Timbercreek Mortgage Investment Corporation announces 2015 fourth quarter and year-end 2015 results

Toronto Stock Exchange: TMC

TORONTO, Feb. 25, 2016 /CNW/ - Timbercreek Mortgage Investment Corporation (TSX: TMC) (the "Company") announced today its financial results for the three months and year ended December 31, 2015.

"Mortgage investment activity was very strong in 2015 resulting in an increase in net interest income by 17% and portfolio size by over 10% and we are pleased to report that this growth was achieved without compromising the credit quality of the underlying portfolio. Risk management remains a top priority for our business which we achieve through a number of different strategies including focusing our lending in larger markets where there is better liquidity, targeting loans secured by cash-flowing properties and by employing stringent underwriting practices. This emphasis towards managing risk has been demonstrated by the increase in the portfolio's exposure to 1st mortgages which grew to 78% from 70% at the end of 2014 and the higher concentration of loans secured by cash-flowing real estate which has increased to 87% from 81%," states Andrew Jones, Chief Executive Officer of the Company.

Fourth Quarter Highlights (versus Q4 2014)

  • Net interest income of $10.8 million up 11% from $9.8 million (Q3 2015 – $10.1 million)
  • Net income and comprehensive income of $6.9 million up 19% from $5.8 million (Q3 2015 – $6.2 million)
  • Earnings per share increased to $0.17 from $0.14 (Q3 2015 – $0.15)
  • Exposure to Alberta remains low at 5.7% (Q3 2015 – 6.1%)
  • Weighted average interest rate for the period was at 8.9% (Q3 2015 – 9.1%)
  • Distributable income per share of $0.18 down $0.02 from $0.20 (Q3 2015 – $0.18)
  • Credit facility balance of $51.4 million at quarter end (Q3 2015 – $59.1 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

Year ended December 31, 2015 (versus 2014)

  • Net interest income of $43.0 million up 17% from $36.7 million
  • Net income and comprehensive income of $28.0 million up 13% from $24.9 million
  • Earnings per share of $0.69 up $0.06 from $0.63
  • Weighted average interest rate for the period down 30 basis points to 9.1% from 9.4%
  • Distributable income per share of $0.73 up $0.02 from $0.71
  • Exercised accordion feature on the credit facility, increasing available borrowing limit up to $60.0 million. Credit facility balance of $53.8 million at December 31, 2015
  • Weighted average interest rate for the period decreased to 9.1% from 9.4%

December 31, 2015 – Investment Portfolio Highlights

  • Net mortgage investments up 11% to $439.5 million (December 31, 2014 - $397.3 million) due to $333.5 million in advances offset by $291.3 million in repayments received during 2015
  • Weighted average loan-to-value decreased to 70.4% (December 31, 2014 – 70.8%)
  • Weighted average lender fees for YTD 2015 decreased to 1.2% from 1.6% for 2014. The decrease in lender fees is directly related to the significant increase in advances on new mortgage investments of $138.7 million made in 2014 relative to 2015
  • Weighted average term of 2.1 years (December 31, 2014 – 2.1 years) and an average remaining term to maturity of 1.2 years (December 31, 2014 – 1.4 years)
  • The portfolio continues to be well-diversified across Canada's largest provinces: Ontario (35.1%), Quebec (19.9%), Alberta (5.7%) and British Columbia (9.4%)

Operating Results Highlights



Three months ended
December 31,

Year ended December 31,



2015

2014

2015

2014

2013












Net interest income

$

10,814

$

9,774

$

43,004

$

36,710

$

39,731

Income from operations

$

8,427

$

7,438

$

32,750

$

28,272

$

25,487

Net income and comprehensive income

$

6,905

$

5,812

$

28,021

$

24,917

$

507

Earnings per share (basic and diluted)

$

0.17

$

0.14

$

0.69

$

0.63


0.65

Adjusted net income and comprehensive income

$

6,905

$

5,812

$

28,021

$

24,917

$

28,361

Adjusted earnings per share (basic and diluted)

$

0.17

$

0.14

$

0.69

$

0.63

$

0.74























Dividends to shareholders

$

7,296

$

7,326

$

29,253

$

30,263

$

29,274

Distributable income

$

7,256

$

8,013

$

29,484

$

27,899

$

30,204

Distributable income per share (basic and diluted)

$

0.18

$

0.20

$

0.73

$

0.71

$

0.79

Targeted dividend yield


6.07%


6.52%


6.05%


6.55%


6.61%

Actual dividend yield


9.42%


8.58%


9.50%


9.16%


8.33%

Payout ratio


100.6%


91.4%


99.2%


108.5%


96.9%

Dividends per share












Class A

$

$

$

$

$

0.630


Class B

$

$

$

$

$

0.670


Common

$

0.180

$

0.180

$

0.720

$

0.762

$

0.134













Quarterly Conference Call

Interested parties are invited to participate in a conference call with management on Friday, February 26, 2016 at 2:00 p.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: 25423127

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.

SOURCE Timbercreek Mortgage Investment Corporation

For further information: Timbercreek Asset Management Inc., Carrie Morris, Investor Relations, 416-800-1552, cmorris@timbercreek.com

RELATED LINKS
www.timbercreekfunds.com

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