Timbercreek Financial announces fourth quarter 2019 results Toronto Stock Exchange: TF

TORONTO, March 06, 2020 (GLOBE NEWSWIRE) – Timbercreek Financial (TSX: TF) (the Company) today announced its financial results for the quarter and year ended December 31, 2019 (Q4 2019) .

Fourth quarter 2019 highlights

• Strong transaction activity, with approximately $ 387 million in new mortgage investments and advances on existing mortgage investments
• Maintaining a conservative portfolio risk position focused on income producing commercial real estate
  90.5% of the net mortgage investment portfolio is first mortgage
  86.8% of the net mortgage investment portfolio invested is in treasury buildings
  70.5% of the weighted average value of the loan
  Weighted average quarterly interest rate of 7.2% on net mortgage investment
• Produces net profit of $ 14.1 million and distributable profit of $ 15.6 million
• Produces distributable earnings per share of $ 0.19
• Record dividend of $ 14.4 million paid to shareholders
• Renewal of the credit facility for mortgage investments in December 2019; extended the term of the credit facility until December 2021 and lowered the cost of borrowing

"It was a very active fourth quarter for the Company – particularly in residential real estate, our core asset class – which generated high distributable costs and revenues over the period," said said Cameron Goodnough, CEO of Timbercreek Financial. The fundamentals of commercial real estate remain healthy and continue to attract capital, as well as competition. It is important to note that we have achieved our investment objectives in 2019 while staying true to our principles of risk management and at our core strengths: building a conservative portfolio backed by cash flow properties. discipline in 2020.

Quarterly comparison

in millions of dollars	Q4 2019					Q4 2018				Q3 2019
Net mortgage investments	$	1,244.1				$	1,211.0			$	1,174.1
Portfolio investments with improved returns	$	78.2				$	104.7			$	103.0
Net investment income	$	25.2				$	25.2			$	24.7
Operating revenue	$	21.6				$	21.7			$	21.3
Total and comprehensive income	$	14.1				$	15.3			$	13.9
Distributable income	$	15.6				$	16.3			$	15.9
Dividends to shareholders	$	14.4				$	14.1			$	14.3
$ per share	Q4 2019					Q4 2018				Q3 2019
Dividends per share	$	0.17				$	0.17			$	0.17
Distributable earnings per share	$	0.19				$	0.20			$	0.19
Earnings per share
Basic	$	0.17				$	0.19			$	0.17
Diluted	$	0.17				$	0.18			$	0.17
Distribution ratio
Distributable income	92.3		%			86.3		%		90.2		%
Earnings	101.8		%			92.2		%		103.0		%
Net mortgage investments	Q4 2019					Q4 2018				Q3 2019
Weighted average loan value	70.5		%			67.4		%		68.8		%
Weighted average residual term to maturity		1.4 years					1.2 years				1.1 years
First mortgages	90.5		%			93.2		%		92.8		%
Cash properties	86.8		%			87.5		%		87.4		%
Rental of apartments	54.1		%			40.1		%		46.5		%
Variable rate loans (end of quarter)	77.3		%			57.7		%		63.7		%
Weighted average interest rate
For the quarter ended	7.2		%			7.3		%		7.3		%
Weighted average lender fees
New and renewed	1.0		%			0.9		%		0.9		%
New net mortgage investment only	1.1		%			1.1		%		1.2		%

Quarterly conference call

Interested parties are invited to participate in a conference call with management on Wednesday March 11, 2020 at 1:00 p.m. EDT which will be followed by a question and answer period with analysts. To join the call:

https://timbercreek.adobeconnect.com/q42019tfinvestorcall/ Toll-free number for participants: (855) 223-7310 Participant's international phone number: (647) 788-4930 Conference identification number: 4047567

Conference call playback will also be available on www.timbercreekfinancial.com following the call.

About the company

Timbercreek Financial is a leading non-bank real estate lender offering shorter term structured finance solutions to commercial real estate professionals. Our sophisticated service-oriented approach allows us to meet the needs of borrowers, including faster execution and more flexible terms that are not typically provided by Canadian financial institutions. By using rigorous underwriting, active management and solid governance, we are able to meet these needs while generating solid risk-adjusted returns for investors. More information is available on our website, www.timbercreekfinancial.com.

Non-IFRS measures

The Company prepares and publishes its financial statements in accordance with IFRS. In addition to the results provided in accordance with IFRS, the Company presents certain financial measures not recognized by IFRS and which have no standard meaning prescribed by IFRS (collectively non-IFRS measures). These non-IFRS measures are described in more detail in the management report (“management report”) available on SEDAR. The Company has presented such non-IFRS measures because the manager believes that they are relevant measures of the Company's ability to earn and distribute cash dividends to shareholders and to assess its performance. The following non-IFRS financial measures should not be construed as alternatives to total net income and comprehensive income or cash flows from operating activities, determined in accordance with IFRS as indicators of the performance of the Company.

Certain statements contained in this press release may contain projections and "forward-looking statements" within the meaning of this expression under Canadian securities laws. When used in this press release, the words "may", "would like", "should", "could", "will", "will", "plan", "plan", "believe" , "estimate", "wait", "objective" and similar expressions may be used to identify forward-looking statements. By their nature, forward-looking statements reflect the current opinions, beliefs, assumptions and intentions of the Company and are subject to certain risks and uncertainties, known and unknown, including, but not limited to, the risks disclosed in the public Company documents. There are many factors that could cause actual results, performance or achievements to be materially different from future results, performance or achievements that may be expressed or implied by these forward-looking statements. The Company does not intend or assume 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 Financial

For further information, please contact:
Timbercreek Financial
Cameron Goodnough
President and CEO and President
1-844-304-9967
[email protected]