Mortgage portfolio jumped increased by $17.2 million to $31.8 million

Durrant Pate/ Contributor

Canadian and Jamaican listed mortgage and finance company, Equityline Mortgage Investment Corporation has seen a sharp rise in assets under management last year, which registered an almost two-fold increase.

Assets under management closed the year at CAD$42.54 million, up from CAD$14.6 million as of December 31, 2021, an increase of 192 per cent. Additionally, an increase in the net leverage portfolio yield moving from 12.04 per cent in Q3 to 14.7 per cent at year-end.

Last year, 2022, generated more interest income for EquityLine. Most importantly, the company was able to extend its consistent track record of dividend payments and returns to public shareholders of Series A Preferred Shares and its private Series B and Series F Preferred Shares while experiencing no foreclosures in the mortgage portfolio since inception.

Dividend distribution

EquityLine distributed CAD$1.63 million in 2022 compared to CAD$1.23 million in dividends and interest to investors. For the year ended December 31, 2022, EquityLine distributed CAD$635,879 per Redeemable Preferred Share compared with CAD$556,889 in 2021.

The Series A Preferred Shares paid CAD $0.065 CAD or US$0.05 per share in both fiscal 2022 and 2021. The mortgage portfolio has increased by CAD$17.21 million or 118 per cent for the year.

Over the fiscal year 2022, the EquityLine Special Purpose Vehicle (SPV) banking facility has increased by CAD$16.6 million – from CAD $3.03 million to CAD$19.68 million. This was in addition to an increase of CAD$7.20 million, or 98 per cent, in debentures over the 12-month period, issued to support the mortgage portfolio growth and to capitalise on market opportunities.

In September 2022, EquityLine MIC applied for and was approved for an additional CAD$30 million through its SPV with a Canadian Schedule 1 bank. Funding for the expanded facility commenced in Q4 2022.

Serguy Shchavyelyev, president and chief executive officer, commented that, “the many sources of economic challenges have made the capital markets more cautious but EquityLine MIC’s adherence to its comprehensive and stringent underlying process applied to each mortgage application and investment mitigates the risks to our shareholders”.

He added: “Additionally, we have increased lending rates accordingly and moved from a fixed-rate lending policy to a variable one. With COVID behind us and inflation abating we look forward to the coming year with excitement.”

The company ended the year with comprehensive income net loss of CAD$1.52 million, down from a loss of CAD$1.30 million in 2021. In terms of general and administrative expenses, EquityLine incurred CAD $72,953, up from CAD$33,225 posted in 2021.

The increase is primarily attributable to costs related to increasing the company’s distribution network along with pursuing financing initiatives. General and administrative expenses consist of listing fees, fees paid on custodial services and other operating costs and administration of the mortgage portfolio.