Terra Firma Capital Corporation (TSX-V: TII) ("
Terra
Firma" or the "
Company"), a real estate
finance company, today announced its financial results for the
three months ended March 31, 2023.
Q1 2023 Financial Highlights:
- Total Assets of $141.4 million
- Total Investments (a supplementary
financial measure)(4) of $111.3 million
- Total Assets under management
("AUM," a non-IFRS financial measure) (3) of $115.2 million
- Future funding commitments of $82.0
million
- Book Value per share increased by
0.8% to $7.97 (CA$10.77, translated to CA$ using the exchange rate
of $1.3516) per share
- CA$0.06 per share paid in
dividends
- Total Revenue increased slightly by
0.8% to $3.9 million
- Net income and comprehensive income
of $0.6 million, remained relatively consistent
- Adjusted net income and
comprehensive income (a non-IFRS financial measure)(1) increased by
78.7% to $0.7 million
- Basic and diluted earnings per
share remained the same at $0.10 (CA$0.14, translated to CA$ using
the exchange rate of $1.3526).
- Adjusted basic and diluted earnings
per share (a non-IFRS financial measure)(2) increased by 85.7%, to
$0.13 (CA$0.18, translated to CA$ using the exchange rate of
$1.3526).
“During the first quarter of 2023, Terra Firma
continued to work on strategic alternatives with its external
advisor while remaining focused on its liquidity position and asset
management. With all investments in compliance and its current
cash position at over $23MM, the Company has improved its
attractiveness for sale and its ability to provide liquidity for
its shareholders, including potentially through share buybacks or
special dividends should a sale at an acceptable price not be
achieved.” commented Glenn Watchorn, President and CEO of Terra
Firma.
During the three months ended March 31, 2023,
the Company continued with its review of strategic alternatives
which include merger and acquisition, privatization and liquidation
and is currently in discussion with various parties. The review of
strategic alternatives has been overseen by a special committee of
directors consisting of Tristan Kingcott and Mike Kirchmair. There
is no definitive timeline of completion and there can be no
assurance that the process will result in any transaction, or as to
the timing of any such transaction. The Company does not intend to
disclose developments related to the process unless and until the
Company executes a definitive agreement with respect thereto, or it
otherwise determines that further disclosure is appropriate or
required.
Over the course of the first quarter of 2023,
the Company continued to work towards its focus on creating
liquidity while preserving capital. As at March 31, 2023, the
Company received $25.8 million in repayments of its various loan
and mortgage investments and land banking transactions of which
$10.7 million were early repayments. During the first quarter of
2023, the Company did not identify any concerns relating to its
investment portfolio which continued to meet its financial
commitments. At March 31, 2023, the Company’s liquidity position
included a cash balance of $23.1 million and an undrawn line of
credit (“LOC”) of up to $40.0 million including its accordion
feature. This available capital is in excess of the Company’s
portion of the future funding commitments. Subsequent to March 31,
2023, the Company is working on the renewal of its secured LOC
which matured on April 23, 2023.
Net income and comprehensive income for the
first quarter of 2023 and 2022 remained relatively consistent at
$0.6 million. Overall, net income and comprehensive income was
impacted by the Company’s shift to fund management requiring it to
transfer certain of its investments to either its first debt fund
or second debt fund (together the “Funds”) until the Funds are
fully invested. This has resulted in the Company’s increase in cash
and available credit, resulting in lower net income and
comprehensive income over the periods. Furthermore, in the latter
part of 2022, the Company paused business originations due to the
market volatility and the Company’s decision to explore strategic
alternatives and to further increase the Company’s liquidity, also
had an impact on net income and comprehensive income.
The Company reported total revenue of $3.9
million in the first quarter of 2023, as compared to $3.8 million
in the same period in the prior year, representing a slight
increase of $0.1 million. The majority of the Company’s revenue is
derived from interest and fees earned from its loan and mortgage
investments and finance income from its investments in finance
leases. Interest and fees earned for the three months ended March
31, 2023, aggregated to $1.6 million compared to $1.8 million in
the comparative period in the prior year, representing a decrease
of $0.1 million or 8%. The variance was due to the repayment of
$11.0 million on certain loan and mortgage investments which
included partial and full repayments. These repayments were
partially offset with the increase in funding related to existing
loan and mortgage investments. For the three months ended March 31,
2023, finance income aggregated to $2.2 million, compared to $2.0
million in the comparative period in the prior year, representing
an increase of $0.2 million or 9%. The increase in finance income
was due to the Company entering into new investments in finance
leases subsequent to the first quarter of 2022 as well as an
increase in funding on the investment in finance leases which was
partially offset by investments sold and lease payments made period
over period.
