
As we approach the end of the year, OZ Capital’s Mortgage Investment Corporation (MIC) continues to deliver reliable returns, maintaining its steady 0.75% monthly distribution and ensuring a 9% annual yield for our investors.
Recent developments, including a rate cut by the Bank of Canada, present new dynamics in the market, which we believe will work in favor of our lending strategy.
Key Updates
Delinquency Rate and Portfolio Performance: OZ Capital’s portfolio remains robust, with 84 active loans, of which 2 loans are currently in default and 3 have late payments, maintaining a default rate of under 2%. This performance reflects our disciplined underwriting and proactive risk management strategies, ensuring our defaults stay well below industry averages.
Improved Deal Quality: We are seeing higher-quality mortgage deals entering the pipeline, driven by increased market activity in certain segments and more favorable lending opportunities. This positive trend positions the portfolio for further strength, offering both security and yield for our investors. Our focus on securing investments in major urban residential properties continues to provide a solid foundation for stable returns.
Impact of the Bank of Canada’s Rate Cut: On October 23rd, the Bank of Canada announced a 0.5% rate cut, which has implications for both borrowers and investors. For our borrowers, this reduction in interest rates may provide some relief, potentially improving loan performance and reducing the risk of defaults. From an investor perspective, this rate cut could make alternative investments like our MIC even more attractive, as yields on traditional fixed-income products are likely to decline further. Our 9% annual yield remains a compelling option in this lower interest rate environment, providing both consistent income and portfolio diversification.
No Leverage: We continue to manage our MIC without any leverage, ensuring that the portfolio maintains a conservative risk profile and is better positioned to weather market changes.
Stable NAV: The portfolio’s Net Asset Value (NAV) remains steady at $1 per share, further reinforcing the strength and reliability of our secured assets.
Looking Ahead
With the recent rate cut likely to create more attractive opportunities in the market, we expect continued demand in key urban centres. Our focus on high-quality, secure mortgage deals and conservative risk management will allow us to keep delivering our 9% annual yield.
OZ Capital remains committed to helping our investors achieve strong, risk-adjusted returns.
Thank you for your continued trust and support.
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