IPLIN E D INV E STING CAPIT AL P R E S E R VATION F i r m C ap i tal Mor tgage In v e stm e nt Co rpora t io n Firm C api t al M ort ID: 605215
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Slide1
DISCIPLINED INVESTING ● CAPITAL PRESERVATION
F
i
r
m
C
ap
i
tal
Mor
tgage
In
v
e
stm
e
nt
Co
rpora
t
io
n
Firm
C
api
t
al
M
ort
g
a
g
e
I
n
v
e
s
tm
e
n
t
C
orpo
r
a
tion
is
a
non-bank
lender
p
r
oviding
r
eside
n
t
ial
and
c
o
mm
e
r
cial
r
eal e
stat
e
financing.
Q
3
201
6
In
vestor
P
resentation
Septembe
r
30
,
2016Slide2
Highlights2DISCIPLINED INVESTING • CAPITAL PRESERVATION
Th
e Mort
gag
e Ban
ker,
Firm C
a
pi
t
a
l
C
o
rp
o
r
a
ti
on
,
si
n
ce
1988
a
n
d si
n
ce
o
u
r
IP
O
in
1999, Fi
r
m
C
a
pi
t
a
l
M
o
r
t
g
a
g
e
I
n
v
e
s
tm
e
n
t
C
o
rp
o
r
a
ti
o
n
h
a
s
bee
n
a
n
o
n-b
a
n
k
l
e
nd
e
r
f
o
c
u
sed
on s
h
o
r
t-
t
e
r
m
b
rid
g
e
r
e
a
l
e
s
ta
t
e
f
in
a
n
c
in
g
m
a
r
k
et
I
n
v
e
s
tm
e
n
t
Th
e
m
e
s:
P
r
ese
r
v
a
t
io
n
o
f Sh
a
r
e
h
o
l
d
e
r
s
’
Cap
i
t
al
S
t
r
o
n
g
Go
v
e
r
nan
c
e
P
oli
cie
s
P
e
r
f
o
r
man
c
e
D
r
i
v
e
n
C
o
mp
e
ns
at
i
o
n
G
r
o
w
t
h
c
o
up
l
e
d
w
i
t
h
s
t
r
o
n
g
ba
l
an
c
e
sh
e
e
t
w
h
i
le
m
i
n
i
m
izi
n
g
r
i
s
k
S
t
ab
l
e
Di
vi
d
e
nd
Sh
o
r
t
t
e
rm
l
e
nd
i
n
g
w
i
t
h
e
xp
e
r
i
e
n
c
e
d
p
a
rt
n
e
r
s
c
o
mp
r
i
s
e
d
o
f
man
a
g
eme
nt
and
i
n
v
e
s
t
o
rsSlide3
Independent Directors
3
DISCIPLINED INVESTING
• CAPITAL P
RESERVATION
S
tan
l
e
y
G
o
l
d
farb (1)Anthony HellerLarry Shulman (1)Geoffrey Bledin (1)Morris FischteinKeith L. Ray (1)Joe Oliver
Governance: Strong Board of Directors
Management Directors
Eli Dadouch (1)Jonathan Mair (1)Edward Gilbert (1)
Significant Real Estate Experience
N
o
t
e: (
1)
Ac
ti
v
e
l
y
c
o-i
n
v
e
s
t
s
w
i
t
h
F
C
MI
C
on
m
o
r
t
g
a
g
e
t
r
a
n
s
a
c
t
io
nsSlide4
Aligned Management Interests4DISCIPLINED INVESTING • CAPITAL
PRESERVATION
P
erf
orman
ce based
compe
n
s
a
ti
o
n
M
I
C Manager receives 75 bps on performing investments, not cash balancesMortgage Banker receives 10 bp
s servicing fee on p
erforming investmentsNo payment o
n work outs for any defaulted loansCommitment fee income is shar
edCorporation receives 75% of profi
t
s
f
r
o
m
m
e
z
z
an
i
n
e
and
e
qu
i
t
y
i
n
v
e
s
tme
n
t
s
a
f
t
er
f
i
r
s
t
ea
r
n
i
ng
a
10%
p
r
e
f
e
r
r
e
d
r
e
t
u
r
n
S
u
b
s
t
a
n
t
ia
l
p
e
r
so
n
a
l
i
n
v
e
s
tm
e
n
t
10
-
25%
p
a
r
i
-passu
i
n
v
e
s
tme
nt
i
n
a
l
l
n
o
n-
c
o
n
v
en
t
i
o
nal
m
o
rt
g
a
g
e
s
M
an
a
g
eme
nt
and d
i
r
e
c
t
o
r
