Firm Capital Mortgage Investment Corporation's Impressive Q2 Performance
Firm Capital Mortgage Investment Corporation Reports Q2 Results
Firm Capital Mortgage Investment Corporation (the "Corporation") (TSX: FC) has recently announced its financial performance for the first half of the year. The corporation reported a significant increase in both net income and earnings per share, reflecting a robust performance despite market fluctuations.
Financial Highlights
For the period ending June 30, 2025, Firm Capital's net income saw a remarkable rise of 13.4%, amounting to $9,674,154 compared to $8,533,772 during the same timeframe in the previous year. Over the six months, net income surged by 14.9%, reaching $19,647,419 as opposed to $17,103,556 from last year.
Earnings Per Share Growth
The basic weighted average earnings per share for the second quarter of 2025 was reported at $0.263, which is an increase from the $0.247 noted a year earlier. Additionally, the distributions per share for the quarter totaled $0.234, demonstrating a consistent return for shareholders.
Investment Portfolio Overview
As of June 30, 2025, Firm Capital's investment portfolio was evaluated at $624.4 million, a slight decline of 4.5% from $653.8 million at the end of 2024. During the first half of 2025, the company funded new investments totaling $133.4 million while experiencing repayments of $162.8 million. Notably, the portfolio included 257 investments, with an average gross investment size of approximately $2.4 million.
Credit Losses and Adjustments
In relation to expected credit losses, the allowance recorded was $32.9 million, increasing from $29.6 million in 2024. This includes a considerable estimate of $26.1 million attributed to the shortfall between investment balances and recoverable amounts, alongside a collective allowance balance of $2.3 million.
Cash Dividend Announcements
The board of directors has declared a monthly cash dividend of $0.078 per common share, slated for distribution on specified payment dates. Shareholders will receive dividends based on their holdings as of the designated record dates.
Details of Dividend Payment Schedule
Important dates include:
- Record Date: October 31, 2025, Dividend Payment Date: November 17, 2025
- Record Date: November 28, 2025, Dividend Payment Date: December 15, 2025
Dividend Reinvestment and Share Purchase Plan
The Corporation also offers a Dividend Reinvestment Plan (DRIP) that allows shareholders to reinvest dividends into additional shares at a 97% price of the weighted average trading price. Participants can purchase additional shares with a maximum of $12,000 per year.
Shareholder Dividends Overview
In the latest quarter, total dividends declared were $8,596,366, remaining consistent with prior year payouts. The total number of common shares outstanding increased, showcasing Firm Capital's growth trajectory in terms of shareholder value.
About Firm Capital Mortgage Investment Corporation
Where Mortgage Deals Get Done
Firm Capital Mortgage Investment Corporation operates as a non-bank lender, specializing in providing short-term bridge and conventional financing for residential and commercial properties. The organization's investment strategy aims to preserve shareholder equity while producing a reliable flow of monthly dividends derived from targeted investments in underserved markets. This strategy enhances the corporation’s portfolio, ensuring consistent returns to its stakeholders.
For further inquiries or information, shareholders and potential investors can reach out to:
Firm Capital Mortgage Investment Corporation
Eli Dadouch
President & Chief Executive Officer
(416) 635-0221
Frequently Asked Questions
What are the significant financial highlights for Q2 2025?
Q2 2025 saw a 13.4% increase in net income, totaling $9,674,154, and earnings per share rose to $0.263, reflecting solid growth.
How did the investment portfolio perform in the first half of 2025?
The investment portfolio recorded a valuation of $624.4 million, with new investments of $133.4 million, alongside $162.8 million in repayments.
What is the declared dividend for October and November 2025?
The monthly cash dividend declared is $0.078 per common share, with specific payment dates set for November and December 2025.
How can shareholders participate in the Dividend Reinvestment Plan?
Shareholders can enroll in the DRIP to reinvest dividends at a reduced rate and can purchase additional shares up to $12,000 annually.
Who is the contact person for Firm Capital Mortgage Investment Corporation?
Eli Dadouch serves as the President & CEO, and can be contacted at (416) 635-0221 for any inquiries.
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