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Timbercreek Financial Announces 2026 First Quarter Results
TORONTO, May 05, 2026 (GLOBE NEWSWIRE) -- Timbercreek Financial (TSX: TF) (the “Company”) announced today its financial results for the three months ended March 31, 2026 (“Q1 2026”).
“Origination activity was solid in the first quarter, supported by improving market conditions and a strong pipeline of new opportunities across our core asset classes. This positions us well for portfolio growth through the balance of the year,” said Blair Tamblyn, CEO of Timbercreek Financial. “Importantly, we are making steady progress resolving legacy staged loans and redeploying that capital into high‑quality, income‑producing investments, which we expect will strengthen the earnings power of the portfolio and be substantially complete through 2026.”
Q1 2026 Highlights1
- The Company had a strong Q1 2026 for originations advancing $224.2 million in new net mortgages and existing net mortgages. This drove an increase in the net mortgage portfolio of $160.9 million or 14.9% year-over-year to $1,240.1 million and consistent with Q4 2025. The Company expects this increased funding momentum to continue during 2026 focused on multi-family opportunities across its target markets.
- Steady top-line income and distributable income to support monthly dividend:
- Net investment income of $25.1 million compared to $28.6 million in Q1 2025.
- Distributable income of $14.5 million ($0.18 per share) compared with $15.4 million ($0.19 per share) in Q1 2025.
- Net income and comprehensive income of $10.4 million (Q1 2025 – $14.8 million) or basic earnings per share of $0.13 (Q1 2025 – $0.18)
- Expected credit losses ("ECL") of $3.7 million in the quarter (Q1 2025 - $1.6 million), reflective of firm sales prices for two of the Stage 3 office/retail net mortgages sold in Q2 2026;
- Net income and comprehensive income before expected credit losses ("ECL") of $14.1 million (Q1 2025 - $16.3 million) or basic earnings per share before ECL of $0.17 (Q1 2025 - $0.20)
- Declared a total of $14.3 million in dividends to shareholders, or $0.17 per share, representing distributable income payout ratio of 98.5% (Q1 2025 – 92.8%), and an EPS payout ratio of 137.6% (Q1 2025 – 96.9%) on earnings per share.
- Active resolution of Stage 2 and Stage 3 mortgage investments, with recovered capital being redeployed into high‑quality, income‑producing loans to support earnings and distributable income; substantial capital recycling expected to be completed through 2026.
- The weighted average interest rate ("WAIR") on the portfolio moderated during the quarter to 7.7%, reflecting broader policy rate reductions and the repayment of higher‑rate loans. This is being offset by lower funding costs, opportunities to capture incremental credit spreads, and higher fee income associated with increased transaction activity. At the end of Q1 2026, variable rate loans with rate floors represented 88.4% of the portfolio (Q1 2025 – 84.8%).
Quarterly Comparison
| $ millions | Q1 2026 | Q1 2025 | Q4 2025 | |||||||||
| Net Mortgage Investments | $ | 1,240.1 | $ | 1,079.2 | $ | 1,239.3 | ||||||
| Enhanced Return Portfolio Investments | $ | 32.0 | $ | 43.3 | $ | 31.7 | ||||||
| Real Estate Inventory | $ | 23.0 | $ | 29.6 | $ | 23.0 | ||||||
| Joint Venture | $ | 18.5 | $ | 18.1 | $ | 18.4 | ||||||
| Net Investment Income | $ | 25.1 | $ | 28.6 | $ | 25.7 | ||||||
| Income from Operations | $ | 18.5 | $ | 23.3 | $ | 6.8 | ||||||
| Net income (loss) and comprehensive Income | $ | 10.4 | $ | 14.8 | $ | (1.1 | ) | |||||
| Net income and comprehensive income before ECL | $ | 14.1 | $ | 16.3 | $ | 7.2 | ||||||
