Timbercreek Financial Announces 2025 Third Quarter Results
TORONTO, Oct. 29, 2025 (GLOBE NEWSWIRE) -- Timbercreek Financial (TSX: TF) (the “Company”) announced today its financial results for the three and nine months ended September 30, 2025 (“Q3 2025”).
Q3 2025 Highlights1
- Steady top-line income and distributable income:
- Net investment income of $25.4 million compared to $25.4 million in Q3 2024.
- Net income and comprehensive income before expected credit losses ("ECL") of $14.3 million (Q3 2024 - $14.3 million) or basic earnings per share before ECL of $0.17 (Q3 2024 - $0.17)
- Net income and comprehensive income of $8.5 million (Q3 2024 – $14.1 million) or basic earnings per share of $0.10 (Q3 2024 – $0.17)
- Distributable income of $14.1 million ($0.17 per share) compared with $15.0 million ($0.18 per share) in Q3 2024.
- Declared a total of $14.3 million in dividends to shareholders, or $0.17 per share, reflecting a distributable income payout ratio of 101.4% (Q3 2024 – 95.3%). On a year-to-date basis the distributable income payout ratio was within the Company's targeted range at 97.2% and the Company expects the full year payout ratio to remain within this range.
- At the current trading price of $7.24, the dividend represents a 9.5% yield – a 7.1% premium over the 2-year Canadian bond yield (2.4% as at October 28, 2025).
- The net mortgage investment portfolio increased by $36.9 million or 3.6% to $1,054.5 million over the prior year, and decreased by $59.5 million from Q2 2025 in Q3 2025, driven by a large $82.9 million repayment in September 2025. Looking forward, the Company's Q4 2025 transaction pipeline is strong with over $200.0 million of funded and committed deals so far.
- The weighted average interest rate ("WAIR") on the portfolio remains resilient due to a high percentage of variable rate loans with protection of interest rate floors - as indicated by the Company's WAIR decreasing by 100 bps versus 175 bps drop in the Bank of Canada prime rate over the same 12 month period. At the end of Q3 2025, variable rate loans with rate floors represented 85.8% of the portfolio (Q3 2024 – 77.9%) and 92.7% of these variable rate loans with floors are currently at their floor rates.
- As part of Q3 2025 valuation updates, the Company recorded an ECL of $5.9 million, with $3.0 million related to a revaluation of an office asset in Calgary, which was recently disclosed by the Company as being in receivership proceedings, as well as $2.1 million related to a revaluation of a Vancouver retail portfolio slated for redevelopment into multi-family.
- While economic uncertainty continues to pose challenges for certain sectors, the Company's focus on multi-family residential real estate—an essential and resilient asset class—positions the Company to deliver stable income and protect investor capital.
- The Company recently upsized and renewed its revolving credit facility, increasing the capacity from $510.0 million to $600.0 million for another 2-year term at improved economics. This capacity enables the Company to continue to grow the portfolio over the coming quarters.
“Transaction volumes remained solid during the quarter, though modestly impacted by ongoing macroeconomic volatility, which led to delays in select transactions,” said Blair Tamblyn, CEO of Timbercreek Financial. “Despite this, our investment pipeline continues to show strength, supported by recalibrated commercial real estate valuations and a reduced interest rate environment, both of which are laying the foundation for a new real estate cycle. Originations have been productive through the fourth quarter to date, and we anticipate closing the year on a strong note as portfolio growth resumes. Although distributable income declined slightly this quarter, we remain within our targeted payout ratio year-to-date and expect to finish the year within this range, reinforcing the stability of our monthly dividend.”
Mr. Tamblyn added: “Despite short-term share price volatility, we are delivering strong, risk-adjusted returns – our core objective. This is evidenced by a 10-year internal rate of return exceeding 7.8%, highlighting our consistent long-term performance.”
_____
- Refer to non-IFRS measures section below for net mortgages, enhanced return portfolio investments, and distributable income.
