TORONTO, May 05, 2021 (GLOBE NEWSWIRE) -- Timbercreek Financial (TSX: TF) (the “Company”) announced today its financial results for the three months ended March 31, 2021 (“Q1 2021”).
Q1 2021 Highlights
- Delivered distributable income of $15.3 million and paid $14.0 million in dividends to shareholders
- Generated $0.19 in distributable income per share and delivered a 91.2% distributable income payout ratio
- Basic and diluted earnings per share was $0.19 and $0.18, respectively. Adjusted earnings per share was $0.17 for both basic and diluted.
- Funded $157.6 million on new and existing mortgages versus repayments of $152.9 million. This maintained portfolio size of net mortgage investments at $1,147.6 million in Q1 2021. The transaction volume resulted in a Q1 turnover ratio of 13.7% versus 19.6% in Q4
- Maintained conservative portfolio risk position focused on income-producing commercial real estate
- 90.3% of mortgage investment portfolio are first mortgages
- 86.7% of mortgage investment portfolio is invested in cash-flowing properties
- 68.8% weighted average loan-to-value
- 7.3% quarterly weighted average interest rate on net mortgage investment
We are pleased to report a strong start to 2021 as distributable income reached $0.19 per share, representing a 91.2% dividend payout ratio,” said Blair Tamblyn, CEO of Timbercreek Financial. “This was the highest DI per share over the past five quarters and reflects solid top-line interest income as well as healthy lender fees on both new and renewal transactions. Our portfolio remains well positioned and largely unaffected by COVID, reflecting our focus on income-producing assets and significant multi-family residential exposure. While the market for these multi-family assets remains competitive, Timbercreek is fortunate to have a strong industry presence and deep borrower and broker relationships that continue to provide a strong pipeline of new business as we look ahead in 2021.
Quarterly Comparison
| $ millions | Q1 2021 | Q1 2020 | Q4 2020 | ||||||||||
| Net Mortgage Investments | $ | 1,147.6 | $ | 1,191.1 | $ | 1,143.1 | |||||||
| Enhanced Return Portfolio Investments | $ | 87.4 | $ | 78.0 | $ | 91.6 | |||||||
| Net Investment Income | $ | 22.4 | $ | 24.0 | $ | 24.0 | |||||||
| Income from Operations | $ | 19.4 | $ | 20.3 | $ | 3.9 | |||||||
| Net Income and comprehensive Income | $ | 15.0 | $ | 7.4 | $ | (1.6 | ) | ||||||
| --Adjusted Net Income and comprehensive Income | $ | 14.1 | $ | 13.7 | $ | 13.0 | |||||||
| Distributable Income | $ | 15.3 | $ | 14.4 | $ | 14.6 | |||||||
| Dividends to Shareholders | $ | 14.0 | $ | 14.4 | $ | 14.0 | |||||||
| $ per share | Q1 2021 | Q1 2020 | Q4 2020 | ||||||||||
| Dividends per share | $ | 0.17 | $ | 0.17 | $ | 0.17 | |||||||
| Distributable Income per share | $ | 0.19 | $ | 0.17 | $ | 0.18 | |||||||
| Earnings per share | $ | 0.19 | $ | 0.09 | $ | (0.02 | ) | ||||||
| --Adjusted Earnings per share | $ | 0.17 | $ | 0.16 | $ | 0.16 | |||||||
| Payout Ratio on Distributable Income | 91.2 | % | 99.9 | % | 95.4 | % | |||||||
| Payout Ratio on Earnings per share | 93.1 | % | 193.6 | % | n/a | ||||||||
| --Payout Ratio on Adjusted Earnings per share | 98.8 | % | 104.8 | % | 107.2 | % | |||||||
| Net Mortgage Investments | Q1 2021 | Q1 2020 | Q4 2020 | ||||||||||
| Weighted Average Loan-to-Value | 68.8 | % | 69.6 | % | 68.5 | % | |||||||
| Weighted Average Remaining Term to Maturity | 1.0 yr | 1.3 yr | 1.0 yr | ||||||||||
| First Mortgages | 90.3 | % | 93.1 | % | 90.3 | % | |||||||
| Cash-Flowing Properties | 86.7 | % | 85.2 | % | 84.9 | % | |||||||
| Rental Apartments | 51.2 | % | 54.2 | % | 52.3 | % | |||||||
| Floating Rate Loans with rate floors (at quarter end) | 76.3 | % | 75.7 | % | 78.1 | % | |||||||
| Weighted Average Interest Rate | |||||||||||||
| For the quarter ended | 7.3 | % | 7.2 | % | 7.2 | % | |||||||
| Weighted Average Lender Fee | |||||||||||||
| New and Renewed | 0.9 | % | 0.8 | % | 0.7 | % | |||||||
| New Net Mortgage Investment Only | 1.0 | % | 1.1 | % | 1.5 | % | |||||||
Quarterly Conference Call
Interested parties are invited to participate in a conference call with management on Thursday, May 6, 2021 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/tfq12021/ | |
| Participant Toll Free Dial-In Number: (855) 223-7310 | |
| Participant International Dial-In Number: (647) 788-4930 | |
| Conference ID Number: 3398999 |
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