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Eclipse Residential MIC

ECLIPSE RESIDENTIAL MORTGAGE INVESTMENT CORPORATION CLOSES SALE OF MORTGAGE PORTFOLIO

Toronto, May 15, 2019 – (TSX: ERM) Eclipse Residential Mortgage Investment Corporation (“Eclipse”) is pleased to announce that it has closed the sale (the “Asset Sale”) of its mortgage portfolio to YTM Capital Mortgage Income Fund as approved by holders (the “Shareholders”) of common shares (the “Common Shares”) at the special meeting of Shareholders held on May 8, 2019 (the “Meeting”). Further to the approval provided at the Meeting, Common Shares of Eclipse are expected to be delisted from the Toronto Stock Exchange on May 23, 2019 (the “Delisting”).

Eclipse expects to distribute the remaining net assets of Eclipse (the “Return of Capital”) in two tranches. The first tranche of the Return of Capital, in the amount of $8.65 per Common Share (representing approximately 90% of the book value of Eclipse) is expected to be paid on or about May 28, 2019 to Shareholders of record at the close of business on May 23, 2019. Eclipse currently intends to effect the second tranche of the Return of Capital in an amount to be determined by Eclipse and the dissolution of Eclipse (the “Dissolution”) in the third quarter of 2019, pending receipt by Eclipse of certain regulatory consents and deliverables required for Dissolution.

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 closed-end funds and exchange-traded funds. For further information, please 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 and MCAP Service Corporation (collectively “MCAP”) originate and service all mortgages for Eclipse. MCAP has more than 30 years of experience underwriting and servicing Canadian Single Family Residential Mortgages, with over $75 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 expected benefits of the Asset Sale, the Delisting and the Return of Capital, the future financial performance of Eclipse and the expected amount of any dividends. 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.

Mortgage Consultant/Mortgage Services Provider

One of Canada’s largest mortgage financing companies, MCAP Financial Corporation 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.

Performance NAV History

Annual Compound Returns(1)

YTD 1-Year 3-Year 5-Year Since Inception(2)
Eclipse Residential MIC 0.7% 6.6% 7.8% 8.3% 7.7%

Year-by-Year Returns

Since Inception(2) 2018 2017 2016 2015 2014 2013(3)
Eclipse Residential MIC 7.7% 8.8% 8.0% 8.7% 9.4% 8.2% 1.2%

The following table shows current and past performance of the Corporation. Past performance does not necessarily indicate how the Corporation will perform in the future. The information shown is based on Net Book Value per share (Net Asset Value per share prior to January, 2017) and assumes that dividends made by the Corporation on its shares in the period shown were reinvested at Net Book Value (Net Asset Value per share prior to January, 2017) in additional shares of the Corporation.

Returns for Eclipse Residential Mortgage Investment Corporation are unaudited.

You will usually pay brokerage fees to your dealer if you purchase or sell shares of a security on the Toronto Stock Exchange or other alternative Canadian trading system (an “exchange”). 

You can find more detailed information about the Corporation in the public filings available at www.sedar.com.  The indicated rates of return are the historical annual compounded total returns including changes in share value and reinvestment of all dividends and does not take into account income taxes payable by any securityholder that would have reduced returns. 

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Distributions

The annual breakdown of distributions for tax purposes will be provided to Shareholders annually in February. This information will also be posted on the website as soon as it becomes available.

This information is of general nature and does not constitute legal or tax advice to any particular investor. Accordingly, prospective investors are advised to consult their own tax advisors with respect to their individual circumstances.

Tax Allocation

The following information is applicable to holders who, for the purpose of the Income Tax Act (Canada), are resident in Canada and hold shares as capital property outside of an RRSP, RRIF or DPSP. Shareholders should receive a T5 slip from their investment dealer providing this information.

T5 supplementary slips will indicate Capital Gains Dividends in Box 18 and interest from Canadian sources in Box 13.

Select a year
Record Date Payment Date Interest Income Total Distribution
Apr 30, 2019 May 14, 2019 0.00000 0.06250
Mar 29, 2019 Apr 12, 2019 0.00000 0.06250
Feb 28, 2019 Mar 14, 2019 0.00000 0.06250
Jan 31, 2019 Feb 14, 2019 0.00000 0.06250
Dec 31, 2018 Jan 15, 2019 0.00000 0.06250
Nov 30, 2018 Dec 14, 2018 0.06250 0.06250
Oct 31, 2018 Nov 14, 2018 0.06250 0.06250
Sep 28, 2018 Oct 15, 2018 0.06250 0.06250
Aug 31, 2018 Sep 17, 2018 0.06250 0.06250
Jul 31, 2018 Aug 15, 2018 0.06250 0.06250
Jun 29, 2018 Jul 16, 2018 0.06250 0.06250
May 31, 2018 Jun 14, 2018 0.06250 0.06250
Total 0.43750 0.75000
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