SOURCE: Timbercreek Senior Mortgage Investment Corporation

Timbercreek Senior Mortgage Investment Corporation

May 13, 2016 17:51 ET

Timbercreek Senior Mortgage Investment Corporation Announces 2016 First Quarter Results

TORONTO, ON--(Marketwired - May 13, 2016) - Timbercreek Senior Mortgage Investment Corporation (TSX: MTG) (the "Company") announced today its financial results for the three months ended March 31, 2016.

"We are pleased with the first quarter results, which were the product of the successful execution by our team, as well as strong deal flow we continue to see in the market. We believe the need for non-bank, institutional-quality lenders in commercial real estate 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 the Company with Timbercreek 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 $7.4 million up 1.5% from $7.3 million (Q4 2015 - $7.7 million)
  • Net income and comprehensive income of $4.7 million up 0.7% from $4.6 million (Q4 2015 - $4.9 million)
  • Earnings per share remained constant at $0.15 (Q4 2015 - $0.15)
  • Weighted average lender fees remained the same at 0.8% (Q4 2015 - 0.8%)
  • Distributable income per share decreased to $0.15 from $0.16 (Q4 2015 - $0.17)
  • Credit facility balance of $175.2 million at quarter end (December 31, 2015 - $164.4 million), with average utilization of $167.1 million in Q1 2016.
  • Weighted average interest rate for the period decreased to 6.0% from 6.1% (Q4 2015 - 6.1%)

March 31, 2016 - Investment Portfolio Highlights

  • Net mortgage investments up 2.3% to $463.0 million (December 31, 2015 - $452.6 million) due to $40.7 million in advances and $30.3 million in repayments received during 2016
  • Weighted average loan-to-value was 56.9% (December 31, 2015 - 55.5%)
  • Weighted average term of the portfolio of 2.7 years (December 31, 2015 - 2.6 years) and a weighted average remaining term to maturity of 1.2 years (December 31, 2015 - 1.4 years)
  • Exposure to Alberta at 13.2% (December 31, 2015 - 11.9%) an increase from Q1 2015 at 9.1%, since quarter end, the Company's exposure to Alberta has been reduced to 10.0% resulting from repayments received on a loan
  • The portfolio continues to be well diversified across Canada's largest provinces: Ontario (40.9%), Quebec (33.0%), Alberta (13.2%) and British Columbia (5.1%)

Financial Highlights

    Three months ended
March 31,
  Year ended
December 31,
    2016   2015   2015
Net interest income   $ 7,410   $ 7,300   $ 30,318
Income from operations   $ 6,060   $ 6,011   $ 24,952
Net income and comprehensive income   $ 4,678   $ 4,645   $ 19,296
Earnings per share (basic and diluted)   $ 0.15   $ 0.15   $ 0.61
Dividends to common shareholders   $ 4,718   $ 4,733   $ 18,913
Distributable income   $ 4,680   $ 4,944   $ 19,718
Distributable income per share (basic and diluted)   $ 0.15   $ 0.16   $ 0.63
Targeted dividend yield     4.08%     4.08%     4.05%
Actual dividend yield     7.44%     7.32%     7.71%
Payout ratio     100.8%     95.7%     95.9%
Dividends per share   $ 0.15   $ 0.15   $ 0.60

Quarterly Conference Call

Interested parties are invited to participate in a conference call with management on Monday, May 16, 2016 at 2:00 p.m. (EDT) 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: 4820120

The playback of the conference call will also be available on following the call.

About the Company

The Company provides investors with an opportunity to invest in a diversified portfolio of first-only mortgage investments originated and underwritten by the Timbercreek debt origination platform. 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.

Contact Information

  • For further information:


    Timbercreek Asset Management Inc.
    Carrie Morris
    Investor Relations
    T: 416-800-1552