TORONTO, May 09, 2018 (GLOBE NEWSWIRE) -- (TSX:ERM) Eclipse Residential Mortgage Investment Corporation (“Eclipse” or the “Corporation”) reports that it has increased the limit for its credit facility from $10 million to $15 million. The Corporation’s investment objectives are to acquire and maintain a diversified mortgage portfolio, primarily composed of interests in single-family residential mortgages, that seeks to preserve capital and generate income to pay monthly dividends. Eclipse primarily uses the credit facility to invest in mortgage investments to enhance income. The increase in the credit facility is expected to be initially invested in insured mortgages with terms less than 1 year. Following the deployment of the increase in the credit facility, the Corporation will have approximately 29% of its portfolio invested in insured mortgages. As mortgages mature and the market evolves, the mortgage portfolio is expected to be adjusted based on opportunities available to Eclipse.
The Corporation also recently filed its 2018 first quarter financial statements and management’s discussion and analysis and these documents may be found on www.sedar.com or at www.bromptongroup.com. Key highlights for the first quarter of 2018 include:
- The Corporation continues to maintain a well-diversified portfolio with 867 mortgage investments across 10 provinces, with the majority of the portfolio in Ontario, Alberta and British Columbia where market liquidity continues to remain attractive based on home sales volumes.
- The Corporation has increased the level of insured loans in its portfolio since year-end. The insured segment has grown from 13% at December 31, 2017 to 19% at March 31, 2018. The insured segment of the portfolio continues to have short terms, with average maturities of less than 8 months, allowing for the potential opportunity to participate in higher mortgage rates if interest rates continue to rise over 2018 and beyond.
- The Corporation’s book value per share has grown to $9.71, and has steadily grown over the past 13 quarters from $9.32 per share at the end of 2014.
- The Corporation’s Q1 earnings per share continues to exceed the quarterly dividend. Tax assets accumulated through the issuance of securities through the capital markets allow the Corporation to shelter income from tax to continue to grow book value per share.
- Loan losses continue to remain low, with principal of mortgages in default representing only 0.2% of the mortgage portfolio at March 31, 2018.
About Brompton Funds
Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with approximately $2 billion in assets under management. Brompton’s investment solutions include TSX traded funds, mutual funds and flow-through limited partnerships. For further information, please contact your investment advisor, call Brompton’s investor relations line at 416-642-6000 (toll-free at 1-866-642-6001), email info@bromptongroup.com or visit our website at www.bromptongroup.com.
About MCAP Financial Corporation
One of Canada’s largest mortgage financing companies, MCAP Financial Corporation (“MCAP”) originates and services all mortgages for Eclipse. MCAP has more than 20 years of experience underwriting and servicing Canadian Single Family Residential Mortgages, with over $66 billion in mortgage assets managed for banks, lifecos, credit unions and institutional investors.
Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this press release and to other matters identified in public filings relating to Eclipse, to the future outlook of Eclipse and anticipated events or results and may include statements regarding the future financial performance of Eclipse. In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts. Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements. These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.