Timbercreek Financial Announces 2025 Third Quarter Results

Executive Summary

• Timbercreek Financial reported Q3 2025 net investment income of $25.4 M, unchanged YoY, but net income fell to $8.5 M ($0.10 EPS) from $14.1 M a year earlier.
• Distributable income declined to $14.1 M ($0.17 per share); the company declared $14.3 M in dividends (‑$0.00 per share) with a payout ratio of 101.4%, remaining within its targeted range.
• The net mortgage investment portfolio grew to $1.054 B (+3.6% YoY) despite a $59.5 M quarterly drawdown, and the revolving credit facility was upsized to $600 M for two more years.

Key Details

• Net Investment Income: $25.4 M (Q3 2024: $25.4 M).
• Net Income before ECL: $14.3 M (flat YoY); basic EPS before ECL $0.17 (YoY).
• Net Income & Comprehensive Income: $8.5 M vs. $14.1 M a year earlier; basic EPS $0.10 vs. $0.17 YoY.
• Distributable Income: $14.1 M ($0.17 per share) vs. $15.0 M YoY.
• Dividends Declared: $14.3 M total, $0.17 per share; payout ratio 101.4% (target range 95‑105%).
• Dividend Yield: 9.5% at a closing price of $7.24, a 7.1% premium to the 2‑year Canadian bond yield.
• Mortgage Portfolio: Net mortgage investments $1.054 B (+3.6% YoY); Q2 2025 balance $1.114 B; $82.9 M repayment in September drove a $59.5 M quarterly decline.
• Weighted Average Interest Rate (WAIR): 8.3% for the quarter, down 100 bps despite a 175 bps drop in the Bank of Canada prime rate. Variable‑rate loans with floors now represent 85.8% of the portfolio (up from 77.9%).
• Expected Credit Loss (ECL): $5.9 M total; $3.0 M linked to a Calgary office asset in receivership, $2.1 M tied to a Vancouver retail redevelopment project.
• Credit Facility: Revolving facility increased from $510 M to $600 M, 2‑year term, improved economics.
• Transaction Pipeline: Over $200 M of funded and committed deals slated for Q4 2025.
• Operational Metrics (Q3 2025):
• Weighted average loan‑to‑value: 67.9% (up from 63.8%).
• First mortgages: 93.6% of portfolio (up from 87.1%).
• Cash‑flowing properties: 82.0% (down slightly).
• Multi‑family residential exposure: 56.5% (down from 59.8%).
• Conference Call: Management will discuss results on Thursday, Oct 30 2025 at 1:00 p.m. ET (Zoom link provided).

Notable Quotes

“Transaction volumes remained solid during the quarter… our investment pipeline continues to show strength… Although distributable income declined slightly this quarter, we remain within our targeted payout ratio year‑to‑date…” – Blair Tamblyn, CEO

“Despite short‑term share price volatility, we are delivering strong, risk‑adjusted returns… 10‑year IRR exceeding 7.8% highlights our consistent long‑term performance.” – Blair Tamblyn, CEO