Toronto Stock Exchange: TMC
TORONTO, Aug. 12, 2014 /CNW/ - Timbercreek Mortgage Investment
Corporation (TSX: TMC) (the "Company") today announced its financial
results for the three and six months ended June 30, 2014.
"Throughout the first half of 2014, the portfolio has performed very
well which we believe is a function of the strong diversification and
continued focus on loans secured by well-located, income-producing
properties." said Andrew Jones, Chief Executive Officer of the Company.
"While competition in the quarter has been stronger than expected, we
were still able to deploy $105 million in new mortgage investments over
the course of three months, which is the strongest quarter we have
experienced since inception. This is a testament to the strong deal
flow that continues to exist in the market and the effectiveness of our
origination team."
Mr. Jones continued: "the second quarter also experienced the highest
levels of repayments in the Company's history which clearly
demonstrates the quality of our borrowers and the underlying security,
but also presented challenges on earnings for the first half of the
year. We continue to actively work to deploy this capital and are
pleased with the momentum we have leading into the third quarter."
Highlights for the quarter
-
Net interest income for the three months ended June 30, 2014 ("Q2 2014")
increased to $9.5 million, or 0.7%, compared to $9.4 million for the
three months ended June 30, 2013 ("Q2 2013"). Net interest income for
the six months ended June 30, 2014 (the "Period") decreased to $18.3
million, or 8.2%, compared to $19.9 million for the six months ended
June 30, 2013 ("YTD 2013").
-
Income from operations for Q2 2014 increased to $7.4 million, or 10.6%,
compared to $6.7 million for Q2 2013. The increase primarily resulted
from the savings from the removal of the requirement to pay trailer
fees and no provision for mortgage investments loss in Q2 2014. Income
from operations for the Period decreased to $14.2 million, or 1.1%,
compared to $14.4 million for YTD 2013. The decrease primarily resulted
from a decrease in net interest income due to a lower net mortgage
investments portfolio over the Period, which was mainly offset by the
savings from the removal of the requirement to pay trailer fees and a
lower provision for mortgage investments loss in 2014.
-
Net mortgage investments increased by 3.3% to $327.5 million from $317.2
million as at December 31, 2013.
-
Earnings per share for Q2 2014 and the Period were $0.166 and $0.339 per
common share.
-
The Company closed on a public offering of 3,737,500 common shares,
including exercising the over-allotment option, at a price of $9.35 per
share. The Company received net proceeds of $33.1 million.
-
During Q2 2014, the Company funded 19 new net mortgage investments (Q2
2013 - 14) totaling $104.7 million (Q2 2013 - $34.7 million), had
additional advances on existing net mortgage investments totaling $10.4
million (Q2 2013 - $21.4 million) and received full repayments on 27
net mortgage investments (Q2 2013 - 7) and partial pay downs totaling
$126.5 million (Q2 2013 - $56.0 million), resulting in net mortgage
investments of $327.5 million as at June 30, 2014 (March 31, 2014 -
$339.0 million).
Investment Portfolio Highlights
-
As at June 30, 2014, the average loan-to-value was 61.7% (December 31,
2013 - 61.1%) whereas the weighted average loan-to-value on the
mortgage investment portfolio was 69.2% (December 31, 2013 - 70.8%),
well below the 85% loan-to-value limit in the Company's asset
allocation model.
-
Weighted average interest rate on net mortgage investments decreased to
9.48% at June 30, 2014 from 9.81% at December 31, 2013 relating to
increased competition in the market.
-
Weighted average lender fees received as a percentage of new mortgage
investments funded was 1.06% and 1.07% for Q2 2014 and the Period
compared with 2.72% and 2.18% for the same comparable periods in 2013,
a result of additional capital in the market.
-
Weighted average term to maturity was 2.2 years at June 30, 2014
(December 31, 2013 - 2.2 years), well within range of its 1.5 - 3.0
year target.
-
The Company has a well-diversified portfolio across Canada's largest
provinces: Ontario (53.5%), Quebec (13.2%), Alberta (6.9%) and B.C.
(11.9%).
Financial Highlights*
|
Three months ended
|
Six months ended
|
Year ended
|
|
June 30,
2014
|
June 30,
2013
|
June 30,
2014
|
June 30,
2013
|
December 31,
2013
|
FINANCIAL INFORMATION (for the period ended)
|
|
|
|
|
|
|
|
|
|
Distributable income
|
$
|
6,977
|
$
|
6,742
|
$
|
13,477
|
$
|
15,051
|
$
|
30,204
|
Targeted dividend yield 1 |
|
6.57%
|
|
6.58%
|
|
6.54%
|
|
6.57%
|
|
6.61%
|
Actual dividend yield 2 |
|
8.47%
|
|
8.19%
|
|
8.52%
|
|
8.23%
|
|
8.33%
|
Closing trading price
|
$
|
9.52
|
$
|
9.26
|
$
|
9.52
|
$
|
9.26
|
$
|
9.17
|
Payout ratio
|
|
117.24%
|
|
108.43%
|
|
115.84%
|
|
97.06%
|
|
96.92%
|
Dividends per share:
|
|
|
|
|
|
|
|
|
|
|
|
Class A
|
$
|
-
|
$
|
0.189
|
$
|
-
|
$
|
0.378
|
$
|
0.630
|
|
Class B
|
$
|
-
|
$
|
0.201
|
$
|
-
|
$
|
0.402
|
$
|
0.670
|
|
Common
|
$
|
0.201
|
$
|
-
|
$
|
0.402
|
$
|
-
|
$
|
0.134
|
MORTGAGE INVESTMENTS INFORMATION
|
|
|
|
|
|
|
|
|
|
|
Net mortgage investments
|
$
|
327,509
|
$
|
354,272
|
$
|
327,509
|
$
|
354,272
|
$
|
317,154
|
Total number of net mortgage investments
|
|
88
|
|
91
|
|
88
|
|
91
|
|
96
|
Average net mortgage investment
|
$
|
3,722
|
$
|
3,893
|
$
|
3,722
|
$
|
3,893
|
$
|
3,304
|
Weighted average interest rate
|
|
9.48%
|
|
9.83%
|
|
9.48%
|
|
9.83%
|
|
9.81%
|
Weighted average lender fee
|
|
1.06%
|
|
2.72%
|
|
1.07%
|
|
2.18%
|
|
1.83%
|
Turnover ratio
|
|
36.30%
|
|
15.78%
|
|
51.13%
|
|
43.23%
|
|
79.76%
|
1
|
|
Targeted dividend yield equals the monthly average 2-Year Government of
Canada Bond Yield plus 550 basis points.
|
|
|
|
2
|
|
Actual dividend yield equals the total per share dividend for the stated
period for Class A shares and common shares divided by the trading
close price at the stated period end (annualized).
|
Quarterly Conference Call
Interested parties are invited to participate in a conference call with
management on Wednesday, August 13, 2014 at 11:00 a.m. (EST).
Instructions on how to participate on this call are provided below:
Dial-in-number(s): 1-(855) 223-7310
Event Conference ID: 76120777
The playback of the conference call will also be available on www.timbercreek.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-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 Mortgage Investment Corporation
CONTACT:
Timbercreek Asset Management Inc.
Carrie Morris
Investor Relations
416-800-1552
cmorris@timbercreek.com