Quarterly Comparison
| $ millions | Q3 2025 | Q3 2024 | Q2 2025 | |||||||||
| Net Mortgage Investments1 | $ | 1,054.5 | $ | 1,017.6 | $ | 1,114.0 | ||||||
| Enhanced Return Portfolio Investments1 | $ | 20.2 | $ | 50.7 | $ | 20.1 | ||||||
| Real Estate Inventory | $ | 28.2 | $ | 34.4 | $ | 28.8 | ||||||
| Real Estate held for sale, net of collateral liability | $ | — | $ | 62.2 | $ | — | ||||||
| Joint Venture | $ | 18.4 | $ | — | $ | 18.2 | ||||||
| Net Investment Income | $ | 25.4 | $ | 25.4 | $ | 25.2 | ||||||
| Income from Operations | $ | 16.0 | $ | 22.5 | $ | 19.6 | ||||||
| Net income and comprehensive Income before ECL | $ | 14.3 | $ | 14.3 | $ | 14.5 | ||||||
| Net Income and comprehensive Income | $ | 8.5 | $ | 14.1 | $ | 12.4 | ||||||
| Distributable income1 | $ | 14.1 | $ | 15.0 | $ | 14.6 | ||||||
| Dividends declared to Shareholders | $ | 14.3 | $ | 14.3 | $ | 14.3 | ||||||
| $ per share | Q3 2025 | Q3 2024 | Q2 2025 | |||||||||
| Dividends per share | $ | 0.17 | $ | 0.17 | $ | 0.17 | ||||||
| Distributable income per share1 | $ | 0.17 | $ | 0.18 | $ | 0.18 | ||||||
| Earnings per share | $ | 0.10 | $ | 0.17 | $ | 0.15 | ||||||
| Payout Ratio on Distributable Income1 | 101.4 | % | 95.3 | % | 97.8 | % | ||||||
| Payout Ratio on Earnings per share | 168.8 | % | 101.9 | % | 115.4 | % | ||||||
| Net Mortgage Investments | Q3 2025 | Q3 2024 | Q2 2025 | |||||||||
| Weighted Average Loan-to-Value | 67.9 | % | 63.8 | % | 66.0 | % | ||||||
| Weighted Average Remaining Term to Maturity | 0.9 yr | 0.9 yr | 0.9 yr | |||||||||
| First Mortgages | 93.6 | % | 87.1 | % | 91.6 | % | ||||||
| Cash-Flowing Properties | 82.0 | % | 83.2 | % | 76.3 | % | ||||||
| Multi-family residential | 56.5 | % | 59.8 | % | 54.4 | % | ||||||
| Floating Rate Loans with rate floors (at quarter end) | 85.8 | % | 77.9 | % | 87.4 | % | ||||||
| Weighted Average Interest Rate | ||||||||||||
| For the quarter ended | 8.3 | % | 9.3 | % | 8.6 | % | ||||||
| Weighted Average Lender Fee | ||||||||||||
| New and Renewed | 0.5 | % | 0.7 | % | 0.7 | % | ||||||
| New Net Mortgage Investment Only | 1.0 | % | 1.1 | % | 1.0 | % | ||||||
- Refer to non-IFRS measures section below for net mortgages, enhanced return portfolio investments and distributable income.
Quarterly Conference Call
Interested parties are invited to participate in a conference call with management on Thursday, October 30, 2025 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/86171188050?pwd=mLY8itS7PzfnrUBY6bLANodKM6POHP.1
Webinar ID: 861 7118 8050
Passcode: 1234
Or Telephone:
Dial(for higher quality, dial a number based on your current location):
Canada: +1 780 666 0144, +1 204 272 7920, +1 438 809 7799, +1 587 328 1099, +1 647 374 4685, +1 647 558 0588, +1 778 907 2071 International numbers available: https://us02web.zoom.us/u/kbE03DvhIf
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 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.
|
OPERATING RESULTS $ thousands |
Three months ended September 30, |
Nine months ended September 30, |
Year ended December 31, |
||||||||||||
| NET INCOME AND COMPREHENSIVE INCOME | 2025 | 2024 | 2025 | 2024 | 2024 | ||||||||||
| Net investment income on financial assets measured at amortized cost | $ | 25,422 | $ | 25,411 | $ | 79,229 | $ | 76,442 | $ | 104,344 | |||||
| Fair value gain and other income on financial assets measured at FVTPL | 81 | 291 | 225 | 863 | 1,041 | ||||||||||
| Net rental income/(loss) | (253 | ) | 459 | (178 | ) | 1,322 | 1,544 | ||||||||
| Net income from joint venture | 194 | — | 287 | — | — | ||||||||||
| Net gain/(loss) on sale of real estate properties | 100 | — | (2,302 | ) | — | — | |||||||||
| Gain on real estate held for sale collateral liability | — | — | 2,715 | — | 1,500 | ||||||||||
| Expenses: | |||||||||||||||
| Management fees | (2,790 | ) | (2,681 | ) | (8,316 | ) | (7,697 | ) | (10,548 | ) | |||||
| Servicing fees | (181 | ) | (132 | ) | (507 | ) | (435 | ) | (555 | ) | |||||
| Expected credit loss | (5,885 | ) | (252 | ) | (9,533 | ) | (1,067 | ) | (16,134 | ) | |||||
| General and administrative | (708 | ) | (564 | ) | (2,713 | ) | (2,527 | ) | (3,340 | ) | |||||
| Income from operations | $ | 15,980 | $ | 22,532 | $ | 58,907 | $ | 66,901 | $ | 77,852 | |||||
| Financing costs: | |||||||||||||||
