The mortgage investment company reported stable Q2 earnings, supported by strong originations and lower funding costs despite credit-loss pressures.
Timbercreek Financial reported Q2 distributable income of C$14.6 million, or C$0.18 per share, driven by C$154 million in advances and increased syndication activity. Lower funding costs also contributed to the stable earnings profile, which management said supports the monthly dividend despite a 97.7% payout ratio.
Net income declined to C$7.8 million as expected credit losses rose, particularly on Vancouver retail and Victoria assets. However, Stage 3 loan balances dropped over 51% since year-end, with most remaining staged loans expected to resolve by year-end.
The mortgage portfolio grew to approximately C$1.14 billion at quarter-end and C$1.24 billion after July deployments. A strong pipeline and elevated syndication demand are expected to drive growth in the second half of 2026.