Higher interest income drives performance
Firm Capital Mortgage Investment Corporation has announced strong financial results for the second quarter and the first half of the year.
Net income during the three months ending June 30 grew by 7.4% annually to $7.378 million, while net income over the first six months of 2021 increased by 12.1% to $14.685 million.
“The increase is mainly a result of higher interest income due to a larger average investment portfolio size (on average, $17.4 million higher in the second quarter of 2021 relative to the second quarter of 2020) and a higher weighted average portfolio interest rate, over the comparable period in 2020,” Firm Capital said in its report earlier this week.
Read more: Firm Capital Property Trust announces strong start to 2021
With an average face interest rate of 8.16% per annum, the MIC’s total gross investment portfolio during the first half of the year stood at nearly $529.9 million, markedly lower than the $559 million reported on Dec. 31, 2020.
Total conventional mortgages with loan-to-values less than 75% accounted for 77% of Firm Capital’s total portfolio. Approximately 47% of the portfolio matures by the end of this year.
“Borrower repayment performance has remained consistent with pre-COVID-19 performance and no payment deferral arrangements have been implemented,” Firm Capital said.
For the quarter ending June 30, the annualized return on total shareholders’ equity was 8.53%, “representing a return on total shareholders’ equity of 828 basis points per annum over the average one-year Government of Canada Treasury bill yield of 0.25%,” the MIC said.
