Toronto Stock Exchange: TMC
TORONTO, Nov. 6, 2014 /CNW/ - Timbercreek Mortgage Investment
Corporation (TSX: TMC) (the "Company") today announced its financial
results for the three and nine months ended September 30, 2014.
"While the Company has not fully recovered from the impacts of the cash
drag experienced earlier in the year, we are pleased with the strong
investment activity in the third quarter that continues to be focused
on quality mortgages, primarily secured by income-producing assets,"
states Andrew Jones, Chief Executive Officer of the Company. "This
momentum has continued into the fourth quarter where we have already
deployed an additional $63 million in capital at higher rates bringing
our weighted average interest rate back in line with previous
quarters."
"It is important to note, that the underperformance in earnings
year-to-date is a result of carrying excess cash on the balance sheet
and is in no way related to the performance of the underlying
investments," explained Mr. Jones. "By year end, we expect to have the
portfolio fully deployed and operating as what we believe to be one of
the highest-quality portfolios in the market today."
Key Financial Highlights
-
Net interest income earned by the Company was $8.7 million (Q3 2013 -
$9.9 million), a decrease of 12.4%, from the three months ended
September 30, 2013 ("Q3 2013"). Net interest income for the nine months
ended September 30, 2014 (the "Period") decreased to $26.9 million, or
9.6%, compared to $29.8 million for the nine months ended September 30,
2013 ("YTD 2013"). The decrease is primarily due to historically high
repayments in 2014, coupled with downward pressure on lending rates.
-
Income from operations for Q3 2014 increased to $6.6 million, or 55.1%,
compared to $4.3 million for Q3 2013. The increase is mainly attributed
to the decrease in expenses from Q3 2013 relating to costs incurred on
transition to a corporate issuer. Income from operations for the Period
increased to $20.8 million, or 11.8%, compared to $18.6 million for YTD
2013. Although YTD 2014 has generated lower net interest income
relative to YTD 2013, it has been offset by the reduction in expenses
resulting from the transition costs and trailer fees and a higher
mortgage loss provision experienced in YTD 2013.
-
Net mortgage investments increased by 9.1% to $346.1 million from $317.2
million as at December 31, 2013.
-
Earnings per share for Q3 2014 and the Period were $0.15 and $0.49 per
common share.
Investment Portfolio Highlights
-
During Q3 2014, the Company funded 21 new net mortgage investments (Q3
2013 - 17) totaling $64.2 million (Q3 2013 - $42.1 million), had
additional advances on existing net mortgage investments totaling $62.2
million (Q3 2013 - $6.5 million) and received full repayments on nine
net mortgage investments (Q3 2013 - 14) and partial pay downs totaling
$75.6 million (Q3 2013 - $44.3 million), resulting in net mortgage
investments of $346.1 million as at September 30, 2014 (June 30, 2014 -
$327.5 million).
-
As at September 30, 2014, the average loan-to-value was 64.9% (December
31, 2013 - 61.1%) whereas the weighted average loan-to-value on the
mortgage investment portfolio was 70.1% (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
9.17% at September 30, 2014 from 9.81% at December 31, 2013 relating to
increased competition in the market.
-
Weighted average lender fees received were 2.33% and 1.66% for Q3 2014
and the Period compared with 1.52% and 1.61% for the same comparable
periods in 2013. The Company had significant advances in the Period
coupled with larger fees on a couple investments.
-
Weighted average term to maturity was 2.2 years at September 30, 2014
(December 31, 2013 - 2.2 years), well within range of its 1.5 - 3.0
year target.
-
The portfolio continues to be well-diversified across Canada's largest
provinces: Ontario (52.5%), Quebec (19.5%), Alberta (11.1%) and B.C.
(8.3%).
Financial Highlights
|
Three months ended
|
Nine months ended
|
Year ended
|
|
September
30, 2014
|
September
30, 2013
|
September
30, 2014
|
September
30, 2013
|
December
31, 2013
|
FINANCIAL INFORMATION (for the period ended)
|
|
|
|
|
|
Distributable income
|
$ 6,559
|
$ 7,586
|
$ 20,034
|
$ 22,667
|
$ 30,204
|
Targeted dividend yield
|
6.61%
|
6.69%
|
6.56%
|
6.61%
|
6.61%
|
Actual dividend yield
|
7.84%
|
8.20%
|
8.54%
|
8.29%
|
8.33%
|
Closing trading price
|
$ 9.11
|
$ 9.14
|
$ 9.11
|
$ 9.14
|
$ 9.17
|
Payout ratio
|
111.70%
|
96.21%
|
114.49%
|
96.65%
|
96.92%
|
Dividends per share:
|
|
|
|
|
|
Class A
|
$ -
|
$ 0.189
|
$ -
|
$ 0.567
|
$ 0.630
|
Class B
|
$ -
|
$ 0.201
|
$ -
|
$ 0.603
|
$ 0.670
|
Common
|
$ 0.180
|
$ -
|
$ 0.582
|
$ -
|
$ 0.134
|
MORTGAGE INVESTMENTS INFORMATION
|
|
|
|
|
|
Net mortgage investments
|
$ 346,054
|
$ 354,962
|
$ 346,054
|
$ 354,962
|
$ 317,154
|
Total number of net mortgage investments
|
100
|
92
|
100
|
92
|
96
|
Average net mortgage investment
|
$ 3,461
|
$ 3,858
|
$ 3,461
|
$ 3,858
|
$ 3,304
|
Weighted average interest rate
|
9.17%
|
9.68%
|
9.17%
|
9.68%
|
9.81%
|
Weighted average lender fees
|
2.33%
|
1.52%
|
1.66%
|
1.61%
|
1.69%
|
Turnover ratio
|
23.34%
|
12.38%
|
74.54%
|
55.55%
|
79.76%
|
|
|
|
|
|
|
Quarterly Conference Call
Interested parties are invited to participate in a conference call with
management on Friday, November 7, 2014 at 2:00 p.m. (EST). Instructions
on how to participate on this call are provided below:
Dial-in-number(s): 1-(855) 223-7310
Event Conference ID: 6854417
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-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
Timbercreek Asset Management Inc.
Carrie Morris
Investor Relations
416-800-1552
cmorris@timbercreek.com