Unless otherwise noted, all data is verified as of August 31, 2023:
- The weighted average beacon score of Advanced MIC borrowers is 728.
- The weighted average term to maturity is 128.62 days.
- The simple average property value is $1,114,349.00.
- All properties have been fully appraised by appraisers with the AACI or CRA designation. All appraisals use an as-is value.
- Advanced MIC strives to limit portfolio exposure to a single borrower or group of related borrowers to no more than 10% of the total mortgage portfolio value.
- No Advanced MIC mortgages have been assigned to or otherwise pledged to secure debt from any third party.
- No mortgages have been syndicated with or advanced to individuals, companies or entities that are related to the MIC’s management by virtue of common ownership and control. No mortgages have been syndicated at all. Advanced MIC owns 100% of the mortgages that it has registered.
- The Advanced MIC portfolio only contains mortgages. Advanced MIC does not own or hold shares in other or related or connected companies.
- All mortgages in the portfolio were originated, underwritten and funded by Advanced MIC and its manager Advanced Alternative Lending and were not bought from, assigned by or otherwise acquired from any other entities.
The composition of mortgage portfolio can change daily due to advances, discharges and renewals. Please contact us if you require additional or more current information.
Advanced MIC provides reports on the composition and performance of its portfolio to the board of directors at least monthly and to preferred shareholders at least quarterly. The table below shows the monthly portfolio summaries (provided to the board of directors with the dividend package each month, and to shareholders at the end of each quarter) since December 31, 2018.
Advanced MIC’s strategy is to focus on lending in Ottawa and surrounding areas of Eastern Ontario. It should be noted that this regional focus does not provide diversification to Advanced MIC’s portfolio. Current and potential Advanced MIC shareholders should review this regional concentration as a risk factor and in context with any other investments with a similar geographic profile.
From the AMIC Offering Memorandum:
AMIC’s business objective is to obtain a secure stream of income by optimizing its mortgage portfolio within the MIC criteria prescribed by the Tax Act. AMIC’s primary business is earning income through making residential and commercial loans to borrowers.
There is an established need for real estate mortgage financing that is not readily provided by banks, trust companies, credit unions and other traditional lenders.
Short term mortgage financing is a continuing need of individuals, builders and real estate developers. As a result of their needs for flexibility and prompt approvals, they often require the services of private lenders and organizations such as AMIC.
The rate of return AMIC earns from its mortgage loans fluctuates with prevailing market demand for short term mortgage financing. In some cases, AMIC’s mortgage loans may not meet the financing criteria for conventional mortgages from institutional sources, and as a result, these loans generally earn a higher rate of return than that normally attainable from conventional mortgage loans. AMIC attempts to minimize risk by being prudent in both its credit decisions and in assessing the value of the underlying real property offered as security.
The near prime market segments of the Canadian lending industry in which Advanced Alternative Lending (the MIC manager) operates are under serviced by the large financial institutions in Canada. The near prime market segments differ from prime market segments because of lower borrower equity, lower borrower credit scores, lower presales/ pre-leasing and size of the loan.
These segments are populated by small to mid-sized borrowers in smaller, non-urban geographic markets, who require custom tailored financing solutions to meet their capital requirements.
- The Corporation maintains a mix of mortgage types in its portfolio including builder mortgages, first and second mortgages, development and construction mortgages and term financing mortgages on income producing properties.
- A typical loan size ranges from $25,000 to $2,500,000 depending on the type of real estate and the priority of the mortgage.
- AMIC has established a policy that limits its credit exposure to any one borrower to less than 10% of the total value of the portfolio.
Investing In AMIC
For detailed information about the activities of Advanced Mortgage Investment Corporation (AMIC), refer to the Offering Memorandum (OM). To request a copy of the OM, please contact one of the registered Dealing Representatives of Advanced Capital Corp. (ACC).
The OM includes the most recently audited financial statements of the corporation as well as other important facts about the operation of the MIC.
AMIC welcomes inquires from exempt market dealers (and other suitably registered firms) looking to review AMIC for an approved product shelf. AMIC can be a suitable choice to round out an alternative investment portfolio. Please contact Michael Hapke at (613) 656-0866 for more information about how AMIC can line up with your client’s investment goals and your firm’s exempt market strategy.
AMIC’s Performance Since Inception
The following chart shows the results achieved by an actual AMIC investor who invested $10,000 at inception (August 28, 2014). This investor has opted to reinvest 100% of their dividends in AMIC shares on a monthly basis. Past results are not indicative of future performance. The investor’s initial $10,000 investment has grown to $19,047.32 as of August 31, 2023. This investor’s life-to-date investment rate of return (time-weighted) is 7.41%. The investor’s shares have grown by 90.473% in 9.01 years.
- Investors who opt to hold shares in a registered plan account will have to pay the trustee fees associated with that account. Trustee fees are not included in the above chart.
- The rate of return shown in the above chart is not adjusted for inflation.
- Investors should consult their accountant or tax advisor before considering an investment in AMIC.