TSX Shariah screener · September 2026

Is Timbercreek Financial Corp. (TF) Halal?

FAIL

Timbercreek Financial Corp. · TSX: TF · Financials

The short answer

Timbercreek Financial Corp. (TSX: TF) is a FAIL on all three gates. The business gate fails: it is a mortgage investment corporation whose core business is interest-based commercial real estate lending (C$1,143.9M of net mortgage investments at a 7.6% weighted-average rate). The debt gate fails: C$632.9M of credit facility plus convertible debentures is ≈144.3% of the ~C$438.6M market cap (≈321% including syndication liabilities). The income gate fails: interest income of C$50.016M in H1 2026 is ≈99.9% of total revenue.

Gate 1 — Business activity: FAIL

Timbercreek Financial Corp. is “a leading non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate investors” (Q2 2026 release), qualified as a mortgage investment corporation (MIC) under Section 130.1(6) of the Income Tax Act (Canada). The business model is to raise debt and equity to fund mortgage loans, earn interest, and distribute it to shareholders (MICs must pay out 100% of taxable income). At Q2 2026 net mortgage investments were C$1,143.9M: 93.9% first mortgages, 81.3% secured by cash-flowing properties, 60.1% multi-residential, at a weighted-average interest rate of 7.6%. Interest-based lending is a prohibited business segment (conventional finance). Gate 1 fails.

Gate 2 — Debt and cash: FAIL

Credit facility carrying value C$491.037M plus convertible debentures C$141.844M (trading as TF.DB.D / TF.DB.E) = C$632.881M at March 31, 2026 (Q1 2026 financial statements) → ≈144.3% of the ~C$438.6M market cap (C$5.26, September 30, 2026; 82.75M shares) — far over the ~33% guideline. Including mortgage syndication liabilities (~C$776.1M), broad debt is ≈C$1.41B → ≈321% of market cap. The exact June 30 carrying values are not separately verifiable from indexed sources, but Q2 saw $153.5M of new mortgage advances, so debt did not shrink — the FAIL is robust either way. Cash (C$0.45M per the Q1 FS to C$5.44M per simplywall.st) is ≈0.1–1.2% of market cap and passes. The debt component fails, so Gate 2 fails.

Gate 3 — Non-compliant income: FAIL

Net investment income on financial assets measured at amortized cost (interest-type income) was C$24.886M in Q2 and C$50.016M in the first half of 2026, against total revenue (net of mortgage syndication) of C$24.908M / C$50.087M — i.e. ≈99.9% of revenue is interest income — far over the ~5% tolerance. Gate 3 fails.

Key figures used

Q2 2026 net investment income (interest-type) C$24.886M; total revenue net of syndication C$24.908M. H1: C$50.016M / C$50.087M (reported July 29, 2026).
Net mortgage investments C$1,143.9M (93.9% first mortgages; weighted-average interest rate 7.6%).
Credit facility C$491.037M + convertible debentures C$141.844M = C$632.881M at March 31, 2026 (Q1 2026 FS).
Market cap ≈C$438.6M (C$5.26 per share, September 30, 2026; 82.75M shares).
Narrow debt ≈ 144.3% of market cap; broad debt (incl. ~C$776.1M syndication liabilities) ≈ 321%.
Interest income ≈ 99.9% of total revenue (C$50.016M ÷ C$50.087M, H1).
Cash C$0.45M–C$5.44M (≈0.1–1.2% of market cap); monthly dividend $0.0575/share.

Frequently asked questions

Is Timbercreek Financial (TF) halal?

Our September 2026 screen gives Timbercreek Financial (TF) a FAIL on all three gates. The core business is interest-based lending (a mortgage investment corporation), which fails the business gate. Debt of C$632.9M (credit facility plus convertible debentures) is about 144.3% of the ~C$438.6M market cap - far over the ~33% guideline. And interest income of C$50.016M for the first half of 2026 is about 99.9% of total revenue - far over the ~5% tolerance.

What business is Timbercreek Financial in?

Timbercreek Financial describes itself as 'a leading non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate investors.' It is qualified as a mortgage investment corporation (MIC) under Section 130.1(6) of Canada's Income Tax Act. The model: raise debt and equity to fund mortgage loans, earn interest, and distribute it to shareholders (MICs must pay out 100% of taxable income). At Q2 2026 its net mortgage investments were C$1,143.9M - 93.9% first mortgages, 60.1% multi-residential, at a weighted-average interest rate of 7.6%.

Why does Timbercreek Financial fail the debt gate?

At March 31, 2026 the company carried a credit facility of C$491.037M plus convertible debentures of C$141.844M (which trade on the TSX as TF.DB.D and TF.DB.E) - total C$632.881M. Against a market cap of about C$438.6M (C$5.26 per share on September 30, 2026, with 82.75M shares outstanding), that is roughly 144.3% - far over the ~33% guideline. Including mortgage syndication liabilities of about C$776.1M, broad debt is roughly C$1.41B - about 321% of market cap. The exact June 30 carrying values are not separately verifiable, but Q2 saw $153.5M of new mortgage advances, so debt did not shrink; the FAIL is robust either way.

Why does Timbercreek Financial fail the income gate?

Net investment income on financial assets measured at amortized cost - interest-type income - was C$24.886M in Q2 and C$50.016M in the first half of 2026. Total revenue (net of mortgage syndication) was C$24.908M in Q2 and C$50.087M in H1. So about 99.9% of the company's revenue is interest income - far over the ~5% tolerance for non-compliant income.

What do Musaffa, Zoya or ShariaPortfolio say about Timbercreek Financial?

No Musaffa page was found for TF or TF.TO, no public Zoya rating was found, and ShariaPortfolio does not publish per-stock screening pages. This page's FAIL result is based on the company's own Q2 2026 results and financial statements.

Sources

Screened 2026-09-30 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.