First Source Mortgage Fund Increases its Compounded Annualized Monthly Distribution to Investors to 9.06%
TORONTO, July 18, 2023 (GLOBE NEWSWIRE) — Effective July 31, 2023, First Source Mortgage Fund (“the Fund”) has increased the monthly distribution per eligible Class F unit from $0.070/Unit (70 bps) to $0.0725/Unit (72.5 bps). This increase provides for a non-compounded annualized return of 8.70%, or if the investor opted to reinvest distributions (DRIP), a compounded annualized return of 9.06%. Likewise, all other unit classes will receive the same increase in their monthly distribution. The impressive performance of the Fund is a result of our client-centric team culture, best-in-class conservative underwriting practices, and an increasing interest rate environment.
David Mandel, the longtime CEO of First Source Mortgage Corporation, says “We continue to take advantage of the higher than typical interest rate environment. We are seeing high quality opportunities to lend to sophisticated and experienced borrowers. Our investors are the beneficiaries of the tightening and inflexible lending requirements of the larger institutions and the big 5 banks. Our Fund remains open for new investor capital, with over 40 individual commercial mortgages, our Fund is a great option for portfolio diversification.”
The Fund remains open to new investment from accredited investors. Please contact Scott Roberts, VP of Fund Sales at scott@firstsourcemortgage.ca.
ABOUT THE FIRST SOURCE MORTGAGE FUND
The Fund is a diversified portfolio of commercial and development property mortgages focused in the Greater Toronto Area and select other Southern Ontario markets. https://www.firstsourcemortgage.ca/fund-materials.
FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of applicable securities laws including, among others, 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.
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/fund-materials)
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.
