Strong cross-border relationships drive the company’s performance
Toronto-based real estate financing company Terra Firma Capital Corporation has released its financial results for the three- and six-month periods ending June 30.
As of the end of the second quarter, the firm’s total assets were $141.7 million, while total assets under management were $159.6 million.
“The company now has relationships with four large US national home builders for repeat business that should deliver annual programmatic transactions that we expect should produce as much as $200 million of new transactions per annum,” said Glenn Watchorn, CEO of Terra Firma Capital Corporation. “We have also established significant connections with many other large developers and builders in 12 separate markets across the US”
During the second quarter, revenues increased by 9.2% to $4.1 million, compared to $3.7 million during the same period last year. For the first six months of the year, revenues decreased 0.7% to $7.7 million, down from $7.8 million during the same period in 2020.
Terra Firma’s principal balance of loan and mortgage investments fell by $4.2 million, from $93.8 million as of Dec. 31, 2020, to $89.6 million as of June 30.
Net income and comprehensive income grew by 91% to $619,000, while adjusted net income and comprehensive income ticked down by 1.2% to $678,000. New transactions totalled $69 million.
“As a result of our expected higher transactional volume and the announcement of our second fund, we are very optimistic about the prospects for earnings growth in the coming quarters and years ahead and feel that we are now at an inflection point in the overall growth of the company,” Watchorn said.
