We Co-Invest With our Investors
The principles of Tri City invest their money right alongside the investors. As a result, our success and their success are one and the same. It’s an approach Tri City has used for over fifty years, one that’s given our investors steady returns and we consider it to be a principle of investing.
Our newest offering, The Tri City Monthly Income Mortgage Trust represents this same principle. For the Goodman family, it is designed as a capital preservation strategy which also returns a reasonable amount of monthly income without taking unreasonable risks. It is a diversified investment in the real estate field which is made up of scores of mortgages over carefully selected and largely condominiums, town home and single-family dwellings, which Tri City refers to as liquid properties, because they can be readily marketed. The mortgage contracts commit the borrower to paying a specific amount of interest, which is safeguarded by the equity in those properties. These mortgage contracts in-turn are backed up by the personal guarantees of the borrowers. Most of our mortgages are against properties located in Greater Vancouver.
There are a number of different types of units in the trust, some of which distribute income in priority to the common units and due to this fact are projected to pay a slightly lower return. In addition, the priority units are more likely to receive their distribution than the common units. See the waterfall diagram and the pie chart to get a better understanding of why the priority units are thought to be more likely to receive their distributions.
If you are a cautious investor and you select the prioritized units you will receive your income in priority to the managers and their families who are all invested in the common units. As of February 1, 2021, the P-1 units (“priority”) have been set for 5.00%* while the A-3 units (“common”) are on pace with last year’s (2020) distribution rate of 7%*.