Firm Capital reports robust Q3, latest YTD results

Net incomes surged due to higher interest, MIC reports

Firm Capital reports robust Q3, latest YTD results

Firm Capital Mortgage Investment Corporation has released its financial statements for the three and nine months ending September 30, 2023.

During the third quarter, the MIC saw its net income grow by 5.1% annually to reach nearly $8.6 million. On a year-to-date basis, Firm Capital’s net income went up by 6.4% annually to roughly $25.8 million. The MIC said that the increases were largely due to higher interest income.

Firm Capital’s basic weighted average earnings per share were $0.249 (Q3) and $0.749 (year-to-date).

The MIC’s investment portfolio fell by $82 million to around $578.929 million as of September 30. During the nine months ending September 30, new investment funding totalled $162.9 million, versus the $326.8 million YTD total during the same period last year. Repayments stood at $244.8 million, compared to $332.9 million last year.

As of the end of September, Firm Capital’s investment portfolio comprised of 241 investments, with an average gross investment size of approximately $2.4 million. Of these, 13 investments each had values exceeding $7.5 million.

“The corporation specializes in providing bridge mortgage financing that entails seeing the portfolio revolve and re-deployed into new investments based on current market rates,” Firm Capital said. “Of the $578 million investment portfolio as of September 30, 2023, approximately 88% was either underwritten or newly funded during 2023 and 2022.”

The MIC noted that only approximately 12% of its investment portfolio is associated with investments that were underwritten, or newly funded, prior to 2022.

“The investment portfolio’s revolving nature demonstrates the successful implementation of the corporation’s bridge financing strategy,” Firm Capital said.

MIC posts decline in gross investment portfolio

Firm Capital’s total gross investment portfolio stood at $578.929 million, representing a 12.4% decrease from the $661.003 reported in December 31, 2022. The MIC’s average face interest rate is at 11.1% per annum.

Conventional first mortgages (with loan-to-values less than 75%) accounted for 86% of the MIC’s total portfolio, versus the 83.5% share seen last December. Meanwhile, total conventional mortgages with loan-to-values less than 75% accounted for 92.5% of the total portfolio, compared to 88.6% as of December 2022).

Firm Capital said that roughly 85% of its investment portfolio matures by December 31, 2024, while 29% matures by the end of this year.