TORONTO, May 06, 2024 (GLOBE NEWSWIRE) -- Timbercreek Financial (TSX:TF) (the "Company") announced today its financial results for the three months ended March 31, 2024 ("Q1 2024"). Q1 2024 Highlights1 The net mortgage investment portfolio increased by $31.3 million to $977.5 million at the end of Q1 2024 from $946.2 million at the end of Q4 2023 (Q1 2023 – $1,149.1 million). Strong quarter of originations made possible by anticipated repayments: $198.5 million in net mortgage investments in the quarter. The repayments in the quarter are welcomed as delinquent loans repaid, positioning the Company for growth through the origination of loans based on re-set market fundamentals through 2024 and 2025. Distributed a total of $19.1 million in dividends to shareholders, comprising of a one-time special dividend of $4.8 million, or $0.0575 per share and regular monthly dividends of $14.3 million, or $0.17 per share, resulting in a payout ratio of 90.6%. After paying the special dividend, book value per share was $8.39 versus $8.37 in Q1 2023, demonstrating the Company's ability to pay a special dividend and grow book value. Net investment income of $24.6 million compared to $32.7 million in Q1 2023. Net income and comprehensive income of $14.4 million (Q1 2023 – $18.1 million) or basic earnings per share of $0.17 (Q1 2023 – $0.22). Distributable income of $15.8 million (Q1 2023 – $18.3 million) or distributable income per share of $0.19 (Q1 2023 – $0.22 per share) representing a payout ratio of 90.6% (Q1 2023 – 79.1%) for the quarter. The quarterly weighted average interest rate on net mortgage investments was 9.9% in Q1 2024, compared to 10.0% in Q4 2023 (Q1 2023 – 9.7%). Interest rate exposure in the net mortgage investment portfolio was well protected at the end of Q1 2024 floating rate loans with rate floors representing 88.6% (Q1 2023 – 88.2%). Maintained conservative portfolio risk composition focused on income-producing commercial real estate: 64.4% weighted average loan-to-value;         85.7% first mortgages in mortgage investment portfolio; and 85.7% of mortgage investment portfolio is invested in cash-flowing properties. The Company continues to closely manage its Stage 2 and 3 assets and made material progress on resolutions during Q1 2024. The Company's management team is very experienced in managing these situations and is well positioned to work through these loans to ensure the best outcomes in light of the current economic environment. The Company renewed its credit facility for 24 months extending the maturity date to February 8, 2026. "During the first quarter of 2024, we were able to generate solid income levels and deliver on our monthly distribution at a comfortable payout ratio while continuing to focus on re-deploying capital that is being generated from desired repayments," said Blair Tamblyn, CEO of Timbercreek Financial. "The lower quarter-end portfolio balance reflects two quarters of significant repayments, including the desired repayment of the larger Quebec City portfolio of loans in early January 2024. This was the primary factor in the reduced top-line income versus last year's first quarter, which represented a high-water mark for net investment income over the past two years. However, interest expense on the credit facility also declined on a smaller portfolio balance, allowing us to maintain net income margins. While we were intentionally cautious on new lending activity through much of 2023, our team remains optimistic that a stable interest rate environment in 2024 will promote increased commercial real estate activity and present attractive risk-adjusted opportunities for us to expand the portfolio back to historical levels. It was a strong first quarter for originations during what is typically a competitive period, which allowed us to grow the portfolio modestly from year-end levels." Mr. Tamblyn added: "At the same time, our team continues to make headway on the Stage 2 and Stage 3 loans. We are adept and experienced at actively managing these situations to ensure the best outcomes for our shareholders – that remains a key focus in the coming quarters." Quarterly Comparison $ millions Q1 2024     Q1 2023   Q4 2023               Net Mortgage Investments 1 $ 977.5       $ 1,149.1     $ 946.2   Enhanced Return Portfolio Investments 1 $ 63.4       $ 59.4     $ 62.7   Real Estate Inventory, net of collateral liability $ 92.8       $ 30.3     $ 92.6                 Net Investment Income $ 24.6       $ 32.7     $ 29.7   Income from Operations $ 20.9       $ 28.3     $ 25.1   Net Income and comprehensive Income $ 14.4       $ 18.1     $ 15.0   --Adjusted Net Income and comprehensive Income $ 14.2       $ 18.0     $ 14.7   Distributable income 1 $ 15.8       $ 18.3     $ 17.5   Dividends declared to Shareholders2 $ 14.3       $ 14.5     $ 14.3                 $ per share Q1 2024     Q1 2023   Q4 2023               Dividends per share $ 0.17       $ 0.17     $ 0.17   Distributable income per share 1 $ 0.19       $ 0.22     $ 0.21   Earnings per share $ 0.17       $ 0.22     $ 0.18   --Adjusted Earnings per share $ 0.17       $ 0.21     $ 0.18                 Payout Ratio on Distributable Income 1   90.6 %       79.1 %     82.0 % Payout Ratio on Earnings per share   99.7 %       79.8 %     95.8 % --Payout Ratio on Adjusted Earnings per share   100.8 %       80.1 %     97.7 %               Net Mortgage Investments Q1 2024     Q1 2023   Q4 2023               Weighted Average Loan-to-Value   64.4 %       68.5 %     65.6 % Weighted Average Remaining Term to Maturity   0.8 yr       0.8 yr     0.7 yr First Mortgages   85.7 %       92.0 %     88.9 % Cash-Flowing Properties   85.7 %       89.0 %     86.0 % Multi-family residential   54.6 %       50.8 %     56.5 % Floating Rate Loans with rate floors (at quarter end)