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, 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 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
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Timbercreek Asset Management Inc.