027
That said, we are revising our FY2026 projections upward, reflecting higher-than-expected portfolio lending rates at FY2025 year-end
We find high-yielding funds, like Antrim, increasingly attractive in the current declining rate environment. This is because MIC lending rates are less elastic, meaning their yields tend to decline less in a falling rate environment, and rise more slowly in a rising rate environment. Given the BoC’s rate cuts, yields are set to decline. However, we believe the risk of higher default rates is easing, and the mortgage origination market is likely to gain momentum in 2026.
Risks
We believe the MIC is exposed to the following key risks (not exhaustive):
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