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

Toronto Stock Exchange: MTG

TORONTO, Feb. 24, 2016 /CNW/ - Timbercreek Senior Mortgage Investment Corporation (TSX: MTG) (the "Company") announced today its financial results for the three months and year ended December 31, 2015.

"Our continued focus on thorough underwriting and conservative investment strategies has proved successful yet again another year of strong performance by the Company. Portfolio growth of 5% was achieved without compromising credit quality and while generating income in excess of the dividends paid which will allow the Company to further enhance the value for shareholders" states Andrew Jones, Chief Executive Officer of the Company.

Fourth Quarter Highlights (versus Q4 2014)

  • Net interest income of $7.7 million up 7% from $7.2 million (Q3 2015 - $7.6 million)

  • Net income and comprehensive income of $4.9 million up 6% from $4.6 million (Q3 2015 – $4.8 million)

  • Earnings per share of $0.15 unchanged over prior comparable period (Q3 2015 – $0.15)

  • Distributable income per share of $0.17, up $0.03 from $0.14 over prior comparable period (Q3 2015 - $0.15)

  • Credit facility balance of $164.4 million at quarter end (Q3 2015 – $186.0 million), with average utilization of $172.1 million in Q4 2015.

  • Weighted average interest rate for the period decreased to 6.1% from 6.2% during the prior comparable period (Q3 2015 – 6.1%)

Year Ended December 31, 2015 Highlights (versus 2014)

  • Net interest income of $30.3 million up 8% from $28.2 million

  • Net income and comprehensive income of $19.3 million up 3% from $18.7 million

  • Earnings per share of $0.61 up by $0.02 from $0.59

  • 2015 payout ratio of 95.9% (2014 – 103.1%) allowing the Company to enhance shareholder value. Distributable income per share of $0.63 up by $0.05 from $0.58

  • Credit facility balance of $164.4 million at December 31, 2015, available borrowing limit is up to $190.0 million

  • Weighted average interest rate for the period decreased to 6.1% from 6.4%

December 31, 2015 – Investment Portfolio Highlights

  • Net mortgage investments up 4.9% to $452.6 million (December 31, 2014$431.3 million) due to $299.0 million in advances and $277.7 million in repayments received during 2015

  • Weighted average loan-to-value was 55.5% (December 31, 2014 – 55.6%)

  • Weighted average interest rate for the period decreased to 6.1% (December 31, 2014 – 6.4%)

  • Weighted average lender fees increased to 0.8% (December 31, 2014 – 0.6%)

  • Weighted average term of the portfolio of 2.6 years (December 31, 2014 – 2.4 years) and a weighted average remaining term to maturity of 1.4 years (December 31, 2014 – 1.3 years)

  • Exposure to Alberta at 11.9% (December 31, 2014 – 4.3%) and increased slightly from Q3 2015 at 9.5% which continues to be well below the sector average

  • The portfolio continues to be well-diversified across Canada's largest provinces: Ontario (39.2%), Quebec (35.7%), Alberta (11.9%) and B.C. (5.2%)

Financial Highlights


Three months ended
December 31,

Year ended
December 31,


2015

2014

2015

2014

Net interest income

$

7,689

$

7,174

$

30,318

$

28,159

Income from operations

$

6,313

$

5,900

$

24,952

$

23,211

Net income and comprehensive income

$

4,899

$

4,625

$

19,296

$

18,717

Earnings per share (basic and diluted)

$

0.15

$

0.15

$

0.61

$

0.59










Dividends to common shareholders

$

4,719

$

4,733

$

18,913

$

18,934

Distributable income

$

5,137

$

4,573

$

19,718

$

18,362

Distributable income per share (basic and diluted)

$

0.17

$

0.14

$

0.63

$

0.58

Targeted dividend yield


4.07%


4.52%


4.05%


4.55%

Actual dividend yield


7.65%


6.83%


7.71%


6.89%

Payout ratio

91.9%

103.5%

95.9%

103.1%

Dividends per share

$

0.15

$

0.15

$

0.60

$

0.60










Quarterly Conference Call

Interested parties are invited to participate in a conference call with management on Thursday, February 25, 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: 25423657

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

RELATED LINKS
www.timbercreekfunds.com

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