Q1 Financials
Terra Firma earns $818,756 (U.S.) in Q1
2021-05-20 16:07 ET - News Release
Mr. Glenn Watchorn reports
TERRA FIRMA CAPITAL CORPORATION REPORTS FIRST QUARTER 2021 FINANCIAL RESULTS
Terra Firma Capital Corp. has released its financial results for the three months ended March 31, 2021. All amounts are stated in United States dollars unless otherwise indicated.
Q1 2021 Financial Highlights:
Total Assets of $139.0 million
Total Investments (a non-IFRS financial measure)(1) of $133.1 million
Total Assets under management ("AUM," a non-IFRS financial measure) ( 4 ) of $155.9 million
Book Value per share increased by 1.4% to $7.50 (CA$9.42( 3 )) per share
CA$0.05 per share paid in dividends
Revenues decreased by 10.0% to $3.6 million
Net income and comprehensive income increased by 748.2% to $819,000
Adjusted net income and comprehensive income (a non-IFRS financial measure)( 2 ) decreased by 8.2% to $697,000
Basic and diluted earnings per share increased by 850.0% to $0.15 (CA$0.19( 3 ))
Adjusted basic and diluted earnings per share (a non-IFRS financial measure)( 2 ) decreased by 14.3% to $0.13 (CA$0.15( 3 ))
"Terra Firma is now back on the path of growth with its assets under management increasing over Q1 2021. The originations from Q3 2020 are now starting to support the beginning of what should be a substantial expansion for the Company after a few quarters of a pause due to the COVID pandemic," commented Glenn Watchorn, Chief Executive Officer of Terra Firma Capital Corporation. "After successfully closing our first fund of $37.5MM in Q1 2021, we are now looking to raise a larger second fund to accommodate our capital needs for what is a growing pipeline of new transactions."
For the three months ended March 31, 2021, revenues decreased 10.0% to $3.6 million, compared to $4.0 million during the same period in 2020, primarily due to a decrease of interest and fee income by 16.7% to $2.8 million compared to $3.4 million in 2020. The decrease in interest fees earned of $1.5 million is attributable to loan and mortgage investments repaid after March 31, 2020. This was partially offset by interest and fees earned of $646,830 on new loan and mortgage investments funded subsequent to March 31, 2020, and an increase in interest and fees earned of $320,627 on loan and mortgage investments and convertible note receivable existed at March 31, 2020. Finance income in 2021 was $786,000, compared to $631,000 in the previous year, due to an increase in investment in finance leases.
Interest and financing expense for the three months ended March 31, 2021, decreased by 12.8% to $2.0 million, compared to $2.3 million in the same period last year.
General and administrative expenses for the three months ended March 31, 2021, was $738,000 compared to $739,000 for the same period last year.
For the three months ended March 31, 2021, the Company recognized a foreign exchange gain of $78,000 compared to a foreign exchange loss of 796,000 for the same period last year.
The net income (loss) and comprehensive income (loss) attributable to common shareholders for the three months ended March 31, 2021, was $819,000 or $0.15 per basic and diluted share compared to $(126,000) or $(0.02) per basic and diluted share for the same period last year.
The Company's Total Investments(1) at March 31, 2021, was $133.1 million, compared to $122.6 million at December 31, 2020, an increase of 8.6% or $10.6 million, resulting primarily from the increase in the investment in finance leases totaling $10.7 million.
The principal balance of the Company's loan and mortgage syndications decreased to $70.7 million at March 31, 2021, as compared to $71.4 million at December 31, 2020, representing a decrease of 1.0%.
The Company's Management's Discussion & Analysis and Financial Statements as at and for the three months ended March 31, 2021 have been filed and are available on SEDAR (www.sedar.com).
About Terra Firma Capital Corp.
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.
CONSOLIDATED STATEMENTS OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) For the three months ended March 31, March 31, 2021 2020 Revenue Interest and fees $2,796,724 $3,356,405 Finance income 785,963 631,207 Rental 40,559 37,526 3,623,246 4,025,138 Expenses Property operating costs 14,837 13,425 General and administrative 737,684 739,059 Share based compensation 60,071 (209,554) Interest and financing costs 1,985,778 2,278,430 Provision for (recovery of) loan and mortgage investment loss (46,135) 105,737 Provision for investment in finance lease loss 103,783 - Realized and unrealized foreign exchange gain (77,698) 795,890 Share of income from investment in associates (79,627) (45,461) 2,698,693 3,677,526 Income from operations before income taxes 924,553 347,612 Income taxes 105,797 473,923 Net income and comprehensive income (loss) 818,756 (126,311) Earnings (loss) per share Basic 0.15 (0.02) Diluted 0.15 (0.02)
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