| Distributable income | $ | 14.5 | $ | 15.4 | $ | 15.0 | ||||||
| Dividends declared to Shareholders | $ | 14.3 | $ | 14.3 | $ | 14.3 | ||||||
| $ per share | Q1 2026 | Q1 2025 | Q4 2025 | |||||||||
| Dividends per share | $ | 0.17 | $ | 0.17 | $ | 0.17 | ||||||
| Distributable income per share | $ | 0.18 | $ | 0.19 | $ | 0.18 | ||||||
| Earnings (loss) per share | $ | 0.13 | $ | 0.18 | $ | (0.01 | ) | |||||
| Payout Ratio on Distributable Income | 98.5 | % | 92.8 | % | 95.3 | % | ||||||
| Payout Ratio on Earnings per share | 137.6 | % | 96.9 | % | n/a | |||||||
| Net Mortgage Investments | Q1 2026 | Q1 2025 | Q4 2025 | |||||||||
| Weighted Average Loan-to-Value | 66.5 | % | 66.2 | % | 67.4 | % | ||||||
| Weighted Average Remaining Term to Maturity |
1.0 yr |
0.9 yr |
1.0 yr |
|||||||||
| First Mortgages | 94.7 | % | 88.3 | % | 95.1 | % | ||||||
| Cash-Flowing Properties | 81.2 | % | 79.7 | % | 83.7 | % | ||||||
| Multi-Family Residential | 59.7 | % | 60.2 | % | 62.2 | % | ||||||
| Variable Rate Loans with rate floors | 88.4 | % | 84.8 | % | 88.8 | % | ||||||
| Weighted Average Interest Rate | ||||||||||||
| For the quarter ended | 7.7 | % | 8.7 | % | 8.1 | % | ||||||
| Weighted Average Lender Fee | ||||||||||||
| New and Renewed | 1.0 | % | 0.9 | % | 0.8 | % | ||||||
| New Net Mortgage Investment Only | 1.0 | % | 1.1 | % | 0.9 | % | ||||||
Quarterly Conference Call
Interested parties are invited to participate in a conference call with management on Wednesday, May 6, 2026 at 1:00 p.m. (ET) which will be followed by a question and answer period with analysts.
To join the Zoom Webinar:
If you are a Guest, please click the link below to join:
https://us02web.zoom.us/j/81639630215?pwd=diyKGXS2wrSOjau9Ut7m3cQZVJB0uf.1
Webinar ID: 816 3963 0215
Passcode: 1234
Or Telephone:
Dial(for higher quality, dial a number based on your current location):
Canada: +1 204 272 7920 +1 438 809 7799 +1 587 328 1099 +1 647 374 4685 +1 647 558 0588 +1 778 907 2071 +1 780 666 0144 International numbers available: https://us02web.zoom.us/u/kbE03DvhIf
The playback of the conference call will also be available on www.timbercreekfinancial.com following the call.
About the Company
Timbercreek Financial is a leading non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate professionals. Our sophisticated, service-oriented approach allows us to meet the needs of borrowers, including faster execution and more flexible terms that are not typically provided by Canadian financial institutions. By employing thorough underwriting, active management and strong governance, we are able to meet these needs while generating strong risk-adjusted yields for investors. Further information is available on our website, www.timbercreekfinancial.com.
Non-IFRS Measures
The Company prepares and releases financial statements in accordance with IFRS. As a complement to results provided in accordance with IFRS, the Company discloses certain financial measures not recognized under IFRS and that do not have standard meanings prescribed by IFRS (collectively the "non-IFRS measures"). These non-IFRS measures are further described in Management's Discussion and Analysis ("MD&A") available on SEDAR+. Certain non-IFRS measures relating to net mortgages have been shown below. The Company has presented such non-IFRS measures because the Manager believes they are relevant measures of the Company’s ability to earn and distribute cash dividends to shareholders and to evaluate its performance. The following non-IFRS financial measures should not be construed as alternatives to total net income and comprehensive income or cash flows from operating activities as determined in accordance with IFRS as indicators of the Company’s performance.