s
a
r
e
c
o
-
i
n
v
e
s
t
o
r
s
i
n
m
o
s
t
i
n
v
e
s
tme
n
t
s
No
a
c
qui
s
i
ti
o
n
o
r
d
is
p
o
s
i
ti
o
n
f
ee
s
c
h
a
rg
e
dSlide5
Conservative Lending Approach70% conventional
first
mort
gage
sE
xperien
ced
b
o
r
r
o
w
e
rs in proven marketsConservative lending guidelines restricting investment exposure on loan size and rela
ted borrower groups
Investment Portf
olioGeographic Diversification
5
DIS
C
IPLIN
E
D INV
E
STING
•
CAPITA
L
P
R
E
S
E
R
VATIONSlide6
Rigid Operating Standards6DISCIPLINED INVESTING • CAPITA
L PRESERVATION
M
axi
mum fi
rst m
ortga
g
e
r
e
s
tr
i
cted to 5% and 10% of capital, depending on LTV (1)Maximum non first mortgage restricted to 2.5% of capi
tal (1)Restrictions
on the amount of non-first mortga
ge investmentsIndependent director approval of every investment- <$1,000,000 – a
t least one- >$1,00,000 – majorityCo-inves
tme
n
t
by
man
a
g
eme
ntSyndicate
d port
f
ol
i
o
to diversify riskInternalized credit managementReports directly to independent directorsDefault Recovery ProgramMandatory enforcement within 15 daysIndependent third party reportsAppraisals, enviromental audits, structural audits
N
o
t
e: (
1
)
C
a
p
i
t
al
is
b
a
s
e
d
on
t
o
t
al
p
aid
u
p
S
h
a
r
e
h
ol
de
r
’
s
E
qu
it
y
a
n
d
C
o
n
v
er
t
i
b
l
e
D
e
b
en
t
u
r
e
sSlide7
Financial Highlights - 2016 Q17DISCIPLINED INVESTING •
CAPITAL PRESERVATION
N
et
of im
pairment pr
ovi
s
ion
Quarte
r
Ende
d
Quarte
r Ended Quarter EndedJune 30, 2016 September 30, 2016 March 31, 2016Mortgage Portfolio (millions) (1) $407
$429 $411Basic P
rofit Per Share $0.246$0.241
$0.246Dividends Per Share $0.234$0.234 $0.234Return on Equi
ty 9.09%9.08% 9.58%Loan Losses none
non
e
noneSlide8
Annualized Return on Shareholders’ Equity
0
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012 2013 2014 2015 2016YTD2Yield (%)12FC
9.08 %108648DIS
C
IPLIN
E
D INV
E
STING
•
CAPITA
L
PRESERVATIONGov’t of
Canada 1-yr.
T-bil
l
0.54 %Slide9
Results of Operations – 20169DISCIPLINED INVESTING •
CAPITAL PRESERVATION
(
1) Fo
urth
quart
er di
v
i
d
e
n
d
s
includes one time payout of accumulated excess earnings throughout the yearQuarter Ended Quarter Ended Quarter Ended
June 30, 2016 September 30
, 2016 March 31, 2016Inter
est and Fees Earned $9.0$9.0 $8.7Interest and Operating
Expenses $3.6$3.6 $3.7Profit $5.4
$5.4
$5.0
Divi
d
e
nd
s
t
o
Shar
ehold
e
r
s
(1) $4.8$4.8 $4.8Loan Loss Provision (% of gross 1.00%portfolio)1.00% 1.00%Slide10
0
.
24
0
.
22
0
.
20
0
.
18
0
.
16
0
.
14
0
.
12
0
.
