SHAREHOLDER INFORMATION

Our investment strategy is to invest in commercial and residential mortgages from borrowers whose financing needs are not being met by the larger financial institutions. To maintain a stable yield on our mortgage portfolio, we manage risk through maintenance of a diversified mortgage portfolio, conservative underwriting and diligent and aggressive mortgage servicing. A typical loan in our portfolio has an interest rate of 8% to 10% per annum, a one or two year term and monthly interest only mortgage payments. Mortgage loan amounts are generally $500,000 to a maximum of $20,000,000. At December 31, 2012, the weighted average loan-to-value on our mortgage portfolio was 66.7%.

Our objectives are: (i) to preserve our shareholders’ equity, and (ii) to provide our shareholders with stable and secure dividends from our investments in mortgage loans within the criteria mandated for a MIC. Working within conservative risk parameters, we endeavour to maximize yields, dividends and Common Share value through the sourcing and efficient management of our mortgage investments.