| Financing cost on credit facility | (4,909 | ) | (5,865 | ) | (15,467 | ) | (15,721 | ) | (21,664 | ) | |||||
| Financing cost on convertible debentures | (2,613 | ) | (2,611 | ) | (7,840 | ) | (7,396 | ) | (10,031 | ) | |||||
| Net income and comprehensive income | $ | 8,458 | $ | 14,056 | $ | 35,600 | $ | 43,784 | $ | 46,157 | |||||
| Payout ratio on earnings per share | 168.8 | % | 101.9 | % | 120.4 | % | 98.1 | % | 124.1 | % | |||||
| DISTRIBUTABLE INCOME | |||||||||||||||
| Net income and comprehensive income | $ | 8,458 | $ | 14,056 | $ | 35,600 | $ | 43,784 | $ | 46,157 | |||||
| Less: Amortization of lender fees | (1,891 | ) | (1,342 | ) | (6,418 | ) | (4,425 | ) | (6,588 | ) | |||||
| Less: Accretion income, deferred consideration | (44 | ) | — | (103 | ) | — | — | ||||||||
| Less: Straight-line rent adjustment | (147 | ) | — | (147 | ) | — | — | ||||||||
| Add: Lender fees received and receivable | 1,200 | 1,139 | 3,941 | 4,146 | 7,610 | ||||||||||
| Add: Amortization expense, credit facility | 322 | 205 | 755 | 821 | 1,030 | ||||||||||
| Add: Amortization expense, convertible debentures | 294 | 291 | 881 | 819 | 1,110 | ||||||||||
| Add: Accretion expense, convertible debentures | 161 | 160 | 481 | 409 | 569 | ||||||||||
| Add: Unrealized fair value loss (gain) on DSU | (27 | ) | 146 | 89 | 211 | 38 | |||||||||
| Add: Unrealized (gain) loss on FVTPL | (34 | ) | 114 | (112 | ) | 305 | 304 | ||||||||
| Add: Realized gain on sale of real estate properties and real estate held for sale collateral liability | (100 | ) | — | (413 | ) | — | (1,500 | ) | |||||||
| Add: Expected credit loss | 5,885 | 252 | 9,533 | 1,067 | 16,134 | ||||||||||
| Distributable income | $ | 14,077 | $ | 15,021 | $ | 44,087 | $ | 47,137 | $ | 64,864 | |||||
| Payout ratio on distributable income | 101.4 | % | 95.3 | % | 97.2 | % | 91.1 | % | 88.3 | % | |||||
| PER SHARE INFORMATION | |||||||||||||||
| Dividends declared to shareholders | $ | 14,275 | $ | 14,319 | $ | 42,857 | $ | 42,957 | $ | 57,277 | |||||
| Weighted average common shares (in thousands) | 82,753 | 83,010 | 82,810 | 83,010 | 83,010 | ||||||||||
| Dividends per share | $ | 0.17 | $ | 0.17 | $ | 0.52 | $ | 0.52 | $ | 0.69 | |||||
| Earnings per share (basic) | $ | 0.10 | $ | 0.17 | $ | 0.43 | $ | 0.53 | $ | 0.56 | |||||
| Earnings per share (diluted) | $ | 0.10 | $ | 0.17 | $ | 0.43 | $ | 0.53 | $ | 0.56 | |||||
| Distributable income per share | $ | 0.17 | $ | 0.18 | $ | 0.53 | $ | 0.57 | $ | 0.78 | |||||
Net mortgage investments
(In thousands of Canadian dollars, except units, per unit amounts and where otherwise noted)
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 | September 30, 2025 | December 31, 2024 | ||||||
| Mortgage investments, excluding mortgage syndications | $ | 1,041,394 | $ | 1,078,238 | ||||
| Mortgage syndications | 628,341 | 427,263 | ||||||
| Mortgage investments, including mortgage syndications | 1,669,735 | 1,505,501 | ||||||
| Mortgage syndication liabilities | (628,341 | ) | (427,263 | ) | ||||
| 1,041,394 | 1,078,238 | |||||||
| Interest receivable | (17,438 | ) | (15,533 | ) | ||||
| Unamortized lender fees | 5,117 | 6,276 | ||||||
| Expected credit loss | 25,412 | 20,796 | ||||||
| Net mortgage investments | $ | 1,054,485 | $ | 1,089,777 | ||||
Enhanced return portfolio
| As at | September 30, 2025 | December 31, 2024 | ||||
| Other loan investments, net of expected credit loss | $ | 8,153 | $ | 30,912 | ||
| Finance lease receivable, measured at amortized cost | 6,020 | 6,020 | ||||
| Investment in participating debentures, measured at FVTPL | 842 | 756 | ||||
| Joint venture investment in indirect real estate development | 2,225 | 2,225 | ||||
| Investment in equity instrument, measured at FVTPL | 3,000 | 3,000 | ||||
| Total enhanced return portfolio | $ | 20,240 | $ | 42,913 | ||
Real estate held for sale, net of collateral liability
| As at | September 30, 2025 | December 31, 2024 | |||||
| Real estate held for sale | — | 132,635 | |||||
| Real estate held for sale collateral liability | — | (67,312 | ) | ||||
| Total real estate held for sale, net of collateral liability | $ | — | $ | 65,323 | |||
SOURCE: Timbercreek Financial
For further information, please contact:
Timbercreek Financial
Blair Tamblyn, CEO
Tracy Johnston, CFO
416-923-9967
www.timbercreekfinancial.com
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
