Toronto Stock Exchange: TF
TORONTO, Nov. 11, 2026 (GLOBE NEWSWIRE) -- Timbercreek Financial (TSX: TF) (the “Company”) announced today its financial results for the three and nine months ended September 30, 2026 (“Q3 2026”). In conjunction with the results, the Company provided an update on its remaining Stage 2 and Stage 3 mortgage investments and the actions being taken to accelerate their resolution and redeploy recovered capital into performing mortgage investments. The Company also released its new Q3 2026 Quarterly Report, which includes a letter to shareholders providing additional perspective on the quarter and the Company’s priorities going forward. The Quarterly Report, Managements' Discussion and Analysis, and Financial Statements are available on the Company’s website at www.timbercreekfinancial.com.
"The core business continued to perform well during the third quarter, with strong origination activity, stable distributable income and continued demand for our lending solutions,” said Blair Tamblyn, CEO of Timbercreek Financial. “We also continued to make meaningful progress resolving legacy staged loans and, with several additional resolution processes underway, expect the remaining staged exposure to decline meaningfully over the near term. Following a review of the remaining positions, we believe accelerating that progress and redeploying recovered capital into new performing mortgage investments is the right course for shareholders. We believe it provides a clearer path to restoring the earnings capacity of the portfolio and supporting distributable income over time.”
Q3 2026 Highlights1
Strong Q3 2026 originations with $228.9 million advanced, and $453.0 million advanced year to date, bringing the net mortgage portfolio to $1,217.4 million up 15.4% year-over-year.
- Net investment income remained stable at $25.0 million compared with $25.4 million in Q3 2025.
- Distributable income of $14.0 million ($0.17 per share) compared with $14.1 million ($0.17 per share) in Q3 2025.
- Declared a total of $14.3 million in dividends to shareholders, or $0.17 per share, representing a distributable income payout ratio of 101.9% (Q3 2025 – 101.4%)
- Recorded expected credit losses ("ECL") of $40.2 million in the quarter (Q3 2025 - $5.9 million), primarily reflecting lower expected recovery values from the sale of underlying collateral on Stage 3 mortgage investments.
- Recorded a fair value loss on net mortgage investments measured at FVTPL of $4.8 million reflecting a lower than expected recovery value of the underlying collateral assets (Q3 2025 - $34).
- Reported a net loss and comprehensive loss of $32.1 million (Q3 2025 – net income and comprehensive income $8.5 million) or basic loss per share of $0.39 (Q3 2025 – basic earnings per share $0.10).
- Net income and comprehensive income before expected credit losses ("ECL") of $8.2 million (Q3 2025 - $14.3 million) or basic earnings per share before ECL of $0.10 (Q3 2025 - $0.17).
- Continued progress resolving staged exposures during and subsequent to Q3 2026, including completed resolutions of the Victoria mixed-use and Calgary office positions and agreements to sell two GTA staged positions with combined net carrying values of approximately $44 million.
- Portfolio composition remained focused on income-producing real estate, with 82.6% secured by cash-flowing properties, 63.2% invested in multi-residential assets and 94.8% represented by first mortgages.
- Additional discussion of the remaining Stage 2 and Stage 3 positions and the resolution strategy is provided in the letter to shareholders included in the Company's Q3 2026 Quarterly Report, available at www.timbercreekfinancial.com.
Update on Staged Loan Resolutions
“The Board shares investors’ concerns about the remaining staged exposures, the pace of resolution and share price,” said Glenn Shyba, Lead Independent Director. “After reviewing alternatives for the staged exposures with management, we believe accelerating resolution and redeploying the capital into performing investments will restore earnings and long-term value.”
- Since January 1, 2023, the Company has resolved approximately $212 million of Stage 2 and Stage 3 exposures and remains focused on returning staged loans toward their historical range of approximately 6-8% of the portfolio Following a review of the remaining positions, the Board and Management determined that accelerating resolution is in the best long-term interests of shareholders. The strategy prioritizes greater certainty and speed of capital recovery, even where this may result in additional ECL or book value reductions, with recovered capital expected to be redeployed into new performing mortgage investments.
- The Vancouver retail/development portfolio represents approximately $134 million, or 71%, of remaining Stage 2 and Stage 3 net exposure. Its primary asset is currently being marketed for sale. Based on current market conditions and feedback received through the sale process, the Company revised its expected recovery value and recorded approximately $33 million of additional ECL related to this portfolio in Q3. The Company believes pursuing a transaction at current market values, rather than extending the holding period in anticipation of a market recovery, provides a clearer path to recovering and redeploying the capital.
