Timbercreek Financial Announces 2024 Third Quarter Results
TORONTO, Oct. 30, 2024 (GLOBE NEWSWIRE) -- Timbercreek Financial (TSX:TF) (the "Company") announced today its financial results for the three and nine months ended September 30, 2024 ("Q3 2024").
Q3 2024 Highlights1
The net mortgage investment portfolio increased by $14.1 million to $1,017.6 million at the end of Q3 2024 from $1,003.4 million at the end of Q2 2024 (Q3 2023, $1,068.6 million).
Net investment income of $25.4 million compared to $30.3 million in Q3 2023.
Net income and comprehensive income of $14.1 million (Q3 2023, $16.5 million) or basic earnings per share of $0.17 (Q3 2023, $0.20).
Distributable income of $15.0 million (Q3 2023, $16.8 million) or distributable income per share of $0.18 (Q3 2023, $0.20 per share).
Declared a total of $14.3 million in dividends to shareholders, or $0.17 per share, reflecting a distributable income payout ratio of 95.3% (Q2 2023, 85.6%).
The quarterly weighted average interest rate on net mortgage investments was 9.3% in Q3 2024, compared to 9.8% in Q2 2024 (Q3 2023, 9.9%). Interest rate exposure in the net mortgage investment portfolio was well protected at the end of Q3 2024, with floating rate loans with rate floors representing 77.9% (Q3 2023, 87.5%) of the net mortgage investment portfolio.
Maintained conservative portfolio risk composition focused on income-producing commercial real estate:
63.8% weighted average loan-to-value ("LTV"); and
87.1% first mortgages in mortgage investment portfolio.
The Company's management team continues to focus on growing the portfolio and redeploying capital into loans at today's values in our core asset types, generating attractive returns relative to the portfolio today.
"The portfolio increased modestly in the quarter and we delivered solid financial results generating stable cash flows and dividends, even during a period of reduced transaction volume due to volatility in the commercial real estate markets," said Blair Tamblyn, CEO of Timbercreek Financial. "The commercial real estate environment is stabilizing and showing signs of steady improvement and we remain optimistic that additional rate cuts will strengthen market conditions and drive increased financing opportunities for Timbercreek. We are well positioned to deploy capital in this environment and expand the portfolio back to, or above, historical levels. At the same time, our team is effectively managing the remaining exposure to staged loans. The improved environment will add a tailwind as we work to resolve these situations and redeploy this capital into productive loans in our core asset types, such as multi-residential and industrial, where we see positive long-term market drivers."
Mr. Tamblyn added: "In a decreasing rate environment, our monthly dividend provides shareholders with an increasing spread versus instruments such as high interest savings accounts and GICs."
Quarterly Comparison
$ millions
Q3 2024
Q3 2023
Q2 2024
Net Mortgage Investments1
$
1,017.6
$
1,068.6
$
1,003.4
Enhanced Return Portfolio Investments1
$
50.7
$
59.3
$
62.0
Real Estate Inventory
$
34.4
$
30.5
$
30.6
Real Estate held for sale, net of collateral liability
$
62.2
$
62.0
$
62.2
Net Investment Income
$
25.4
$
30.3
$
26.4
Income from Operations
$
22.5
$
26.1
$
23.5
Net Income and comprehensive Income
$
14.1
$
16.5
$
15.4
--Adjusted Net Income and comprehensive Income
$
14.2
$
16.4
$
15.7
Distributable income1
$
15.0
$
16.8
$
16.3
Dividends declared to Shareholders2
$
14.3
$
14.4
$
14.3
$ per share
Q3 2024
Q3 2023
Q2 2024
Dividends per share
$
0.17
$
0.17
$
0.17
Distributable income per share1
$
0.18
$
0.20
$
0.20
Earnings per share
$
0.17
$
0.20
$
0.19
--Adjusted Earnings per share
$
0.17
$
0.20
$
0.19
Payout Ratio on Distributable Income1
95.3
%
85.6
%
87.8
%
Payout Ratio on Earnings per share
101.9
%
87.4
%
93.2
%
--Payout Ratio on Adjusted Earnings per share
101.1
%
87.7
%
91.1
%
Net Mortgage Investments
Q3 2024
Q3 2023
Q2 2024
Weighted Average Loan-to-Value
63.8
%
67.0
%
62.3
%
Weighted Average Remaining Term to Maturity
0.9 yr
0.7 yr
1.0 yr
First Mortgages
87.1
%
92.2
%
85.6
%
Cash-Flowing Properties
83.2
%
86.5
%
83.4
%
Multi-family residential
59.8
%
58.2
%
51.2
%
Floating Rate Loans with rate floors (at quarter end)
77.9
%
87.5
%
78.3
%
Weighted Average Interest Rate
For the quarter ended
9.3
%
9.9
%
9.8
%
Weighted Average Lender Fee
New and Renewed
0.7
%
0.7
%
0.9
%
New Net Mortgage Investment Only
1.1
%
1.0
%
1.0
%
Refer to non-IFRS measures section below for net mortgages, enhanced return portfolio investments, adjusted net income and comprehensive income, distributable income and adjusted distributable income.
Dividends declared exclude 2023 year-end special dividends paid in March 2024.
Quarterly Conference Call
Interested parties are invited to participate in a conference call with management on Thursday, October 31, 2024 at 1:00 p.m. (ET) which will be followed by a question and answer period with analysts.
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