First Source Mortgage Fund Announces Estimated Top-Up

First Source Mortgage Fund Announces Estimated Top-Up

TORONTO, Feb. 26, 2024 (GLOBE NEWSWIRE) — First Source Mortgage Fund (“the Fund”) announces that it has an estimated Top-Up year-end distribution (the “Top-Up distribution”) of 109 bps per eligible Class F unit. The precise amount of the top-up distribution will be confirmed prior to the payment date. The top-up distribution recognizes that the (estimated) annual income generated in 2023 is expected to exceed the regular monthly distributions paid to unitholders. The Top-Up distribution is not indicative of future performance by the Fund.

The total distribution per unit for Class F unitholders during 2023, inclusive of the estimate Top-Up distribution, was 9.47%/unit. This equates to a total annualized compounded return of 9.8% for 2023.

David Mandel, CEO of First Source Mortgage Corporation, emphasizes the company’s successful strategy: “Our principle of understanding the exit strategy before entering any funding opportunity has been fundamental. This approach underpins our underwriting process. We are consistently encountering high-quality lending opportunities in the private sector. The stringent and inflexible lending criteria of the top five banks and other major lenders are working to our investors’ advantage, enhancing their returns. Our Fund remains receptive to new investor capital and currently encompasses over 45 individual commercial mortgages,” Mandel explains.

The Fund remains open to new investment from accredited investors. The Fund is eligible for registered investments including RSP, RIF, LIRA, RESP, and TFSA. Please contact Scott Roberts, VP of Fund Sales at [email protected].

ABOUT THE FIRST SOURCE MORTGAGE FUND
The Fund is a diversified portfolio of commercial and development property mortgages focused in the Greater Toronto Area and select other Southern Ontario markets. https://www.firstsourcemortgage.ca/fund-materials.

FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of applicable securities laws including, among others, our objectives, our strategies to achieve those objectives, our performance, our mortgage portfolio and our distributions, as well as statements with respect to management’s beliefs, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by using forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “expect”, “intent”, “estimate”, “anticipate”, “believe”, “should”, “plans” or “continue” or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management’s current beliefs and are based on information currently available to management.

These statements are not guarantees of future performance and are based on our estimates and assumptions that are subject to risks and uncertainties, including those described in our Offering Memorandum under “Risk Factors” (a copy of which can be obtained at https://www.firstsourcemortgage.ca/fund-materials)

Those risks and uncertainties include, among others, risks associated with public health crisis; liquidity and price fluctuation of our common shares; dependence on the Fund manager and the mortgage banker; potential conflicts of interest; dilution; no guaranteed return; credit risk; interest rate risk; environmental matters associated with our business; availability of investments; reliance on the directors; borrowing; limited sources of borrowing; risks related to the renewal of mortgages comprising our investment portfolio; risks related to the composition of our investment portfolio; subordinated and subsequent debt financing; investment risk for land mortgage investments; reliance on borrowers; litigation risks; ability to manage growth; change in legislation; cyber risk; our convertible debentures; and qualification as a mortgage investment fund. Readers are cautioned that the foregoing list is not exhaustive. Although the forward-looking information continued in this new release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results and performance will be consistent with these forward-looking statements.

All forward-looking statements in this news release are qualified by these cautionary statements. Except as required by applicable law, the Fund undertakes no obligation to publicly update or revise any forward-looking statement, whether because of new information, future events, or otherwise.

For further information, please contact:

Scott Roberts

Vice-President – Fund Sales

(416) 930-8407

First Source Mortgage Fund Announces Estimated Top-Up

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