Canada's Timbercreek Financial Q1 net income falls on higher credit losses

Timbercreek Financial

05/05/2026 22:36

Overview

Canada non-bank real estate lender's Q1 net investment income fell yr/yr

Q1 net income declined, impacted by higher expected credit losses

Net mortgage portfolio grew 14.9% yr/yr, driven by strong origination activity

Outlook

Company expects funding momentum to continue in 2026, focused on multi-family opportunities

Timbercreek expects substantial capital recycling to be completed through 2026

Company sees improving market conditions supporting portfolio growth for the rest of the year

Result Drivers

STRONG ORIGINATION ACTIVITY - Co said C$224.2 mln in new and existing net mortgages drove 14.9% yr/yr growth in net mortgage portfolio

HIGHER EXPECTED CREDIT LOSSES - Net income was impacted by higher expected credit losses, primarily due to firm sales prices for two Stage 3 office/retail net mortgages sold in Q2 2026

CAPITAL REDEPLOYMENT - Co said it is making progress resolving legacy staged loans and redeploying capital into high-quality, income-producing investments

Company press release: ID:nGNX9z5wDV

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
C$0.13
Q1 Adjusted Net Income
C$14.10 mln
Q1 Net Income
C$10.40 mln
Q1 Income from Operations
C$18.50 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the corporate financial services peer group is "buy."

Wall Street's median 12-month price target for Timbercreek Financial Corp is C$7.40, about 12% above its May 4 closing price of C$6.61

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 11 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)