TORONTO, Nov. 10, 2021 (GLOBE NEWSWIRE) — Timbercreek Financial (TSX: TF) (the “Company”) announced today its financial results for the three months and nine months ended September 30, 2021 (“Q3 2021”) and changes to its Board of Directors.
Q3 2021 Highlights
- Funded $176.8 million on new and existing mortgages versus repayments of $235.6 million, ending the period with a portfolio size of net mortgage investments at $1,096.0 million. The transaction volume resulted in a Q3 turnover ratio of 17.1% versus 7.2% in Q2. The Q3 2021 results are reflective of high funding volumes, however these were offset with significant repayments late in the quarter. The Company was in a strong liquidity position entering what is expected to be an active Q4 2021 from a capital deployment perspective.
- Delivered distributable income and adjusted distributable income of $13.5 million or $0.17 per share and declared $14.0 million in dividends to shareholders, representing a 103.7% payout ratio on both distributable income and adjusted distributable income for the quarter. The year-to-date 2021 adjusted payout ratio is 94.9% versus 97.9% for year-to-date 2020, within management’s target pay out range of low to mid 90s for the full year.
- Basic and diluted earnings per share was $0.13, and basic and diluted adjusted earnings per share was $0.17. Adjusted earnings per share payout ratio was 102.3%.
- Maintained conservative portfolio risk position focused on income-producing commercial real estate
- 69.6% weighted average loan-to-value
- 90.2% of mortgage investment portfolio are first mortgages
- 87.1% of mortgage investment portfolio is invested in cash-flowing properties
- 7.1% quarterly weighted average interest rate on net mortgage investments
“In what is typically a slower period for new transaction activity our team drove high volumes of funding, offsett by a higher level of repayments which position us well to capitalize on a strong fourth quarter pipeline,” said Blair Tamblyn, CEO of Timbercreek Financial. “The portfolio delivered distributable income per share in our historical range while continuing to demonstrate the stability and durability that are hallmarks of our investment style. Looking ahead, we have an expanded capital base and the financial flexibility to achieve steady growth of the total portfolio.”
Quarterly Comparison
| $ millions | Q3 2021 | Q3 2020 | Q2 2021 | |||||||||
| Net Mortgage Investments | $ | 1,096.0 | $ | 1,153.2 | $ | 1,159.2 | ||||||
| Enhanced Return Portfolio Investments | $ | 97.6 | $ | 93.6 | $ | 94.7 | ||||||
| Net Investment Income | $ | 22.0 | $ | 23.9 | $ | 23.4 | ||||||
| Income from Operations | $ | 15.4 | $ | 20.2 | $ | 18.8 | ||||||
| Net Income and comprehensive Income | $ | 10.4 | $ | 14.4 | $ | 13.5 | ||||||
| –Adjusted Net Income and comprehensive Income | $ | 13.7 | $ | 14.0 | $ | 13.6 | ||||||
| Distributable Income | $ | 13.5 | $ | 14.2 | $ | 16.1 | ||||||
| –Adjusted Distributable Income | $ | 13.5 | $ | 14.2 | $ | 15.4 | ||||||
| Dividends declared to Shareholders | $ | 14.0 | $ | 14.0 | $ | 14.0 | ||||||
| $ per share | Q3 2021 | Q3 2020 | Q2 2021 | |||||||||
| Dividends per share | $ | 0.17 | $ | 0.17 | $ | 0.17 | ||||||
| Distributable Income per share | $ | 0.17 | $ | 0.18 | $ | 0.20 | ||||||
| Adjusted distributable Income per share | $ | 0.17 | $ | 0.18 | $ | 0.19 | ||||||
| Earnings per share | $ | 0.13 | $ | 0.18 | $ | 0.17 | ||||||
| –Adjusted Earnings per share | $ | 0.17 | $ | 0.17 | $ | 0.17 | ||||||
| Payout Ratio on Distributable Income | 103.7 | % | 98.3 | % | 86.8 | % | ||||||
| –Payout ratio on Adjusted Distributable Income | 103.7 | % | 98.3 | % | 90.8 | % | ||||||
| Payout Ratio on Earnings per share | 134.7 | % | 96.7 | % | 103.7 | % | ||||||
