Timbercreek Mortgage Investment Corp. announces December 31, 2009 results of


TORONTO, Feb. 26 /CNW/ - Timbercreek Mortgage Investment Corp. (the "Fund") (TSX TMC), today released its financial statements and management report of fund performance for the year ended December 31, 2009. The Fund is managed by Timbercreek Asset Management Inc. (the "Fund Manager").

    Some of the Fund's 2009 highlights include:

    -  Preservation of net asset value of the Fund
       In light of the economic downtown experienced in late 2008 and early
       2009, we are extremely pleased that net redemption value per share
       ("NRV Per Share") remained relatively flat.
          -  Class A NRV Per Share increased to $9.43 from $9.38 over
             December 31, 2008; and
          -  Class B NRV Per Share decreased slightly to $9.83 from $9.85
             over prior year

    -  Targeted distributions met by the Fund
       The Fund distributed in excess of its benchmark yield in 2009. The
       average two year Government of Canada bond yield plus 550 basis points
       totaled 6.8% in comparison to the Fund's distribution yield of 8.2%
       and 9.4% for Class A and Class B shares, respectively, based on a $10
       issue price.

    -  Focus on portfolio diversification
       The Fund continued to diversify its portfolio across Canada in order
       to meet the requirements of its compulsory asset allocation model. In
       November, 2009, the Fund increased its allocation in British Columbia
       by acquiring a portfolio of mortgage investments secured by retirement
       homes located throughout the province of British Columbia (the "CRRIC
       Portfolio"). At December 31, 2009, 89% of the Fund's portfolio was
       diversified in four provinces across Canada compared to December 31,
       2008 where 96% of the portfolio was concentrated over 3 provinces.

    -  No mortgage impairments
       In the annual audited financial statements for the year ended December
       31, 2009, there were no impairments or loan provisions realized on the
       mortgage investment portfolio.

    -  Accretive mortgage portfolio acquisition to Class A shareholders
       The acquisition of the CRRIC Portfolio was an accretive acquisition
       for the Fund. As a result of the transaction, the NRV per Class A
       share increased by approximately 11 cents per share.

       For the year ended December 31, 2009 the Fund's net assets increased
       by $4,242,060 compared to an increase of $1,494,809 for the period
       ended December 31, 2008. This equated to an increase in net assets per
       Class A and Class B share of $0.71 and $0.84, respectively for the
       year ended December 31, 2009, in comparison to $0.35 and $0.39 per
       Class A and Class B share, respectively for the period from April 30,
       2008 to December 31, 2008.

       In 2009, total distribution of per Class A Share was $0.828 and total
       distribution per Class B Share was $0.942 per Class B share for 2009.
       Based on the distributions received in the year and performance of the
       NRV per Class A and Class B share, the total annual return of the Fund
       was 9.8% for both share classes in 2009 based on the respective NRV
       Per Share.

       Key highlights of the Fund's mortgage investment portfolio as at
       December 31, 2009 are as follows:
       -  Total mortgage investments are $66,014,044
       -  Mortgages secured by cash-flowing, multi-family and retirement
          residences equate to 66% of the total mortgage portfolio.
       -  The weighted average interest rate of the mortgage portfolio is
       -  89% of the mortgage portfolio was allocated across Canada's four
          largest provinces (Ontario - 32%; B.C. - 22%; Alberta - 19%;
          Quebec - 16%). This is in comparison to December 31, 2008 where
          96% of the mortgage portfolio was allocated between three
          provinces (Ontario - 36%; Alberta - 35%; Quebec - 25%)
       -  57% of the portfolio is maturing in 2010 and 15% and 27% are
          maturing in 2011 and 2012, respectively.
       -  Approximately 79% of the mortgage portfolio has a loan-to-value
          less than 75%

       On February 1, 2010 the Fund filed a prospectus supplement to the
       short form base shelf prospectus dated December 30, 2009 (available at
       www.sedar.com; search database keyword "Timbercreek" under public
       company documents) offering a maximum of $25,000,000 Class A shares of
       the Fund (the "Offering"). The marketed offering was oversubscribed
       subsequent to the exercising of the over-allotment, and closed on
       February 25, 2010.


       The Fund provides investors with an opportunity to receive attractive
       yields by investing indirectly, through holding shares of the Fund, in
       mortgage loan investments selected and determined to be high quality
       by its manager, Timbercreek Asset Management Inc. The investment
       objective of the Fund 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 Fund to pay monthly distributions to its

       Full reports and financial results for the Fund for the year are
       outlined in the audited financial statements and management report of
       fund performance is available at www.sedar.com. In addition
       supplemental information is available at the Fund's website at

Forward-Looking Statements

This document may contain forward-looking statements relating to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent our beliefs regarding future events. These statements are typically identified expressions like "believe", "expects", "anticipates", "would", "will", "intends", "projected", "in our opinion", "confident" and similar expressions. By their nature, forward-looking statements require us to make assumptions which include, among other things, that (i) the Fund will have sufficient capital under management to effect its investment strategies and pay its targeted distributions, (ii) the investment strategies will produce the results intended by the Fund Manager, (iii) the markets will react and perform in a manner consistent with the investment strategies and (iv) the Fund is able to acquire mortgages of a quality that will generate returns that meet and or exceed the Fund's targeted mortgage investment returns. Forward-looking statements are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will prove not to be accurate. We caution readers of this document not to place undue reliance on our forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed or implied in the forward-looking statements. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including but not limited to, general market conditions, interest rates, regulatory and statutory developments, the effects of competition in areas that the Fund may invest in and the risks detailed from time to time in the Fund's prospectus.

We caution that the foregoing list of factors is not exhaustive and that when relying on forward-looking statements to make decisions with respect to investing in the Fund, investors and others should carefully consider these factors, as well as other uncertainties and potential events and the inherent uncertainty of forward-looking statements. Due to the potential impact of these factors, the Fund and the Fund Manager do not undertake, and specifically disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

%SEDAR: 00026881E

SOURCE Timbercreek Mortgage Investment Corporation

For further information: For further information: Timbercreek Asset Management Inc.: R. Blair Tamblyn, Chief Executive Officer, (416) 306-9967 X238, btamblyn@timbercreekfunds.com

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