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| Press Release

Eclipse Residential Mortgage Investment Corporation Announces Second Quarter Results

TORONTO, Aug. 10, 2018 (GLOBE NEWSWIRE) -- (TSX: ERM)  Eclipse Residential Mortgage Investment Corporation (“Eclipse” or the “Corporation”) has filed its 2018 second quarter financial statements and management’s discussion and analysis and these documents may be found on www.sedar.com or at www.bromptongroup.com.  Key highlights for the second quarter of 2018 include:

  • The Corporation continues to maintain a well-diversified portfolio with 853 mortgage investments across 10 provinces, with the majority of the portfolio in Ontario, Alberta and British Columbia where market liquidity continues to remain attractive.
     
  • The Corporation has increased the level of insured loans in its portfolio since year-end. The insured segment has grown from 14% at December 31, 2017 to 33% at June 30, 2018. The insured segment of the portfolio continues to have short terms, with average maturities of less than seven months, allowing for the potential opportunity to participate in higher mortgage rates if interest rates continue to rise over 2018 and beyond.
     
  • The Corporation’s book value per share has grown to $9.72 at June 30, 2018 and has steadily grown over the past 14 quarters from $9.32 per share at the end of 2014.
     
  • The Corporation’s Q2 earnings per share continues to exceed the quarterly dividend. Tax assets accumulated through the issuance of securities through the capital markets allow the Corporation to shelter income from tax to continue to grow book value per share.
     
  • The weighted average loan-to-value ratio of the uninsured segment of the mortgage portfolio continues to remain modest at 74% at June 30, 2018.
     
  • Loan losses continue to remain low, with principal of mortgages in default representing only 0.3% of the mortgage portfolio at June 30, 2018.
     
  • June 2018 marks the fifth anniversary of the commencement of operations of Eclipse.  Over the five-year period to June 30, 2018, Eclipse has delivered an 8.0% annual compound return which includes total cash dividends of $3.26 per share.  The Corporation currently pays an annual dividend of $0.75 per share which represents a market yield of 8.1% as at July 31, 2018.

About Brompton Funds
Brompton Funds, a division of Brompton Group which was founded in 2000, is an experienced investment fund manager with approximately $2 billion in assets under management.  Brompton’s investment solutions include TSX traded funds, mutual funds and flow-through limited partnerships.   For further information, please contact your investment advisor, call Brompton’s investor relations line at 416-642-6000 (toll-free at 1-866-642-6001), email info@bromptongroup.com or visit our website at www.bromptongroup.com.

About MCAP Financial Corporation

One of Canada’s largest mortgage financing companies, MCAP Financial Corporation (“MCAP”) originates and services all mortgages for Eclipse.  MCAP has more than 30 years of experience underwriting and servicing Canadian Single Family Residential Mortgages, with over $70 billion in mortgage assets managed for banks, lifecos, credit unions and institutional investors.

Certain statements contained in this news release constitute forward-looking information within the meaning of Canadian securities laws. Forward-looking information may relate to matters disclosed in this press release and to other matters identified in public filings relating to Eclipse, to the future outlook of Eclipse and anticipated events or results and may include statements regarding the future financial performance of Eclipse.  In some cases, forward-looking information can be identified by terms such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “intend”, “estimate”, “predict”, “potential”, “continue” or other similar expressions concerning matters that are not historical facts.  Actual results may vary from such forward-looking information. Investors should not place undue reliance on forward-looking statements.  These forward-looking statements are made as of the date hereof and we assume no obligation to update or revise them to reflect new events or circumstances.

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