Timbercreek Financial Announces 2023 First Quarter Results
09 5월 2023 - 6:30AM
Timbercreek Financial (TSX: TF) (the “Company”) announced today its
financial results for the three months ended March 31, 2023 (“Q1
2023”).
Q1 2023 Highlights1
- Record quarterly net investment income of $32.7 million (up
44.2% from Q1 2022)
- Record net income and comprehensive income of $18.1 million, up
from $13.8 million in the same period last year. Basic and diluted
earnings per share were $0.22 and $0.21, respectively.
- Delivered distributable income and adjusted distributable
income of $18.3 million, or $0.22 per share (Q1 2022 – $15.2
million, $0.18 per share) representing a payout ratio of 79.1% on
both distributable income and adjusted distributable income which
continues to be ahead of Management's target payout range.
- Declared $14.5 million in dividends to shareholders, or $0.17
per share, reflecting an earnings per share payout ratio of 80.1%
(Q1 2022 – 103.2%) on an adjusted net income basis.
- Q1 2023 results were highlighted by strong interest income and
a healthy mortgage portfolio. Net new mortgage fundings were $39.3
million and advances on existing mortgages were $12.8 million,
offset by net mortgage repayments of $61.3 million and net
syndications of $37.5 million. Mortgage repayment activity slowed
down in the first quarter as expected given the pick-up in Q4 of
last year. Portfolio turnover was 8.4%.
- At the end of the period, net mortgage investments were
$1,149.1 million (versus $1,263.3 million at Q1 2022) bearing
interest at an average rate of 9.7% (versus 6.6% at Q1 2022 and
9.7% at Q4 2022) and a weighted-average LTV of 68.5% (versus 71.3%
at Q1 2022 and 68.3% at Q4 2022)
- A portfolio of loans were moved into Stage II in the quarter
for a total of $119.0 million in carrying value. The loans were
moved into Stage II due to liquidity concerns at the sponsorship
level however the assets, newer build, urban multi-family assets,
are considered highly attractive in the market. The Company does
not expect principal losses on these loans.
- Maintained conservative portfolio risk composition focused on
income-producing commercial real estate
- 68.5% weighted average loan-to-value;
- 92.0% first mortgages in mortgage investment portfolio;
and
- 89.0% of mortgage investment portfolio is invested in
cash-flowing properties.
“In Q1 2023, we reported another quarter of
strong financial performance, highlighted by a 44% increase in net
investment income on financial assets measured at amortized cost
and 38% increase in earnings per share. Importantly, distributable
income grew significantly to $18.3 million, or $0.22 per share, at
a very comfortable payout ratio of 79.1%,” said Blair Tamblyn, CEO
of Timbercreek Financial. “Generally, the portfolio performed well
in the first quarter, reflecting the ongoing focus on high-quality,
income-producing assets in urban markets. In select situations, the
Company's borrowers are experiencing challenges in the current
macroeconomic environment, and our investment team continues to
actively manage these loans. We remain confident in the quality and
value of the underlying assets in each instance. While transaction
activity was lighter in the first quarter, we continue to see
healthy borrower demand and anticipate higher new funding activity
in the coming quarters.”
