Timbercreek Financial Announces 2025 Fourth Quarter Results

Executive Summary

• Timbercreek Financial reported Q4 2025 net loss of $1.1 M (basic loss per share $0.01) driven by expected credit losses, fair‑value losses on mortgage investments and a legacy land sale loss.
• Net mortgage portfolio grew 13.7% YoY to $1.239 B, with originations of $333.9 M in new net mortgages during the quarter.
• Distributable income of $15.0 M supported a dividend of $14.3 M ($0.17 per share), yielding ~9.5% at the current share price.

Key Details

• Originations & Portfolio Growth – $333.9 M in new net mortgages; net mortgage portfolio up $149.5 M YoY and $184.8 M QoQ to $1,239.3 M.
• Weighted Average Interest Rate (WAIR) – 8.1% for the quarter, down 80 bps despite a 144 bps drop in the Bank of Canada prime rate; 88.8% of variable‑rate loans have interest‑rate floors.
• Net Investment Income – $25.7 M (down from $27.9 M YoY).
• Distributable Income – $15.0 M ($0.18 per share), supporting a dividend of $14.3 M ($0.17 per share) with a payout ratio of 95.3% on distributable income.
• Loss Drivers
• Expected credit losses (ECL): $8.3 M (down from $15.1 M YoY).
• Fair‑value loss on mortgage investments measured at FVTPL: $4.5 M.
• Legacy land inventory sale loss: $2.1 M (carrying value $6.3 M).
• Net Income Before ECL – $7.2 M (basic EPS before ECL $0.09).
• Dividend Yield – 9.5% at a share price of $7.27, representing a 7.1% premium over the 2‑year Canadian bond yield.
• Key Ratios – Weighted average loan‑to‑value: 67.4%; weighted average remaining term to maturity: 1.0 yr; first‑mortgage share of portfolio: 95.1%.
• Management Outlook – CEO Blair Tamblyn highlighted continued funding momentum into Q1 2026, focus on disposing legacy staged loans and redeploying capital into new bridge‑financing opportunities.

Notable Quotes

“We ended the year with strong transaction activity… positioning us to grow the portfolio in the year ahead,” — Blair Tamblyn, CEO.
“While the results reflect a reported net loss driven by valuations related to the resolution of legacy assets, the core portfolio continues to generate strong recurring income to support our monthly dividend.” — Blair Tamblyn, CEO.