Toronto Stock Exchange: TMC
TORONTO, Nov. 20, 2013 /CNW/ - Timbercreek Mortgage Investment Corporation (the "Company") is pleased to announce that its board of directors (the "Board") has approved a 6% increase to the Company's dividend. The monthly dividend will increase to $0.067 per Class A share from $0.063 per class A share, with the new dividend representing a 9.0% yield on an annualized basis based on the closing trading price for the shares on November 19, 2013. The monthly dividend will increase to $0.071 per class B share from $0.067 per Class B Share. The dividend will be paid on December 13, 2013 to holders of Class A Shares or Class B Shares of record on November 29, 2013.
"With over five years of operations as a public reporting issuer, the stability of the Company's portfolio and related cash-flow and our performance reaffirms our conviction that market fundamentals around shorter-term, customized lending are sound and sustainable, particularly when those loans are secured by income-producing properties," stated Andrew Jones, Managing Director, Timbercreek Asset Management, the manager of the Company. "The increase in income available for distribution to shareholders is a result of this stabilization."
As of November 19, 2013 there were 32,829,013 Class A Shares outstanding and 3,378,406 Class B Shares outstanding. On November 30, 2013, all Class A Shares and Class B Shares will be exchanged for new Common Shares at a conversion ratio of 1 to 1 for each Class A Share and for the Class B Shares, at a ratio equal to the quotient obtained by dividing the NRV per share by the NRV per share of the Class A Shares on October 31, 2013.
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 their part.
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 the Timbercreek website at http://www.timbercreek.com/investments/timbercreek-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 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 Mortgage Investment Corporation
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Timbercreek Asset Management Inc.