Quarterly Comparison
$
millions |
Q1 2023 |
|
|
Q1 2022 |
|
Q4 2022 |
|
|
|
|
|
|
|
Net Mortgage Investments1 |
$ |
1,149.1 |
|
|
|
$ |
1,263.3 |
|
|
$ |
1,195.8 |
|
Enhanced Return Portfolio
Investments1 |
$ |
59.4 |
|
|
|
$ |
80.6 |
|
|
$ |
72.9 |
|
Land Inventory |
$ |
30.3 |
|
|
|
$ |
— |
|
|
$ |
30.2 |
|
|
|
|
|
|
|
|
Net Investment Income |
$ |
32.7 |
|
|
|
$ |
22.7 |
|
|
$ |
31.3 |
|
Income from Operations |
$ |
28.3 |
|
|
|
$ |
18.7 |
|
|
$ |
25.2 |
|
Net Income and comprehensive
Income |
$ |
18.1 |
|
|
|
$ |
12.9 |
|
|
$ |
14.8 |
|
--Adjusted Net Income and
comprehensive Income |
$ |
18.0 |
|
|
|
$ |
13.8 |
|
|
$ |
14.7 |
|
Distributable and adjusted
distributable income1 2 |
$ |
18.3 |
|
|
|
$ |
15.2 |
|
|
$ |
18.4 |
|
Dividends declared to
Shareholders |
$ |
14.5 |
|
|
|
$ |
14.3 |
|
|
$ |
14.5 |
|
|
|
|
|
|
|
|
$ per
share |
Q1 2023 |
|
|
Q1 2022 |
|
Q4 2022 |
|
|
|
|
|
|
|
Dividends per share |
$ |
0.17 |
|
|
|
$ |
0.17 |
|
|
$ |
0.17 |
|
Distributable and adjusted
distributable income per share1 2 |
$ |
0.22 |
|
|
|
$ |
0.18 |
|
|
$ |
0.22 |
|
Earnings per share |
$ |
0.22 |
|
|
|
$ |
0.16 |
|
|
$ |
0.18 |
|
--Adjusted Earnings per
share |
$ |
0.21 |
|
|
|
$ |
0.17 |
|
|
$ |
0.17 |
|
|
|
|
|
|
|
|
Payout Ratio on Distributable
and adjusted distributable Income1 2 |
|
79.1 |
% |
|
|
|
93.9 |
% |
|
|
78.7 |
% |
Payout Ratio on Earnings per
share |
|
79.8 |
% |
|
|
|
110.8 |
% |
|
|
97.7 |
% |
--Payout Ratio on Adjusted
Earnings per share |
|
80.1 |
% |
|
|
|
103.2 |
% |
|
|
98.6 |
% |
|
|
|
|
|
|
|
Net Mortgage
Investments |
Q1 2023 |
|
|
Q1 2022 |
|
Q4 2022 |
|
|
|
|
|
|
|
Weighted Average
Loan-to-Value |
|
68.5 |
% |
|
|
|
71.3 |
% |
|
|
68.3 |
% |
Weighted Average Remaining
Term to Maturity |
|
0.8 yr |
|
|
|
|
1.1 yr |
|
|
|
0.9 yr |
|
First Mortgages |
|
92.0 |
% |
|
|
|
92.5 |
% |
|
|
92.4 |
% |
Cash-Flowing Properties |
|
89.0 |
% |
|
|
|
90.3 |
% |
|
|
87.4 |
% |
Multi-family residential |
|
50.8 |
% |
|
|
|
55.3 |
% |
|
|
52.5 |
% |
Floating Rate Loans with rate
floors (at quarter end) |
|
88.2 |
% |
|
|
|
85.6 |
% |
|
|
88.5 |
% |
|
|
|
|
|
|
|
Weighted Average Interest
Rate |
|
|
|
|
|
|
For the quarter ended |
|
9.7 |
% |
|
|
|
6.6 |
% |
|
|
9.7 |
% |
Weighted Average Lender
Fee |
|
|
|
|
|
|
New and Renewed |
|
1.1 |
% |
|
|
|
1.2 |
% |
|
|
1.2 |
% |
New Net Mortgage Investment Only |
|
1.5 |
% |
|
|
|
1.2 |
% |
|
|
1.4 |
% |
- 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.
- There are no adjustments for the
periods presented.
Quarterly Conference Call
Interested parties are invited to participate in
a conference call with management on Tuesday, May 9, 2023 at
1:00 p.m. (ET) which will be followed by a question and answer
period with analysts.
To join the Zoom Webinar:
If you are a Guest please click the link below
to join:
https://us02web.zoom.us/j/89478004545?pwd=cjRBR0pBV1lmMVJ5dmdweEtCaXZxdz09 |
Webinar ID: 894 7800 4545 |
Passcode: 1234 |
|
|
Or Telephone: |
Dial (for higher quality, dial a number based on your current
location): |
Canada: |
+1 438 809 7799 or +1 587 328 1099 or +1 647 374 4685 or |
|
+1 647 558 0588 or +1 778 907 2071 |
International numbers available: |
https://us02web.zoom.us/u/kcbxkeRPMv |
Speakers will receive a separate link to the Webinar
The playback of the conference call will also be
available on www.timbercreekfinancial.com following the call.
