TORONTO, ON–(Marketwired – May 13, 2016) – Timbercreek Mortgage Investment Corporation (TSX: TMC) (the “Company”) announced today its financial results for the three months ended March 31, 2016 (“Q1 2016”).
“We are pleased to see another strong quarter for the Company, maintaining the momentum initiated earlier last year. These results are the product of strong management and the increasing need for non-bank, institutional-quality financing solutions in the commercial real estate space. We believe the demand for this capital is greater than ever as banks are faced with increasingly tighter regulations and have limited capacity for shorter-duration, structured financing arrangements. The recent proposal to merge our company with Timbercreek Senior Mortgage Investment Corporation will create a leading non-bank commercial real estate lender with a diversified portfolio of approximately $1 billion focused on income-producing properties. The combined company will be even better positioned to capitalize on this opportunity in the market,” states Andrew Jones, Chief Executive Officer of the Company.
First Quarter Highlights (versus Q1 2015)
- Net interest income of $10.8 million up 3% from $10.5 million (Q4 2015 – $10.8 million)
- Net income and comprehensive income of $7.2 million (Q4 2015 – $6.9 million)
- Earnings per share remained maintained at $0.18 (Q4 2015 – $0.17)
- Exposure to Alberta remains low at 5.9% (Q4 2015 – 5.7%)
- Weighted average interest rate for the period decreased to 8.9% from 9.2% (Q4 2015 – 8.9%)
- Weighted average lender fees for Q1 2016 increased to 1.8% from 1.1% (Q4 2015 – 1.4%)
- Distributable income per share maintained at $0.18 (Q4 2015 – $0.18)
- Credit facility balance of $53.0 million at quarter end (December 31, 2015 – $53.8 million), achieving the Company’s goal of efficiently managing cash flow in order to minimize the impacts of having excess cash on the balance sheet
March 31, 2016 – Investment Portfolio Highlights
- Net mortgage investments decreased by 0.8% to $436.0 million (December 31, 2015 – $439.5 million) due to $59.3 million in advances offset by $62.8 million in repayments received during Q1 2016
- Weighted average loan-to-value decreased to 69.5% (December 31, 2015 – 70.4%)
- Weighted average term of 2.1 years (December 31, 2015 – 2.1 years) and an average remaining term to maturity of 1.1 years (December 31, 2015 – 1.2 years)
- The portfolio continues to be well diversified across Canada’s largest provinces: Ontario (35.0%), Quebec (19.2%), Alberta (5.9%) and British Columbia (7.9%)
Operating Results Highlights
| Three months ended | Year ended | ||||||||||
| March 31, 2016 | March 31, 2015 |
December 31, 2015 |
|||||||||
| Net interest income | $ | 10,798 | $ | 10,496 | $ | 43,004 | |||||
| Income from operations | $ | 8,362 | $ | 8,257 | $ | 32,750 | |||||
| Net income and comprehensive income | $ | 7,176 | $ | 7,234 | $ | 28,021 | |||||
| Earnings per share (basic and diluted) | $ | 0.18 | $ | 0.18 | $ | 0.69 | |||||
| Dividends to shareholders | $ | 7,294 | $ | 7,324 | $ | 29,253 | |||||
| Distributable income | $ | 7,246 | $ | 7,203 | $ | 29,484 | |||||
| Distributable income per share (basic and diluted) | $ | 0.18 | $ | 0.18 | $ | 0.73 | |||||
| Targeted dividend yield | 5.95 | % | 6.08 | % | 6.05 | % | |||||
| Actual dividend yield | 8.63 | % | 9.19 | % | 9.50 | % | |||||
| Payout ratio | 100.7 | % | 101.7 | % | 99.2 | % | |||||
| Dividends per common share | $ | 0.18 | $ | 0.18 | $ | 0.72 | |||||
Quarterly Conference Call
Interested parties are invited to participate in a conference call with management on Monday, May 16, 2016 at 11:00 a.m. (EST) which will be followed by a question and answer period with analysts. Instructions on how to participate on this call are provided below:
Dial-in-number(s): 1-(855) 223-7310
Event Conference ID: 4819361
The playback of the conference call will also be available on www.timbercreekmic.com following the call.
About the Company
The Company provides investors with an opportunity to invest in a diversified portfolio of mortgage investments originated and underwritten by its manager, Timbercreek Asset Management Inc. (the “Manager”). The Company focuses on capital preservation and the generation of attractive, stable returns, allowing for the payment of monthly dividends to shareholders.
Non-IFRS Measures
The Company prepares and releases financial statements in accordance with IFRS. As a complement to results provided in accordance with IFRS, the Company discloses certain financial measures not recognized under IFRS and that do not have standard meanings prescribed by IFRS (collectively the “non-IFRS measures”). These non-IFRS measures are further described in Management’s Discussion and Analysis (“MD&A”) available on SEDAR. The Company has presented such non-IFRS measures because the Manager believes they are relevant measures of the ability of the Company to earn and distribute cash dividends to investors and to evaluate the Company’s performance. These non-IFRS measures should not be construed as alternatives to net income (loss) and comprehensive income (loss) or cash flows from operating activities determined in accordance with IFRS as indicators of the Company’s performance.
Certain statements contained in this news release may contain projections and “forward looking statements” within the meaning of that phrase under Canadian securities laws. When used in this news release, the words “may”, “would”, “should”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect”, “objective” and similar expressions may be used to identify forward looking statements. By their nature, forward looking statements reflect the Company’s current views, beliefs, assumptions and intentions are subject to certain risks and uncertainties, known and unknown, including, without limitation, those risks disclosed in the Company’s public filings. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward looking statements. The Company does not intend to nor assumes any obligation to update these forward looking statements whether as a result of new information, plans, events or otherwise, unless required by law.
For further information:
CONTACT:
Timbercreek Asset Management Inc.
Carrie Morris
Investor Relations
416-800-1552
cmorris@timbercreek.com