Fisgard Capital Corporation
Navigating Market Headwinds with a Conservative Lending Strategy
Published: May 15, 2025
Author: FRC Analysts
View Complete Report*This report and research coverage is paid for and commissioned by Fisgard Capital Corporation – See the bottom of this report for other important disclosures rating, and risk definitions. All figures in C$ unless otherwise specified.
Sector: Mortgage | Industry: Mortgage
Ticker Symbols:
Report Highlights
- In 2024, mortgage receivables increased 2% YoY to $295M vs our estimate of $313M. Net income was up 29% to $24M, beating our estimate by 2%. The weighted average yield across all shares increased 1.1 pp (percentage points) to 8.2%, exactly matching our estimate from our previous report in May 2024.
- The MIC remains focused on low-LTV/first mortgages on single family residential units in B.C., AB, and ON. As of December 2024, first mortgages accounted for 95% of the portfolio. The weighted average loan-to-value was 53%. Unlike many comparable MICs, the fund does not use leverage to enhance yields.
- Since May 2024, the BoC has cut rates seven times (225 bp), with the potential for one or two more cuts this year, driven by high unemployment, escalating geopolitical/trade risks, and concerns over potential weakness in GDP growth. Consequently, we anticipate Fisgard’s transaction volumes to rise this year.
- We find high-yielding funds, like Fisgard, increasingly attractive in the current declining rate environment. This is because MIC lending rates are less elastic, meaning their yields tend to decline less in a falling rate environment, and rise more slowly in a rising rate environment.
- At the end of 2024, Fisgard had $11.69M in stage three (impaired) mortgages (4% of the portfolio vs the sector average of 6%), spread across 11 of 527 properties. We believe the MIC’s low LTV (53%) puts them in a comfortable position.
- We are projecting a yield of 7.2% in 2025 (2024: 8.2%) vs management’s guidance of 7.0%-8.0%.
Fundamental Research Corp. Equity Rating Scale:
- Rating – Excellent Return to Risk Ratio
- Rating – Very Good Return to Risk Ratio
- Rating – Good Return to Risk Ratio
- Rating – Average Return to Risk Ratio
- Rating – Weak Return to Risk Ratio
- Rating – Very Weak Return to Risk Ratio
- Rating – Poor Return to Risk Ratio
Fundamental Research Corp. Risk Rating Scale:
- (Low Risk)
- (Below Average Risk)
- (Average Risk)
- (Speculative)
- (Highly Speculative)
FRC Distribution of Ratings
| Rating | Percentage | Risk | Percentage |
| Rating – 1 | 0% | Risk – 1 | 0% |
| Rating – 2 | 33% | Risk – 2 | 10% |
| Rating – 3 | 45% | Risk – 3 | 41% |
| Rating – 4 | 4% | Risk – 4 | 32% |
| Rating – 5 | 8% | Risk – 5 | 8% |
| Rating – 6 | 1% | Suspended | 10% |
| Rating – 7 | 0% | ||
| Suspended | 9% |
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