Timbercreek Senior Mortgage Investment Corporation announces 2015 third quarter results

Toronto Stock Exchange: MTG

TORONTO, Nov. 10, 2015 /CNW/ - Timbercreek Senior Mortgage Investment Corporation (TSX: MTG) (the "Company") announced today its financial results for the three and nine months ended September 30, 2015.

"Strong performance for yet another consecutive quarter demonstrates our ability to continue to generate attractive, stable income for investors while maintaining what we believe to be the highest quality portfolio in the market today. The portfolio is comprised of exclusively first mortgage investments with over 85% secured by income-producing properties and a weighted average loan-to-value of 53% and we will continue to remain disciplined in our selection and underwriting of investments, "states Andrew Jones, Chief Executive Officer of the Company.

Third Quarter Highlights (versus Q3 2014)

  • Net interest income of $7.6 million up 14% from $6.6 million (Q2 2015 - $7.8 million)
  • Net income and comprehensive income of $4.8 million up 4% from $4.6 million (Q2 2015 – $5.0 million)
  • Earnings per share of $0.15 unchanged over prior period (Q2 2015 – $0.16)
  • Distribution income per share of $0.15, consistent with prior year (Q2 2015 - $0.15)
  • Credit facility balance of $186.0 million at quarter end (Q2 2015 – $176.5 million), with average utilization of $168.4 million.
  • Weighted average interest rate for the period was flat at 6.1% (Q2 2015 – 6.1%)

Nine Months Ended Highlights (versus YTD 2014)

  • Net interest income of $22.6 million up 8% from $21.0 million
  • Net income and comprehensive income of $14.6 million up 2% from $14.1 million
  • Earnings per share of $0.46 up by $0.01 from $0.45
  • Distribution income per share of $0.46 up by $0.02 from $0.44
  • Credit facility balance of $186.0 million at September 30, 2015, available borrowing limit is $190.0 million
  • Weighted average interest rate for the period was constant at 6.1%

September 30, 2015 – Investment Portfolio Highlights

  • Net mortgage investments up 10% to $473.8 million (December 31, 2014$431.3 million) due to $225.6 million in advances and $183.1 million in repayments received during YTD 2015
  • Weighted average loan-to-value was 53.4% (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 2.4 years (December 31, 2014 – 2.4 years) and a weighted average remaining term to maturity of 1.1 years (December 31, 2014 – 1.3 years)
  • Exposure to Alberta at 9.5% (December 31, 2014 – 4.3%) and increased slightly from Q2 2015 – 8.8%. This is well below the sector average
  • The portfolio continues to be well-diversified across Canada's largest provinces: Ontario (38.9%), Quebec (30.8%), Alberta (9.5%) and B.C. (6.8%)

Financial 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

$

7,564

$

6,639

$

22,630

$

20,985

$

28,159

Income from operations

$

6,212

$

5,481

$

18,639

$

17,310

$

23,211

Net income and comprehensive income

$

4,800

$

4,597

$

14,397

$

14,092

$

18,717

Earnings per share (basic and diluted)

$

0.15

$

0.15

$

0.46

$

0.45

$

0.59












Dividends to common shareholders

$

4,727

$

4,733

$

14,194

$

14,200

$

18,934

Distributable income

$

4,819

$

4,896

$

14,597

$

13,789

$

18,362

Distributable income per share (basic and diluted)

$

0.15

$

0.16

$

0.46

$

0.44

$

0.58

Targeted dividend yield


3.94%


4.61%


4.05%


4.56%


4.55%

Actual dividend yield


7.96%


6.51%


8.04%


6.58%


6.89%

Payout ratio

98.1%

96.7%

97.4%

103.0%

103.1%

Dividends per common share:

$

0.15

$

0.15

$

0.45

$

0.45

$

0.60























Quarterly Conference Call

Interested parties are invited to participate in a conference call with management on Wednesday, November 11, 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: 66718939

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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