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Timbercreek Senior Mortgage Investment Corporation reports fourth quarter, year-end 2013 results - Timbercreek Senior Mortgage Investment Corporation

A growing portfolio of mortgage and loan investments drives strong year-end results. 

Toronto Stock Exchange: MTG

TORONTO, March 6, 2014 /CNW/ - Timbercreek Senior Mortgage Investment Corporation (TSX: MTG) (the "Company") today announced its financial results for the fourth quarter and year ended December 31, 2013.

Year End Highlights

  • The Company successfully completed its transition (the "Transition") from the Canadian securities regulatory regime for investment funds to the regulatory regime for non-investment fund reporting issuers.

  • As a result of the Transition, the Company exchanged all of the 30,825,108 outstanding Class A shares, 186,626 outstanding Class B shares, 424,700 outstanding Class I shares and 86,250 outstanding Class J shares on November 29, 2013 (the "Exchange Date") into a newly created class of common shares. The common shares continued trading on the TSX under the symbol 'MTG'.

  • Net interest income up 118.2% to $28.2 million from $12.9 million in 2012.

  • Income from operations, less interest on credit facility, plus costs related to the corporate transition has increased 139.8% to $19.6 million, mainly driven by additional raises in equity and deployment of mortgage investments.

  • Net mortgage investments were up 20.6% year over year to $401.5 million.

  • Adjusted earnings per share for the year ended December 31, 2013 was $0.53

  • Leverage increased to 27% of net mortgage investments (2012 - 10%) approaching targeted range of 30%

  • 55 new mortgage investments advanced (2012 - 39) totaling $378.3 million (2012 -$435.8 million), additional advances on existing mortgage investments of $20.2 million (2012 - nil), full repayments on 25 mortgage investments (2012 - 7) and partial pay downs totaling $330.1 million (2012 - $102.8 million), or a portfolio turnover of 84.35% (2012 - 52.61%).

Investment Portfolio Highlights

  • Average loan-to-value of 45.1% (2012 - 53.6%), well below the 70% loan-to-value limit in the Company's asset allocation model.

  • Weighted average interest rate on net mortgage investments was 6.52% (2012 - 6.66%).

  • Lender fees received as a percentage of new mortgage and loan investments funded over the period was 0.86% (2012 - 0.72%)

  • Weighted average term to maturity of 2.2 years (2012 - 3.1 years), well within range of its 2-3 year target.

  • Well diversified portfolio across Canada's largest provinces: Ontario (45.5%),Quebec (20.7%), Alberta (10.3%) and B.C. (14.1%).

"In our second year of operations, and with a growing and stronger portfolio of first-only mortgage investments, the Company saw extremely positive growth," states Andrew Jones, CEO, Timbercreek Senior Mortgage Investment Corporation.  "With $62.6 million in equity raised in 2013, our portfolio grew and as a result was better diversified by geography and by sector.  We are pleased to report that we have not incurred any mortgage investment losses or impairments in 2013, and we were able to, once again, exceed our targeted dividends to shareholders."

Q4, Year End 2013 Results*


Results Year End December 31, 2013 Year End December 31, 2012
Distributable income $21.1 million $10.8 million
Targeted dividend yield 4.61% 4.61%
Actual dividend yield 7.03% 5.61%
Payout ratio 104.50% 123.67%
Dividends per share:
Class A $0.500 $0.550
Class B $0.540 -
Class I $0.540 $0.324
Class J $0.520 $0.364
Common shares $0.100 -
Net mortgage and loan investments $401.5 million $333.0 million
Average mortgage and loan investment $6.5 million $10.4 million
Weighted average interest rate 6.52% 6.66%
Average lender fee 0.86% 0.72%
Turnover ratio 84.35% 52.61%


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 audited annual 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.


SOURCE Timbercreek Senior Mortgage Investment Corporation

Timbercreek Asset Management Inc.
Carrie Morris
Investor Relations