Terra Firma Capital Corporation Reports Results for the Second Quarter Ended June 30, 2013

Terra Firma Capital Corporation Reports Results for the Second Quarter Ended 
June 30, 2013 
77% Total Revenue Growth Year Over Year 
TORONTO, ONTARIO -- (Marketwired) -- 08/22/13 --  
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, 2013.  
SECOND QUARTER 2013 HIGHLIGHTS: 


 
--  Total revenue is $2.0 million, an increase of $848,000 or 77%, compared
    to the same period last year. 
    
--  Total assets increased by 36% to $58.4 million from $42.8 million at
    June 30, 2012. 

 
"We are encouraged by the positive momentum we have experienced in
the second quarter. Our portfolio is growing and is providing for
significant revenue increases." commented Y. Dov Meyer, President and
Chief Executive Officer. "We have established ourselves in the
marketplace as a recognizable name. We continue to actively focus on
our strategy of strengthening our brand and our relationships with
experienced real estate owners, co-lenders and investors. Our first
cycle of loan investments has reached maturity, which has enabled us
to redeploy capital and secure additional capital from investors for
our pipeline of loans. I believe that Terra Firma is well positioned
to capitalize on future growth opportunities and excited about our
prospects in the market." he further said.  
Results of operations - three months ended June 30, 2013  
Net income in the second quarter ended June 30, 2013 was $263,000 or
$0.01 per basic and diluted share, compared to $212,000, or $0.01 per
basic and diluted share, in the second quarter ended June 30, 2012.
Net income in the three and six months ended June 30, 2013 was
impacted by internalization of the management. General and
administrative expenses for the second quarter ended June 30, 2013
increased by $240,000 as compared to second quarter ended June 30,
2013.  
Interest and fee income for the second quarter ended June 30, 2013
aggregated $2.0 million, an increase of 77% over the $1.1 million in
the same period in the previous year, and an increase of 15% over
$1.7 million in the first quarter ended March 31, 2013.  
Interest expense for the second quarter ended June 30, 2013 was $1.2
million, compared to $503,000 for the comparative period last year
and $937,000 for the first quarter ended March 31, 2013, representing
the growth of our business and the increase in syndication capital to
fund the investment activities.  
The company's loan and mortgage investments increased from $32.0
million at December 31, 2012 to $43 million at June 30, 2013, an
increase of 34%. The average interest rate in the mortgage portfolio
at June 30, 2013 was 18.5% compared to 19.9% at December 31, 2012.  
The Company's Management's Discussion & Analysis and Financial
Statements as at and for the three and six months ended June 30, 2013
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 customized equity and debt solutions to the
real estate industry. Our focus is to arrange and provide financing
with flexible terms to property owners looking to improve or add to
their existing real estate assets but who may be limited by
conventional bank financing, as well as to invest in quality
commercial and residential developments by proven real estate
developers. 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.terrafirmacapital.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 ac
tual 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, 2013 and 2012                   
(Unaudited)                                                                 
                                                                            
----------------------------------------------------------------------------
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                                Three months ended       Six months ended   
                             -----------------------------------------------
                                June 30,    June 30,    June 30,    June 30,
                                    2013        2012        2013        2012
----------------------------------------------------------------------------
Revenue                                                                     
 Interest and fees earned    $ 1,840,180 $ 1,058,182 $ 3,426,395 $ 2,024,469
 Rental income                   115,558      49,606     222,654      99,238
----------------------------------------------------------------------------
                               1,955,738   1,107,788   3,649,049   2,123,707
Expenses                                                                    
 Property operating costs         21,238      17,513      68,853      35,051
 General and administrative                                                 
  expenses                       372,923     133,199     740,086     260,963
 Share based compensation         32,345     129,311      32,345     159,668
 Interest expense              1,157,172     503,070   2,094,584     998,761
----------------------------------------------------------------------------
                               1,583,678     783,093   2,935,868   1,454,443
                                                                            
Income before income taxes       372,060     324,695     713,181     669,264
                                                                            
Income tax provision             108,503     112,462     184,279     203,814
----------------------------------------------------------------------------
Net income and comprehensive                                                
 income                      $   263,557 $   212,233 $   528,902 $   465,450
----------------------------------------------------------------------------
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Earnings per share - basic                                                  
 and diluted                 $      0.01 $      0.01 $      0.02 $      0.02
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Terra Firma Capital Corporation                                             
Consolidated Statements of Financial Position                               
As at June 30, 2013 and December 31, 2012                                   
(Unaudited)                                                                 
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                      June 30,  December 31,
                                                          2013          2012
----------------------------------------------------------------------------
                                                                            
Assets                                                                      
                                                                            
Cash and cash equiv
alents                        $   4,694,541 $   3,223,291
Amounts receivable and prepaid expenses              1,982,091     2,396,180
Loan and mortgage investments                       42,952,481    31,996,731
Investment properties                                7,848,487     7,834,576
Portfolio investment                                   950,000       950,000
----------------------------------------------------------------------------
Total assets                                     $  58,427,600 $  46,400,778
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Liabilities                                                                 
                                                                            
Accounts payable and accrued liabilities         $   1,710,805 $   1,192,616
Provision for discontinued operations                  384,245       445,957
Unearned income                                        213,177        16,965
Income taxes payable                                         -       474,297
Deferred income taxes                                   16,232        15,602
Loans and mortgages payable                         32,677,167    21,406,070
Convertible debentures                              10,108,781    10,093,325
----------------------------------------------------------------------------
Total liabilities                                   45,110,407    33,644,832
----------------------------------------------------------------------------
                                                                            
Shareholders' Equity                                                        
                                                                            
Share capital                                    $  10,757,405 $  10,757,405
Contributed surplus                                    605,484       573,139
Retained earnings                                    1,954,304     1,425,402
----------------------------------------------------------------------------
Total shareholders' equity                          13,317,193    12,755,946
----------------------------------------------------------------------------
                                                                            
----------------------------------------------------------------------------
Total liabilities and Shareholders' Equity       $  58,427,600 $  46,400,778
----------------------------------------------------------------------------
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Contacts:
Terra Firma Capital Corporation
Dov Meyer
President and Chief Executive Officer
416.866.8986
ydmeyer@tfcc.ca 
Terra Firma Capital Corporation
Mano Thiyagarajah
Chief Financial Officer
416.866.3168
mthiyagarajah@tfcc.ca
www.terrafirmacapital.ca
 
 
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