TORONTO, March 06, 2020 (GLOBE NEWSWIRE) -- Timbercreek Financial (TSX: TF) (the “Company”) announced today its financial results for the three months and year ended December 31, 2019 (“Q4 2019”).
Q4 2019 Highlights
- Strong transaction activity, with approximately $387 million in new mortgage investments and advances on existing mortgage investments
- Maintained conservative portfolio risk position focused on income-producing commercial real estate
• 90.5% of net mortgage investment portfolio are first mortgages
• 86.8% of net mortgage investment portfolio invested is in cash-flowing properties
• 70.5% weighted average loan-to-value
• 7.2% quarterly weighted average interest rate on net mortgage investment - Delivered net income of $14.1 million and distributable income of $15.6 million
- Generated $0.19 in distributable income per share
- Paid record $14.4 million in dividends to shareholders
- Renewed mortgage investments credit facility in December 2019; extended term of the credit facility to December 2021 and lowered the borrowing cost
"It was a highly active fourth quarter for the Company - particularly in multi-residential, our core asset class - which drove strong fees and distributable income in the period,” said Cameron Goodnough, CEO of Timbercreek Financial. “The fundamentals in commercial real estate remain sound and continue to attract capital, as well as competition. Importantly, we achieved our investment objectives in 2019 while staying true to our risk management principles and core strengths: building a conservative portfolio underpinned by cash-flowing properties. We are focused on maintaining this discipline in 2020.”
Quarterly Comparison
| $ millions | Q4 2019 | Q4 2018 | Q3 2019 | |||||||||
| Net Mortgage Investments | $ | 1,244.1 | $ | 1,211.0 | $ | 1,174.1 | ||||||
| Enhanced Return Portfolio Investments | $ | 78.2 | $ | 104.7 | $ | 103.0 | ||||||
| Net Investment Income | $ | 25.2 | $ | 25.2 | $ | 24.7 | ||||||
| Income from Operations | $ | 21.6 | $ | 21.7 | $ | 21.3 | ||||||
| Total Net Income and Comprehensive Income | $ | 14.1 | $ | 15.3 | $ | 13.9 | ||||||
| Distributable Income | $ | 15.6 | $ | 16.3 | $ | 15.9 | ||||||
| Dividends to Shareholders | $ | 14.4 | $ | 14.1 | $ | 14.3 | ||||||
| $ per share | Q4 2019 | Q4 2018 | Q3 2019 | |||||||||
| Dividends per share | $ | 0.17 | $ | 0.17 | $ | 0.17 | ||||||
| Distributable Income per share | $ | 0.19 | $ | 0.20 | $ | 0.19 | ||||||
| Earnings per share | ||||||||||||
| Basic | $ | 0.17 | $ | 0.19 | $ | 0.17 | ||||||
| Diluted | $ | 0.17 | $ | 0.18 | $ | 0.17 | ||||||
| Payout Ratio | ||||||||||||
| Distributable Income | 92.3 | % | 86.3 | % | 90.2 | % | ||||||
| Earnings | 101.8 | % | 92.2 | % | 103.0 | % | ||||||
| Net Mortgage Investments | Q4 2019 | Q4 2018 | Q3 2019 | |||||||||
| Weighted Average Loan-to-Value | 70.5 | % | 67.4 | % | 68.8 | % | ||||||
| Weighted Average Remaining Term to Maturity | 1.4 yr | 1.2 yr | 1.1 yr | |||||||||
| First Mortgages | 90.5 | % | 93.2 | % | 92.8 | % | ||||||
| Cash-Flowing Properties | 86.8 | % | 87.5 | % | 87.4 | % | ||||||
| Rental Apartments | 54.1 | % | 40.1 | % | 46.5 | % | ||||||
| Floating Rate Loans (at quarter end) | 77.3 | % | 57.7 | % | 63.7 | % | ||||||
| Weighted Average Interest Rate | ||||||||||||
| For the quarter ended | 7.2 | % | 7.3 | % | 7.3 | % | ||||||
| Weighted Average Lender Fee | ||||||||||||
| New and Renewed | 1.0 | % | 0.9 | % | 0.9 | % | ||||||
| New Net Mortgage Investment Only | 1.1 | % | 1.1 | % | 1.2 | % | ||||||
Quarterly Conference Call
Interested parties are invited to participate in a conference call with management on Wednesday, March 11, 2020 1:00 p.m. (EDT) which will be followed by a question and answer period with analysts. To join the call:
| https://timbercreek.adobeconnect.com/q42019tfinvestorcall/ Participant Toll Free Dial-In Number: (855) 223-7310 Participant International Dial-In Number: (647) 788-4930 Conference ID Number: 4047567 |
The playback of the conference call will also be available on www.timbercreekfinancial.com following the call.
About the Company
Timbercreek Financial is a leading non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate professionals. Our sophisticated, service-oriented approach allows us to meet the needs of borrowers, including faster execution and more flexible terms that are not typically provided by Canadian financial institutions. By employing thorough underwriting, active management and strong governance, we are able to meet these needs while generating strong risk-adjusted yields for investors. Further information is available on our website, www.timbercreekfinancial.com.
Non-IFRS Measures
The Company prepares and releases financial statements in accordance with IFRS. As a complement to results provided in accordance with IFRS, the Company discloses certain financial measures not recognized under IFRS and that do not have standard meanings prescribed by IFRS (collectively the “non-IFRS measures”). These non-IFRS measures are further described in Management's Discussion and Analysis ("MD&A") available on SEDAR. The Company has presented such non-IFRS measures because the Manager believes they are relevant measures of the Company’s ability to earn and distribute cash dividends to shareholders and to evaluate its performance. The following non-IFRS financial measures should not be construed as alternatives to total net income and comprehensive income or cash flows from operating activities as determined in accordance with IFRS as indicators of the Company’s performance.
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", "objective" and similar expressions may be used to identify forward looking statements. By their nature, forward looking statements reflect the Company's current views, beliefs, assumptions and intentions and are subject to certain risks and uncertainties, known and unknown, including, without limitation, those 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 Financial
For further information, please contact:
Timbercreek Financial
Cameron Goodnough
Chief Executive Officer and President
1-844-304-9967
cgoodnough@timbercreek.com