First Source Mortgage Fund Announces 2022 Top Up Distribution to Unitholders
TORONTO, Feb. 06, 2023 (GLOBE NEWSWIRE) — First Source Mortgage Fund (the “Fund”) will pay an estimated top up distribution of $0.10 per $10 Class F Unit (“Unit”). The annualized equivalent of 1%. The bonus distribution recognizes the excess income earned by the Fund for the fiscal year ended December 31, 2022. The top up distribution is subject to the verification and completion of the First Source Mortgage Fund’s 2022 financial statements. Financial statements are expected to be finalized by March 31, 2023.
DISTRIBUTION OVERVIEW 2022
Class F regular monthly cash distributions for 2022 equaled $0.0625 per month, for a total $0.75, which, together with the estimated year-end Top-Up Distribution of $0.10, represents total cash distributions for 2022 of $0.85 or 8.5% annualized.
The Fund has in place a Distribution Reinvestment Plan (“DRIP”). For F-Class unit holders who opted for the DRIP, the estimated total distribution per unit for the 2022 fiscal year, inclusive of this top up distribution, was $.88/Unit or a compounded annualized return of 8.8%. Unitholders are reminded that they can participate in the Fund’s Distribution Reinvestment Plan.
The impressive performance of the Fund is a direct result of First Source’s best in class underwriting practices coupled with the general rise interest rates.
“It was another successful year filled with a unique set of challenges. Going forward, we anticipate a relaxing of the fiscal interventions that resulted in the rising interest rate environment of Q3 and Q4 of 2022. This should result in an influx of high-quality lending opportunities in 2023,” said David Mandel, CEO of First Source.
To learn more about the First Source Mortgage Fund, including investment opportunities and qualification criteria please contact [email protected]
About First Source Mortgage Corporation
Founded in 2006, First Source is a boutique commercial mortgage lender based in the Toronto Area supporting Mortgage Brokers, Real Estate Advisers, as well as Builders and Developers with Non-Bank Mortgage Lending Services.
About First Source Mortgage Fund
The First Source Mortgage Fund is a diversified portfolio of commercial and development property mortgages focused in the Greater Toronto Area and select other Southern Ontario markets.
This news release contains forward-looking statements within the meaning of applicable securities laws including, among others, statements concerning our estimated Top-Up Distribution, our objectives, our strategies to achieve those objectives, our performance, our mortgage portfolio and our distributions, as well as statements with respect to management’s beliefs, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by using forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “expect”, “intent”, “estimate”, “anticipate”, “believe”, “should”, “plans” or “continue” or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management. the top up distribution should not be viewed as indicative of future performance.
These statements are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described in our Offering Memorandum under “Risk Factors” (a copy of which can be obtained at
https://www.firstsourcemortgage.ca/), which could cause our actual results and performance to differ materially from the forward-looking statements contained in this circular. Those risks and uncertainties include, among others, risks associated with public health crisis; liquidity and price fluctuation of our common shares; dependence on the Fund manager and the mortgage banker; potential conflicts of interest; dilution; no guaranteed return; credit risk; interest rate risk; environmental matters associated with our business; availability of investments; reliance on the directors; borrowing; limited sources of borrowing; risks related to the renewal of mortgages comprising our investment portfolio; risks related to the composition of our investment portfolio; subordinated and subsequent debt financing; investment risk for land mortgage investments; reliance on borrowers; litigation risks; ability to manage growth; change in legislation; cyber risk; our convertible debentures; and qualification as a mortgage investment fund. Readers are cautioned that the foregoing list is not exhaustive. Although the forward-looking information continued in this new release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results and performance will be consistent with these forward-looking statements.
All forward-looking statements in this news release are qualified by these cautionary statements. Except as required by applicable law, the Fund undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.