Certain statements contained in this news release may contain projections and "forward looking statements" within the meaning of that phrase under Canadian securities laws. When used in this news release, the words "may", "would", "should", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect", "objective" and similar expressions may be used to identify forward looking statements. By their nature, forward looking statements reflect the Company's current views, beliefs, assumptions and intentions and are subject to certain risks and uncertainties, known and unknown, including, without limitation, those risks disclosed in the Company's public filings. Many factors could cause actual results, performance or achievements to be materially different from any future results, performance or achievements that may be expressed or implied by these forward looking statements. The Company does not intend to nor assumes any obligation to update these forward looking statements whether as a result of new information, plans, events or otherwise, unless required by law.
| OPERATING RESULTS1 | Three months ended March 31, |
Year ended December 31, |
|||||||||
| NET INCOME AND COMPREHENSIVE INCOME | 2026 | 2025 | 2025 | ||||||||
| Net investment income on financial assets measured at amortized cost | $ |
25,130 | $ |
28,573 | $ |
104,913 | |||||
| Revenue from real estate properties | $ |
49 | $ | 3,158 | $ | 3,585 | |||||
| Total revenue, net of mortgage syndication | $ |
25,179 | $ | 31,731 | $ | 108,498 | |||||
| Management fees | (2,931 | ) |
(2,903 | ) | (11,185 | ) | |||||
| Servicing fees | (198 | ) |
(134 | ) | (686 | ) | |||||
| Expected credit loss | (3,705 | ) |
(1,554 | ) | (17,877 | ) | |||||
| General and administrative | (674 | ) |
(1,027 | ) | (3,234 | ) | |||||
| Expense from real estate properties | (137 | ) |
(2,321 | ) | (3,755 | ) | |||||
| Total operating expenses | (7,645 | ) |
(7,939 | ) | (36,737 | ) | |||||
| Total other income and expenses | 916 | (452 | ) | (6,104 | ) | ||||||
| Income from operations | $ |
18,450 | $ | 23,340 | $ | 65,657 | |||||
| Financing costs: | |||||||||||
| Financing cost on credit facility | (5,464 | ) |
(5,955 | ) | (20,751 | ) | |||||
| Financing cost on convertible debentures | (2,613 | ) |
(2,613 | ) | (10,453 | ) | |||||
| Net income and comprehensive income | $ |
10,373 | $ | 14,772 | $ | 34,453 | |||||
| Payout ratio on earnings per share | 137.6 | % |
96.9 | % | 165.8 | % | |||||
| NET INCOME BEFORE EXPECTED CREDIT LOSS | |||||||||||
| Net income and comprehensive income | $ |
10,373 | $ | 14,772 | $ | 34,453 | |||||
| Add: Expected credit loss | 3,705 | 1,554 | 17,877 | ||||||||
| Net income before expected credit loss1 | $ |
14,078 | $ | 16,326 | $ | 52,330 | |||||
| DISTRIBUTABLE INCOME | |||||||||||
| Net income and comprehensive income | $ |
10,373 | $ | 14,772 | $ | 34,453 | |||||
| Add: Expected credit loss | 3,705 | 1,554 | 17,877 | ||||||||
| Add: Lender fees received and receivable | 1,898 | 1,339 | 6,671 | ||||||||
| Add: Amortization expense, credit facility | 268 | 212 | 1,150 | ||||||||
| Add: Amortization expense, convertible debentures | 294 | 294 | 1,175 | ||||||||
| Add: Accretion expense, convertible debentures | 160 | 160 | 641 | ||||||||
| Add: Straight-line rent adjustment | 15 | — | (132 | ) | |||||||
| Less: Amortization income of lender fees | (1,848 | ) |
(2,779 | ) | (8,491 | ) | |||||
| Less: Accretion income, deferred consideration | (44 | ) |
— | (147 | ) | ||||||
| Less: (Gain) loss on DSU | (26 | ) |
(97 | ) | (53 | ) | |||||
| Less: (Gain) loss on FVTPL investments | (56 | ) |
(36 | ) | 4,414 | ||||||
| Less: (Gain) loss on sale of real estate | (240 | ) |
— | 1,505 | |||||||
| Distributable income1 | $ |
14,499 | $ | 15,419 | $ | 59,063 | |||||
| Payout ratio on distributable income1 | 98.5 | % |
92.8 | % | 96.7 | % | |||||
| PER SHARE INFORMATION | |||||||||||
| Dividends declared to shareholders | $ |
14,275 | $ | 14,307 | $ | 57,132 | |||||
| Weighted average common shares (in thousands) | 82,753 | 82,981 | 82,810 | ||||||||
| Dividends per share | $ |
0.17 | $ | 0.17 | $ | 0.69 | |||||
| Earnings per share (basic) | $ |
0.13 | $ | 0.18 | $ | 0.42 | |||||
| Earnings per share (diluted) | $ |
0.13 | $ | 0.18 | $ | 0.42 | |||||
| Earnings per share before expected credit loss1 | $ |
0.17 | $ | 0.20 | $ | 0.63 | |||||
| Distributable income per share1 | $ |
0.18 | $ | 0.19 | $ | 0.71 | |||||
- Refer to non-IFRS measures section.
