Disciplined Risk Management, Balanced Investor-Broker Strategies, and a Forward-Looking Approach
TORONTO, ON AND VANCOUVER, BC / ACCESS Newswire / February 21, 2025 / Ginkgo MIC successfully held its Annual General Meeting (AGM), with sessions in Toronto on February 8 and Vancouver on February 9. Led by CEO Henry Tse, the AGM provided investors with a comprehensive review of market conditions, fund performance, and the company's continued focus on prudent risk management to maintain stability in a changing economic environment.
Fund Performance: Stability in a Shifting Market
Despite economic headwinds, Ginkgo MIC has maintained strong fund performance throughout 2024, demonstrating resilience and stability through disciplined underwriting and risk management. The fund's 2024 performance highlights include:
Sustained Growth: Total shares issued increased by 20.97%, with accumulated shares surpassing 118 million.
Portfolio Strength: The fund saw a strategic shift towards first mortgages, which now comprise 83.7% of the portfolio, reinforcing loan security.
Stable Target Returns: While market conditions remain dynamic, Ginkgo MIC continues its focused efforts to maintain target dividend rates of 9.75% for Series 1 and 9% for Series 2 - recognizing that while returns are not guaranteed, the company remains committed to diligent risk management and capital preservation.
Preparing for a Dynamic 2025 with a Disciplined Approach
Henry addressed key macroeconomic trends, including declining interest rates, a softening housing market, and shifting investor sentiment. Ginkgo MIC continues to take a proactive stance in managing these changes, ensuring that the fund remains well-positioned to adapt. Key insights shared during the AGM included:
Interest Rates & Economic Outlook: Interest rates have been cut six consecutive times, with further potential reductions of 1-1.5% in 2025, which could impact mortgage markets.
Real Estate Market Adjustments: Condominium prices may face additional pressure, with projected declines of 5-15%, while overall housing inventory continues to build.
Mortgage Performance: A rise in mortgage defaults is expected due to systemic delays in the courts for Power of Sale cases, making risk management more critical than ever.
Strategic Initiatives: Driving Long-Term Value for Investors
As the lending landscape evolves, Ginkgo MIC is implementing key strategies to enhance fund performance and maintain stability:
Conservative underwriting standards - Prioritizing quality over volume to ensure a balanced and resilient portfolio.
Technology-driven risk assessment - Leveraging AI and data analytics for enhanced due diligence.
Broker and investor engagement - Strengthening partnerships through strategic marketing and education initiatives.
Liquidity-focused fund management - Ensuring flexibility to adapt to market shifts.
Looking Ahead: A Balanced Approach to Growth and Risk Mitigation
As 2025 presents both challenges and opportunities, Ginkgo MIC remains committed to navigating economic uncertainties with a steady and disciplined approach. The company will continue prioritizing risk mitigation and investment performance, reinforcing its role as a trusted partner for investors seeking stability in an evolving market.
Watch the AGM highlights video here:
For any questions regarding this news release or Ginkgo MIC's fund performance, you can visit www.GinkgoMic.com, email investor@ginkgomic.com, or contact Yvonne Leung at 416-990-5567.?
About The Corporation: Ginkgo Mortgage Investment Corporation was founded in 2011 and serves across Canada as an alternative lender. The MIC provides?dividends?to investors through a diversified portfolio that is secured by properties primarily in the Greater Toronto Area (GTA), Greater Vancouver Area (GVA), Alberta (Edmonton and Calgary) and the Winnipeg communities. Since inception, Ginkgo has paid over $58 million dividends to investors.
Legal Disclaimers
This press release is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed this press release. Further, the contents of this press release should be read in conjunction with Ginkgo's offering memorandum dated November 30, 2023, as amended from time to time, a copy of which can be made available to you by contacting us.
Past Performance; No Guarantees
Past performance is not a guarantee of future results and readers should not assume that the future performance of Ginkgo will equal or better Ginkgo's historical performance.
Target yields with respect to Ginkgo's preference shares are merely targets determined from time to time by the Board of Directors in its sole discretion based on several factors including but not limited to the general economic conditions, local real estate markets and prevailing levels of interest rates. The payment of dividends is subject to the discretion of the Board of Directors to establish working capital and other reserves for Ginkgo. Readers should not confuse Ginkgo's target yields with Ginkgo's rate of return or yield. There is no guarantee that Ginkgo will be able to pay dividends at the levels targeted. The amount of dividends declared may fluctuate from time to time and there can be no assurance that Ginkgo will declare any dividends in any particular month or months or that Ginkgo will declare a special dividend in for the same amount or at all in subsequent fiscal periods.
Forward-Looking Statements
Certain statements provided in this press release, to the extent that they relate to Ginkgo and its views or predictions about possible events, conditions or results of operations that are based on assumptions about future economic conditions and courses of action and includes future-oriented financial information with respect to prospective results of operations, financial position or cash flows that is presented either as a forecast or projection, may be "forward-looking statements" within the meaning of that phrase under applicable Canadian securities laws.
Although Ginkgo believes that expectations reflected in any forward-looking statements provided in this press release are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. Forward-looking statements are based on the current expectations, estimates and projections of Ginkgo, and involve a number of known and unknown risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated.
The forward-looking statements herein are made as of the date they are provided in this press release. Except as otherwise required by law, Ginkgo does not intend to, and assumes no obligation to, update or revise any forward-looking statements it may provide in this press release, whether because of new information, plans or events or otherwise. Readers are cautioned not to place undue reliance on any forward-looking statements in this press release as there can be no assurance that the conditions, events, plans and assumptions on which they are based will occur.
SOURCE: Ginkgo Mortgage Investment Corporation
View the original press release on ACCESS Newswire
