Timbercreek Mortgage Investment Corporation announces 2015 third quarter results

Toronto Stock Exchange: TMC

TORONTO, Nov. 11, 2015 /CNW/ - Timbercreek Mortgage Investment Corporation (TSX: TMC) (the "Company") announced today its financial results for the three and nine months ended September 30, 2015 ("Q3 2015" and "YTD 2015").

"During the first 9 months of the year, we were able to deploy over $240 million in capital while maintaining a high-quality portfolio of loans and generate income in excess of our dividend obligation. This strong investment activity coupled with an improved focus on cash-flow management has resulted in significant improvements to the performance of the Company over the same period last year and we expect this momentum to continue through the balance of this year," states Andrew Jones, Chief Executive Officer of the Company.

Third Quarter Highlights (versus Q3 2014)


  • Net interest income of $10.2 million up 17% from $8.7 million (Q2 2015 – $11.5 million)
  • Net income and comprehensive income of $6.2 million up 1% from $6.1 million (Q2 2015 – $7.7 million)
  • Earnings per share remained constant at $0.15 (Q2 2015 – $0.19)
  • Exposure to Alberta remains low at 6.1% (Q2 2015 – 6.0%)
  • Weighted average interest rate for the period was constant at 9.1% (Q2 2015 – 9.2%)
  • Distributable income per share of $0.18 up $0.02 from $0.16 (Q2 2015 – $0.19)
  • Credit facility balance of $59.1 million at quarter end (Q2 2015 – $6.3 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
  • The Company recognized a specific provision of $0.9 million pertaining to a mortgage investment that has been the subject to litigation for several years
        Nine Months Ended Highlights (versus YTD 2014)

      • Net interest income of $32.2 million up 20% from $26.9 million
      • Net income and comprehensive income of $21.1 million up 11% from $19.1 million
      • Earnings per share of $0.52 up $0.03 from $0.49
      • Weighted average interest rate for the period down 20 basis points to 9.2% from 9.4%
      • Distributable income per share of $0.55 up $0.04 from $0.51
      • Exercised accordion feature on the credit facility, increasing available borrowing limit up to $60.0 million. Credit facility balance of $59.1 million at September 30, 2015

      September 30, 2015 – Investment Portfolio Highlights

      • Net mortgage investments up 12% to $444.3 million (December 31, 2014 - $397.3 million) due to $247.1 million in advances offset by $200.1 million in repayments received during YTD 2015
      • Weighted average loan-to-value increased to 72.3% (December 31, 2014 – 70.8%)
      • Weighted average lender fees for YTD 2015 decreased to 1.4% from 1.7% for YTD 2014. The non-refundable lender fees remained the same at $3.3 million year over year. The current year remains within our target range, with Q3 2014 being an exception mainly due to two new mortgage investments where the Company was able to generate higher than average lender fees
      • Weighted average term of 2.2 years (December 31, 2014 – 2.1 years) and an average remaining term to maturity of 1.4 years (December 31, 2014 – 1.4 years)
      • The portfolio continues to be well-diversified across Canada's largest provinces: Ontario (38.2%), Quebec (21.1%), Alberta (6.1%) and British Columbia (4.4%)

      Operating Results Highlights



      Three months ended

      Nine months ended

      Year ended


      September
      30, 2015

      September
      30, 2014

      September
      30, 2015

      September
      30, 2014

      December
      31, 2014

      Net interest income

      $

      10,161

      $

      8,660

      $

      32,189

      $

      26,936

      $

      36,710

      Income from operations

      $

      7,015

      $

      6,618

      $

      24,323

      $

      20,834

      $

      28,272

      Net income and comprehensive income

      $

      6,160

      $

      6,110

      $

      21,116

      $

      19,103

      $

      24,917

      Earnings per share (basic and diluted)

      $

      0.15

      $

      0.15

      $

      0.52

      $

      0.49

      $

      0.63





















      Dividends to shareholders

      $

      7,311

      $

      7,326

      $

      21,956

      $

      22,937

      $

      30,263

      Distributable income

      $

      7,160

      $

      6,559

      $

      22,229

      $

      20,034

      $

      27,899

      Distributable income per share (basic and diluted)

      $

      0.18

      $

      0.16

      $

      0.55

      $

      0.51

      $

      0.71

      Targeted dividend yield


      5.94%


      6.61%


      6.05%


      6.56%


      6.55%

      Actual dividend yield


      9.31%


      7.84%


      9.41%


      8.54%


      9.16%

      Payout ratio


      102.1%


      111.7%


      98.8%


      114.5%


      108.5%

      Dividends per common share

      $

      0.180

      $

      0.180

      $

      0.540

      $

      0.582

      $

      0.762













      Quarterly Conference Call

      Interested parties are invited to participate in a conference call with management on Thursday, November 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: 66803367

      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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