Timbercreek Senior Mortgage Investment Corporation announces 2015 second quarter results

Toronto Stock Exchange: MTG

TORONTO, Aug. 12, 2015 /CNW/ - Timbercreek Senior Mortgage Investment Corporation (TSX: MTG) (the "Company") announced today its financial results for the three and six months ended June 30, 2015.

"Another consecutive quarter of strong performance proves that despite the continued low interest rates, the demand for our customized financing solutions remains strong. The exceptional quality of our portfolio also demonstrates that we are able to satisfy this demand without taking on more risk which is attributed to our thorough underwriting and strong focus customer service allowing us to attract higher quality borrowers," states Andrew Jones, Chief Executive Officer of the Company.

Second Quarter Highlights

• Net interest income for the three months ended June 30, 2015 ("Q2 2015") and for the six months ended June 30, 2015 ("YTD 2015") increased to $7.8 million and $15.1 million or 9.6% and 5.0% respectively compared to $7.1 million and $14.3 million for the three months ended June 30, 2014 ("Q2 2014") and the six months ended June 30, 2014 ("YTD 2014").
• Net income and comprehensive income for Q2 2015 and for YTD 2015 increased to $5.0 million and $9.6 million or 3.0% and 1.1% respectively compared to $4.8 million and $9.5 million for Q2 2014 and YTD 2014.
• Earnings per share increased to $0.16 and $0.31 (Q2 2014 – $0.15; YTD 2014 – $0.30).
• Distributable income per share increased to $0.15 and $0.31 (Q2 2014 – $0.14; YTD 2014 – $0.29) and exceeds dividend payout of $0.30. Payout ratio for YTD 2015 was 97.0% (YTD 2014 –106.5%).
• Credit facility utilization increased to 37.8% of total assets from 24.9% at June 30, 2014 (December 31, 2014 – 32.9%).
• No additional mortgage investment loss provision recorded in Q2 2015 and YTD 2015 (Q2 2014 – $0.2 million; YTD 2014 – $0.2 million).

June 30, 2015 – Investment Portfolio Highlights

• Net mortgage investments up 7.9% to $465.2 million (December 31, 2014 – $431.3 million)
• Weighted average loan-to-value was 54.5% (December 31, 2014 – 55.6%) and remains well below the Company's maximum threshold of 70%
• Weighted average interest rate for the period decreased to 6.1% (March 31, 2015 –6.1%; December 31, 2014 – 6.2%)
• Weighted average lender fees increased to 0.8% (March 31, 2015 –0.8%; December 31, 2014 – 0.6%)
• Weighted average term of the portfolio of 2.2 years (March 31, 2015 –2.3 years; December 31, 2014 – 2.4 years) and a weighted average remaining term to maturity of 1.1 years (March 31, 2015 –1.2 years; December 31, 2014 – 1.3 years)
• Exposure to Alberta at 8.8% (December 31, 2014 – 4.3%) and decreased slightly from Q1 2015 – 9.1%. 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 (35.2%), Quebec (27.1%), Alberta (8.8%) and B.C. (15.3%)

Financial Highlights

	Three months ended				Six months ended				Year ended
	June 30, 2015		June 30, 2014		June 30, 2015		June 30, 2014		December 31, 2014
Net interest income	$	7,766	$	7,084	$	15,066	$	14,346	$	28,159
Income from operations	$	6,416	$	5,917	$	12,427	$	11,828	$	23,211
Net income and comprehensive income	$	4,951	$	4,810	$	9,597	$	9,494	$	18,717
Earnings per share (basic and diluted)	$	0.16	$	0.15	$	0.31	$	0.30	$	0.59
Dividends to common shareholders	$	4,733	$	4,733	$	9,466	$	9,466	$	18,934
Cash flow from/(used in) operating activities	$	5,650	$	(8,529)	$	11,600	$	(3,691)	$	20,927
Distributable income	$	4,817	$	4,393	$	9,762	$	8,893	$	18,362
Distributable income per share (basic and diluted)	$	0.15	$	0.14	$	0.31	$	0.29	$	0.58
Targeted dividend yield		4.12%		4.57%		4.10%		4.54%		4.55%
Actual dividend yield		7.28%		6.80%		7.32%		6.84%		6.89%
Payout ratio	98.27%		107.79%		96.98%		106.46%		103.1%
Dividends per common share:	$	0.15	$	0.15	$	0.30	$	0.30	$	0.60

Quarterly Conference Call

Interested parties are invited to participate in a conference call with management on Thursday, August 13, 2015 at 2:00 p.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: 76799483

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]