TORONTO, July 31, 2024 (GLOBE NEWSWIRE) -- Timbercreek Financial (TSX:TF) (the "Company") announced today its financial results for the three and six months ended June 30, 2024 ("Q2 2024"). Q2 2024 Highlights1 The net mortgage investment portfolio increased by $25.8 million to $1,003.4 million at the end of Q2 2024 from $977.5 million at the end of Q1 2024 (Q2 2023 – $1,123.7 million). Net investment income of $26.4 million compared to $31.5 million in Q2 2023. Net income and comprehensive income of $15.4 million (Q2 2023 – $16.9 million) or basic earnings per share of $0.19 (Q2 2023 – $0.20). Distributable income of $16.3 million (Q2 2023 – $17.8 million) or distributable income per share of $0.20 (Q2 2023 – $0.21 per share). Declared a total of $14.3 million in dividends to shareholders, or $0.17 per share, reflecting a distributable income payout ratio of 87.8% (Q2 2023 - 81.1%). The quarterly weighted average interest rate on net mortgage investments was 9.8% in Q2 2024, compared to 9.9% in Q1 2024 (Q2 2023 – 9.8%). Interest rate exposure in the net mortgage investment portfolio was well protected at the end of Q2 2024, floating rate loans with rate floors representing 78.3% (Q2 2023 – 88.3%) of net mortgage investment portfolio. Maintained conservative portfolio risk composition focused on income-producing commercial real estate: 62.3% weighted average loan-to-value;   85.6% first mortgages in mortgage investment portfolio; and 83.4% of mortgage investment portfolio is invested in cash-flowing properties. The Company continues to focus on the resolution of its staged loans, utilizing active asset management strategies and continues to make significant progress. The Company's management team is very experienced in navigating these situations and is well positioned to strategically work through these loans to ensure the best outcomes in light of the current economic environment. "The overall portfolio performed solidly in the second quarter, as we reported improved sequential results and demonstrated our ability to generate consistent healthy cash flows and dividends with a conservative payout ratio, despite a transitioning commercial real estate backdrop," said Blair Tamblyn, CEO of Timbercreek Financial. "We continue to have success redeploying capital into high-quality loans as we expand the portfolio back to historical levels. The positive macro backdrop from recent Bank of Canada rate cuts is further enhancing the deal flow pipeline, and we expect to see increased financing opportunities as transaction activity in most asset classes grows. We believe these conditions are key factors to support a recovery in commercial real estate fundamentals, and the company is well positioned to deploy capital in this environment and grow the portfolio through the balance of the year." Mr. Tamblyn added: "During the quarter, our team also continued to focus on resolving the remaining staged loans through highly active asset management efforts. We are making good progress on these select situations and remain confident both in the underlying value of the assets and our ability to navigate these situations to ensure the best outcomes for our shareholders." Refer to non-IFRS measures section below for net mortgages, enhanced return portfolio investments, adjusted net income and comprehensive income, distributable income and adjusted distributable income. Quarterly Comparison $ millions Q2 2024     Q2 2023   Q1 2024               Net Mortgage Investments1 $ 1,003.4       $ 1,123.7     $ 977.5   Enhanced Return Portfolio Investments1 $ 62.0       $ 58.7     $ 63.4   Real Estate land Inventory $ 30.6       $ 30.3     $ 30.6   Real Estate held for sale, net of collateral liability $ 62.2       $ —     $ 62.2                 Net Investment Income $ 26.4       $ 31.5     $ 24.6   Income from Operations $ 23.5       $ 26.3     $ 20.9   Net Income and comprehensive Income $ 15.4       $ 16.9     $ 14.4   --Adjusted Net Income and comprehensive Income $ 15.7       $ 17.0     $ 14.2   Distributable income1 $ 16.3       $ 17.8     $ 15.8   Dividends declared to Shareholders2 $ 14.3       $ 14.4     $ 14.3                 $ per share Q2 2024     Q2 2023   Q1 2024               Dividends per share $ 0.17       $ 0.17     $ 0.17   Distributable income per share1 $ 0.20       $ 0.21     $ 0.19   Earnings per share $ 0.19       $ 0.20     $ 0.17   --Adjusted Earnings per share $ 0.19       $ 0.20     $ 0.17                 Payout Ratio on Distributable Income1   87.8 %       81.1 %     90.6 % Payout Ratio on Earnings per share   93.2 %       85.5 %     99.7 % --Payout Ratio on Adjusted Earnings per share   91.1 %       85.1 %     100.8 %               Net Mortgage Investments Q2 2024     Q2 2023   Q1 2024               Weighted Average Loan-to-Value   62.3 %       68.3 %     64.4 % Weighted Average Remaining Term to Maturity 1.0 yr       0.8 yr     0.8 yr   First Mortgages   85.6 %       91.4 %     85.7 % Cash-Flowing Properties   83.4 %       87.7 %     85.7 % Multi-family residential   51.2 %       50.1 %     54.6 % Floating Rate Loans with rate floors (at quarter end)   78.3 %       88.3 %     88.6 %               Weighted Average Interest Rate             For the quarter ended   9.8