Star Metro - Ginkgo MIC Highlights Strong Liquidity Position in Mid-Year Market Update

Fund Performance & Liquidity Position

Ginkgo MIC addressed recent developments across the mortgage investment sector, where certain MICs and REITs have implemented redemption restrictions. These developments have generally been associated with elevated withdrawal activity, liquidity constraints, and efforts to avoid forced asset sales.

Against this backdrop, Ginkgo MIC continues to emphasize stability and consistency. With over 15 years of operating history, the fund has maintained a measured approach, distinguishing itself from more volatile market segments.

The fund has generated positive results year-to-date and maintains prudent financial buffers, including approximately $1.4 million in provisions for bad debts and over $2.1 million in retained earnings.

Liquidity remains a key strength. Monthly inflows significantly exceed redemption requirements, supported by approximately:

• $11 million from mortgage discharges

• $0.65 million through Dividend Reinvestment Plan participation

• $1.4 million in new investments

This results in total monthly liquidity of approximately $13 million, compared to average monthly redemptions of approximately $0.6 million.

Additional support is available through an $80 million credit facility, further reinforcing the fund's ability to meet investor needs while maintaining operational flexibility.

Proactive Risk Management and Liquidity Planning

In response to evolving market conditions, Ginkgo MIC continues to enhance its liquidity planning and risk management framework. Planned initiatives include:

• Extending the redemption notice period from 30 to 90 days

• Introducing a structured share matching program designed to facilitate liquidity within 30 to 60 days

"As we navigate a more complex economic cycle, our priority remains unchanged - protecting investor capital while maintaining a disciplined approach to performance," said Henry Tse, CEO of Ginkgo MIC .

"We have always taken a forward-looking and measured approach to liquidity and risk management. In periods of uncertainty, our focus is not on reacting to short-term market movements, but on maintaining control over what we can - ensuring the fund remains resilient, well-capitalized, and adaptable."

Steady Positioning in a Changing Market

Despite broader economic and real estate market challenges, Ginkgo MIC remains well-positioned, supported by a strong liquidity profile, stable dividend targets, and a disciplined risk management framework.

Target dividend rates for 2026 remain unchanged:

Preferred Shares Series 1: 8.5%

Preferred Shares Series 2: 8.0%

The fund's focus remains consistent: safeguarding investor capital while seeking to deliver steady, risk-adjusted returns. Through ongoing monitoring, strategic planning, and established contingency measures, Ginkgo MIC continues to reinforce portfolio resilience and its enduring commitment to investors.

For any questions regarding this news release or Ginkgo MIC's fund performance, you can visit www.GinkgoMic.com, or email Elaine Mak at [email protected].

About The Corporation: Ginkgo Mortgage Investment Corporation was founded in 2011 and serves across Canada as an alternative lender. The MIC provides dividends to investors through a diversified portfolio that is secured by properties primarily in the Greater Toronto Area (GTA), Greater Vancouver Area (GVA), Alberta (Edmonton and Calgary), Saskatchewan and the Winnipeg communities. Since inception, Ginkgo has paid over $70 million dividends to investors.

Legal Disclaimers

This press release is intended for information purposes only and does not constitute an offer to sell or a solicitation to buy securities. No securities regulatory authority or regulator has assessed the merits of the information herein or reviewed this press release. Further, the contents of this press release should be read in conjunction with Ginkgo's offering memorandum dated November 30, 2023, as amended from time to time, a copy of which can be made available to you by contacting us.

Past Performance; No Guarantees

Past performance is not a guarantee of future results and readers should not assume that the future performance of Ginkgo will equal or better Ginkgo's historical performance.

Target yields with respect to Ginkgo's preference shares are merely targets determined from time to time by the Board of Directors in its sole discretion based on several factors including but not limited to the general economic conditions, local real estate markets and prevailing levels of interest rates. The payment of dividends is subject to the discretion of the Board of Directors to establish working capital and other reserves for Ginkgo. Readers should not confuse Ginkgo's target yields with Ginkgo's rate of return or yield. There is no guarantee that Ginkgo will be able to pay dividends at the levels targeted. The amount of dividends declared may fluctuate from time to time and there can be no assurance that Ginkgo will declare any dividends in any particular month or months or that Ginkgo will declare a special dividend in for the same amount or at all in subsequent fiscal periods.

Forward-Looking Statements

Certain statements provided in this press release, to the extent that they relate to Ginkgo and its views or predictions about possible events, conditions or results of operations that are based on assumptions about future economic conditions and courses of action and includes future-oriented financial information with respect to prospective results of operations, financial position or cash flows that is presented either as a forecast or projection, may be "forward-looking statements" within the meaning of that phrase under applicable Canadian securities laws.

Although Ginkgo believes that expectations reflected in any forward-looking statements provided in this press release are reasonable, it cannot guarantee future results, levels of activity, performance or achievements. Forward-looking statements are based on the current expectations, estimates and projections of Ginkgo, and involve a number of known and unknown risks and uncertainties which could cause actual results or events to differ materially from those presently anticipated.

The forward-looking statements herein are made as of the date they are provided in this press release. Except as otherwise required by law, Ginkgo does not intend to, and assumes no obligation to, update or revise any forward-looking statements it may provide in this press release, whether because of new information, plans or events or otherwise. Readers are cautioned not to place undue reliance on any forward-looking statements in this press release as there can be no assurance that the conditions, events, plans and assumptions on which they are based will occur.

SOURCE: Ginkgo Mortgage Investment Corporation

View the original press release on ACCESS Newswire

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