TORONTO, Feb. 25, 2026 (GLOBE NEWSWIRE) -- Timbercreek Financial (TSX: TF) (the "Company") announced today its financial results for the three months and year ended December 31, 2025 ("Q4 2025").
Q4 2025 Highlights1
- The Company had a strong Q4 2025 for originations advancing $333.9 million in new net mortgages and existing net mortgages. This drove an increase in the net mortgage portfolio of $149.5 million or 13.7% year-over-year and an increase of $184.8 million or 18.3% over Q3 2025 to $1,239.3 million. The Company expects this increased funding momentum to continue into Q1 2026 with predominantly multi-family opportunities across its target markets.
- The weighted average interest rate ("WAIR") on the portfolio remains resilient due to a high percentage of variable rate loans protected by interest rate floors - as indicated by the Company's WAIR decreasing by 80 bps versus the 144 bps reduction in the Bank of Canada prime rate over the same 12 month period. At the end of Q4 2025, variable rate loans with rate floors represented 88.8% of the portfolio (Q4 2024 - 80.4%) and 94.5% of these variable rate loans with floors are currently at their floor rates.
- Steady top-line income and distributable income to support monthly dividend:
- Net investment income of $25.7 million compared to $27.9 million in Q4 2024.
- Distributable income of $15.0 million ($0.18 per share) compared with $17.7 million ($0.21 per share) in Q4 2024.
- Net loss and comprehensive loss of $1.1 million (Q4 2024 - net income of $2.4 million) or basic loss per share of $0.01 (Q4 2024 - basic earnings per share $0.03) impacted by the following:
- Expected credit losses ("ECL") of $8.3 million in the quarter (Q4 2024 - $15.1 million), driven by current market appraisals;
- A net fair value loss on net mortgage investments measured at FVTPL of $4.5 million reflecting a lower-than-expected sale price of the underlying collateral assets (2024 - nil); and
- A loss of $2.1 million from the sale of legacy land inventory (including an operating marina) against $6.3 million in carrying value. In Q4 2025 the Company incurred an operating loss of $0.6 million (Q4 2024 - loss $0.6 million) which will not recur going-forward.
- Net income and comprehensive income before expected credit losses ("ECL") of $7.2 million (Q4 2024 - $17.4 million) or basic earnings per share before ECL of $0.09 (Q4 2024 - $0.21)
- Declared a total of $14.3 million in dividends to shareholders, or $0.17 per share, representing a payout ratio of n/a (Q4 2024 - 603.4%) on earnings per share, and distributable income payout ratio of 95.3% (Q4 2024 - 80.8%). On a year-to-date basis the distributable income payout ratio was within the Company's targeted range at 96.7% and the Company expects the full year payout ratio to remain within this range.
- At the current trading price of $7.27, the dividend represents a 9.5% yield - a 7.1% premium over the 2-year Canadian bond yield (2.4% as at February 23, 2026).
"We ended the year with strong transaction activity, reflecting improving conditions across Canadian commercial real estate markets, and this momentum has continued into 2026, positioning us to grow the portfolio in the year ahead," said Blair Tamblyn, CEO of Timbercreek Financial. "The current environment of lower floating interest rates is especially advantageous, aligning well with our typical bridge financing strategy. In addition to a strong new business pipeline, we have begun to expand our margins as rates have trended downward, further enhancing the earnings profile of the portfolio."
Mr. Tamblyn added: "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. Over our 18-year track record we have successfully navigated changing interest rate environments while maintaining dividend stability. We remain focused on resolving legacy staged loans, and anticipate disposing of the majority over the coming year, redeploying this capital into new investments that are aligned with our current strategy and enhance the portfolio's earnings capacity over time."
