Toronto Stock Exchange: TMC
TORONTO, Oct. 18, 2013 /CNW/ - Timbercreek Mortgage Investment
Corporation (the "Company") (TSX: TMC) is pleased to announce that its
board of directors (the "Board") has declared a monthly dividend of
$0.063 per class A share ("Class A Shares") and $0.067 per class B
share ("Class B Shares") of the Company to be paid on November 15, 2013
to holders of Class A and Class B Shares of record on October 31, 2013.
Update on Corporate Transition
As a result of the favourable shareholder vote on September 12, 2013,
the Company formally amended its articles of incorporation to effect
the transition to a non-investment fund reporting issuer on September
13, 2013. This transition means, among other things, the Company is
now subject to public company reporting requirements (the "Public
Company Regime") including the requirement to publish quarterly
financial statements and management discussion and analysis ("MD&A").
The Company anticipates filing its interim financial statements and
MD&A for the period ending September 30th (the "Q3 Financials") on or
about November 14, 2013.
There are two aspects of the corporate transition that remain
outstanding:
1) Special One-Time Redemption: As described in the management information circular distributed in
connection with the transition, a special one-time redemption for
shareholders will take place on October 31, 2013 (the "Redemption
Date") with payment being made on or before November 30, 2013. The
Company is currently assessing the total costs of the restructuring in
order to determine the October 31, 2013 net redemption value per share
(the "NRV Per Share") that will be used to calculate proceeds of the
redemption. Those exercising their redemption rights will be eligible
for the October distribution.
2) Exchange to Common Shares: On November 30, 2013 (the "Exchange Date"), all remaining Class A
Shares and Class B Shares will be exchanged for new Common Shares at a
conversion ratio of 1 to 1 for each Class A Share and for each of the
Class B Shares at a ratio equal to the quotient obtained by dividing
the NRV per Class B share by the NRV per share of the Class A Shares on
October 31, 2013.
Business Update
Having completed its transition to the Public Company Regime, management
and the Board are able to take a longer-term approach to creating value
for investors. This approach will continue to focus on preserving
capital while providing stable monthly distributions to investors of
the cash flow (interest and fees) generated from its investments in a
diversified portfolio of customized mortgages secured primarily by
income producing properties in urban areas of Canada. The Company
intends to continue employing conservative loan selection and
underwriting policies, effective portfolio diversification and risk
mitigation measures, and strong governance and management strategies.
The Company believes market fundamentals for those aspects of
commercial real estate in Canada in which it invests remain strong and
there continues to be healthy demand for customized, shorter-term loans
from high-quality borrowers. A full update on the performance of the
Company will be provided with the Q3 Financials that are expected to be
filed on or about November 14, 2013.
Trading Conditions
The Company's Class A Shares are currently priced to yield approximately
8.2% in the secondary market, which management feels does not
accurately reflect the risk of the underlying portfolio. Therefore,
the Company will continue to explore the benefits of utilizing its
normal course issuer bid, which permits the company to purchase for
cancelation up to 10% of the Company's public float (as of June 6,
2013) through until June 9, 2014 (the "NCIB") against other potential
options for investing available cash. The NCIB is subject to a
"blackout period" as provided for in the Company's insider trading
policy adopted in connection with the corporate transition, for periods
beginning on the last day of each fiscal quarter until two days
following the release of the Company's quarterly and annual financial
statements.
About Timbercreek Mortgage Investment Corporation
The Company provides investors with an opportunity to receive attractive
yields by investing indirectly, through holding shares of the Company,
in mortgage loan investments selected and determined to be high quality
by its manager, Timbercreek Asset Management Inc. The investment
objective of the Company is, with a primary focus on capital
preservation, to acquire and maintain a diversified portfolio of first
mortgage loan investments that generates attractive, stable returns in
order to permit the Company to pay monthly distributions to its
shareholders.
For more information about the Company, and its Manager, Timbercreek
Asset Management, please visit www.timbercreek.com.
SOURCE Timbercreek Mortgage Investment Corporation
Timbercreek Asset Management Inc.
Carrie Morris
Investor Relations
cmorris@timbercreek.com