TORONTO, ONTARIO -- (Marketwired) -- 05/21/13 -- All amounts are stated in Canadian dollars.
Terra Firma Capital Corporation (TSX VENTURE: TII) ("Terra Firma" or the "Company"), a real estate finance company, today released its financial results for the three months ended March 31, 2013.
FIRST QUARTER 2013 HIGHLIGHTS:
-- Total revenue is $1.7 million, an increase of $677,000 or 67%, compared to the same period last year.-- Total assets increased by 62% to $57.1 million from $35.2 million at March 31, 2012.
"We are pleased with the growth in our top line revenue and the new loan origination opportunities. Our top priority in 2013 is to secure a structure to create new growth opportunities that will enable us to build the size and value to the Company," commented Dov Meyer, President and Chief Executive Officer.
Results of operations - three months ended March 31, 2013
Net income in the first quarter ended March 31, 2013 was $265,000 or $0.01 per basic and diluted share, compared to $253,000, or $0.01 per basic and diluted share, in the first quarter ended March 31, 2012. Net income in the first quarter ended March 31, 2013 was impacted by internalization of the management. General and administrative expenses increased by $209,000 as compared to March 31, 2012.
Interest and fee income for the first quarter ended March 31, 2013 aggregated $1.6 million, an increase of 64% over the $966,000 million in the same period in the previous year, and slightly down from the $1.9 million in the fourth quarter ended December 31, 2012. Interest and fees in the fourth quarter ended December 31, 2012 included onetime fee of $375,000 in one of the joint operations of the Company.
Interest expense for the first quarter ended March 31, 2013 was $937,000, compared to $496,000 for the comparative period last year and $888,000 for the fourth quarter ended December 31, 2012 due to increased syndications to fund the investment activities.
The company's loan and mortgage investments increased from $32.0 million at December 31, 2012 to $42.8 million at March 31, 2013, an increase of 34%. The total value of loan and mortgage investments originated in the first quarter ended March 31, 2013 was $14.8 million compared to $8.6 million originated in the first quarter ended March 31, 2012.The average interest rate in the mortgage portfolio at March 31, 2013 was 18.1% compared to 19.9% at December 31, 2012.
The Company's Management's Discussion & Analysis and Financial Statements as at and for the three months ended March 31, 2013 have been filed and are available on SEDAR (www.sedar.com).
About Terra Firma
Terra Firma is a full service, publicly traded real estate finance company that provides customized equity and debt solutions to the real estate industry. Our focus is to arrange and provide financing with flexible terms to property owners looking to improve or add to their existing real estate assets but who may be limited by conventional bank financing, as well as to invest in quality commercial and residential developments by proven real estate developers. Terra Firma offers a full spectrum of real estate financing under the guidance of strict corporate governance, clarity and transparency. For further information please visit Terra Firma's website at www.terrafirmacapital.ca.