The COVID-19 pandemic did not hinder the corporation from exceeding its yield objectives
Firm Capital Mortgage Investment Corporation reported a strong year-over-year increase in its quarterly income, from $6.679 million in Q4 2019 to $7.318 million in the quarter ending December 31, 2020.
However, the pandemic took its toll in the company’s annual income, which declined from $28.002 million in 2019 to $26.353 million last year. Adjusted 2020 income stood at $27.26 million.
Fortunately, this did not impede Firm Capital from exceeding its yield objective of producing returns on shareholders’ equity.
In Q4 2020, the annualized return on shareholders’ equity was 8.77%, “representing a return on shareholders’ equity of 857 basis points per annum over the average one-year Government of Canada Treasury bill yield of 0.20%,” Firm Capital reported.
For the whole of 2020, the return on shareholders’ equity was 8.18%, “representing a return on shareholders’ equity of 798 basis points per annum,” the company added.
Helping the stability of Firm Capital’s dividends was its impairment allowance, which stood at $5.6 million as of December 31, 2020. This comprised approximately 1% of the company’s investment portfolio at the time.
As for investments, Firm Capital’s total portfolio was approximately $559 million as of the end of 2020, significantly higher than the roughly $481 million reported the year prior.