- The Company will no longer recognize interest income on the Vancouver exposure, which is expected to temporarily increase the distributable income payout ratio to approximately 135% in Q4 2026. Management expects the payout ratio to remain elevated until the assets are sold and recovered capital is redeployed into performing investments, following which it is expected to trend back toward the Company’s historical range. The Vancouver sale process is currently expected to be completed by the end of Q1 2027, subject to market conditions and execution.
Quarterly Comparison
| $ millions | Q3 2026 | Q3 2025 | Q2 2026 | |||||||||
| Net Mortgage Investments | $ | 1,217.4 | $ | 1,054.5 | $ | 1,143.9 | ||||||
| Enhanced Return Portfolio Investments | $ | 32.9 | $ | 20.2 | $ | 32.5 | ||||||
| Real Estate Inventory | $ | 23.1 | $ | 28.2 | $ | 23.1 | ||||||
| Joint Venture | $ | 18.6 | $ | 18.4 | $ | 18.5 | ||||||
| Net Investment Income | $ | 25.0 | $ | 25.4 | $ | 24.9 | ||||||
| (Loss) Income from Operations | $ | (23.5 | ) | $ | 16.0 | $ | 16.0 | |||||
| Net (Loss) income and comprehensive (Loss) Income | $ | (32.1 | ) | $ | 8.5 | $ | 7.8 | |||||
| Net income and comprehensive income before ECL | $ | 8.2 | $ | 14.3 | $ | 14.5 | ||||||
| Distributable income | $ | 14.0 | $ | 14.1 | $ | 14.6 | ||||||
| Dividends declared to Shareholders | $ | 14.3 | $ | 14.3 | $ | 14.3 | ||||||
| $ per share | Q3 2026 | Q3 2025 | Q2 2026 | |||||||||
| Dividends per share | $ | 0.17 | $ | 0.17 | $ | 0.17 | ||||||
| Distributable income per share | $ | 0.17 | $ | 0.17 | $ | 0.18 | ||||||
| (Loss) Earnings per share | $ | (0.39 | ) | $ | 0.10 | $ | 0.09 | |||||
| Payout Ratio on Distributable Income | 101.9 | % | 101.4 | % | 97.7 | % | ||||||
| Payout Ratio on Earnings per share | n/a | 168.8 | % | 182.8 | % | |||||||
| Net Mortgage Investments | Q3 2026 | Q3 2025 | Q2 2026 | |||||||||
| Weighted Average Loan-to-Value | 69.8 | % | 67.9 | % | 68.3 | % | ||||||
| Weighted Average Remaining Term to Maturity | 1.2 yr | 0.9 yr | 0.9 yr | |||||||||
| First Mortgages | 94.8 | % | 93.6 | % | 93.9 | % | ||||||
| Cash-Flowing Properties | 82.6 | % | 82.0 | % | 81.3 | % | ||||||
| Multi-Family Residential | 63.2 | % | 56.5 | % | 60.1 | % | ||||||
| Variable Rate Loans with rate floors | 91.0 | % | 85.8 | % | 90.1 | % | ||||||
| Weighted Average Interest Rate | ||||||||||||
| For the quarter ended | 7.5 | % | 8.3 | % | 7.6 | % | ||||||
| Weighted Average Lender Fee | ||||||||||||
| New and Renewed | 0.8 | % | 0.5 | % | 0.7 | % | ||||||
| New Net Mortgage Investment Only | 1.1 | % | 1.0 | % | 0.8 | % | ||||||
Quarterly Conference Call
Interested parties are invited to participate in a conference call with management on Thursday, November 12, 2026 at 1:00 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/85394773035?pwd=mFDxiib55443W9wdMb8evhhbferWkc.1
Webinar ID: 853 9477 3035
Passcode: 1234
Or Telephone:
Dial(for higher quality, dial a number based on your current location):
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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 RESULTS1,2 | Three months ended September 30, | Nine months ended September 30, | Year ended December 31, | |||||||||||||