About the Company
Timbercreek Financial is a leading non-bank,
commercial real estate lender providing shorter-duration,
structured financing 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 employing thorough underwriting, active
management and strong governance, we are able to meet these needs
while generating strong risk-adjusted yields for investors. Further
information is available on our website,
www.timbercreekfinancial.com.
Non-IFRS 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. Certain non-IFRS measures relating to net mortgages,
adjusted net income and comprehensive income and adjusted
distributable income have been shown below. The Company has
presented such non-IFRS measures because the Manager believes they
are relevant measures of the Company’s ability to earn and
distribute cash dividends to shareholders and to evaluate 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 as 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 and 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.
Net Mortgage Investments
The Company’s exposure to the financial returns
is related to the net mortgage investments as mortgage syndication
liabilities are non-recourse mortgages with periodic variance
having no impact on Company's financial performance. Reconciliation
of gross and net mortgage investments balance is as follows:
Net Mortgage Investments |
March 31, 2023 |
|
|
December 31, 2022 |
|
Mortgage investments, excluding mortgage syndications |
$ |
1,143,740 |
|
|
$ |
1,189,215 |
|
Mortgage syndications |
|
613,929 |
|
|
|
611,291 |
|
Mortgage investments, including mortgage syndications |
|
1,757,669 |
|
|
|
1,800,506 |
|
Mortgage syndication liabilities |
|
(613,929 |
) |
|
|
(611,291 |
) |
|
|
1,143,740 |
|
|
|
1,189,215 |
|
Interest receivable |
|
(11,649 |
) |
|
|
(10,812 |
) |
Unamortized lender fees |
|
6,153 |
|
|
|
6,801 |
|
Allowance for mortgage investments loss |
|
10,905 |
|
|
|
10,605 |
|
Net mortgage investments |
$ |
1,149,149 |
|
|
$ |
1,195,809 |
|
Enhanced return portfolio
As at |
March 31, 2023 |
|
December 31, 2022 |
Collateralized loans, net of allowance for credit loss |
$ |
46,367 |
|
$ |
59,956 |
Finance lease receivable,
measured at amortized cost |
|
6,020 |
|
|
6,020 |
Investment, measured at
FVTPL |
|
4,800 |
|
|
4,744 |
Investment in indirect real
estate development |
|
2,225 |
|
|
2,225 |
Total Other Investments |
|
59,412 |
|
|
72,945 |
|
|
|
|
Total Enhanced Return Portfolio |
$ |
59,412 |
|
$ |
72,945 |
OPERATING
RESULTS1 |
|
|
|
|
|
Three months ended March 31, |
|
|
Year ended December 31, |
|
NET INCOME AND COMPREHENSIVE INCOME |
2023 |
|
2022 |
|
|
2022 |
|
Net Investment Income on financial assets measured at amortized
cost |
$ |
32,709 |
|
$ |
22,677 |
|
|
$ |
109,803 |
|
Total fair value gain (loss) and other income on financial assets
measured at FVTPL |
$ |
282 |
|
$ |
(103 |
) |
|
$ |
1,388 |
|
Net rental (loss) income |
$ |
(359 |
) |
$ |
382 |
|
|
$ |
(151 |
) |
Total fair value gain (loss) on real estate properties |
$ |
63 |
|
$ |
— |
|
|
$ |
(296 |
) |
Expenses |
$ |
(4,443 |
) |
$ |
(4,241 |
) |
|
$ |
(22,592 |
) |
Income from operations |
$ |
28,252 |
|
$ |
18,715 |
|
|
$ |
88,152 |
|
|
|
|
|
|
|
|
|
|
|
Financing costs: |
|
|
|
|
Financing cost on credit facilities |
$ |
(7,898 |
) |
$ |
(3,560 |
) |
|
$ |
(23,234 |
) |
