Timbercreek Mortgage Investment Corporation announces 2015 second quarter results

Toronto Stock Exchange: TMC

TORONTO, Aug. 11, 2015 /CNW/ - Timbercreek Mortgage Investment Corporation (TSX: TMC) (the "Company") announced today its financial results for the three and six months ended June 30, 2015 ("Q2 2015" and "YTD 2015") where it reported a fourth consecutive quarter of revenue growth.

"Our strong performance this quarter demonstrates our ability to continue to generate attractive, stable income for investors through different economic conditions. We attribute this success to our thorough underwriting and selection process and strong customer-oriented approach which allows us to focus on making high quality investments," states Andrew Jones, Chief Executive Officer of the Company.

Second Quarter Highlights (versus Q2 2014)

  • Net interest income of $11.5 million up 22% from $9.5 million (Q1 2015 – $10.5 million)
  • Net income and comprehensive income of $7.7 million up 17% from $6.6 million (Q1 2015 – $7.2 million)
  • Earnings per share of $0.19 up $0.02 from $0.17 (Q1 2015 – $0.18)
  • Exposure to Alberta remains low at 6.0% (Q1 2015 – 6.4%)
  • Weighted average interest rate for the period down 30 basis points to 9.2% from 9.5% (Q1 2015 – 9.2%)
  • Distributable income per share of $0.19 up $0.01 from $0.18 (Q1 2015 – $0.18)
  • Credit facility balance of $6.3 million at quarter end (Q1 2015 – $54.2 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.

Six Months Ended Highlights (versus YTD 2014)

  • Net interest income of $22.0 million up 21% from $18.3 million
  • Net income and comprehensive income of $15.0 million up 15% from $13.0 million
  • Earnings per share of $0.37 up $0.03 from $0.34
  • Weighted average interest rate for the period down 40 basis points to 9.2% from 9.6%
  • Distributable income per share of $0.37 up $0.02 from $0.35
  • Exercised accordion feature on the credit facility, increasing available borrowing limit to $60.0 million. Credit facility balance of $6.3 million at June 30, 2015.

June 30, 2015 – Investment Portfolio Highlights

  • Net mortgage investments down 1% to $393.2 million (December 31, 2014 - $397.3 million) due to $156.7 million in repayments received during YTD 2015, approximately 49% of which were received in June 2015.
  • Weighted average loan-to-value increased slightly to 71.5% (December 31, 2014 – 70.8%) but remains well below the Company's maximum threshold of 85%. Although the weighted average loan-to-value has increased slightly from December 31, 2014, it decreased by 1.3% during Q2 2015 from 72.8% as at March 31, 2015.
  • Weighted average lender fees for Q2 2015 were up to 1.7% from 1.1% for Q1 2015
  • Weighted average term of 2.1 years (December 31, 2014 – 2.1 years) and an average remaining term to maturity of 1.3 years (December 31, 2014 – 1.4 years)
  • The portfolio continues to be well-diversified across Canada's largest provinces: Ontario (40.4%), Quebec (13.4%), Alberta (6.0%) and British Columbia (8.0%)

Operating Results Highlights


Three months ended

Six months ended

Year ended


June
30, 2015

June 30, 2014

June 30, 2015

June 30, 2014

December
31, 2014

Net interest income

$

11,532

$

9,465

$

22,028

$

18,276

$

36,710

Income from operations

$

9,051

$

7,416

$

17,308

$

14,216

$

28,272

Net income and comprehensive income

$

7,722

$

6,597

$

14,956

$

12,993

$

24,917

Earnings per share (basic and diluted)

$

0.19

$

0.17

$

0.37

$

0.34

$

0.63





















Dividends to shareholders

$

7,321

$

8,181

$

14,645

$

15,611

$

30,263

Cash flow from operating activities

$

9,098

$

7,099

$

14,796

$

11,176

$

26,185

Distributable income

$

7,868

$

6,977

$

15,070

$

13,477

$

27,899

Distributable income per share (basic and diluted)

$

0.19

$

0.18

$

0.37

$

0.35

$

0.71

Targeted dividend yield


6.12%


6.57%


6.10%


6.54%


6.55%

Actual dividend yield


8.71%


8.47%


8.76%


8.52%


9.16%

Payout ratio


93.1%


117.2%


97.2%


115.8%


108.5%

Dividends per common share

$

0.180

$

0.201

$

0.360

$

0.402

$

0.762























 

Quarterly Conference Call

Interested parties are invited to participate in a conference call with management on August 12, 2015 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: 76919948

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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