| NET INCOME AND COMPREHENSIVE INCOME | 2026 | 2025 | 2026 | 2025 | 2025 | |||||||||||
| Net investment income on financial assets measured at amortized cost | $ | 25,036 | $ | 25,422 | $ | 75,052 | $ | 79,229 | $ | 104,913 | ||||||
| Revenue from real estate properties | 17 | 108 | 88 | 3,266 | 3,585 | |||||||||||
| Total revenue, net of mortgage syndication | 25,053 | 25,530 | 75,140 | 82,495 | 108,498 | |||||||||||
| Management fees | (2,981 | ) | (2,790 | ) | (8,855 | ) | (8,316 | ) | (11,185 | ) | ||||||
| Servicing fees | (243 | ) | (181 | ) | (693 | ) | (507 | ) | (686 | ) | ||||||
| Expected credit loss | (40,224 | ) | (5,885 | ) | (50,645 | ) | (9,533 | ) | (17,877 | ) | ||||||
| General and administrative | (618 | ) | (708 | ) | (1,946 | ) | (2,713 | ) | (3,234 | ) | ||||||
| Expense from real estate properties | (104 | ) | (361 | ) | (338 | ) | (2,873 | ) | (3,755 | ) | ||||||
| Total operating expenses | (44,170 | ) | (9,925 | ) | (62,477 | ) | (23,942 | ) | (36,737 | ) | ||||||
| Total other (expenses) income | (4,411 | ) | 375 | (1,736 | ) | 354 | (6,104 | ) | ||||||||
| (Loss) Income from operations | (23,528 | ) | 15,980 | 10,927 | 58,907 | 65,657 | ||||||||||
| Financing costs: | ||||||||||||||||
| Financing cost on credit facility | (5,924 | ) | (4,909 | ) | (16,968 | ) | (15,467 | ) | (20,751 | ) | ||||||
| Financing cost on convertible debentures | (2,613 | ) | (2,613 | ) | (7,840 | ) | (7,840 | ) | (10,453 | ) | ||||||
| Net (loss) income and comprehensive (loss) income | (32,065 | ) | 8,458 | (13,881 | ) | 35,600 | 34,453 | |||||||||
| Payout ratio on earnings per share | n/a | 168.8 | % | n/a | 120.4 | % | 165.8 | % | ||||||||
| NET INCOME BEFORE EXPECTED CREDIT LOSS | ||||||||||||||||
| Net (loss) income and comprehensive (loss) income | $ | (32,065 | ) | $ | 8,458 | $ | (13,881 | ) | $ | 35,600 | $ | 34,453 | ||||
| Add: Expected credit loss | 40,224 | 5,885 | 50,645 | 9,533 | 17,877 | |||||||||||
| Net income before expected credit loss1 | 8,159 | 14,343 | 36,764 | 45,133 | 52,330 | |||||||||||
| DISTRIBUTABLE INCOME | ||||||||||||||||
| Net (loss) income and comprehensive (loss) income | $ | (32,065 | ) | $ | 8,458 | $ | (13,881 | ) | $ | 35,600 | $ | 34,453 | ||||
| Add: Expected credit loss | 40,224 | 5,885 | 50,645 | 9,533 | 17,877 | |||||||||||
| Add: Lender fees received and receivable | 2,409 | 1,200 | 5,508 | 3,941 | 6,671 | |||||||||||
| Add: Amortization expense, credit facility | 185 | 322 | 635 | 755 | 1,150 | |||||||||||
| Add: Amortization expense, convertible debentures | 294 | 294 | 881 | 881 | 1,175 | |||||||||||
| Add: Accretion expense, convertible debentures | 161 | 161 | 481 | 481 | 641 | |||||||||||
| Add: Straight-line rent adjustment | 12 | (147 | ) | 43 | (147 | ) | (132 | ) | ||||||||
| Less: Amortization income of lender fees | (1,738 | ) | (1,891 | ) | (5,270 | ) | (6,418 | ) | (8,491 | ) | ||||||
| Less: Accretion income, deferred consideration | (45 | ) | (44 | ) | (133 | ) | (103 | ) | (147 | ) | ||||||
| Less: (Gain) loss on DSU | (264 | ) | (27 | ) | (341 | ) | 89 | (53 | ) | |||||||
| Less: (Gain) loss on FVTPL investments | 4,832 | (34 | ) | 4,811 | (112 | ) | 4,414 | |||||||||
| Less: (Gain) loss on sale of real estate | — | (100 | ) | (269 | ) | (413 | ) | 1,505 | ||||||||
