Bridgemarq Real Estate Services Inc.

Good morning. My name is Joanna, and I would like to welcome everyone to the Bridgemark Real Estate Services, Inc. 2023 Fourth Quarter Results Conference Call. This call is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. For those of you who dialed into the conference call, if you would like to ask a question, simply press star, then the number 1 on your telephone keypad. If you would like to withdraw your question, press star 2. For those of you joining us via webcast, if you would like to ask a question, simply type it into the Q&A box on your screen. We will answer these questions in sequence following the dial-in questions after the presentation. I would now like to introduce Mr. Phil Soper, President and CEO of Bridgemark Real Estate Services, Inc. Mr. Soper, you may begin your conference call.

Thank you very much, and good morning, everybody. With me today is our Chief Financial Officer, Glenn McMillan. We appreciate you joining us to hear about the updates to the Canadian real estate market and our company. I will begin with a brief overview of the company's fourth quarter and annual results, and just some high-level notes about the market. Glenn will then discuss our financial results in more detail, and I'll conclude by providing some more detailed insight into operational highlights and market developments. In today's call, we'll also provide an update on the recent brokerage acquisitions and the internalization of the company's manager, as well as the class action settlement by the National Association of Realtors in the United States, and what that might mean for the Canadian real estate industry. Following our remarks, Glenn and I would be happy to take your questions. I want to remind you that some of the remarks expressed during this call may contain forward-looking statements. You should not place reliance on these forward-looking statements because they involve known and unknown risks and uncertainties that may cause the actual results and the performance of the company to differ materially from the anticipated future results expressed or implied by such forward-looking statements. As always, I encourage everyone to review the cautionary language found in our news releases and on all of our regulatory filings, which can be found both on our website and on Cedar Plus. Canada's housing market closed out 2023 with continued weakened activity and prices trending modestly downward. The increased cost of living during that year and higher borrowing costs contributed to weaker buyer demand overall, particularly among first-time homebuyers. Weak demand led to a decline in real estate sales volumes and then to softer prices, both compared to the record highs experienced during the pandemic real estate boom and the 10-year moving average. Based on data from our field offices and real estate board reporting across the country, prices appear to have reached their floor in most real estate markets across Canada. Sideline buyers appear to have been waiting for either a drop in the bank rate or a rise in home prices. While the Bank of Canada has not yet indicated when we should expect a rate cut, we are seeing that both activity and home prices are beginning to pick up materially. The trends we are observing indicate an upswing in the market is imminent. As an aside, the pattern that is emerging closely matches the year beginning forecast produced a few months back by our Royal LePage business. Despite the 2023 market contraction, we are pleased with our performance over the last year, and the company's ability to weather these challenging market cycles as we have weathered market cycles over the life of this business. Revenue for 2023 was $48.5 million compared to $49.9 million in 2022, a 3% decrease. This is due to our largely fixed fee revenue, which provide investors with exposure to the Canadian real estate market while also mitigating the impact of market volatility on revenues and cash flows. So while the industry overall contracted by 14% year-over-year in 23, our business contracted by only 3%. Glenn will provide additional color on this. The Board of Directors previously approved a dividend payable on April 30th of $11.25 per share to shareholders of record. On March 28th, this indicates an annualized dividend of $1.35 per share. And with that, I will turn the call over to Glenn for a look at our fourth quarter financial performance.

Ladies and gentlemen, please stand by.