Timbercreek Financial Corp.

Good day, ladies and gentlemen. Welcome to Timber Creek Financial's second quarter earnings call. At this time, all participants are in a 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 Blair Tamblyn. Please go ahead.

Thank you, Operator. Good afternoon, everyone, and thank you for joining us today. With me on the call today are Scott Rowland, our Chief Investment Officer, Tracy Johnston, our Chief Financial Officer, and Geoff McTait, who leads the Canadian Originations and Global Syndications business. The second quarter reflected steady execution against our key priorities. We maintained stable distributable income, delivered strong origination activity, and continued to reduce our stage loan exposure. During the quarter, we advanced to approximately $154 million, reflecting positive market conditions. Net investment income for the quarter was solid at $24.9 million. We generated a distributable income of $14.6 million, or 18 cents per share, resulting in a payout ratio of 97.7%. We believe our current earnings profile continues to support the monthly dividend while providing opportunities for further improvement and many more. We're very excited to be here today to talk with you today. We're very excited to be here today. and the progress we're making against our key priorities for 2026. For that, I'll turn the call over to Scott to walk through the portfolio in more detail. Scott?

Thanks, Blair, and good afternoon, everyone. I'll spend a few minutes reviewing portfolio composition and performance, as well as asset management activity related to stage loans, and then hand things over to Geoff to discuss originations, trends and the lending environment. At a high level, the portfolio remains well aligned with our long-standing investment strategy and risk framework. At quarter end, just over 81% of the portfolio was invested in cash-flowing properties, and multi-residential assets represented approximately 60% of investments. The emphasis on income-producing real estate has been a core element of our strategy through multiple market cycles and remains unchanged today. At quarter end, first mortgages represented approximately 94% of investments. The weighted average loan-to-value was 68.3%. The weighted average interest rate for the quarter was 7.6%, compared to 7.7% in Q1 and 8.6% a year ago. The decline primarily reflects lower benchmark rates and the repayment of certain higher-rate investments. Importantly, approximately 90% of the portfolio remains invested in floating rate loans with contractual floors and substantially all of those loans are currently operating at their floor rates. This continues to provide meaningful support to portfolio yields despite the lower rate environment. While lower benchmark rates have reduced portfolio yields over the past year, the earnings impact has been moderated by increased syndication activity healthy fee generation and lower borrowing costs. Together, these factors continue to support the portfolio's overall earnings profile and distributable income generation. The portfolio remains well diversified by geography and asset type. 97% of invested capital remains concentrated in Ontario, BC, Quebec and Alberta, with a focus on major urban markets that benefit from stronger liquidity. As Blair mentioned, we continue to make meaningful progress on our remaining Stage 2 and Stage 3 positions during the quarter. Since year-end, Stage 3 balances have declined by more than 51%, reflecting the successful execution of multiple asset-specific resolution strategies and completed exits. During the quarter, we resolved two Calgary Stage 3 positions through receiver-led sales processes and continue advancing several of our larger remaining files. In terms of expected credit losses during the quarter, a significant portion was related to the Vancouver retail portfolio and reflects the carrying costs associated with positioning the asset for sale and advancing the exit strategy. We also updated valuation assumptions on certain Victoria assets to reflect current transaction activity and evolving sale processes. While these adjustments impacted earnings in the quarter, they are occurring alongside continued progress on the underlying exit strategies. Although additional work remains, we believe we are now in the later stages of resolving many of the larger stage positions that have weighed on the portfolio in recent years. As these assets are resolved and capital is recycled into new mortgage investments, we expect an increasing proportion of portfolio to contribute to earnings and distributable income generation. At this point, I'll turn things over to Geoff.