| Distributable income1 | $ | 14,005 | $ | 14,077 | $ | 43,110 | $ | 44,087 | $ | 59,063 | ||||||
| Payout ratio on distributable income1 | 101.9 | % | 101.4 | % | 99.3 | % | 97.2 | % | 96.7 | % | ||||||
| PER SHARE INFORMATION | ||||||||||||||||
| Dividends declared to shareholders | $ | 14,273 | $ | 14,275 | $ | 42,823 | $ | 42,857 | $ | 57,132 | ||||||
| Weighted average common shares (in thousands) | 82,750 | 82,753 | 82,752 | 82,810 | 82,810 | |||||||||||
| Dividends per share | $ | 0.17 | $ | 0.17 | $ | 0.52 | $ | 0.52 | $ | 0.69 | ||||||
| (Loss) Earnings per share (basic) | $ | (0.39 | ) | $ | 0.10 | $ | (0.17 | ) | $ | 0.43 | $ | 0.42 | ||||
| (Loss) Earnings per share (diluted) | $ | (0.39 | ) | $ | 0.10 | $ | (0.17 | ) | $ | 0.43 | $ | 0.42 | ||||
| Earnings per share before expected credit loss1 | $ | 0.10 | $ | 0.17 | $ | 0.44 | $ | 0.55 | $ | 0.63 | ||||||
| Distributable income per share1 | $ | 0.17 | $ | 0.17 | $ | 0.52 | $ | 0.53 | $ | 0.71 | ||||||
- Refer to non-IFRS measures section.
- Certain income statement items were re‑presented for clarity, with no impact on income from operations, net income, or equity.
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:
| As at September 30, 2026 | As at December 31, 2025 | ||||||||||||
| Number | Carrying Amount | % of Portfolio | Number | Carrying Amount | % of Portfolio | ||||||||
| Multi-Residential | 78 | $ 769,959 | 63.2 | % | 82 | $ 770,490 | 62.2 | % | |||||
| Retail | 4 | 142,254 | 11.7 | % | 4 | 140,006 | 11.3 | % | |||||
| Industrial | 13 | 127,358 | 10.5 | % | 14 | 131,821 | 10.6 | % | |||||
| Office | 1 | 5,911 | 0.5 | % | 5 | 61,183 | 4.9 | % | |||||
| Improved Land | 6 | 69,504 | 5.7 | % | 7 | 83,388 | 6.7 | % | |||||
| Unimproved Land | 2 | 51,247 | 4.2 | % | 3 | 24,027 | 2.0 | % | |||||
| Single-Residential | 2 | 211 | 0.0 | % | 3 | 13,507 | 1.1 | % | |||||
| Mortgages at Amortized Cost | 106 | 1,166,444 | 95.8 | % | 118 | 1,224,422 | 98.8 | % | |||||
| Mortgages at FVTPL | 5 | 50,910 | 4.2 | % | 4 | 14,896 | 1.2 | % | |||||
| Net mortgage investments | 111 | 1,217,354 | 100.0 | % | 122 | $ 1,239,318 | 100.0 | % | |||||
| Accrued interest receivable | 16,228 | 17,898 | |||||||||||
| Expected credit loss | (46,744 | ) | (30,281 | ) | |||||||||
| Unamortized lender fee | (5,905 | ) | (5,419 | ) | |||||||||
| Mortgage syndications | 884,758 | 673,626 | |||||||||||
| Mortgage investments, including mortgage syndications | 2,065,691 | 1,895,142 | |||||||||||
Enhanced return portfolio
| As at | September 30, 2026 | December 31, 2025 | ||||
| Other loan investments, net of expected credit loss | $ | 22,926 | $ | 21,460 | ||
| Finance lease receivable, measured at amortized cost | 6,020 | 6,020 | ||||
| Investment in participating debentures, measured at FVTPL | 919 | 863 | ||||
| Joint venture investment in indirect real estate development | — | 325 | ||||
| Investment in equity instrument, measured at FVTPL | 3,000 | 3,000 | ||||
| Total enhanced return portfolio | $ | 32,865 | $ | 31,668 | ||
SOURCE: Timbercreek Financial
For further information, please contact:
Timbercreek Financial
Blair Tamblyn, CEO
Tracy Johnston, CFO
416-923-9967
www.timbercreekfinancial.com
