TORONTO, June 3, 2013 /CNW/ - Timbercreek Mortgage Investment
Corporation (the "Company") announced today that it will continue to
maintain its current monthly distribution of $0.063, through December
31, 2013 which represents a 7.8% yield per Class A share on an
annualized basis based on the closing trading price for the shares on
May 31, 2013.
The Company's distributions are generated from cash flow not only from
interest earned on the mortgages, but also from loan origination fees
paid by the borrowers at the time of funding, 100% of which are passed
on to investors as further income. These fees have represented 13% of
total GAAP revenues over the past five calendar years.
"Having sourced over $$450 worth of mortgage loans thus far in 2013, we
are very pleased with the continued demand we are seeing from high
quality commercial borrowers" explained Andrew Jones, Managing
Director, Debt Investments for the Manager. "In addition, as materially
all of the Company's investable cash is currently deployed, we are now
offering syndication opportunities to our institutional partners to
help satisfy this strong demand."
"Due to this sustained demand for our customized shorter term loans, and
the healthy pre-payment activity we are seeing, $292 million of the
Company's portfolio of mortgage loans have been re-paid, and then
re-invested in new loans, over the previous 12 months. The revenue
generated from new origination fees, on top of the healthy demand that
we continue to see in this underserved market, makes us confident that
the Company's current monthly distribution will be maintained
throughout the year."
"The fundamentals also continue to support the commercial real estate
market in Canada," added Mr. Jones. "With the exception of the condo
market where our exposure is negligible, there has been a very limited
addition to the supply of new properties across Canada. Demand for
commercial real estate also remains strong from investors seeking
regular cash flow, such as private investors, pension funds, REITS, and
The Company invests in a diversified portfolio of conventional mortgage
loans, selected and determined to be high quality by the Manager. The
mortgage loans are secured primarily by income-producing real estate,
such as multi-residential, office, retirement, and retail properties,
located in large urban markets in Canada.
The Company's loan portfolio stood at $354 million at the end of the
first quarter of 2013, with a weighted average loan-to-value ratio of
68.8%. The Company's investment objective is to preserve capital while
generating attractive, stable returns to allow it to pay monthly
distributions to its shareholders.
For information, please visit www.timbercreek.com.
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" and similar expressions
may be used to identify forward looking statements. By their nature,
forward looking statements reflect the Manager's and the Company's
current views, beliefs and assumptions and are subject to certain risks
and uncertainties, known and unknown, including, without limitation,
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
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