General and administrative expenses for the
three months ended March 31, 2023, were $0.9 million compared to
$1.1 million for the same period in the prior year. The decrease
during the first quarter of 2023 was primarily related to a
decrease in salary and benefits and professional fees. The decrease
in salary and benefits was due to a lower head count compared to
the comparative period with the departure of its former Chief
Financial Officer & Corporate Secretary due to health reasons
in the second quarter of 2022. Additionally, the decrease was due
to no incentive compensation recorded in the current period
compared to the comparative period. The decrease in professional
fees was due to recruitment costs incurred in the comparative
period related to the hiring of a new senior personnel with no
similar expenses recorded in the current period.
The Company's Management's Discussion &
Analysis and Financial Statements as at and for the three months
ended March 31, 2023, have been filed and are available on SEDAR
(www.sedar.com).
About Terra Firma
Terra Firma is a full service, publicly traded
real estate finance company that provides real estate financings
secured by investment properties and real estate developments in
Canada and throughout the United States. The Company focuses on
arranging and providing financing with flexible terms to real
estate developers and owners who require shorter-term loans to
bridge a transitional period of one to five years where they
require capital at various stages of development or redevelopment
of a property. These loans are typically repaid with lower cost,
longer-term debt obtained from other Canadian financial
institutions once the applicable transitional period is over or the
redevelopment is complete or from proceeds generated from the sale
of the real estate assets. Terra Firma offers a full spectrum of
real estate financing under the guidance of strict corporate
governance, clarity and transparency. For further information,
please visit Terra Firma's website at www.tfcc.ca.
Non-IFRS And Other Supplementary
Financial Measures
In this press release, as a complement to
results provided in accordance with IFRS, the Company discloses
certain financial measures not recognized under International
Financial Reporting Standards (“IFRS”) as prescribed by the
International Accounting Standards Board, which do not have
standard meanings prescribed by IFRS (collectively the “non‐IFRS
financial measures”). These non‐IFRS and other supplementary
financial measures are further described below.
Non-IFRS Financial Measures
(1) |
Adjusted net income and comprehensive income as well as adjusted
net income and comprehensive income attributable to common
shareholders, for the stated period, are calculated by adjusting
the net income and comprehensive income for the following (as
applicable and collectively called other non-operating items),
irrespective of materiality: |
|
- foreign exchange gains/losses related to the Company’s
non-functional currency denominated net assets;
- impairment losses/reversals;
- net gains/losses on the disposal of equity-accounted
investments;
- share-based compensation;
- non-recurring items;
- severance cost; and
- the income tax impact of the items listed above.
|
|
|
Three months ended |
|
|
|
March 31, 2023 |
March 31, 2022 |
ChangeIncrease / (decrease) |
|
|
|
|
|
|
Net income and comprehensive income |
$ |
580,175 |
|
$ |
577,576 |
|
$ |
2,599 |
|
|
|
|
|
|
|
Recovery of loan and mortgage investment, investment in |
|
|
|
|
|
finance leases and uncollectible receivable losses (tax
adjusted) |
|
(28,962 |
) |
|
(31,687 |
) |
|
2,725 |
|
Fair value adjustment - convertible note receivable (tax
adjusted) |
|
27,756 |
|
|
- |
|
|
27,756 |
|
Share based compensation (recovery) (tax adjusted) |
|
155,675 |
|
|
(98,627 |
) |
|
254,302 |
|
Foreign exchange gain (tax adjusted) |
|
(1,122 |
) |
|
(36,672 |
) |
|
35,550 |
Adjusted net income and comprehensive income (1) |
$ |
733,522 |
|
$ |
410,590 |
|
$ |
322,932 |
(1) |
Adjusted net income and comprehensive income is a Non-IFRS
Financial Measure. See "Non-IFRS Financial Measures". |
(2) |
Adjusted earnings per share is adjusted net income and
comprehensive income divided by the weighted average number of
outstanding shares and adjusted net income and comprehensive income
divided by the weighted average number of diluted shares
outstanding. |
(3) |
AUM are the assets managed by the Company on behalf of the