Quarterly Comparison
| $ millions | Q4 2025 | Q4 2024 | Q3 2025 | |||||||||
| Net Mortgage Investments | - | 1,239.3 | - | 1,089.8 | - | 1,054.5 | ||||||
| Enhanced Return Portfolio Investments | - | 31.7 | - | 42.9 | - | 20.2 | ||||||
| Real Estate Inventory | - | 23.0 | - | 32.5 | - | 28.2 | ||||||
| Real Estate held for sale, net of collateral liability | - | - | - | 65.3 | - | - | ||||||
| Joint Venture | - | 18.4 | - | - | - | 18.4 | ||||||
| Net Investment Income | - | 25.7 | - | 27.9 | - | 25.4 | ||||||
| Income from Operations | - | 6.8 | - | 11.0 | - | 16.0 | ||||||
| Net (loss) income and comprehensive Income | - | (1.1 | - | - | 2.4 | - | 8.5 | |||||
| Net income and comprehensive income before ECL | - | 7.2 | - | 17.4 | - | 14.3 | ||||||
| Distributable income | - | 15.0 | - | 17.7 | - | 14.1 | ||||||
| Dividends declared to Shareholders | - | 14.3 | - | 14.3 | - | 14.3 | ||||||
| $ per share | Q4 2025 | Q4 2024 | Q3 2025 | |||||||||
| Dividends per share | - | 0.17 | - | 0.17 | - | 0.17 | ||||||
| Distributable income per share | - | 0.18 | - | 0.21 | - | 0.17 | ||||||
| (Loss) Earnings per share | - | (0.01 | - | - | 0.03 | - | 0.10 | |||||
| Payout Ratio on Distributable Income | 95.3 | - | 80.8 | - | 101.4 | - | ||||||
| Payout Ratio on Earnings per share | n/a | 603.4 | - | 168.8 | - | |||||||
| Net Mortgage Investments | Q4 2025 | Q4 2024 | Q3 2025 | |||||||||
| Weighted Average Loan-to-Value | 67.4 | - | 63.3 | - | 67.9 | - | ||||||
| Weighted Average Remaining Term to Maturity | 1.0 yr | 1.0 yr | 0.9 yr | |||||||||
| First Mortgages | 95.1 | - | 89.6 | - | 93.6 | - | ||||||
| Cash-Flowing Properties | 83.7 | - | 81.9 | - | 82.0 | - | ||||||
| Multi-family residential | 62.2 | - | 59.8 | - | 56.5 | - | ||||||
| Floating Rate Loans with rate floors (at quarter end) | 88.8 | - | 80.4 | - | 85.8 | - | ||||||
| Weighted Average Interest Rate | ||||||||||||
| For the quarter ended | 8.1 | - | 8.9 | - | 8.3 | - | ||||||
| Weighted Average Lender Fee | ||||||||||||
| New and Renewed | 0.8 | - | 1.0 | - | 0.5 | - | ||||||
| New Net Mortgage Investment Only | 0.9 | - | 1.2 | - | 1.0 | - | ||||||
Quarterly Conference Call
Interested parties are invited to participate in a conference call with management on Thursday, February 26, 2026 at 2:30 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/87053098951?pwd=mGm00HBHJD4mTkr8JlJ1IuGzvspe6A.1
Webinar ID: 870 5309 8951
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 RESULTS | Three months ended December 31, | Year ended December 31, | |||||||||||||
| NET INCOME AND COMPREHENSIVE INCOME | 2025 | 2024 | 2025 | 2024 | 2023 | ||||||||||
| Net investment income on financial assets measured at amortized cost | - | 25,684 | - | 27,902 | - | 104,913 | - | 104,344 | - | 124,205 | |||||
| Fair value (loss) gain and other income on financial assets measured at FVTPL | (4,548 | - | 178 | (4,323 | - | 1,041 | 1,282 | ||||||||
| Net rental (loss) income | (563 | - | 222 | (741 | - | 1,544 | (595 | - | |||||||
| Net income from joint venture | 8 | - | 295 | - | - | ||||||||||
| Net loss on sale of real estate properties | (1,918 | - | - | (4,220 | - | - | - | ||||||||
| Gain on real estate held for sale collateral liability | - | 1,500 | 2,715 | 1,500 | 63 | ||||||||||
| Expenses: | |||||||||||||||
| Management fees | (2,869 | - | (2,851 | - | (11,185 | - | (10,548 | - | (11,842 | - | |||||
| Servicing fees | (179 | - | (120 | - | (686 | - | (555 | - | (735 | - | |||||
| Expected credit loss | (8,344 | - | (15,067 | - | (17,877 | - | (16,134 | - | (3,649 | - | |||||
| General and administrative | (521 | - | (813 | - | (3,234 | - | (3,340 | - | (2,914 | - | |||||
| Income from operations | - | 6,750 | - | 10,951 | - | 65,657 | - | 77,852 | - | 105,815 | |||||
| Financing costs: | |||||||||||||||
| Financing cost on credit facility | (5,284 | - | (5,943 | - | (20,751 | - | (21,664 | - | (30,396 | - | |||||
| Financing cost on convertible debentures | (2,613 | - | (2,635 | - | (10,453 | - | (10,031 | - | (8,998 | - | |||||
| Net (loss) income and comprehensive income | - | (1,147 | - | - | 2,373 | - | 34,453 | - | 46,157 | - | 66,421 | ||||