Net mortgage investments
(In thousands of Canadian dollars, except units, per unit amounts and where otherwise noted)
The Company’s exposure to the financial returns is related to the net mortgage investments as mortgage syndication liabilities are non-recourse mortgages with periodic variance having no impact on Company's financial performance. Reconciliation of gross and net mortgage investments balance is as follows:
| As at March 31, 2026 | As at December 31, 2025 | |||||||||||
| Number | Carrying Amount |
% of Portfolio |
Number | Carrying Amount |
% of Portfolio |
|||||||
| Multi-Residential | 77 | $ | 739,540 | 59.7 | % | 82 | $ | 770,490 | 62.2 | % | ||
| Retail | 5 | 143,724 | 11.6 | % | 4 | 140,006 | 11.3 | % | ||||
| Industrial | 13 | 135,264 | 10.9 | % | 14 | 131,821 | 10.6 | % | ||||
| Office | 4 | 61,281 | 4.9 | % | 5 | 61,183 | 4.9 | % | ||||
| Improved Land | 6 | 83,792 | 6.8 | % | 7 | 83,388 | 6.7 | % | ||||
| Unimproved Land | 3 | 61,098 | 4.9 | % | 3 | 24,027 | 2.0 | % | ||||
| Single-Residential | 2 | 220 | 0.0 | % | 3 | 13,507 | 1.1 | % | ||||
| Mortgages at Amortized Cost | 110 | 1,224,919 | 98.8 | % | 118 | 1,224,422 | 98.8 | % | ||||
| Mortgages at FVTPL | 4 | 15,193 | 1.2 | % | 4 | 14,896 | 1.2 | % | ||||
| Net mortgage investments | 114 | 1,240,112 | 100.0 | % | 122 | $ | 1,239,318 | 100.0 | % | |||
| Accrued interest receivable | 18,840 | 17,898 | ||||||||||
| Expected credit loss | (33,985 | ) | (30,281 | ) | ||||||||
| Unamortized lender fee | (5,504 | ) | (5,419 | ) | ||||||||
| Mortgage syndications | 776,111 | 673,626 | ||||||||||
| Mortgage investments, including mortgage syndications | 1,995,574 | 1,895,142 | ||||||||||
Enhanced return portfolio
| As at | March 31, 2026 | December 31, 2025 | |||
| Other loan investments, net of expected credit loss | $ | 22,114 | $ | 21,460 | |
| Finance lease receivable, measured at amortized cost | 6,020 | 6,020 | |||
| Investment in participating debentures, measured at FVTPL | 896 | 863 | |||
| Joint venture investment in indirect real estate development | — | 325 | |||
| Investment in equity instrument, measured at FVTPL | 3,000 | 3,000 | |||
| Total enhanced return portfolio | $ | 32,030 | $ | 31,668 | |
SOURCE: Timbercreek Financial
For further information, please contact:
Timbercreek Financial
Blair Tamblyn, CEO
Tracy Johnston, CFO
416-923-9967
www.timbercreekfinancial.com
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