Date: 31 March 2022

Hello.

The start of the year has again been impacted by Covid conditions although the team has done a great job in minimising disruption to the business. We are keeping a close eye on the economic environment and global events, and despite some headwinds FMT is continuing to perform well and is growing off the back of great lending opportunities and strong fund growth.

In this context, we are therefore very pleased to announce that our annualised investor returns for the March quarter is 5.18% pa for the Group Investment Fund and the PIE Fund.

We are very pleased with the return which has resulted from very good lending opportunities that we have been able to cherry pick as a result of our strong reputation as New Zealand’s largest first mortgage non-bank property lender.

This enviable position has also allowed us to reduce our average Loan to Value ratio across our entire loan portfolio. This means reduced risk for our investors.

At the current time we have adopted a deliberate strategy to reduce our lending volumes and to hold more cash reserves. This puts us in a strong position to take advantage of good quality opportunities as they arise.

We are also keeping a close eye on interest rate movements to ensure our lending rates optimise investor return.

This relatively conservative and considered approach has served us well for over 25 years now and is why the Fund continues to grow with both new investors and existing investors placing additional funds with us.

We are also very excited to reveal our refreshed brand and logo. The team felt that it was time for a modernisation of our brand – we wanted something that encapsulated our personal approach and forward thinking, but didn’t want anything that was too much of a departure from what we had previously. The team are incredibly proud of our 25+ year history and the foundations and guiding principles that First Mortgage Trust has been built on. The stylised logo reflects all of this – the inter-connected relationship of the lending and investment sides of our business and our desire to keep moving forward.

We hope you love the refresh as much as we do and please note that any associated costs with the brand refresh do not affect your returns.

We have also updated our website. There’s a lot more information to assist both investors and borrowers. In addition, the platform itself has been upgraded which will provide us the opportunity to securely roll out new features and to increase digital engagement (for those who want it!).

One thing that isn’t changing is our renowned personalised service which we know sets us apart from others.

Thank you for your continued support of First Mortgage Trust. Enjoy the months ahead and stay well as we head into the Autumn season.

Paul Bendall

CEO