TORONTO, Aug. 07, 2020 (GLOBE NEWSWIRE) — Timbercreek Financial (TSX: TF) (the âCompanyâ) announced today its financial results for the three months and six months ended June 30, 2020 (âQ2 2020â).
Q2 2020 Highlights
- Lower new investment volume was offset by lower repayments and higher renewals resulting in quarterly growth of the mortgage portfolio to $1,210.3 million in Q2 compared to $1,191.1 million in Q1
- Maintained conservative portfolio risk position focused on income-producing commercial real estate
- 92.1% of mortgage investment portfolio are first mortgages
- 85.8% of mortgage investment portfolio is invested in cash-flowing properties
- 68.7% weighted average loan-to-value
- 7.1% quarterly weighted average interest rate on net mortgage investment
- Delivered adjusted net income and comprehensive income of $11.5 million and distributable income of $14.8 million
- Generated $0.18 in distributable income per share
- Paid $14.2 million in dividends to shareholders
âMore than four months into the COVID-19 pandemic, our mortgage portfolio continues to perform well, demonstrating resilience and reinforcing the value of our conservative approach of focusing on income-producing assets in urban markets,â said Cameron Goodnough, CEO of Timbercreek Financial. âWhile there has been no material impact on interest and principal payments to date, we continue to monitor the loan portfolio very closely. As we have said previously, the longer and deeper the economic impact of COVID-19, the greater the implications for our borrowers and their tenants. One consequence of the current environment was a slowdown in transaction activity across the industry, resulting in lower turnover and more renewals in our portfolio during Q2. We continue to meet our distributable income targets and have a strong capital position to take advantage of improved transaction volumes in the coming quarters.â
Quarterly Comparison
| $ millions | Q2 2020 | Q2 2019 | Q1 2020 | |||||||||
| Net Mortgage Investments | $ | 1,210.3 | $ | 1,214.5 | $ | 1,191.1 | ||||||
| Enhanced Return Portfolio Investments | $ | 82.6 | $ | 96.4 | $ | 78.0 | ||||||
| Net Investment Income | $ | 22.0 | $ | 25.0 | $ | 24.1 | ||||||
| Income from Operations | $ | 18.2 | $ | 21.3 | $ | 20.3 | ||||||
| Net Income and comprehensive Income | $ | 11.7 | $ | 13.6 | $ | 7.4 | ||||||
| –Adjusted Net Income and comprehensive Income | $ | 11.5 | $ | 13.6 | $ | 13.2 | ||||||
| Distributable Income | $ | 14.8 | $ | 13.7 | $ | 14.4 | ||||||
| Dividends to Shareholders | $ | 14.2 | $ | 14.3 | $ | 14.4 | ||||||
| $ per share | Q2 2020 | Q2 2019 | Q1 2020 | |||||||||
| Dividends per share | $ | 0.17 | $ | 0.17 | $ | 0.17 | ||||||
| Distributable Income per share | $ | 0.18 | $ | 0.17 | $ | 0.17 | ||||||
| Earnings per share | $ | 0.14 | $ | 0.16 | $ | 0.09 | ||||||
| –Adjusted Earnings per share | $ | 0.14 | $ | 0.16 | $ | 0.16 | ||||||
| Payout Ratio on Distributable Income | 95.7 | % | 104.2 | % | 99.9 | % | ||||||
| Payout Ratio on Earnings per share | 120.5 | % | 105.0 | % | 193.6 | % | ||||||
| –Payout Ratio on Adjusted Earnings per share | 122.6 | % | 105.0 | % | 108.7 | % | ||||||
| Net Mortgage Investments | Q2 2020 | Q2 2019 | Q1 2020 | |||||||||
| Weighted Average Loan-to-Value | 68.7 | % | 67.4 | % | 69.6 | % | ||||||
| Weighted Average Remaining Term to Maturity | 1.3 yr | 1.1 yr | 1.3 yr | |||||||||
| First Mortgages | 92.1 | % | 93.8 | % | 93.1 | % | ||||||
| Cash-Flowing Properties | 85.8 | % | 86.1 | % | 85.2 | % | ||||||
| Rental Apartments | 51.6 | % | 46.3 | % | 54.2 | % | ||||||
| Floating Rate Loans with rate floors (at quarter end) | 75.1 | % | 56.6 | % | 75.7 | % | ||||||
| Weighted Average Interest Rate | ||||||||||||
| For the quarter ended | 7.1 | % | 7.2 | % | 7.2 | % | ||||||
| Weighted Average Lender Fee | ||||||||||||
| New and Renewed | 0.7 | % | 1.0 | % | 0.8 | % | ||||||
| New Net Mortgage Investment Only | 1.1 | % | 1.0 | % | 1.1 | % | ||||||
Quarterly Conference Call
Interested parties are invited to participate in a conference call with management on Tuesday, August 11, 2020 1:00 p.m. (EDT) which will be followed by a question and answer period with analysts. To join the call:
https://timbercreekfinancial.adobeconnect.com/tfq22020/
Participant Toll Free Dial-In Number: (855) 223-7310
Participant International Dial-In Number: (647) 788-4930
Conference ID Number: 2949429
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 ânon-IFRS measuresâ). 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 Companyâs 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 Companyâs 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