| –Payout Ratio on Adjusted Earnings per share | 102.3 | % | 99.6 | % | 102.7 | % | ||||||
| Net Mortgage Investments | Q3 2021 | Q3 2020 | Q2 2021 | |||||||||
| Weighted Average Loan-to-Value | 69.6 | % | 68.2 | % | 69.7 | % | ||||||
| Weighted Average Remaining Term to Maturity | 0.9 yr | 1.1 yr | 0.9 yr | |||||||||
| First Mortgages | 90.2 | % | 90.4 | % | 92.0 | % | ||||||
| Cash-Flowing Properties | 87.1 | % | 84.1 | % | 89.0 | % | ||||||
| Rental Apartments | 49.4 | % | 50.0 | % | 51.4 | % | ||||||
| Floating Rate Loans with rate floors (at quarter end) | 82.7 | % | 77.3 | % | 79.5 | % | ||||||
| Weighted Average Interest Rate | ||||||||||||
| For the quarter ended | 7.1 | % | 7.2 | % | 7.2 | % | ||||||
| Weighted Average Lender Fee | ||||||||||||
| New and Renewed | 0.6 | % | 0.7 | % | 0.8 | % | ||||||
| New Net Mortgage Investment Only | 0.9 | % | 1.2 | % | 1.3 | % | ||||||
Board of Director Changes
The Company also announced the following changes to its Board of Directors;
- Deborah Robinson joins the Board as an independent director. Ms. Robinson is President and the Founder of Bay Street HR, and has over 25 years of diverse Human Resources and Governance experience in a variety of sectors and has an extensive network in the Canadian Capital Markets community. Prior to founding Bay Street HR, Ms. Robinson was an Executive Director at CIBC World Markets, overseeing human resources for Global Investment Banking. Ms. Robinson is a director of Park Lawn (TSX:PLC), Blockchain Foundry (CSNX:BCFN), a Director and Co- Founder of Best Buddies Charitable Foundation and is a graduate of the Directors Education Program of the Institute of Corporate Directors and holds the institute´s ICD.D designation.
- Tracy Johnston, Chief Financial Officer of the Company and Timbercreek Capital, joins the Board as a director. Ms. Johnston is responsible for overseeing financial and taxation reporting, treasury, corporate financing and the financial reporting and risk analytics platform. Ms. Johnston has over 15 years of progressive finance experience. Prior to joining Timbercreek, Ms. Johnston held positions at Cadillac Fairview and DREAM Office REIT. Ms. Johnston started her career in the assurance and advisory practice at Deloitte and has her CPA, CA designation.
- Steven Scott, a long-time director of the Company is resigning from the Board to focus on other commitments. Mr. Scott will remain strategically involved as an investor in and director of, the broader asset management platform.
“We’re excited to add Deborah and Tracy as new directors. Deborah’s extensive knowledge in human resources and governance matters make her an exceptional and complementary addition to the Board. Given Tracy’s direct experience with Timbercreek Capital, we look forward to her direct involvement with the Board. We want to thank Steve for his time at the Company, his contributions have been significant and we look forward to his continued involvement at Timbercreek Capital in the years ahead,” added Mr. Tamblyn.
Quarterly Conference Call
Interested parties are invited to participate in a conference call with management on Wednesday, November 10, 2021 at 1:00 p.m. (ET) which will be followed by a question and answer period with analysts. To join the call:
https://timbercreekfinancial.adobeconnect.com/tfq32021/
Participant Toll Free Dial-In Number: (866) 211-4953
Participant International Dial-In Number: (873) 415-0258
Provide the Operator with the Conference ID Number: 1902839
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
Blair Tamblyn, CEO
Tracy Johnston, CFO
Karynna Ma, Vice President, Investor Relations
1-844-304-9967
www.timbercreekfinancial.com
