Timbercreek Financial Corp (TBCRF) Q1 2025 earnings call Highlights: strong dividend cover …

Appearance date: May 06, 2025

You can find the complete copy of the earnings call in the complete earnings call.

• Timbercreek Financial Corp (TBCRF) reported a solid quarter with a net investment result of $ 27.9 million in the fourth quarter.

• The company generated a distributable income of $ 0.19 per share with a payout rate of 93%, which indicates strong dividend insurance.

• The first mortgages made up 88.3% of the portfolio, with the trend towards an increase in this percentage to 90% and the portfolio option increases.

• The company successfully completed the sale of three high -ranking residential facilities and frees capital for higher mortgage investments.

• Timbercreek Financial Corp (TBCRF) is well positioned to use capital in high-quality loans with a portfolio balance of almost $ 1.1 billion.

• The market volatility from tariff disputes has led to delays in some transactions, although they are expected to be temporary.

• The weighted average interest rate dropped from 8.9% in the fourth quarter to 8.7% in the first quarter, which reflects the interest reductions of the Bank of Canada, which could affect income.

• Due to changes in level 2 and level 3 loans, the company recorded a reserve for net mortgage investments and other loans of USD 1.6 million.

• On the condominium market, in particular, Toronto printed, which could indirectly influence the ratings and demand from the multi-family world trauma.

• Timbercreek Financial Corp (TBCRF) will compete by other lenders, some of whom can offer irrational offers that affect the market share.

Q: Can you explain your trust in relation to the improvement of level 2 and 3 loans? Is this based on certain situations or a general trust in the navigation of training situations? A: Blair Tamblin, CEO: We have clear resolutions of 80 million US dollars this quarter. For the remaining 220 million US dollars, we continue to work on resolutions that benefit our shareholders and we remain confident in our approach.

Q: Is there any impact on the multi -family area with the current pressure on the condominium market in terms of ratings, vacancy or investor's demand? A: Scott Roland, CIO: The condominium market varies depending on the city, with Toronto experiencing price weakness. However, Timbercreek Financial is not exposed to a single units of owners. Our focus on conventional apartment assets, which are usually older and cheaper, remains stable and well occupied.