2016 SIX MONTHS LETTER TO SHAREHOLDERS
In the first half of 2016, Mortgage Company of Canada continued to produce solid growth and strong returns for shareholders. Our mortgage portfolio increased to $53.2 million from $46.6 million at year-end 2015 and, by balancing our portfolio with the right mix of carefully-selected first and second mortgages, our trailing 12-month investor return was 9.14%, exceeding our 9% target.
We achieved these milestones by leveraging our strong broker relationships and adhering to diligent underwriting standards. As a result, at June 30, 2016, our portfolio held 350 mortgage loans with a relatively low average mortgage size of $152,000, short average term to maturity and an average loan-to-value ratio of 70.7%. Demand for homes in the GTA continued to be strong in the first half of the year while new listings were lower, resulting in higher valuations and reduced risk in our portfolio.
Looking ahead to the balance of 2016 and beyond, we continue to expect the GTA economy to be characterized by low unemployment and strong immigration. Combined with the increased demand from millennials for single-family detached or semi-detached homes, related mortgage demand is expected to be robust.
Our investment strategy continues to provide a stable source of reliable cash flow and we remain committed to effectively controlling the costs of managing the MIC, thereby maximizing dividends for shareholders. By sticking to our proven roadmap for success, Mortgage Company of Canada is well positioned for continued growth.
On behalf of our board and management, thank you for your continuing commitment to Mortgage Company of Canada.