Portfolio Profile

as of January 31, 2017 

Investment thesis

Real estate investment and development fundamentals remain favourable in Canada providing an attractive market for mortgage lending in high quality real estate assets.

  • Demand for mortgage financing has remained stable as real estate investment trusts (REITs) and pension funds continue to raise capital to acquire new assets.
  • An abundance of domestic and foreign investment capital continues to be deployed in Canadian direct real estate equity investments.
  • Canadian real estate prices have appreciated recently and are expected to remain relatively stable.

Investment process

High quality mortgages will be primarily secured by income producing real property where the principal and interest can be serviced from the cash flow generated by the underlying real property. The mortgage may be either first ranking, junior first ranking or second ranking.

Top ten mortgage holdings

Outstanding principal

Loan to value

Term (months)

Interest rate

Security

Asset class

King City

$5,450,000

55.0%

24

10.00%

1st

Land

Ottawa

$3,375,000

62.3%

24

6.90%

1st

Office Building

Brantford

$3,360,000

70.0%

24

6.25%

1st

Industrial

Calgary

$3,151,000

74.8%

25

9.50%

2nd

Retail

Fort Saskatchewan

$2,971,000

72.2%

24

12.00%

2nd

Multi-residential

Milton$2,300,00083.0%247.75%1stOffice Building
Montreal$1,800,00060.0%245.99%1stMulti-residential

Leamington

$1,700,000

54.3%

18

10.58%

1st

Multi-residential

Dorval$1,597,99356.3%246.85%1stRetail

Edmonton

$1,560,000

80.0%

24

9.98%

1st

Industrial

* Based on arms length third party appraisals performed at the time of funding. The summary of top 10 mortgage holdings is current to June 2015 and may change due to ongoing portfolio transactions.

Asset allocations

By asset class

Multi-residential51.0%
Retail18.9%
Industrial15.1%
Land14.9%
Office0.0%

By region

Ontario44.3%
Alberta23.40
Quebec19.7%
BC7.3%
Atlantic Canada5.6%
Saskatchewan0.0%
Manitoba0.0%

By security

1st mortgage68.9%
2nd mortgage31.1%
3rd mortgage0.0%

The summary of asset allocations is current to June 15, 2015 and may change from time to time.  This material is not to be distributed, reproduced or communicated to a third party without the express written consent of First National Financial LP and should be read in conjunction with the Fund's most recently filed Annual Information Form. This material is for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. Past results are not intended to be indicative of future performance. Commissions, service fees, management fees and expenses may be associated with investment funds.

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