Terra Firma Capital Corporation Reports Results for the Second Quarter Ended June 30, 2015

TORONTO, ONTARIO--(Marketwired - Aug. 6, 2015) -

All amounts are stated in Canadian dollars.

Terra Firma Capital Corporation (TSX VENTURE:TII) ("Terra Firma" or the "Company"), a real estate finance company, today released its financial results for the three and six months ended June 30, 2015.

SECOND QUARTER 2015 HIGHLIGHTS:

• Total revenue is $4.3 million, an increase of $1.4 million or 47%, compared to the same period last year.
  
  

• Net income and comprehensive income in the second quarter is $1.3 million, an increase of $531,000 or 68%, compared to the second quarter of 2014.
  
  

• Basic and diluted earnings per share in the second quarter were $0.03 and $0.02, respectively, same as the year-ago period.
  
  

"Our second quarter results reflect our ability to continue to execute on our growth plan. As we recently reported, the closing of $15.5 million bought deal offering and concurrent private placement equity offering, $10 million operating credit facility and closing of two financings in the U.S, favourably positioned Terra Firma for increased future profitability", commented Y. Dov Meyer, Chief Executive Officer. "We are pleased with the growth in revenue and of our loan and mortgage investments of $10 million quarter over quarter in spite of significant maturities in our portfolio in this past quarter. We are very excited by the size and quality of our pipeline of new opportunities both in Canada and in the U.S. and are confident that the remaining capital will be deployed in Q3. As well, our syndicated investors have demonstrated meaningful appetite for our U.S. investments in the face of a declining Canadian Dollar. We expect to continue to grow our syndication platform and reinvest our capital as we deploy more funds into new transactions increasing profitability and book value per share." he further said.

"We are focusing on selected areas in the U.S. and Canada which allow us to pick only the best financing opportunities on a risk-adjusted basis. We are excited about initiating our US expansion plan with the closing of two very attractive transactions and remain pleased with the performance of the existing loan portfolio", commented Glenn Watchorn, President and Chief Operating Officer.

Results of operations - three months ended June 30, 2015

Net income in the second quarter ended June 30, 2015 was $1.3 million or $0.03 per basic share and $0.02 per diluted share, compared to $786,000, or $0.03 per share and $0.02 per diluted share, in the second quarter ended June 30, 2014.

Interest and fee income for the second quarter ended June 30, 2015 aggregated $4.2 million, an increase of 48% over the $2.8 million in the same period in the previous year, and an increase of 6.3% over $4.0 million in the first quarter ended March 31, 2015.

Interest and financing costs for the second quarter ended June 30, 2015 was $1.4 million, compared to $1.5 million for the comparative period last year and $1.5 million for the first quarter ended March 31, 2015.

The Company's Management's Discussion & Analysis and Financial Statements as at and for the three and six months ended June 30, 2015 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 throughout Canada and 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.

The TSXV has neither approved nor disapproved the contents of this press release. The TSXV does not accept responsibility for the adequacy or accuracy of this press release.

This Press Release contains forward‐looking statements with respect matters concerning the business, operations, strategy and financial performance of Terra Firma. These statements generally can be identified by use of forward looking word such as "may", "will", "expects", "estimates", "anticipates", "intends", "believe" 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. Forward‐looking statements are based on a number of assumptions which may prove to be incorrect. Additional, important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, local real estate conditions, competition, changes in government regulation, dependence on tenants' financial conditions, interest rates, the availability of equity and debt financing, environmental and tax related matters, and reliance on key personnel. 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 has no obligation to update such statements except as required by law.

Terra Firma Capital Corporation
Consolidated Statements of Income and Comprehensive Income
For the three and six months ended June 30, 2015 and 2014
(Unaudited)
		Three months ended					Six months ended
		June 30,		June 30,			June 30,		June 30,
		2015		2014			2015		2014
Revenue
	Interest and fees	$	4,208,446	$	2,841,816		$	8,168,858	$	5,462,356
	Rental		47,362		47,319			94,710		162,756
			4,255,808		2,889,135			8,263,568		5,625,112
Expenses
	Property operating costs		15,268		15,225		$	30,522		57,301
	General and administrative		568,831		529,678			1,366,855		884,195
	Share based compensation		724,689		423,994			1,115,728		436,602
	Interest and financing costs		1,436,038		1,451,536			2,939,070		2,930,455
	Gain on conversion of interest in joint operation		-		(487,000	)		-		(487,000	)
			2,744,826		1,933,433			5,452,175		3,821,553
Income from continuing operations before income taxes			1,510,982		955,702			2,811,393		1,803,559
Income taxes			194,304		321,563			549,277		551,211
Income from continuing operations			1,316,678		634,139			2,262,116		1,252,348
Income from discontinued operations			-		151,644			-		151,644
Net income and comprehensive income		$	1,316,678	$	785,783		$	2,262,116	$	1,403,992
Earnings per share
	Basic	$	0.03	$	0.03		$	0.05	$	0.05
	Diluted		0.02		0.02			0.04		0.04

Terra Firma Capital Corporation
Consolidated Statements of Financial Position
As at June 30, 2015 and December 31, 2014
		June 30,		December 31,
		2015		2014
Assets
	Cash and cash equivalents	$	6,127,920	$	1,083,745
	Funds held in trust		1,404,903		834,065
	Amounts receivable and prepaid expenses		2,321,572		2,058,846
	Loan and mortgage investments		75,302,691		78,635,796
	Investment properties		2,061,963		2,062,661
	Portfolio investments		3,649,293		1,620,828
	Deferred income tax asset		483,946		48,381
Total assets		$	91,352,288	$	86,344,322
Liabilities
	Accounts payable and accrued liabilities	$	4,509,546	$	2,227,308
	Provision for discontinued operations		27,500		27,500
	Unearned income		630,181		639,307
	Income taxes payable		354,650		341,432
	Short-term unsecured loans payable		-		1,500,000
	Revolving operating facility		3,814,196		-
	Loan and mortgage syndications		28,613,546		45,390,821
	Mortgages payable		1,135,892		1,151,118
	Convertible debentures		10,569,736		10,514,431
Total liabilities			49,655,247		61,791,917
Equity
	Share capital	$	30,493,370	$	16,654,718
	Equity component of convertible debentures		284,490		284,490
	Contributed surplus		2,093,453		1,049,585
	Retained earnings		8,615,073		6,352,957
			41,486,386		24,341,750
	Non-controlling interest		210,655		210,655
Total equity			41,697,041		24,552,405
Total liabilities and Equity		$	91,352,288	$	86,344,322