Timbercreek Financial Corp.

In the presentation, we will conduct a question and answer session for analysts. Analysts are asked to raise their hand to register for a question. As a reminder, today's call is being recorded. I would now like to turn the meeting over to Blair Tamblyn. Please go ahead.

Thank you, operator. Good afternoon, everybody. Thanks for joining us to discuss the first quarter financial results. I'm joined as usual by Scott Rowland, CIO, Tracy Johnson, CFO, and Jeff McTague. our head of Canadian Originations and Global Syndications. As we discussed on the year-end call, we're seeing an overall improvement in business fundamentals in 2025, with BOC rate cuts spurring increased financing opportunities. It was a solid first quarter, highlighted by healthy income levels, allowing us to build on our long-term track record of stable monthly dividends. Of note, net investment income was $28.6 million. We generated a distributable income of $0.19 per share, at a payout ratio of 93%. And EPS was 18 cents a share, comfortably within the expected quarterly range. Transaction activity was solid in the first quarter, and the pipeline is building, as we forecasted at year end. While the broader market volatility from tariff disputes has caused delays in a few instances, our portfolio is expected to be well protected from any near-term implications. Over 18 years as a leading private lender in the transactional lending space, We have successfully navigated macro issues of all types to generate the attractive risk-adjusted yield our shareholders have come to expect. This track record speaks to the resiliency of our strategy and our core asset classes, but of course, by multi-residential. With this strong foundation, you can expect to see us actively communicating the TF story in coming quarters, highlighting that our dividend today represents roughly a 10% yield, more than 7% premium over short-term, Canadian bond yields. And at 828 per share, which is net of our ECL provisions, of course, our current book value is roughly 20% above the weighted average trading price in Q1. I'll ask Scott to take over for the portfolio review now.

Scott? Thanks, Blair, and good afternoon. I'll comment on portfolio metrics and provide a brief update on material progress on stage loans. I'll ask Jeff to comment on the originations activity and lending environment. Looking at the portfolio's KPIs, most were stable relative to recent periods and consistent with historical averages. At quarter end, 79.7% of our investments were in cash-flowing properties. Multi-residential real estate assets, apartment buildings, continue to comprise the largest portion of the portfolio at roughly 60%. As Blair highlighted, this core asset class has shown to be durable in periods of economic uncertainty. First mortgages represented 88.3% of the portfolio. As expected, we have seen this percentage trend upward toward 90%. Our weighted average LTV for Q1 was 66.2%, up from 63.3% in Q4, consistent with our plan to increase LTVs on new originations back to historical levels. The portfolio's weighted average interest rate was 8.7% in Q1 versus 8.9% in Q4 and 9.9% in Q1 last year. The decrease mainly reflects the Bank of Canada's policy rate cuts of 225 basis points between June 24 and March 25. The wear is also reverting toward a longer-term average. For example, since 2016, which captures a few rate environments, the average WARE exit rate is 7.9%. With rates coming down, we are seeing a corresponding decrease in interest expense on the credit facility, supporting a healthy net interest margin. Portfolio WARE is also protected by the high percentage of floating rate loans with rate floors, close to 85% of the portfolio at quarter end. Roughly 88% of the loans with floors are currently at their rate floors. In terms of the asset allocation by region, There were no major shifts to highlight, with approximately 92% of the capital invested in Ontario, BC, Quebec, and Alberta, and focused on urban markets. From an asset management perspective, we provided extensive disclosure on the stage loans at year end. Throughout 2025, you can expect us to update on material changes as we continue to pursue resolution and monetization of these loans. The overriding comment here is our team remains deeply engaged in these files, and they are progressing as planned. We successfully closed on the sale of three senior living facilities previously recorded as assets held for sale, bringing up capital we're recycling into higher yielding mortgages in our core asset types. We continue to expect that over the course of this fiscal year, this portion of the portfolio will decline toward historical averages. On that note, I'll ask Jeff to comment on the transaction activity in the portfolio.