About Magenta Mortgage Investment Corporation

Magenta Mortgage Investment Corporation (MMIC), and its sister company, Magenta II Mortgage Investment Corporation (MMIC II), are Perth, Ontario based mortgage investment corporations (MICs). Please refer to What Is A Mortgage Investment Corporation?

The Companies are Ontario corporations, governed by the laws of the Province of Ontario, and the Income Tax Act, (ITA), a federal statute. The Companies employ the same method of operation, and share a common manager, but operate independently.

The Companies source, underwrite and manage a portfolio of residential mortgages, secured by properties located primarily in metropolitan Ottawa, and throughout Eastern Ontario. The mortgage portfolio is funded by way of share capital and a bank credit facility. Revenues are generated primarily by mortgage interest, and secondarily by fees and penalties. Principal expenses are management fees and bank loan interest. The ITA requires that 100% of a MIC’s annual net income be distributed to its shareholders in the form of a dividend. The dividend may be received in cash, or reinvested by way of a stock dividend.

Shares may be held within an RSP, RRIF or TFSA or directly. Directly held shares may be registered individually, jointly, in trust or in the name of a corporation.

MMIC is now in its 17th year of operation. MMIC II commenced operations in July 2003. As reflected in Investment Performance, Magenta has consistently produced very elevated rates of return for its shareholders. Average annual compounded shareholder return, for the Company’s first 16 years of operation, was 11.87%. Consistent re-investment of dividends has made every dollar originally invested in Magenta grow to $6.02.

The Companies are managed by Magenta Capital Corporation (the Manager). W. Gavin Marshall, B.Sc., M.B.A., is Chairman, Chief Executive Officer and founder of the Magenta group of companies, as well as of Magenta Capital Corporation. Mr. Marshall holds a Bachelor of Science degree in Economics from Trent University, and a Master of Business Administration degree, with a specialization in finance, from Queen’s University. Mr. Marshall also studied law at Queen’s. After graduation, Mr. Marshall held progressively more senior positions with a number of Canadian financial institutions, primarily in the areas of credit and mortgage underwriting. Mr. Marshall had successfully invested in mortgages for his own account for many years, prior to the establishment of Magenta. Management’s consolidated investment in both Companies exceeds $3.1 million. Mr. Marshall has supervisory responsibility with respect to mortgage lending decisions, as well as overseeing all facets of the Companies’ operations. Other staff members, with lengthy career experience in banking, accounting and financial management, are responsible for mortgage origination and administration, financial analysis and accounting and general operations.