First National’s Atlantic Canada team pushes for another billion-dollar year
Over the last week, we’ve shared some good news about First National’s growth trajectory including the fact that we’ve just become Canada’s first lender with a $50 billion commercial mortgage portfolio.
I’m proud of this milestone and even prouder still to recognize that Atlantic Canada has made an outsized contribution to our company’s long-term growth story. Simply put, our region has punched above its weight as a centre of multi-unit financing activity in Canada.
Last year, our local team funded approximately $1 billion of multi-unit property mortgages in Atlantic Canada and our local construction lending book stands as one of the largest First National has in any region of the country. Of note, we’re experiencing growth not only in our traditional markets in Nova Scotia, but also in New Brunswick where we also have long-term ambitions to do more.
A tribute to collaborative effort
The first purpose of this note is to thank you for giving First National the opportunity to serve your financing needs. We know we are not the only lender in town, and I can assure you that we will not rest on our laurels.
Through our commitment to Better Lending, we will strive to collaborate with you to identify the strategies and products that are right for your needs, and work tirelessly to deliver responsive service. Collaboration also means serving as your advocate with CMHC as we expertly navigate the process to secure insured funds that get those shovels in the ground. The national housing agency has cleared the backlog associated with its decision to raise premium rates last June, but even so, our advice remains the same: plan early to avoid delays.
An outlook for Atlantic Canada
The second purpose of my note is to share our local market outlook. We are pushing forward to finance at least another billion dollars’ worth of multi-unit projects in Atlantic Canada this year. Based on our current lending commitments, we have good reasons to believe that our goal is within reach. In fact, earlier this month, our team was successful in closing our largest deal to date valued at $243.5 million.
However, we are also cognizant that interest rates remain a headwind and sales activity is unusually quiet as buyers and sellers grapple with valuation. It remains to be seen when (and by how much) the Bank of Canada will adjust its policy-setting rate. As we wait for that to happen, it’s likely that bond yields will remain rangebound but for volatility to continue. For reference, between January 2nd and March 13th, 5-year bond yields moved between 3.241% and 3.504%. This makes interest rate hedging strategies and solutions such as First National’s Early Rate Lock and Mid-Range Hedge well worth considering.
A growing team of experts
The third and final purpose of my message is to single out my teammates for their enormous contributions to First National’s success but also as a means of encouraging you to take advantage of their skills this year. I’m speaking of:
- Lisa McFarlane, Director and Underwriting Team Lead who was recently named one of the top women in real estate for the Maritime Region in the prestigious Connect Canada CRE awards competition
- Jeremie LeBlanc, Director who joined us two years ago after a 17-year career at CMHC and who will represent First National as an expert panelist at the Atlantic Real Estate Forum on March 19th at the Halifax Convention Centre
- And our crack team of Analysts: Braeden Coyle, who joined in 2022 after a successful career in public accounting; Noah Wilson, who began his career in private equity and fund management before joining us two years ago; and, Christopher Cox, who joined First National last year after serving as an analyst at another national lender
In my opinion, Lisa, Jeremie, Braeden, Noah and Christopher are the very best in the industry and without doubt, the most motivated.
This year, to keep pace with growth, we plan to grow our team again. I will keep you posted on our recruitment efforts.
Speaking on behalf of my colleagues, we are pleased to count you as our client and grateful for the opportunity to serve. As we march into spring keeping a close eye on bond yields, local cap rates, sales activities and progress with construction projects, please tap into our knowledge.
With thanks,
Jody Comeau
Assistant Vice President