Timbercreek Mortgage Investment Corp. announces December 31, 2009 results of
operations
TSX SYMBOL: TMC
TORONTO, Feb. 26 /CNW/ - Timbercreek Mortgage Investment Corp. (the "Fund") (TSX TMC), today released its financial statements and management report of fund performance for the year ended December 31, 2009. The Fund is managed by Timbercreek Asset Management Inc. (the "Fund Manager").
Some of the Fund's 2009 highlights include:
- Preservation of net asset value of the Fund
In light of the economic downtown experienced in late 2008 and early
2009, we are extremely pleased that net redemption value per share
("NRV Per Share") remained relatively flat.
- Class A NRV Per Share increased to $9.43 from $9.38 over
December 31, 2008; and
- Class B NRV Per Share decreased slightly to $9.83 from $9.85
over prior year
- Targeted distributions met by the Fund
The Fund distributed in excess of its benchmark yield in 2009. The
average two year Government of Canada bond yield plus 550 basis points
totaled 6.8% in comparison to the Fund's distribution yield of 8.2%
and 9.4% for Class A and Class B shares, respectively, based on a $10
issue price.
- Focus on portfolio diversification
The Fund continued to diversify its portfolio across Canada in order
to meet the requirements of its compulsory asset allocation model. In
November, 2009, the Fund increased its allocation in British Columbia
by acquiring a portfolio of mortgage investments secured by retirement
homes located throughout the province of British Columbia (the "CRRIC
Portfolio"). At December 31, 2009, 89% of the Fund's portfolio was
diversified in four provinces across Canada compared to December 31,
2008 where 96% of the portfolio was concentrated over 3 provinces.
- No mortgage impairments
In the annual audited financial statements for the year ended December
31, 2009, there were no impairments or loan provisions realized on the
mortgage investment portfolio.
- Accretive mortgage portfolio acquisition to Class A shareholders
The acquisition of the CRRIC Portfolio was an accretive acquisition
for the Fund. As a result of the transaction, the NRV per Class A
share increased by approximately 11 cents per share.
INCREASE IN NET ASSETS:
-----------------------
For the year ended December 31, 2009 the Fund's net assets increased
by $4,242,060 compared to an increase of $1,494,809 for the period
ended December 31, 2008. This equated to an increase in net assets per
Class A and Class B share of $0.71 and $0.84, respectively for the
year ended December 31, 2009, in comparison to $0.35 and $0.39 per
Class A and Class B share, respectively for the period from April 30,
2008 to December 31, 2008.
DISTRIBUTIONS:
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In 2009, total distribution of per Class A Share was $0.828 and total
distribution per Class B Share was $0.942 per Class B share for 2009.
Based on the distributions received in the year and performance of the
NRV per Class A and Class B share, the total annual return of the Fund
was 9.8% for both share classes in 2009 based on the respective NRV
Per Share.
MORTGAGE PORTFOLIO HIGHLIGHTS:
------------------------------
Key highlights of the Fund's mortgage investment portfolio as at
December 31, 2009 are as follows:
- Total mortgage investments are $66,014,044
- Mortgages secured by cash-flowing, multi-family and retirement
residences equate to 66% of the total mortgage portfolio.
- The weighted average interest rate of the mortgage portfolio is
11.47%
- 89% of the mortgage portfolio was allocated across Canada's four
largest provinces (Ontario - 32%; B.C. - 22%; Alberta - 19%;
Quebec - 16%). This is in comparison to December 31, 2008 where
96% of the mortgage portfolio was allocated between three
provinces (Ontario - 36%; Alberta - 35%; Quebec - 25%)
- 57% of the portfolio is maturing in 2010 and 15% and 27% are
maturing in 2011 and 2012, respectively.
- Approximately 79% of the mortgage portfolio has a loan-to-value
less than 75%
CURRENT CLASS A SHARE OFFERING:
-------------------------------
On February 1, 2010 the Fund filed a prospectus supplement to the
short form base shelf prospectus dated December 30, 2009 (available at
www.sedar.com; search database keyword "Timbercreek" under public
company documents) offering a maximum of $25,000,000 Class A shares of
the Fund (the "Offering"). The marketed offering was oversubscribed
subsequent to the exercising of the over-allotment, and closed on
February 25, 2010.
ABOUT THE FUND:
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The Fund provides investors with an opportunity to receive attractive
yields by investing indirectly, through holding shares of the Fund, in
mortgage loan investments selected and determined to be high quality
by its manager, Timbercreek Asset Management Inc. The investment
objective of the Fund is, with a primary focus on capital
preservation, to acquire and maintain a diversified portfolio of
mortgage loan investments that generates attractive, stable returns in
order to permit the Fund to pay monthly distributions to its
shareholders.
Full reports and financial results for the Fund for the year are
outlined in the audited financial statements and management report of
fund performance is available at www.sedar.com. In addition
supplemental information is available at the Fund's website at
www.timbercreekfunds.com.
Forward-Looking Statements
This document may contain forward-looking statements relating to anticipated future events, results, circumstances, performance or expectations that are not historical facts but instead represent our beliefs regarding future events. These statements are typically identified expressions like "believe", "expects", "anticipates", "would", "will", "intends", "projected", "in our opinion", "confident" and similar expressions. By their nature, forward-looking statements require us to make assumptions which include, among other things, that (i) the Fund will have sufficient capital under management to effect its investment strategies and pay its targeted distributions, (ii) the investment strategies will produce the results intended by the Fund Manager, (iii) the markets will react and perform in a manner consistent with the investment strategies and (iv) the Fund is able to acquire mortgages of a quality that will generate returns that meet and or exceed the Fund's targeted mortgage investment returns. Forward-looking statements are subject to inherent risks and uncertainties. There is significant risk that predictions and other forward-looking statements will prove not to be accurate. We caution readers of this document not to place undue reliance on our forward-looking statements as a number of factors could cause actual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed or implied in the forward-looking statements. Actual results may differ materially from management expectations as projected in such forward-looking statements for a variety of reasons, including but not limited to, general market conditions, interest rates, regulatory and statutory developments, the effects of competition in areas that the Fund may invest in and the risks detailed from time to time in the Fund's prospectus.
We caution that the foregoing list of factors is not exhaustive and that when relying on forward-looking statements to make decisions with respect to investing in the Fund, investors and others should carefully consider these factors, as well as other uncertainties and potential events and the inherent uncertainty of forward-looking statements. Due to the potential impact of these factors, the Fund and the Fund Manager do not undertake, and specifically disclaim any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.
%SEDAR: 00026881E
For further information: Timbercreek Asset Management Inc.: R. Blair Tamblyn, Chief Executive Officer, (416) 306-9967 X238, [email protected]
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