"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
