PRESS RELEASE
November 28, 1997
MINT ANNOUNCES THIRD QUARTER RESULTS
Middlefield High Income Trust ("MINT" or the "Fund") today announced its
unaudited results for the quarter ended September 30, 1997.
Positive Economic Environment
During the third quarter, the economic environment remained positive for the companies and income trusts in which MINT is invested. As a result, distributions from these investments were generally in line with expectations. Securities of real estate companies performed particularly well confirming the beginnings of the long awaited recovery in this sector.
During the third quarter, we were able to take advantage of some new issue opportunities. As with other portfolio investments, these investments have excellent yield characteristics. At the same time, they increase the diversity of the businesses and industries from which MINT derives its income.
Subsequent to the quarter end, equity markets corrected and volatility increased substantially. In this environment, MINT's portfolio has held up well reflecting two factors. First, the high yield equity component did not correct to the same extent as the broad equity indices. Second, the high yield debt component essentially held its value. We remain confident that MINT will continue to meet its objectives of stable and growing distributions and capital preservation. We will achieve these objectives through broad diversification by issue, asset class and industry as well as active management including ongoing portfolio rebalancing.
Financial Performance
Net income of $1,726,795 represented an increase of 54% over the period from inception on March 13, 1997 to June 30, 1997. This increase was primarily a result of MINT's becoming substantially fully invested during this latest period. Since inception, MINT has generated net income of $2,851,000 and has made two distributions totaling $0.30 per unit. Over the course of the third quarter, the net asset value of the Fund appreciated by 5% to $6.28.
Based on a recent market price of $5.50 and excluding capital gains, the current cash yield is approximately 13.8% on the first instalment and 9.6% on a fully-paid basis.
Portfolio Holdings
As of November 24, 1997, MINT's portfolio was comprised of 39% high yield debt, 38% income funds, 16% real estate investment trusts and 7% royalty trusts. The following table lists the Fund's holdings as at that date:
Issuer |
Asset Class |
Business |
% Weight |
Morrison Facilities Income Fund | Income Fund | gas plant, oil pipeline | 8.4 |
Scott Paper Limited | High Yield Debt | paper products | 8.2 |
Algoma Steel Inc. | High Yield Debt | steel production | 7.2 |
AEC Pipelines, L.P. | Income Fund | oil pipeline | 6.7 |
Realfund Real Estate Investment Trust | R.E.I.T. | shopping centres | 6.0 |
H&R Real Estate Investment Trust | R.E.I.T. | office and industrial buildings | 5.1 |
Call-Net Enterprises Inc. | High Yield Debt | telecommunications | 4.5 |
K mart Corp. | High Yield Debt | retailing | 4.4 |
ARC Energy Trust | Royalty Trust | oil and gas production | 4.4 |
Luscar Coal Income Fund | Income Fund | coal production | 4.3 |
Northland Power Income Fund | Income Fund | cogeneration, electricity and steam | 4.1 |
Trizec Hahn Corporation | High Yield Debt | office buildings, shopping centres | 3.4 |
Associated Freezers Income Fund | Income Fund | public refrigeration warehousing | 3.3 |
Avista Real Estate Investment Trust | R.E.I.T. | retail, industrial, office buildings | 3.2 |
Ainsworth Lumber Co. Ltd. | High Yield Debt | forest products | 3.1 |
Westshore Terminals Income Fund | Income Fund | coal handling facility | 3.1 |
Rogers Cantel Inc. | High Yield Debt | wireless communication | 2.9 |
Greenstone Resources Ltd. | High Yield Debt | gold mining | 2.8 |
Koch Pipelines | Income Fund | oil pipeline | 2.6 |
Cambridge Shopping Centres Limited | High Yield Debt | shopping centres | 2.2 |
Halterm Income Fund | Income Fund | container handling facility | 1.9 |
KMS Power Income Fund | Income Fund | electricity generation | 1.9 |
Canadian Oil Sands Trust | Royalty Trust | oil production | 1.5 |
Manalta Coal Income Fund | Income Fund | coal production | 1.5 |
Athabasca Oil Sands Trust | Royalty Trust | oil production | 1.4 |
Morguard Real Estate Investment Trust | R.E.I.T. | office, industrial, retail properties | 1.3 |
Pembina Pipelines | Income Fund | oil pipeline | 0.6 |
100.0 |
Trust Profile
Middlefield High Income Trust raised $98 million in March of 1997 through an initial public offering. The primary objectives of the Fund are to produce a high level of sustainable income and to minimize the risk of investing in high income securities on a cost effective basis. MINT comprises four classes of assets: income funds, high yield debt, real estate investment trusts and royalty trusts. MINT trades on the Toronto Stock Exchange under the symbol MID.IR.
For further information contact:
Mr. W. Garth Jestley (416) 362-0714 |
Head Office 1 First Canadian Place 58th Floor P.O. Box 192 Toronto, Ontario M5X 1A6 Fax: (416) 362-7925 |