Q3 2024 Timbercreek Financial Corp Earnings Call Transcript
Key Points
- Timbercreek Financial Corp (TBCRF) reported stable cash flows and dividends despite reduced transaction volume in the commercial real estate markets.
- The company increased its overall portfolio of loan investments in each of the first three quarters of 2024.
- Net investment income for Q3 was $25.4 million, with a net income of $14.1 million.
- The portfolio remains conservatively invested, with first mortgages representing 87.1% of the portfolio.
- The company anticipates increased financing opportunities as market conditions improve and expects a widening spread between its dividend yield and other fixed income alternatives.
- The commercial real estate market activity remains muted, affecting transaction volumes.
- The weighted average interest rate decreased from 9.8% in Q2 to 9.3% in Q3, reflecting higher interest rate loans being repaid.
- The average net mortgage investment portfolio balance was 11% lower than the previous year.
- The payout ratio on distributable income was high at 95%, indicating limited room for dividend increases.
- There were movements within stage loans, with some loans advancing to stage 3, indicating potential risk in certain investments.
Good day. Ladies and gentlemen, welcome to Timbercreek Financials third quarter earnings call. (Operator Instructions) Following the presentation, we will conduct a question-and-answer session for analysts. Analysts are asked to raise their hand to register for a question.
As a reminder, today's call is being recorded. I would now like to turn the meeting over to Blair Tamblyn. Please go ahead.
Thank you, operator. Good afternoon, everyone.
Thanks for joining us to discuss the third quarter financial results. I am joined as usual by Scott Rowland, CIO, Tracy Johnston CFO and Geoff McTait, Head of Canadian Originations and Global Syndications.
Our Q3 results were highlighted by stable cash flows and dividends in spite of reduced transaction volume due to volatility in the commercial real estate markets. However, the latter part of Q3 and the first part of Q4 have seen stabilization of the commercial real estate environment generally with a
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investors’ 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
