Ginkgo Mortgage Investment Corporation
Earning Strong Yields as Rates Ease
Published: Feb 6, 2026
Author: FRC Analysts
Disclosure: Ginkgo Mortgage Investment Corporation has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions.
Company Details
Sector – Research Report
Industry – Mortgage Investment Corp
Trading Information
Trading information not available
Report Highlights
- FY2025 (ended August 2025) Performance: Mortgage receivables increased 12% YoY to $192M, below our forecast of $200M. As of December 2025, receivables reached a historic high of $206M. The MIC remains focused on single-family residential properties in Ontario.
- Earnings & Yield: FY2025 yield declined by 0.14 pp to 9.24% (Sector: 9.00%), driven by lower lending rates, but exceeded our estimate of 9.01%. Net income rose 14% YoY, beating our estimate by 8%, primarily due to lower-than-expected operating expenses.
- Portfolio Composition & Risk: As of December 2025, 89% of mortgages were in Ontario (Sector: 49%). The weighted-average loan-to-value was 65% (Sector: 58%). First mortgages comprised 87% of the portfolio (Sector: 75%), reflecting a relatively low risk profile due to high first-mortgage exposure, albeit with limited geographic diversification.
- Credit Quality: As of August 2025, Ginkgo held $8M of stage three (impaired) mortgages, representing 4.2% of the portfolio across 20 of 469 properties, below the sector average of 5.5%, reflecting sound portfolio management.
- Macroeconomic Backdrop: Following eight rate cuts totaling 275 bps since June 2024, bringing the policy rate to 2.25%, the Bank of Canada held rates steady at its December 2025 and January 2026 meetings. With declining unemployment and moderating inflation, we expect rates to remain unchanged through 2026. We believe the sector entered 2026 with lower default risk, and improving momentum in mortgage originations.
- Sector Trends: We are observing a notable uptick in M&A activity across the sector. Discussions with MIC managers suggest several are actively pursuing acquisitions to scale platforms, drive synergies, and achieve cost savings across administration, operations, and staffing. We believe these efficiencies can support higher investor yields, attract additional capital, and enable increased lending activity.
- Outlook: We project an FY2026 yield of 8.15% vs 9.24% in FY2025.
Price and Volume (1-year)


* Ginkgo Mortgage Investment Corporation has paid FRC a fee for research coverage and distribution of reports. See last page for other important disclosures, rating, and risk definitions. All figures in C$ unless otherwise specified.
The table below compares Ginkgo ’s portfolio with other MICs (AUM $100M+) focused on already-built single-family residential units.
Source: FRC / Various
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