| Payout ratio on earnings per share | n/a | 603.4 | - | 165.8 | - | 124.1 | - | 86.7 | - | ||||||
| NET INCOME BEFORE EXPECTED CREDIT LOSS | |||||||||||||||
| Net (loss) income and comprehensive income | - | (1,147 | - | - | 2,373 | - | 34,453 | - | 46,157 | - | 66,421 | ||||
| Add: Expected credit loss | 8,344 | 15,067 | 17,877 | 16,134 | 3,649 | ||||||||||
| Net income before expected credit loss | - | 7,197 | - | 17,440 | - | 52,330 | - | 62,291 | - | 70,070 | |||||
| DISTRIBUTABLE INCOME | |||||||||||||||
| Net (loss) income and comprehensive income | - | (1,147 | - | - | 2,373 | - | 34,453 | - | 46,157 | - | 66,421 | ||||
| Less: Amortization of lender fees | (2,073 | - | (2,163 | - | (8,491 | - | (6,588 | - | (8,279 | - | |||||
| Less: Accretion income, deferred consideration | (44 | - | - | (147 | - | - | - | ||||||||
| Less: Straight-line rent adjustment | 15 | - | (132 | - | - | - | |||||||||
| Add: Lender fees received and receivable | 2,730 | 3,464 | 6,671 | 7,610 | 6,597 | ||||||||||
| Add: Amortization expense, credit facility | 395 | 209 | 1,150 | 1,030 | 953 | ||||||||||
| Add: Amortization expense, convertible debentures | 294 | 291 | 1,175 | 1,110 | 972 | ||||||||||
| Add: Accretion expense, convertible debentures | 160 | 160 | 641 | 569 | 454 | ||||||||||
| Add: Unrealized fair value (gain) loss on DSU | (142 | - | (173 | - | (53 | - | 38 | (67 | - | ||||||
| Add: Loss (gain) on FVTPL | 4,526 | (1 | - | 4,414 | 304 | (343 | - | ||||||||
| Less: Realized loss (gain) on sale of real estate | 1,918 | (1,500 | - | 1,505 | (1,500 | - | - | ||||||||
| Add: Expected credit loss | 8,344 | 15,067 | 17,877 | 16,134 | 3,649 | ||||||||||
| Distributable income | - | 14,976 | - | 17,727 | - | 59,063 | - | 64,864 | - | 70,357 | |||||
| Payout ratio on distributable income | 95.3 | - | 80.8 | - | 96.7 | - | 88.3 | - | 81.9 | - | |||||
| PER SHARE INFORMATION | |||||||||||||||
| Dividends declared to shareholders | - | 14,275 | - | 14,320 | - | 57,132 | - | 57,277 | - | 57,603 | |||||
| Weighted average common shares (in thousands) | 82,753 | 83,010 | 82,810 | 83,010 | 83,509 | ||||||||||
| Dividends per share | - | 0.17 | - | 0.17 | - | 0.69 | - | 0.69 | - | 0.69 | |||||
| (Loss) Earnings per share (basic) | - | (0.01 | - | - | 0.03 | - | 0.42 | - | 0.56 | - | 0.80 | ||||
| (Loss) Earnings per share (diluted) | - | (0.01 | - | - | 0.03 | - | 0.42 | - | 0.56 | - | 0.78 | ||||
| Earnings per share before expected credit loss | - | 0.09 | - | 0.21 | - | 0.63 | - | 0.75 | - | 0.84 | |||||
| Distributable income per share | - | 0.18 | - | 0.21 | - | 0.71 | - | 0.78 | - | 0.84 | |||||
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:
| Net Mortgage Investments | December 31, 2025 | December 31, 2024 | ||||||
| Mortgage investments, including mortgage syndications | 1,895,142 | 1,505,501 | ||||||
| Mortgage syndication liabilities | (673,626 | - | (427,263 | - | ||||
| 1,221,516 | 1,078,238 | |||||||
| Interest receivable | (17,898 | - | (15,533 | - | ||||
| Unamortized lender fees | 5,419 | 6,276 | ||||||
| Expected credit loss | 30,281 | 20,796 | ||||||
| Net mortgage investments | - | 1,239,318 | - | 1,089,777 | ||||
Enhanced return portfolio
| As at | December 31, 2025 | December 31, 2024 | ||||
| Other loan investments, net of expected credit loss | - | 21,460 | - | 30,912 | ||
| Finance lease receivable, measured at amortized cost | 6,020 | 6,020 | ||||
| Investment in participating debentures, measured at FVTPL | 863 | 756 | ||||
| Joint venture investment in indirect real estate development | 325 | 2,225 | ||||
| Investment in equity instrument, measured at FVTPL | 3,000 | 3,000 | ||||
| Total enhanced return portfolio | - | 31,668 | - | 42,913 | ||
Real estate held for sale, net of collateral liability
| As at | December 31, 2025 | December 31, 2024 | |||||
| Real estate held for sale | - | 132,635 | |||||
| Real estate held for sale collateral liability | - | (67,312 | - | ||||
| Total real estate held for sale, net of collateral liability | - | - | - | 65,323 | |||
SOURCE: Timbercreek Financial
For further information, please contact:
Timbercreek Financial
Blair Tamblyn, CEO
Tracy Johnston, CFO
416-923-9967
www.timbercreekfinancial.com
