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Timbercreek Senior Mortgage Investment Corporation reports 2014 first quarter results - Timbercreek Senior Mortgage Investment Coporation

Toronto Stock Exchange: MTG

TORONTO, May 6, 2014 /CNW/ - Timbercreek Senior Mortgage Investment Corporation (TSX: MTG) (the "Company") today announced its financial results for the three months ended March 31, 2014.

First Quarter Highlights

  • Net interest income up 10.6% to $7.3 million from $6.6 million in Q1 2013.

  • Income from operations up 20.4% to $5.9 million from $4.9 million in Q1 2013, primarily resulting from the increase in net interest income as well as the savings from the removal of the requirement to pay trailer fees.

  • Net mortgage investments were up 7.6% to $396.2 million from $368.2 million at March 31, 2013.

  • Earnings per share for the three months ended March 31, 2014 was $0.148 per common share (Q1 2013 - $0.119)

  • Leverage increased to 26% of net mortgage investments (March 31, 2013 - 3%)

  • 6 new mortgage investments advanced (Q1 2013 - 16) totaling $26.3 million (Q1 2013 - $120.3 million), additional advances on existing mortgage investments of $8.2 million (Q1 2013 - $16.5 million), full repayments on 5 mortgage investments (Q1 2013 - 5) and partial pay downs totaling $39.7 million (Q1 2013 - $106.6 million), or a portfolio turnover of 10.00% (Q1 2013 - 28.02%).

  • On March 21, 2014, the credit facility agreement with a syndicate of lenders was amended to extend the maturity date of the credit facility to June 23, 2014. The Manager is currently working with the syndicate of lenders to extend the credit facility for a long-term period prior to the June 23, 2014 maturity.

Investment Portfolio Highlights

  • Average loan-to-value of 43.7% (December 31, 2013- 45.1%), well below the 70% loan-to-value limit in the Company's asset allocation model.

  • Weighted average interest rate on net mortgage investments was 6.53% (December 31, 2013 - 6.52%).

  • Lender fees received as a percentage of new mortgage investments funded over the period was 0.65% (December 31, 2013- 0.86%)

  • Weighted average term to maturity of 2.3 years (December 31, 2013- 2.2 years), well within range of its 2-3 year target.

  • Well diversified portfolio across Canada's largest provinces: Ontario (51.7%), Quebec (20.9%), Alberta (9.8%) and B.C. (7.5%).

Q1 Results*

Results March 31, 2014 March 31, 2013
Distributable Income $4.5 million $5.1 million
Target dividend yield 4.51% 4.55%
Actual dividend yield 6.92% 6.39%
Payout ratio 105.17% 110.30%
Dividends per share:    
  Class A - $0.150
  Class B - $0.162
  Class I - $0.162
  Class J - $0.156
  Common shares $0.150 -
Net mortgage investments $396.2 million $368.2 million
Average mortgage investment $6.3 million $8.6 million
Weighted average interest rate 6.53% 6.50%
Average lender fee 0.65% 0.90%
Turnover ratio 10.00% 28.02%

About the Company

The Company provides investors with an opportunity to invest in a diversified portfolio of first-only 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-GAAP 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 Senior Mortgage Investment Corporation


Timbercreek Asset Management Inc.
Carrie Morris
Investor Relations