Company’s syndicate investors, as well as the Company’s assets, and
do not include capital commitments that have not yet been
funded. |
|
March 31,2023 |
December 31,2022 |
|
|
|
Loan and mortgage investments |
$ |
39,493,509 |
|
$ |
46,162,027 |
Investment
in finance leases |
|
58,100,600 |
|
|
67,847,493 |
Portfolio
investments |
|
932,093 |
|
|
932,093 |
Investment
in associates (1) |
|
1,871,986 |
|
|
1,753,807 |
Investment
property held in Joint Operations |
|
1,639,908 |
|
|
1,636,518 |
Convertible
note receivable |
|
1,514,231 |
|
|
1,511,101 |
Syndicates
investors' share of investment |
|
11,600,000 |
|
|
11,600,000 |
Total AUM |
$ |
115,152,327 |
|
$ |
131,443,039 |
(1) Investment in associates includes investment in Lan Partnership
and TFCC Royal Palm Beach Inc. |
These non-IFRS financial measures are not
defined by IFRS, do not have a standardized meaning, and may not be
comparable with similar measures presented by other issuers. The
Company has presented such non‐IFRS financial measures which have
been derived from the Company’s financial statements and applied on
a consistent basis because the Company believes they are of
assistance in evaluating the underlying operational and financial
performance of the Company. Non-IFRS financial measures are also
commonly used by the financial community to analyze and compare the
performance of companies engaged in the same industries. These
non‐IFRS financial measures should not be construed as alternatives
to financial measures determined in accordance with IFRS as
indicators of the Company’s performance.
Supplementary Financial
Measures
(4) |
Total Investments (excluding cash) consists of the loan and
mortgage investments, investment in finance leases, portfolio
investments, investments in associates, convertible note receivable
and an investment property held in joint operations. |
Note that further information concerning such
non-IFRS and supplementary financial measures can be found in the
Company’s Management's Discussion & Analysis for the three
months ended March 31, 2023.
The TSX-V has neither approved nor disapproved
the contents of this press release. The TSX-V does not accept
responsibility for the adequacy or accuracy of this press
release.
Forward-Looking Information
This Press Release contains forward‐looking
statements with respect to matters concerning the business,
operations, strategy and financial performance of Terra Firma, and
include statements concerning the strategy review process and the
renewal of the LOC. These statements generally can be identified by
use of forward-looking word such as "may", "will", "expects",
"estimates", "indicates" "anticipates", "intends", "believe",
“should” or "could" or the negative thereof or similar variations.
The future business, operations and performance of Terra Firma
could differ materially from those expressed or implied by such
statements. Such forward‐looking statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future
expectations, including the matters covered by any non-binding
letters of intent that are not completed, as well as risks relating
to market factors, competition, and dependence on tenants'
financial conditions, environmental and tax related matters, and
reliance on key personnel, as well as the risks discussed in Terra
Firma’s most recently filed annual Management’s Discussion and
Analysis, any subsequently filed interim Management’s Discussion
and Analysis or Terra Firma’s most recently filed Annual
Information Form. Forward‐looking statements are based on a number
of assumptions which may prove to be incorrect, including the
ability of the Company to adapt to any changes in government
regulation and/or economic conditions; and the continued
availability of equity and debt financing, and the risks referenced
above. There can be no assurances that forward‐looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such statements.
Accordingly, readers should not place undue reliance on
forward‐looking statements. The cautionary statements qualify all
forward‐looking statements attributable to Terra Firma and persons
acting on its behalf. Unless otherwise stated, all forward looking
statements speak only as of the date of this Press Release and
Terra Firma does not assume any obligation to update such
statements, whether as a result of new information, future events
or otherwise, except as required by applicable Canadian securities
laws.
