Toronto Stock Exchange: TMC
TORONTO, Feb. 25, 2016
/CNW/ - Timbercreek Mortgage Investment Corporation (TSX: TMC) (the
"Company") announced today its financial results for the three
months and year ended December 31,
2015.
"Mortgage investment activity was very strong in 2015 resulting
in an increase in net interest income by 17% and portfolio size by
over 10% and we are pleased to report that this growth was achieved
without compromising the credit quality of the underlying
portfolio. Risk management remains a top priority for our business
which we achieve through a number of different strategies including
focusing our lending in larger markets where there is better
liquidity, targeting loans secured by cash-flowing properties and
by employing stringent underwriting practices. This emphasis
towards managing risk has been demonstrated by the increase in the
portfolio's exposure to 1st mortgages which grew to 78% from 70% at
the end of 2014 and the higher concentration of loans secured by
cash-flowing real estate which has increased to 87% from 81%,"
states Andrew Jones, Chief Executive
Officer of the Company.
Fourth Quarter Highlights (versus Q4 2014)
- Net interest income of $10.8
million up 11% from $9.8
million (Q3 2015 – $10.1
million)
- Net income and comprehensive income of $6.9 million up 19% from $5.8 million (Q3 2015 – $6.2 million)
- Earnings per share increased to $0.17 from $0.14
(Q3 2015 – $0.15)
- Exposure to Alberta remains
low at 5.7% (Q3 2015 – 6.1%)
- Weighted average interest rate for the period was at 8.9% (Q3
2015 – 9.1%)
- Distributable income per share of $0.18 down $0.02
from $0.20 (Q3 2015 – $0.18)
- Credit facility balance of $51.4
million at quarter end (Q3 2015 – $59.1 million), achieving the Company's goal of
efficiently managing cash flow in order to minimize the impacts of
having excess cash on the balance sheet
Year ended December 31, 2015
(versus 2014)
- Net interest income of $43.0
million up 17% from $36.7
million
- Net income and comprehensive income of $28.0 million up 13% from $24.9 million
- Earnings per share of $0.69 up
$0.06 from $0.63
- Weighted average interest rate for the period down 30 basis
points to 9.1% from 9.4%
- Distributable income per share of $0.73 up $0.02 from
$0.71
- Exercised accordion feature on the credit facility, increasing
available borrowing limit up to $60.0
million. Credit facility balance of $53.8 million at December
31, 2015
- Weighted average interest rate for the period decreased to 9.1%
from 9.4%
December 31, 2015 – Investment
Portfolio Highlights
- Net mortgage investments up 11% to $439.5 million (December
31, 2014 - $397.3 million) due
to $333.5 million in advances offset
by $291.3 million in repayments
received during 2015
- Weighted average loan-to-value decreased to 70.4% (December 31, 2014 – 70.8%)
- Weighted average lender fees for YTD 2015 decreased to 1.2%
from 1.6% for 2014. The decrease in lender fees is directly related
to the significant increase in advances on new mortgage investments
of $138.7 million made in 2014
relative to 2015
- Weighted average term of 2.1 years (December 31, 2014 – 2.1 years) and an average
remaining term to maturity of 1.2 years (December 31, 2014 – 1.4 years)
- The portfolio continues to be well-diversified across
Canada's largest provinces:
Ontario (35.1%), Quebec (19.9%), Alberta (5.7%) and British Columbia (9.4%)
Operating Results Highlights
|
|
Three months
ended
December 31,
|
Year ended
December 31,
|
|
|
2015
|
2014
|
2015
|
2014
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
10,814
|
$
|
9,774
|
$
|
43,004
|
$
|
36,710
|
$
|
39,731
|
Income from
operations
|
$
|
8,427
|
$
|
7,438
|
$
|
32,750
|
$
|
28,272
|
$
|
25,487
|
Net income and
comprehensive income
|
$
|
6,905
|
$
|
5,812
|
$
|
28,021
|
$
|
24,917
|
$
|
507
|
Earnings per share
(basic and diluted)
|
$
|
0.17
|
$
|
0.14
|
$
|
0.69
|
$
|
0.63
|
|
0.65
|
Adjusted net income
and comprehensive income
|
$
|
6,905
|
$
|
5,812
|
$
|
28,021
|
$
|
24,917
|
$
|
28,361
|
Adjusted earnings per
share (basic and diluted)
|
$
|
0.17
|
$
|
0.14
|
$
|
0.69
|
$
|
0.63
|
$
|
0.74
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends to
shareholders
|
$
|
7,296
|
$
|
7,326
|
$
|
29,253
|
$
|
30,263
|
$
|
29,274
|
Distributable
income
|
$
|
7,256
|
$
|
8,013
|
$
|
29,484
|
$
|
27,899
|
$
|
30,204
|
Distributable income
per share (basic and diluted)
|
$
|
0.18
|
$
|
0.20
|
$
|
0.73
|
$
|
0.71
|
$
|
0.79
|
Targeted dividend
yield
|
|
6.07%
|
|
6.52%
|
|
6.05%
|
|
6.55%
|
|
6.61%
|
Actual dividend
yield
|
|
9.42%
|
|
8.58%
|
|
9.50%
|
|
9.16%
|
|
8.33%
|
Payout
ratio
|
|
100.6%
|
|
91.4%
|
|
99.2%
|
|
108.5%
|
|
96.9%
|
Dividends per
share
|
|
|
|
|
|
|
|
|
|
|
|
Class A
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
0.630
|
|
Class B
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
–
|
$
|
0.670
|
|
Common
|
$
|
0.180
|
$
|
0.180
|
$
|
0.720
|
$
|
0.762
|
$
|
0.134
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarterly Conference Call
Interested parties are invited to participate in a conference
call with management on Friday, February 26,
2016 at 2:00 p.m. (EST) which
will be followed by a question and answer period with analysts.
Instructions on how to participate on this call are provided
below:
Dial-in-number(s): 1-(855) 223-7310
Event Conference ID: 25423127
The playback of the conference call will also be available on
www.timbercreekmic.com following the call.
About the Company
The Company provides investors with an opportunity to invest in
a diversified portfolio of mortgage investments originated and
underwritten by its manager, Timbercreek Asset Management Inc. (the
"Manager"). The Company focuses on capital preservation and the
generation of attractive, stable returns, allowing for the payment
of monthly dividends to shareholders.
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 ability of the Company
to earn and distribute cash dividends to investors and to evaluate
the Company's performance. These non-IFRS measures should not be
construed as alternatives to net income (loss) and comprehensive
income (loss) or cash flows from operating activities 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 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 Mortgage Investment Corporation