Toronto Stock Exchange: MTG
TORONTO, Nov. 20, 2013 /CNW/ - Timbercreek Senior Mortgage Investment
Corporation (the "Company") is pleased to announce that its board of
directors (the "Board") has declared a monthly dividend of $0.050 per
class A share ("Class A Shares"), $0.054 per class B share ("Class B
Shares"), $0.054 per class I share ("Class I Shares"), and $0.052 per
class J share ("Class J Shares") of the Company representing a 7.1%
yield per Class A Share on an annualized basis based on the closing
trading price for the shares on November 19, 2013. The dividend will
be paid on December 13, 2013 to holders of Class A, Class B, Class I
and Class J Shares of record on November 29, 2013.
"With an average loan-to-value of 45.1%, zero defaults since inception
and 91% of the mortgages secured by income-producing properties, we
believe the Company portfolio is the most conservative mortgage
portfolio held by a MIC in the market today," stated Andrew Jones,
Managing Director of Timbercreek Asset Management, the manager of the
Company (the "Manager"). "A focus on growing the Company to a size
that achieves a desirable level of diversification and preparing for
the special one-time redemption, have contributed to a slower
deployment of leverage through the first 20 months of operations. We
are pleased to state that this leverage has now been deployed and we
are looking forward to continuing to focus on creating long-term
shareholder value, both in the form of increased distributions and
total return in 2014."
As of November 19, 2013 there were 30,825,108 Class A Shares, 186,626
Class B Shares, 424,700 Class I Shares and 86,250 Class J Shares
outstanding. On November 30, 2013, all Class A Shares, Class B Shares,
Class I Shares and Class J Shares will be exchanged for new Common
Shares at a conversion ratio of 1 to 1 for each Class A Share and for
each of the Class B Shares, Class I Shares and Class J Shares at a
ratio equal to the quotient obtained by dividing the NRV per share of
that Class by the NRV per share of the Class A Shares on October 31,
The Company has also amended and restated its Dividend Reinvestment Plan
(the "Plan"), which will continue to be eligible to holders of Common
Shares, which provides a convenient means to purchase additional Common
Shares by reinvesting cash dividends at a potential discount and
without having to pay commissions, service charges or brokerage fees.
Current participants in the Company's existing Dividend Reinvestment
Plan with respect to Class A Shares will be deemed to be participants
in the amended and restated Plan with no further action required on
Pursuant to the Plan, and at the discretion of the Manager, Common
Shares for the reinvestment of distributions will be acquired in the
open market at prevailing prices or issued from treasury at 95 percent
of the average market price (the "Average Market Price") for the five
trading day period ending on the third business day immediately prior
to the dividend payment date (the "Trading Period").
Common Shares acquired under the Plan will be automatically enrolled in
the Plan. Shareholders who hold their Common Shares through a broker,
financial institution or other nominee must enroll for distribution
reinvestment through their nominee holder.
The full text of the Plan can be obtained on SEDAR or on the Timbercreek
website at http://www.timbercreek.com/funds/timbercreek-senior-mortgage-investment-corporation/dividend-reinvestment-plan.
About the Company
The Company provides investors with an opportunity to receive attractive
yields by investing indirectly, through holding shares of the Company,
in mortgage loan investments, comprised of first mortgages, selected
and determined to be high quality by its manager, Timbercreek Asset
Management Inc. The investment objective of the Company is, with a
primary focus on capital preservation, to acquire and maintain a
diversified portfolio of mortgage loan investments that generates
attractive, stable returns in order to permit the Company to pay
monthly distributions to its shareholders.
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", "look forward to" 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 Senior Mortgage Investment Corporation
For further information:
Timbercreek Asset Management Inc.