Earlier this month, Westboro Mortgage Investment Corporation (Westboro MIC) exceeded $100 million in their portfolio assets; representing over 450 well-diversified mortgages.
Westboro’s MIC mandate is to generate a consistent and above average return for shareholders. The fund has generated an average annual net return of 8.5% in the last 5 years and, more recently with interest rates at all-time lows, a net average of 7.4% (FY 2014).
Westboro’s MIC management team and mortgage underwriters have been issuing mortgages in the Ottawa/Gatineau and the surrounding area for at least 35 years. The majority of properties are residential and greater than 75% of the portfolio is in first mortgages with an average loan-to-value of 70%.
Private mortgages have long been a proven investment vehicle for institutional and high net worth investors. However, due to the large capital requirements of a welldiversified mortgage portfolio, individuals with limited amounts of funds and expertise were unable to participate; hence the advantage of a MIC. This type of investment is also becoming popular with individuals who have been investing in private mortgages independently on a one-time basis.
In 2013, Kensington purchased an economic interest in the Westboro MIC and continues working with the Westboro team on the growth and development of this investment program.