Timbercreek Financial Announces 2025 Second Quarter Results

Executive Summary

• Timbercreek Financial reported its financial results for the three and six months ended June 30, 2025, showing a decline in net income and distributable income compared to the same period in 2024.
• The company declared a dividend of $0.17 per share for Q2 2025, maintaining the same payout as Q1 2025 and Q2 2024, resulting in a distributable income payout ratio of 97.8%.
• The net mortgage investment portfolio grew to $1,114.0 million in Q2 2025, with significant progress made in resolving staged loans, including over $80 million addressed in Q2 and early Q3.

Key Details

• Net Investment Income: $25.2 million for Q2 2025, down from $26.4 million in Q2 2024.
• Net Income: $12.4 million for Q2 2025 (EPS: $0.15), compared to $15.4 million (EPS: $0.19) in Q2 2024.
• Distributable Income: $14.6 million for Q2 2025 ($0.18 per share), down from $16.3 million ($0.20 per share) in Q2 2024.
• Dividends Declared: $14.3 million total, or $0.17 per share, representing a 97.8% payout ratio on distributable income (vs. 87.8% in Q2 2024).
• Net Mortgage Investments: Increased by $34.8 million from Q1 2025 to $1,114.0 million in Q2 2025; up $110.6 million (11.0%) year-over-year.
• Loan Resolution: Over $80.0 million of Stage 2 and 3 loans addressed in Q2 2025 and July 2025 ($64.5 million in Q2, $18.2 million in July).
• Portfolio Metrics:
  • Weighted Average Interest Rate (WAIR): 8.6% for the quarter ended June 30, 2025 (vs. 9.8% in Q2 2024).
  • Variable rate loans with rate floors: 87.4% of the portfolio (vs. 78.3% in Q2 2024).
  • Weighted Average Loan-to-Value: 66.0%.
  • First Mortgages: 91.6% of the portfolio.
  • Multi-family residential exposure: 54.4% of the portfolio.
• Enhanced Return Portfolio: $20.1 million as of June 30, 2025, down from $62.0 million in Q2 2024.
• Real Estate Inventory: $28.8 million as of June 30, 2025.
• Joint Venture: $18.2 million as of June 30, 2025.
• Conference Call: Scheduled for July 31, 2025, at 1:00 p.m. ET.

Notable Quotes

• “The second quarter delivered solid performance across most key metrics,” said Blair Tamblyn, CEO of Timbercreek Financial. “Despite ongoing tariff-related macro volatility, commercial real estate conditions are positive in our key segments, and this is reflected in our growing portfolio and pipeline. Rates have stabilized in a more typical range, creating a positive backdrop as we look to further portfolio expansion. We’re also pleased with the progress on our remaining staged loans, which is freeing up capital for new, higher-yielding investments.”