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Timbercreek Financial Announces 2020 First Quarter Results

TORONTO, May 05, 2020 (GLOBE NEWSWIRE) -- Timbercreek Financial (TF.TO) (the “Company”) announced today its financial results for the three months ended March 31, 2020 (“Q1 2020”).

Please note the Quarterly Conference Call will take place tomorrow, Wednesday, May 6, 2020 at 11:00 a.m. (EDT).

Q1 2020 Highlights

  • Strong transaction activity, with approximately $126.7 million in new mortgage investments and advances on existing mortgage investments
  • Maintained conservative portfolio risk position focused on income-producing commercial real estate

° 93.1% of net mortgage investment portfolio are first mortgages
° 85.2% of net mortgage investment portfolio is invested in cash-flowing properties
° 69.6% weighted average loan-to-value
° 7.2% quarterly weighted average interest rate on net mortgage investment

  • Delivered adjusted net income and comprehensive income of $13.2 million and distributable income of $14.4 million
  • Generated $0.17 in distributable income per share
  • Paid $14.4 million in dividends to shareholders

“The results for the first quarter of 2020 were solid, and since business conditions were largely unchanged until mid-March, portfolio activity and operating metrics were largely unaffected by the COVID-19 pandemic,” said Cameron Goodnough, CEO of Timbercreek Financial. “In addition, COVID-19’s impact on April’s interest and principal payments was negligible, and there have been no material signs of deterioration in the portfolio to date. We believe our capital position and investment portfolio - largely composed of first mortgages on income-producing commercial assets - have positioned us well to get through these uncertain times. That said, given the pervasiveness of the crisis and its uncertain duration, we continue to monitor the loan portfolio and borrower clients very closely.”

Quarterly Comparison

$ millions Q1 2020     Q1 2019   Q4 2019
             
Net Mortgage Investments $ 1,191.1       $ 1,228.6     $ 1,244.1  
Enhanced Return Portfolio Investments $ 78.0       $ 93.8     $ 78.2  
             
Net Investment Income $ 24.1       $ 24.5     $ 25.2  
Income from Operations $ 20.3       $ 20.7     $ 21.6  
Net Income and comprehensive Income $ 7.4       $ 13.1     $ 14.1  
--Adjusted Net Income and comprehensive Income $ 13.2       $ 13.1     $ 14.1  
Distributable Income $ 14.4       $ 14.2     $ 15.6  
Dividends to Shareholders $ 14.4       $ 14.1     $ 14.4  
             
$ per share Q1 2020     Q1 2019   Q4 2019
             
Dividends per share $ 0.17       $ 0.17     $ 0.17  
Distributable Income per share $ 0.17       $ 0.17     $ 0.19  
Earnings per share $ 0.09       $ 0.16     $ 0.17  
--Adjusted Earnings per share $ 0.16       $ 0.16     $ 0.17  
             
Payout Ratio on Distributable Income 99.9 %     99.4 %   92.3 %
Payout Ratio on Earnings per share 193.6 %     107.5 %   101.8 %
--Payout Ratio on Adjusted Earnings per share 108.7 %     107.5 %   101.8 %
             
Net Mortgage Investments Q1 2020     Q1 2019   Q4 2019
             
Weighted Average Loan-to-Value 69.6 %     68.1 %   70.5 %
Weighted Average Remaining Term to Maturity   1.3 yr       1.2 yr     1.4 yr
First Mortgages 93.1 %     92.8 %   90.5 %
Cash-Flowing Properties 85.2 %     86.2 %   86.8 %
Rental Apartments 54.2 %     46.8 %   54.1 %
Floating Rate Loans with rate floors (at quarter end) 79.2 %     54.2 %   71.0 %
             
Weighted Average Interest Rate            
For the quarter ended 7.2 %     7.2 %   7.2 %
Weighted Average Lender Fee            
New and Renewed 0.8 %     0.8 %   1.0 %
New Net Mortgage Investment Only 1.1 %     1.1 %   1.1 %
                   

Quarterly Conference Call

Interested parties are invited to participate in a conference call with management on Wednesday, May 6, 2020 11:00 a.m. (EDT) which will be followed by a question and answer period with analysts. To join the call:

  https://timbercreekfinancial.adobeconnect.com/tfq12020/
Participant Toll Free Dial-In Number: (855) 223-7310
Participant International Dial-In Number: (647) 788-4930
Conference ID Number: 8993128

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

About the Company

Timbercreek Financial is a leading non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate professionals. Our sophisticated, service-oriented approach allows us to meet the needs of borrowers, including faster execution and more flexible terms that are not typically provided by Canadian financial institutions. By employing thorough underwriting, active management and strong governance, we are able to meet these needs while generating strong risk-adjusted yields for investors. Further information is available on our website, www.timbercreekfinancial.com.

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 Company’s ability to earn and distribute cash dividends to shareholders and to evaluate its performance. The following non-IFRS financial measures should not be construed as alternatives to total net income and comprehensive income or cash flows from operating activities as 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 and 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.

SOURCE: Timbercreek Financial

For further information, please contact:
Timbercreek Financial
Cameron Goodnough
Chief Executive Officer and President
1-844-304-9967
cgoodnough@timbercreek.com