Timbercreek Financial Announces 2025 Second Quarter Results

Core Viewpoint - Timbercreek Financial reported solid performance in Q2 2025, with positive commercial real estate conditions and a growing portfolio despite macroeconomic volatility related to tariffs [3]. Financial Performance - Net mortgage investments increased to $1,114.0 million in Q2 2025, up from $1,003.4 million in Q2 2024, representing an increase of 11.0% year-over-year [4][5]. - Net investment income for Q2 2025 was $25.2 million, a decrease from $26.4 million in Q2 2024 [5]. - Net income and comprehensive income for Q2 2025 was $12.4 million, down from $15.4 million in Q2 2024, resulting in basic earnings per share of $0.15 compared to $0.19 in Q2 2024 [5][6]. - Distributable income was $14.6 million ($0.18 per share) in Q2 2025, down from $16.3 million ($0.20 per share) in Q2 2024 [5][6]. Dividend Information - The company declared dividends totaling $14.3 million in Q2 2025, maintaining a dividend per share of $0.17, with a payout ratio on distributable income of 97.8% [5][6]. - The current trading price of $7.79 provides an attractive dividend yield of 8.9%, which is a 6.1% premium over the 2-year Canadian bond yield [5]. Portfolio and Loan Performance - The weighted average interest rate on the portfolio was 8.6% in Q2 2025, with 87.4% of the portfolio in variable rate loans protected by interest rate floors [6]. - The company has made significant progress in addressing remaining staged loans, resolving over $80.0 million in Stage 2 and 3 loans in Q2 2025 [5]. Market Conditions - Despite ongoing tariff-related macro volatility, the commercial real estate market remains positive, particularly in the multi-family residential sector, which is expected to perform well during economic uncertainty [3][5].