Toronto Stock Exchange: MTG
TORONTO, Oct. 18, 2012 /CNW/ - Timbercreek Senior Mortgage Investment Corporation (the "Fund") is pleased to announce that its board of directors has declared a monthly dividend of $0.050 per class A share ("Class A Shares"), $0.054 per class I share ("Class I Shares"), and $0.052 per class J share ("Class J Shares") of the Fund to be paid on November 15, 2012 to holders of Class A, Class I and Class J Shares of record on October 31, 2012.
Timbercreek Asset Management Ltd., manager of the Fund also provided guidance today that it is confident that, in this period of sustained low interest rates, the Fund will continue to outperform its stated distribution target through June 30 2013, and maintain the current distribution of 6% per Class A share on an annualized basis (based upon a $10 issue price). The long term targeted distribution of the Fund is equal to the 2-Year Government of Canada Bond yield plus 350 basis points. "We remain comfortable with investment-grade commercial real estate market fundamentals in Canada," states Andrew Jones, Managing Director, "As a result, we are confident we will continue to source quality opportunities to invest in a portfolio of exclusively first mortgages that will allow the Fund to comfortably maintain the respective current distribution per share."
The Fund also offers a Dividend Reinvestment Plan (the "Plan") to eligible holders of Class A Shares, that provides a convenient means to purchase additional Class A Shares by reinvesting their cash dividends at a potential discount and without having to pay commissions, service charges or brokerage fees.
At the discretion of the Board of the Fund, Class A 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. At this time, the Board confirms that the Fund will continue to issue shares from treasury until such time as the Board elects otherwise. Class A Shares acquired under the Plan will be automatically enrolled in the Plan. Shareholders who hold their Class A Shares through a broker, financial institution or other nominee must enroll for distribution reinvestment through their nominee holder.
As of October 18, 2012 there were 30,836,516 Class A Shares, 344,700 Class I Shares and 478,100 Class J Shares outstanding.
About the Fund
The Fund provides investors with an opportunity to receive attractive cash distributions by investing indirectly, through holding shares of the Fund, in a portfolio of first mortgages, selected and determined to be high quality by its manager, Timbercreek Asset Management Ltd. 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 shareholders.
SOURCE: Timbercreek Senior Mortgage Investment Corporation
For further information:
Timbercreek Asset Management Ltd.