Q: What is your current view of Timbercreek Financial? Is it worth holding for income? It trend is not comforting. Thanks. cheers
5i Research Answer:
We consider TF OK to be held for income in a small position. The current trends it has displayed can be a broader reflection of the struggles in the commercial real estate and mortgage markets recently. Fundementals are decent, it pays a very high yield, and it is cheap right now which makes it interesting. Year-to-date performance for the stock has been solid but it is in a struggling sector that is highly rate sensitive to rates/economy in addition to carrying size risk. But it is cheap and pays a good dividend. Note the dividend (98% taxed as interest) has not been changed since 2016, at which time it experienced a very fractional decrease.