Timbercreek Senior Mortgage Investment Corporation announces 2014 fourth quarter and year-end 2014 results

Toronto Stock Exchange: MTG

TORONTO, Feb. 25, 2015 /CNW/ - Timbercreek Senior Mortgage Investment Corporation (TSX: MTG) (the "Company") today announced its financial results for the three months and year ended December 31, 2014. The Company closed 2014 with a net mortgage investment portfolio of $431.3 million, an increase of 7% from 2013, and 3% from the previous quarter end.

"We are very proud to report that the strong growth in the portfolio through the last 12 months has been achieved without compromising the quality of investments or income for our investors.  We remain committed to maintaining the highest quality portfolio in the market with a strong focus towards mortgage investments secured by income-producing assets" states Andrew Jones, Chief Executive Officer of the Company.

Fourth Quarter Highlights

  • Net mortgage investments up 3% to $431.3 million (September 30, 2014 - $417.7 million)

  • Net interest income up 9% to $7.2 million (Q3 2014 - $6.6 million) and down 2% from $7.3 million  in Q4 2013

  • Earnings per share flat at $0.15 from Q3 2014 and up from $0.14 in Q4 2013

  • Exposure to Alberta remained low at 4% (Q3 2014 - 4%)

  • Distributable income per share of $0.14 (Q4 2013 - 0.16) is slightly lower from dividend pay-out of $0.15, which equates to $0.2 million

  • Credit facility limit increased from $145 million to $190 million. Additional leverage accretive to the Company, particularly with recent decrease in borrowing costs

Year End Financial Highlights

  • Net interest income unchanged at $28.2 million (2013 - $28.2 million) resulting from an increase in lender fees amortization in 2014 that offset the lower interest income earned

  • Income from operations up 24.9% to $23.2 million (2013 - $18.6 million) resulting from lower expenses from the prior year that included the one-time Transition costs of $3.9 million and trailer fees of $0.8 million

  • Earnings per share $0.59 (2013 - $0.42; adjusted earnings per share for 2013 - $0.53 which excludes one-time Transition costs, issuance costs of redeemable shares and dividends to holders of redeemable shares)

  • Credit facility utilization increased to 32.9% of total assets (December 31, 2013 - 27.0%)

2014 Investment Portfolio Highlights

  • Net mortgage investments up 7% to $431.3 million (2013 - $401.5 million)

  • Weighted average loan-to-value was 55.6% (December 31, 2013- 50.8%) and remains well below the Company's maximum threshold of 70%

  • Weighted average interest rate decreased to 6.2% (December 31, 2013 - 6.5%) resulting from downward pressure on lending rates

  • Weighted average lender fees decreased to 0.6% (2013 - 0.9%), primarily from some increased competitive pressure in 2014

  • Weighted average term of 2.4 years (December 31, 2013- 2.2 years) and a weighted average remaining term to maturity of 1.3 years (December 31, 2013 - 1.5 years)

  • The portfolio continues to be well-diversified across Canada's largest provinces: Ontario (53.2%), Quebec (20.5%), Alberta (4.3%) and B.C. (11.1%)

Financial Highlights

Three months ended December 31, Year ended December 31,
  2014 2013 2014 2013 2012
Net interest income $       7,174 $       7,325 $     28,159 $     28,234 $     12,941
Income from operations $ 5,900 $ 5,889 $ 23,211 $ 18,578 $ 9,165
Net income (loss) and
     comprehensive income (loss)
$ 4,625 $ 2,986 $ 18,717 $ (6,453) $ (18,656)
Earnings per share (basic and diluted) $ 0.15 $ 0.14 $ 0.59 $ 0.42   n/a
Adjusted net income (loss) and
     comprehensive income (loss)
$ 4,625 $ 4,979 $ 18,717 $ 19,593 $ 8,170
Adjusted earnings per share (basic and diluted) $ 0.15 $ 0.14 $ 0.59 $ 0.53 $ 0.34
                     
Dividends to shareholders $ 4,733 $ 5,007 $ 18,934 $ 22,030 $ 13,391
Cash flow from operating activities $ 6,678 $ 4,282 $ 20,927 $ 19,195 $ 10,920
Distributable income $ 4,573 $ 5,579 $ 18,362 $ 21,082 $ 10,828
Distributable income per share
     (basic and diluted)
$ 0.14 $ 0.16 $ 0.58 $ 0.57 $ 0.44
Targeted dividend yield   4.52%   4.61%   4.55%   4.61%   4.61%
Actual dividend yield   6.83%   6.97%   6.89%   7.03%   5.61%
Payout ratio 103.5% 89.7% 103.1% 104.5% 123.7%
Dividends per share:                    
    Class A $ - $ 0.050 $ - $ 0.500 $ 0.550
    Class B $ - $ 0.054 $ - $ 0.540 $ -
    Class I $ - $ 0.054 $ - $ 0.540 $ 0.324
    Class J $ - $ 0.052 $ - $ 0.520 $ 0.364
    Common $ 0.150 $ 0.100 $ 0.600 $ 0.100 $ -
                     
NET MORTGAGE INVESTMENTS INFORMATION                
Net mortgage investments $ 431,296 $ 401,456 $ 431,296 $ 401,456 $ 332,999
Total number of net mortgage investments   62   62   62   62   32
Average net mortgage investment $ 6,956 $ 6,475 $ 6,956 $ 6,475 $ 10,406
Weighted average interest rate   6.2%   6.5%   6.2%   6.5%   6.7%
Weighted average lender fee 0.5% 0.7% 0.6% 0.9% 0.7%
Turnover ratio 13.0% 28.3% 61.5% 84.4% 52.6%

Quarterly Conference Call

Interested parties are invited to participate in a conference call with management on Thursday, February 26, 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: 86486187

The playback of the conference call will also be available on www.timbercreekseniormic.com 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-GAAP 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 Senior Mortgage Investment Corporation

For further information:

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

Organization Profile

Timbercreek Senior Mortgage Investment Corporation

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