Mr. Blair Tamblyn reports

TIMBERCREEK FINANCIAL ANNOUNCES 2023 SECOND QUARTER RESULTS

Timbercreek Financial Corp. today released its financial results for the three and six months ended June 30, 2023 (Q2 2023).

Q2 2023 highlights

• Quarterly net investment income of $31.5-million (up 22 per cent from Q2 2022).
• Net income and comprehensive income of $16.9-million, up from $14.7-million in the same period last year. Basic and diluted earnings per share for Q2 2023 were 20 cents (Q2 2022 -- 17 cents).
• Delivered distributable income and adjusted distributable income of $17.8-million, or 21 cents per share (Q2 2022 -- $15.9-million, 19 cents per share) representing a payout ratio of 81.1 per cent on both distributable income and adjusted distributable income.
• Declared $14.4-million in dividends to shareholders, or 17 cents per share, reflecting an earnings per share payout ratio of 85.5 per cent (Q2 2022 -- 98.7 per cent) on net income and comprehensive income.
• Q2 2023 results were highlighted by strong interest income and a healthy mortgage portfolio. Net new mortgage advances were $64.7-million and advances on existing mortgages were $43.3-million, offset by net mortgage repayments of $128.1-million and net syndications of $5.3-million. Mortgage repayment activity was higher in the second quarter after a slower Q1 2023 and, as a result, portfolio turnover increased to 11.6 per cent compared with 8.4 per cent in Q1 2023.
• At the end of the period, net mortgage investments were $1,123.7-million (versus $1,235.0-million at Q2 2022) bearing a weighted-average interest rate of 9.8 per cent (versus 7.2 per cent at Q2 2022 and 9.7 per cent at Q1 2023) and a weighted-average LTV of 68.3 per cent (versus 69.9 per cent at Q2 2022 and 68.5 per cent at Q1 2023).
• The company continues to closely manage its Stage III and Stage II loans and expects to make material progress over the remainder of the year. The investment team, which is experienced in navigating these situations and utilizing various approaches to achieve resolution, continues to anticipate repayment of principal outstanding as the asset sale processes are completed.
• Maintained conservative portfolio risk composition focused on income-producing commercial real estate:
  • 68.3-per-cent weighted average loan-to-value;
  • 91.4-per-cent first mortgages in mortgage investment portfolio;
  • 87.7-per-cent of mortgage investment portfolio is invested in cash-flowing properties.

"The second quarter results showed significant year-over-year growth in our key financial measures, including a 22-per-cent increase in net investment income, 18-per-cent increase in earnings per share and strong growth in distributable income, to 21 cents per share at a conservative payout ratio," said Blair Tamblyn, chief executive officer of Timbercreek Financial. "These results reflect the overall solid performance and underlying durability of our portfolio focused on high-quality, income-producing assets. New funding activity increased sequentially, and we are seeing good borrower demand supported by an improving commercial real estate market. We continue to diligently manage select situations where borrowers are experiencing challenges in the current macroeconomic environment. Our team is highly experienced in navigating these scenarios to achieve a resolution and the best outcomes for our shareholders."

There are no adjustments for the periods presented.

Quarterly conference call

Interested parties are invited to participate in a conference call with management on Thursday, Aug. 3, 2023, at 1 p.m. ET, which will be followed by a question and answer period with analysts. To join the Zoom webinar:

Click a link available in the original news release.

Webinar ID:  834 2508 4478

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

Speakers will receive a separate link to the Webinar. The playback of the conference call will also be available on the Timbercreek website following the call.

About Timbercreek Financial Corp.

Timbercreek Financial is a leading non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate investors. Its sophisticated, service-oriented approach allows the company 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, Timbercreek Financial is able to meet these needs while targeting strong risk-adjusted returns for investors.

We seek Safe Harbor.