It has been considerable time since a question has been asked about Timbercreek Financial, formerly Timbercreek Mortgage Investment Corporation. Interest rate now almost 10%-- Was higher in Oct, 23 when price fell badly. I have owned it for years. Apparently they are finishing settling a big bad loan- I have no idea how much they lost and would like to know. Could you please provide as much info about this MIC as possible. Would you buy more or sell? I believe it is back on the road to recovery, or would you buy something like Atrium. or sell both.
Thanks very much for your speedy replies. Wonderful.
Ben.
In September, TF indicated its exposure to Groupe Huot was $143M, just over 10% of its net mortgage investments. The assets in question received a purchase offer which is expected to close 'in the fourth quarter'. The net writedown thus will not be known until the sales price is disclosed. TF noted that all principal & interest is expected to be paid. There may still be a small loss or added expenses because of this, but the situation has turned out much better than expected. TF, with its small size, needs to be considered higher risk, and the recent events highlight its exposure to the sector. But this is largely reflected in its low valuation, and lower rates could help the company significantly. We would be OK owning a small position for income only. We would prefer it as part of a 'basket' of several high income names, to reduce company risk. We would not really want a large single position here. We would be largely indifferent vs Atrium.