Timbercreek Financial Corp.

Good day, ladies and gentlemen, and welcome to Timber Creek Financial's fourth quarter earnings call. At this time, all participants are in listen-only mode. Following the presentation, we will conduct a question and answer session for analysts. Analysts are asked to raise their hand to register for a question. As a reminder, today's call is being recorded. I would now like to turn the meeting over to Scott Rowland. Please go ahead.

Good afternoon, everyone. Thanks for joining us to discuss the fourth quarter and full year 2025 results. Unfortunately, Blair Tamlin is delayed on a plane and is not currently available for the call. So joining me today is Tracy Johnson, CFO, and Jeff McTate, Head of Canadian Originations and Global Syndications. I will begin today's call by reading Blair's prepared remarks. Q4 marked the strong finish to the year from an investment activity standpoint as we anticipated on our last earnings call. We closed the year with strong fourth quarter originations of more than 330 million, driving portfolio growth of 18% over Q3. Net investment income was solid at 25.7 million, supported by portfolio growth and offset by the lower interest rate environment. Importantly, lower policy rates are now working in our favor. reducing funding costs and supporting net interest margins as origination activity accelerates. Distributable income was 18 cents per share in the quarter with a payout ratio of 95%. And we continue to advance the remaining stage loans as we look to return this balance to historical levels in the near term. As we move toward resolution on these stage loans, we have seen valuation adjustments in several cases. leading to a reported loss and book value contraction this period. However, importantly, our distributable income has remained healthy as the underlying portfolio continues to generate strong recurring income to support our consistent monthly dividends. Our disciplined, cycle-tested approach remains firmly intact, and we are well-positioned to benefit from an improving market environment and the resulting uptick in transaction activity. Moreover, As these legacy assets are positioned for sale and capital is redeployed, this will further align the portfolio with our growth strategy and add to earnings. This concludes Blair's opening remarks. At this point, I'll quickly cover the portfolio metrics and provide a brief update on key developments with the stage loans, and Jeff will comment on the originations activity and lending environment. Looking at the portfolio KPIs, most were consistent with recent periods and historical performance. At quarter end, 84% of our investments were in cash flowing properties. Multi-residential real estate assets continue to comprise the largest portion of the portfolio at roughly 62%. First mortgages represented 95% of the portfolio. The latest average loan to value for Q4 was 67.4%, which is slightly below Q3. We continue to be very comfortable in this range in this economic environment. The weighted average interest rate was 8.1% in Q4 versus 8.3% in Q3 and 8.9% in Q4 last year. The decrease reflects the Bank of Canada's policy rate cuts, bringing the wear closer to a long-term average of roughly 8%. Portfolio wear is also protected by the high percentage of floating rate loans with rate floors, 89% of portfolio at year end. Roughly 97% of the loans with floors are currently at their floor rates. I will highlight that we have begun to expand our margins as rates continue to trend downward. In this phase of our business cycle, borrower interest rates tend to decrease with reductions in prime. However, this is offset by opportunities to capture incremental credit spreads, a reduction in the cost of our bank financing facility, and higher fees driven by increased transaction volumes. This dynamic is familiar to our team. Over 18 years in this market, we have consistently managed through both rising and falling rate environments to ensure that the dividend remains well supported by distributable income. In terms of the asset allocation by region, 96% of the capital is concentrated in Ontario, British Columbia, Quebec, and Alberta, and focused on urban markets. We continue to be active from an asset management perspective. We resolved $6.5 million of Stage 3 loans in December 2025, Over the past year, most remaining files have made notable progress with zoning and other milestones close to completion. These achievements will position the assets for sale and substantial progress is anticipated throughout 2026. Overall, we are focused on reducing stage loan balances to traditional levels by year end and then redeploying the capital into new accretive loan investments. At this point, I'll ask Jeff to comment on the transaction activity in the portfolio.

Thanks, Scott. Clear that the real estate industry has navigated another year of transition, albeit marked by several encouraging developments. Broader environment of monetary easing supported a healthy volume of commercial real estate transactions, with approximately $47 billion changing hands across Canada last year. This momentum, coupled with growing optimism for ongoing sector improvement, sets the stage for a strong 2026, The transaction volume is projected to reach nearly 56 billion by year end. Against this backdrop, as was previously highlighted, new investments in the fourth quarter were strong. We advanced nearly 334 million in 23 new net mortgage investments and advances, predominantly targeting low LTB multifamily assets. These were offset by total mortgage portfolio repayments of 135 million. resulting in a turnover ratio of 12% and a portfolio balance of $1.24 billion of $185 million from Q3 levels. As another measure of the level of activity, gross originations in Q4 were $425 million. Looking ahead, the Q4 momentum has carried into 2026, resulting in a healthy new business pipeline. For Timber Creek, the current interest rate environment aligns well with our typical two-year bridge financing offerings and is helping drive forward demand while supporting requisite credit spreads. In terms of asset types, we are seeing particular strength in multi-residential assets, continued improvement in retail, and tightening conditions emerging in industrial markets. Although the office market still faces hurdles, return to office mandates are changing the outlook premium well-situated properties poised to outperform their peers. I will now pass the call over to Tracy to review the financial highlights. Tracy?