Timbercreek Senior Mortgage Investment Corporation announces 2015 first quarter results

Toronto Stock Exchange: MTG

TORONTO, May 6, 2015 /CNW/ - Timbercreek Senior Mortgage Investment Corporation (TSX: MTG) (the "Company") announced today its financial results for the three months ended March 31, 2015 ("Q1 2015") where it has reported 8% portfolio growth bringing the Company's net mortgage investments to $465.0 million.

"In our view, the Company continues to hold the highest quality portfolio of mortgages investments in the market today.  There are currently no defaults in any of the loans across the portfolio which we believe is attributed to our conservative investment strategy focused on investing in loans primarily secured by cash-flowing real estate.  The consistent portfolio growth over the last three quarters also demonstrates the continued demand from commercial real estate investors for our short-term financing solutions." states Andrew Jones, Chief Executive Officer of the Company.

First Quarter Highlights (versus Q1 2014)

• Net interest income of $7.3 million flat from $7.3 million (Q4 2014 – $7.2 million)
• Net income and comprehensive income of $4.6 million compared to $4.7 million, down 0.8% (Q4 2014 – $4.6 million)
• Earnings per share was flat at $0.15 from $0.15 (Q4 2014 – $0.15)
• Distributable income per share increased to $0.16 from $0.15 (Q4 2014 – $0.14) and exceeds dividend payout of $0.15
• Credit facility utilization increased to 37.9% of total assets from 26.2% (December 31, 2014 – 32.9%)
• No additional mortgage investment loss provision recorded in Q1 2015 (December 31, 2014 – $0.2 million and Q1 2014 – $0.2 million)

March 31, 2015 – Investment Portfolio Highlights

• Net mortgage investments up 7.8% to $465.0 million (December 31, 2014 – $431.3 million)
• Weighted average loan-to-value was 56.2% (December 31, 2014 – 55.6%) and remains well below the Company's maximum threshold of 70%
• Weighted average interest rate decreased to 6.1% (December 31, 2014 – 6.2%)
• Weighted average lender fees increased to 0.8% (Q4 2014 – 0.5%)
• Weighted average term of 2.3 years (December 31, 2014 – 2.4 years) and a weighted average remaining term to maturity of 1.2 years (December 31, 2014 – 1.3 years)
• Exposure to Alberta increased to 9.1% (Q4 2014 – 4.3%) and decreased slightly from Q1 2014 – 9.8%. This is well below the sector average and the increase is due to a new mortgage investment that was secured by a newly built apartment building in Edmonton with a loan-to-value of 63%
• The portfolio continues to be well-diversified across Canada's largest provinces: Ontario (43.8%), Quebec (19.2%), Alberta (9.1%) and B.C. (14.6%)

Financial Highlights

					Three months ended				Year ended
					March 31, 2015		March 31,  2014		December 31, 2014
Net interest income					$	7,300	$	7,262	$	28,159
Income from operations					$	6,011	$	5,912	$	23,211
Net income and comprehensive income					$	4,646	$	4,685	$	18,717
Earnings per share (basic and diluted)					$	0.15	$	0.15	$	0.59
Dividends to shareholders					$	4,733	$	4,733	$	18,934
Cash flow from operating activities					$	5,950	$	4,538	$	20,927
Distributable income					$	4,945	$	4,500	$	18,362
Distributable income per share (basic and diluted)					$	0.16	$	0.15	$	0.58
Targeted dividend yield						4.08%		4.51%		4.55%
Actual dividend yield						7.32%		6.92%		6.89%
Payout ratio					95.7%		105.2%		103.1%
Dividends per common share:					$	0.15	$	0.15	$	0.60
Net mortgage investments					$	464,984	$	396,220	$	431,296
Total number of net mortgage investments						67		63		62
Average net mortgage investments					$	6,940	$	6,289	$	6,956
Weighted average interest rate						6.1%		6.5%		6.2%
Weighted average lender fee					0.8%		0.6%		0.6%
Turnover ratio					11.8%		10.0%		61.5%

Quarterly Conference Call

Interested parties are invited to participate in a conference call with management on Thursday, May 7, 2015 at 11:00 a.m. (EST) which will be followed by a question and answer period with analysts. Instructions on how to participate on this call are provided below:

Dial-in-number(s): 1-[phone]

Event Conference ID: 27198329

The playback of the conference call will also be available on www.timbercreekseniormic.com following the call.

About the Company

The Company provides investors with an opportunity to invest in a diversified portfolio of first-only mortgage investments originated and underwritten by the Timbercreek debt origination platform.  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 Senior Mortgage Investment Corporation

Timbercreek Asset Management Inc., Carrie Morris, Investor Relations, T: 416-800-1552, [email protected]