Timbercreek Financial (TF) Q4 2025 earnings summary

Executive summary

• Q4 2025 saw strong transaction and investment activity, with over CAD 330 million in originations and 18% portfolio growth over Q3, driven by improved CRE market conditions and multi-family opportunities.

• Net investment income was CAD 25.7 million, and distributable income per share was CAD 0.18, with a payout ratio of 95%.

• Despite a net loss due to expected credit losses and asset sales, recurring income remains strong, supporting a stable monthly dividend.

• Significant progress was made on resolving legacy Stage loans, with further resolution and redeployment of capital expected in 2026.

• The outlook for 2026 is constructive, with a growing transaction pipeline and expectations for continued portfolio growth.

Financial highlights

• Q4 2025 originations totaled CAD 334 million, with net investment income of CAD 25.7 million and distributable income of CAD 15 million (CAD 0.18 per share).

• Reported a net loss of CAD 1.1 million in Q4, mainly due to CAD 8.3 million in expected credit losses and a CAD 4.5 million fair value loss.

• Distributable income payout ratio was 95%, with a 9.5% current dividend yield.

• Net mortgage portfolio (excluding syndications) was just under CAD 1.24 billion at quarter-end, up 13.7% year-over-year.

• Declared CAD 14.3 million in dividends for Q4 2025.

Outlook and guidance

• The outlook for 2026 is positive, with expectations for continued portfolio growth and substantial reduction of Stage loan balances.

• Anticipates redeploying capital from resolved Stage loans into higher-yielding, accretive investments.

• Dividend yield expected to remain stable at 9.5%.

• Market momentum and monetary easing are expected to support ongoing transaction activity and income stability.