Timbercreek Financial Announces 2025 First Quarter Results

Core Viewpoint - Timbercreek Financial reported solid financial results for Q1 2025, highlighting stable income levels and a robust transaction pipeline despite market volatility [3][5]. Financial Performance - Net mortgage investments reached $1,079.2 million, a 10.4% increase from $977.5 million in Q1 2024, but a slight decrease of $10.6 million from $1,089.8 million in Q4 2024 [4][5]. - Net investment income was $28.6 million, up from $24.6 million in Q1 2024, with net income and comprehensive income at $14.8 million compared to $14.4 million in the same period last year [5][13]. - Distributable income was $15.4 million, or $0.19 per share, slightly down from $15.8 million in Q1 2024, maintaining a payout ratio of 92.8% [5][6]. Dividend Information - The company declared dividends totaling $14.3 million, or $0.17 per share, consistent with the previous year, reflecting a strong dividend coverage [5][6]. - The current trading price of $7.00 represents a 9.9% yield, which is a 7.3% premium over the 2-year Canadian bond yield [5]. Portfolio Composition - The weighted average interest rate on the mortgage portfolio was 8.7%, with 84.8% of loans being variable rate loans with interest rate floors [6][15]. - Multi-family residential properties constituted 60.2% of the mortgage investments, indicating a focus on stable asset classes [6][15]. Market Position and Strategy - The company emphasized the resilience of its strategy and core asset classes, particularly multi-residential, which is expected to perform well amid economic uncertainty [3][5]. - Timbercreek Financial completed the sale of a retirement asset in Quebec, resulting in the full recovery of real estate held for sale and repayment of collateral liabilities [5].