Toronto Stock Exchange: TMC
TORONTO, July 17, 2014 /CNW/ - Timbercreek Mortgage Investment Corporation (the "Company") today announced that its board of directors (the "Board") has declared a monthly dividend of $0.060 per common share ("Common Share") of the Company, compared with $0.067 per common share previously. The dividend is to be paid on August 15, 2014 to holders of Common Shares of record on July 31, 2014.
"While the portfolio continues to perform well - reflected in strong turnover and zero principal impairments - we are experiencing higher than normal competition in the market for loans secured by income-producing commercial real estate, resulting in lower earnings for the first half of 2014," said Andrew Jones, Chief Executive Officer of the Company. "Given our primary objective is preserving capital, we believe it is prudent at this time to reduce our payout to maintain credit quality rather than increase risk in the portfolio by changing the approach that has allowed us to generate a track record of strong risk-adjusted returns since 2008."
He added, "the increased competition from institutional lenders speaks to the strength of the market fundamentals and attributes of this asset class. We believe our continued focus on income-producing properties, thorough underwriting, active management and strong governance will serve our investors well over time."
The Company also offers a Dividend Reinvestment Plan (the "Plan"), which is eligible to holders of Common Shares and provides a convenient means to purchase additional Common Shares by reinvesting cash dividends at a potential discount, without having to pay commissions, service charges or brokerage fees.
Pursuant to the Plan, and at the discretion of the Manager, Common Shares 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 the Timbercreek website at http://www.timbercreek.com/funds/timbercreek-mortgage-investment-corporation/dividend-reinvestment-plan.
About the Company
The Company provides investors with an opportunity to invest in a diversified portfolio of mortgage and loan investments originated and underwritten by its manager, Timbercreek Asset Management Inc. (the "Manager"). The Company focuses on capital preservation and the generation of attractive, stable returns, allowing for the payment of monthly dividends to shareholders.
SOURCE: Timbercreek Mortgage Investment Corporation
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Timbercreek Asset Management Inc.