Financing cost on convertible debentures |
$ |
(2,250 |
) |
$ |
(2,273 |
) |
|
$ |
(9,022 |
) |
Net income and comprehensive income |
$ |
18,104 |
|
$ |
12,882 |
|
|
$ |
55,896 |
|
Payout ratio on earnings per
share |
|
79.8 |
% |
|
110.8 |
% |
|
|
103.3 |
% |
|
|
|
|
|
ADJUSTED NET INCOME AND COMPREHENSIVE INCOME |
|
|
Net income and comprehensive
income |
$ |
18,104 |
|
$ |
12,882 |
|
|
$ |
55,896 |
|
Add: net unrealized (gain) loss on financial assets measured at
FVTPL |
$ |
(57 |
) |
$ |
946 |
|
|
$ |
1,546 |
|
Add: Net unrealized loss on real estate properties |
$ |
— |
|
$ |
— |
|
|
$ |
95 |
|
Adjusted net income and comprehensive
income1 |
$ |
18,047 |
|
$ |
13,828 |
|
|
$ |
57,537 |
|
Payout ratio on adjusted
earnings per share1 |
|
80.1 |
% |
|
103.2 |
% |
|
|
100.3 |
% |
|
|
|
|
|
PER SHARE INFORMATION |
|
|
|
|
Dividends declared to shareholders |
$ |
14,451 |
|
$ |
14,268 |
|
|
$ |
57,721 |
|
Weighted average common shares
(in thousands) |
|
83,970 |
|
|
82,583 |
|
|
|
83,622 |
|
Dividends per share |
$ |
0.17 |
|
$ |
0.17 |
|
|
$ |
0.69 |
|
Earnings per share
(basic) |
$ |
0.22 |
|
$ |
0.16 |
|
|
$ |
0.67 |
|
Earnings per share
(diluted) |
$ |
0.21 |
|
$ |
0.16 |
|
|
$ |
0.67 |
|
Adjusted earnings per share
(basic)1 |
$ |
0.21 |
|
$ |
0.17 |
|
|
$ |
0.69 |
|
Adjusted earnings per share (diluted)1 |
$ |
0.21 |
|
$ |
0.17 |
|
|
$ |
0.69 |
|
- Refer to non-IFRS measures
section.
OPERATING
RESULTS1 |
|
|
|
|
|
|
Three months ended March 31, |
|
|
Year ended December 31, |
|
DISTRIBUTABLE INCOME |
2023 |
|
|
2022 |
|
|
2022 |
|
Adjusted net income and comprehensive income1 |
$ |
18,047 |
|
|
$ |
13,828 |
|
|
$ |
57,537 |
|
Less: amortization of lender fees |
|
(2,465 |
) |
|
|
(2,290 |
) |
|
$ |
(8,726 |
) |
Add: lender fees received and receivable |
|
1,709 |
|
|
|
2,459 |
|
|
$ |
7,708 |
|
Add: amortization of financing costs, credit facility |
|
253 |
|
|
|
215 |
|
|
$ |
984 |
|
Add: amortization of financing costs, debentures |
|
244 |
|
|
|
252 |
|
|
$ |
1,006 |
|
Add: accretion expense, debentures |
|
113 |
|
|
|
113 |
|
|
$ |
454 |
|
Add: unrealized fair value loss (gain) on DSU |
|
75 |
|
|
|
(33 |
) |
|
|
(201 |
) |
Add: allowance for expected credit loss |
|
300 |
|
|
|
649 |
|
|
|
7,482 |
|
Distributable income and adjusted distributable
income1 2 |
$ |
18,276 |
|
|
$ |
15,193 |
|
|
$ |
66,244 |
|
Payout ratio on distributable
income and adjusted distributable income1 2 |
|
79.1 |
% |
|
|
93.9 |
% |
|
|
87.1 |
% |
|
|
|
|
|
|
PER SHARE INFORMATION |
|
|
|
|
|
Dividends declared to shareholders |
$ |
14,451 |
|
|
$ |
14,268 |
|
|
$ |
57,721 |
|
Weighted average common shares
(in thousands) |
|
83,970 |
|
|
|
82,583 |
|
|
|
83,622 |
|
Dividends per share |
$ |
0.17 |
|
|
$ |
0.17 |
|
|
$ |
0.69 |
|
Distributable and adjusted distributable income per share1 |
$ |
0.22 |
|
|
$ |
0.18 |
|
|
$ |
0.79 |
|
- Refer to non-IFRS measures section,
- There are no adjustments to adjusted distributable income for
the periods presented.
SOURCE: Timbercreek Financial
For further information, please contact:
Timbercreek FinancialBlair
Tamblyn, CEOTracy Johnston, CFO Karynna Ma, Vice President,
Investor Relations
1-844-304-9967www.timbercreekfinancial.com
Timbercreek Financial (TSX:TF)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Timbercreek Financial (TSX:TF)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024