10
0
.
08
0
.
06
0
.
04
0
.
02
0
.
00
J
a
n
. M
ar
.
M
ay
J
u
l
.
S
e
p
.
N
o
v
.
J
a
n
. M
ar
.
M
a
y J
u
l
.
S
e
p
.
2014
N
o
v.
J
a
n
. M
ar
.
M
ay
J
u
l
.
S
e
p
.
N
o
v.
M
ar
.
M
ay
$
2013
TO
T
A
L
:
$0.990
S
t
abl
e
Ca
sh
Dividends
TO
T
A
L
:
$0.970
TO
T
A
L
:
$0.991
2015
C
ons
i
s
t
e
n
t
Di
s
t
ri
but
i
o
n
s
s
i
nce
1999
w
i
th
De
c
e
mb
e
r
T
op
Off
10
DIS
C
IPLIN
E
D INV
E
STING
•
CAPITA
L
P
R
E
S
E
R
VATIONSlide11
Mortgage Portfolio Growth
$35
$47
$83
$89
$120
$166
$208
$234
$223
$167
$203
$271
$294
$3,180
$340
$399
$433
2
0
00
2
0
01
2
0
02
2
0
03
2
0
04
2
0
05
20062007200820092010201120122013201420152016$1.0$1.1$1.1$1.4$1.7$2.4$2.7$3.0$3.0$3.2$3.3$3.3$3.4$4.2
$
m
illi
ons
11
DIS
C
IPLIN
E
D INV
E
STING
•
CAPITA
L
P
R
E
S
E
R
VATION
$-
$0.2
$0.9Slide12
Deal Flow12DISCIPLINED INVESTING • CAPITAL PRESERVATION
Sign
ificant Orig
ination Capabili
ty
Mortgage
Bank
er
(
F
CC)
27
year track record2012 transaction volume - $515 million2013 transaction volume - $665 million2014 transaction v
olume - $755 million2015
transaction volume - $793 million2016 transaction volume - $735 million
The mortgage bank experience and strong partners provides
steady deal flow with excellent risk
m
i
t
i
g
a
t
e
s
Co
-investing
wit
h
k
n
owledgeable real estate partnersSlide13
Capital Markets13DISCIPLINED INVESTING • CAPITAL PRESER
VATION
Access
ed th
e c
apital
market
eight
ti
m
e
s
si
nce August 2011August 2011$25.7 MM Series B Convert 5.40%April 2012• $20.7 MM Shares $13.45$20.5 MM Series C Convert
5.25%March 2013
$20.0 MM Series D Convert 4.75%
January 2014$20.5 MM Common Share EquityApril 2015
$25.0 MM Series E Convert 5.30%D
e
c
e
mb
e
r
2015
$20
.
0 MM Series
F Co
n
v
e
rt
5.50%March 2016$25.0 MM Common Share EquityDecember 2016$22.5 MM Series G Convert 5.20%Wide Investment Dealer Distribution NetworkSlide14
Average Share Price & Trading Volume14
DISCIPLINED INVESTING
• CAPITAL PRESER
VATIONSlide15
2016 Outlook15DISCIPLINED INVESTING • CAPITAL PRESERVATION
A
ntici
pat
e to
continu
e to
me
e
t
and
e
x
c
eed stated objectives of generating a return on equity of 400 basis points over average 1 year Government of
Canada treasury bill yields
Position mortgage investment p
ortfolio towards higher concentration in conventional first mortgages
and related investmentsStrong balan
c
e
sh
e
e
t
and
access to capital
to ta
k
e
ad
vantage of changing market conditionsFocused on exit strategies and security over yieldSlide16
Highlights16DISCIPLINED INVESTING • CAPITAL PRESERVATION
Di
versi
fied
in
vestment
portf
o
l
i
o
t
h
a
t produces a stable stream of dividendsPreservation of shareholder’s equityFocused on large liquid markets
Western Canada Presenc
eSpecialized in short term b
ridge financings with clear exit strategiesFocused on man
aging the investment portfolio as oppos
e
d
t
o
g
r
o
w
t
hFifteen yea
rs of
s
t
ab
l
e dividends