TORONTO, ON AND VANCOUVER, BC / ACCESS Newswire / June 10, 2025 / Ginkgo Mortgage Investment Corporation ("Ginkgo MIC") recently hosted its virtual Mid-Year Market Update, providing valued investors with timely insights into the fund's performance and strategic direction amid ongoing global trade tensions and economic uncertainty.
In keeping with its commitment to open communication, Ginkgo's leadership addressed current market realities-including inflationary pressures, rising unemployment, and continued volatility in the Canadian housing market.
As of February 2025, Ginkgo MIC's total assets have grown by 8% to $187 million, while the portfolio's average loan-to-value (LTV) ratio has been further reduced to 66%. The percentage of loans delinquent over 90 days has remained stable at 3.56%, supported by disciplined lending practices, tighter underwriting standards, and a renewed focus on borrower quality and cash flow.
To further insulate the fund against market volatility, Ginkgo plans to increase its bad debt provisions to $2 million, reinforcing its ability to maintain stable distributions even in a shifting economic environment.
"Our team anticipated that 2025 would be a challenging year, as shared during our February AGM," said Henry Tse, CEO of Ginkgo MIC. "Despite seven interest rate cuts by the Bank of Canada, the housing market remains subdued, and broader economic uncertainty continues to grow."
Up to this point, Ginkgo has maintained its annual dividend rates at 9.75% for Series 1 and 9.0% for Series 2 Preferred Shares.
"To support long-term portfolio stability and to compete more effectively in the market, it is time to further strengthen our financial position," Tse added.
As a result, effective July 2025, Ginkgo's Board has revised its target dividends to 9.25% for Series 1 and 8.5% for Series 2 Preferred Shares. These rates remain highly competitive and reflect Ginkgo's focus on balancing attractive yields with prudent capital preservation.
Demonstrating external confidence in Ginkgo's strategy, Fundamental Research Corp (FRC) recently upgraded Ginkgo MIC to a 2+ rating-one of the highest in the industry based on FRC's latest annual review. This upgrade highlights Ginkgo's consistent dividend history, strong governance practices, and commitment to transparency.
To access the full FRC analysis, please click here: Read the 2025 FRC Report
Ginkgo MIC remains focused on protecting investor capital and adapting its strategies to meet the realities of today's evolving market.
For more information about this news release or Ginkgo MIC's fund performance, please 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 $60 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:
https://www.accessnewswire.com/newsroom/en/banking-and-financial-services/ginkgo-mic-strengthens-investor-resilience-amid-global-pressures-and-1037699