For further information, please contact:
Terra Firma Capital CorporationGlenn
WatchornChief Executive OfficerPhone:
416.792.4702gwatchorn@tfcc.ca
or
Terra Firma Capital CorporationY. Dov
MeyerExecutive ChairmanPhone: 416.792.4709ydmeyer@tfcc.ca
or
Ali MahdaviManaging DirectorSpinnaker Capital
Markets Inc.Phone: 416.962.3300am@spinnakercmi.com
Terra Firma Capital
CorporationInterim Condensed Consolidated
Statements of Income and Comprehensive IncomeFor the three
months ended March 31, 2023 and 2022 (Unaudited)
|
|
Three months ended |
|
|
March 31,2023 |
March 31,2022 |
Revenue |
|
|
|
Interest and fees |
$ |
1,616,876 |
|
$ |
1,760,406 |
|
|
Finance income |
|
2,203,544 |
|
|
2,026,538 |
|
|
Rental |
|
40,135 |
|
|
43,413 |
|
|
|
|
3,860,555 |
|
|
3,830,357 |
|
Expenses |
|
|
|
Property operating costs |
|
13,511 |
|
|
15,071 |
|
|
General and administrative |
|
870,897 |
|
|
1,103,536 |
|
|
Share based compensation (recovery) |
|
211,803 |
|
|
(134,187 |
) |
|
Interest and financing costs |
|
2,260,495 |
|
|
2,515,709 |
|
|
Recovery of loan and mortgage investment loss |
|
(19,388 |
) |
|
(25,766 |
) |
|
Recovery of investment in finance lease loss |
|
(20,016 |
) |
|
(17,346 |
) |
|
Fair value adjustment - convertible note receivable |
|
31,995 |
|
|
- |
|
|
Realized and unrealized foreign exchange (gain) loss |
|
10,220 |
|
|
(22,763 |
) |
|
Share of income from investment in associates |
|
(291,132 |
) |
|
(235,070 |
) |
|
|
|
3,068,385 |
|
|
3,199,184 |
|
|
|
|
|
Income from operations before income taxes |
|
792,170 |
|
|
631,173 |
|
|
|
|
|
Income taxes |
|
211,995 |
|
|
53,597 |
|
|
|
|
|
Net income and comprehensive income |
$ |
580,175 |
|
$ |
577,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share |
|
|
|
Basic |
$ |
0.10 |
|
$ |
0.10 |
|
|
Diluted |
$ |
0.10 |
|
$ |
0.10 |
|
Terra Firma Capital
CorporationConsolidated Statements of Financial
PositionAs at March 31, 2023 and December 31, 2022
(Unaudited)
|
|
March 31,2023 |
December 31,2022 |
|
|
|
|
Assets |
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
23,111,456 |
|
$ |
16,636,083 |
|
|
Funds held in trust |
|
5,236,502 |
|
|
5,960,395 |
|
|
Amounts receivable and prepaid expenses |
|
1,063,064 |
|
|
916,225 |
|
|
Loan and mortgage investments |
|
39,461,949 |
|
|
46,111,079 |
|
|
Investment in finance lease |
|
58,052,750 |
|
|
67,779,627 |
|
|
Portfolio investments |
|
932,093 |
|
|
932,093 |
|
|
Investment in associates |
|
9,615,729 |
|
|
9,228,257 |
|
|
Investment property held in joint operations |
|
1,639,908 |
|
|
1,636,518 |
|
|
Convertible note receivable |
|
1,514,231 |
|
|
1,511,101 |
|
|
Right of use asset |
|
548,191 |
|
|
596,603 |
|
|
Income taxes recoverable |
|
- |
|
|
67,571 |
|
|
Deferred income tax asset |
|
183,874 |
|
|
21,085 |
|
|
|
|
|
Total assets |
$ |
141,359,747 |
|
$ |
151,396,637 |
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
Unearned income |
|
249,568 |
|
|
669,950 |
|
|
Loan and mortgage syndications |
|
13,127,328 |
|
|
16,034,041 |
|
|
Loans payable |
|
73,447,393 |
|
|
79,847,824 |
|
|
Mortgages payable |
|
883,530 |
|
|
895,492 |
|
|
Accounts payable and accrued liabilities |
|
8,302,406 |
|
|
9,221,168 |
|
|
Credit facilities |
|
(25,000 |
) |
|
(50,000 |
) |
|
Lease obligations |
|
587,110 |
|
|
633,326 |
|
|
Income taxes payable |
|
307,988 |
|
|
- |
|
Total liabilities |
|
96,880,323 |
|
|
107,251,801 |
|
|
|
|
|
Equity |
|
|
|
|
|
|
|
Share capital |
$ |
25,364,104 |
|
$ |
25,364,104 |
|
|
Contributed surplus |
|
3,609,432 |
|
|
3,607,129 |
|
|
Foreign currency translation reserve |
|
(6,885,398 |
) |
|
(6,885,398 |
) |
|
Retained earnings |
|
22,391,286 |
|
|
22,059,001 |
|
|
Total equity |
|
44,479,424 |
|
|
44,144,836 |
|
|
|
|
|
Total liabilities and equity |
$ |
141,359,747 |
|
$ |
151,396,637 |
|
Terra Firma Capital (TSXV:TII)
過去 株価チャート
から 11 2024 まで 12 2024
Terra Firma Capital (TSXV:TII)
過去 株価チャート
から 12 2023 まで 12 2024