Mr. George Armoyan reports

CLARKE INC. REPORTS 2026 FIRST QUARTER RESULTS AND ELECTION OF DIRECTORS

Clarke Inc. has released its results for the three months ended March 31, 2026.

First quarter results (1)

Hotel and rental revenue for the three months ended March 31, 2026, increased to $18.5-million, compared with $17.7-million in the prior period, primarily due to the commencement of operations of the first building in the Talisman's second phase, which was not operational during the comparative period. The company's net income for the three months ended March 31, 2026, was $14.1-million, compared with a loss of $2.4-million in 2025. The net income during the period was primarily a result of a fair value adjustment on investment properties. The net loss in the prior year was primarily attributable to a pension expense resulting from past service costs following a pension plan amendment. Interest and accretion expense decreased year over year as a result of lower interest rates on the company's floating-rate debt and a higher component of capitalized interest driven by continuing construction expenditures in the current quarter compared with 2025.

Other comprehensive loss for the three months ended March 31, 2026, of $1.2-million was a result of net remeasurement losses in the company's pension plans compared with other comprehensive income in the prior period of $5.4-million related to net remeasurement gains related to the pension plan amendment.

While the company experienced improvements in both residential and hospitality net operating income compared to the comparative quarter, the results do not fully reflect the significant initiatives made during the quarter due to their timing and nature.

In addition to the efforts related to the arrangement agreement signed with Ravelin Properties REIT, which the company expects to close in the second quarter, the company obtained the occupancy permit for the second building of the second phase of the Talisman development and is nearing completion of the third building. Operations for the second building commenced on April 1 and will be reflected in the company's results beginning in the second quarter. The third and final building of the second phase is expected to be completed in the summer, with operations commencing in the third quarter.

The company is also commencing a major renovation of its DoubleTree by Hilton hotel in London, Ont. In addition, construction of the 448-unit residential development branded The Regent, located adjacent to this hotel, continues to progress.

This is a dynamic period for the company, with meaningful growth in assets and revenues expected from both organic initiatives across the company's hospitality and residential businesses, as well as from the anticipated Ravelin acquisition.

During the first quarter of 2026, the company's book value per common share increased by 93 cents or 4.4 per cent. The company had net income of $14.1-million during the period, which included hotel net operating income of $5.5-million or 40 cents per common share, residential net operating income of $2.3-million or 17 cents per common share, and a fair value adjustment on investment properties of $19.0-million or $1.40 per common share, offset by depreciation and amortization of $3.2-million or 24 cents per common share, interest and accretion of $2.4-million or 17 cents per common share, and income tax expense of $4.8-million or 35 cents per common share. The company also recorded remeasurement losses on its pension plans of $1.2-million or nine cents per common share in other comprehensive income. The company's book value per common share at the end of the period was $22.01, while the common share price was $22.94.

Additional commentary on the company's first quarter results can be found in Clarke's management's discussion and analysis for the three months ended March 31, 2026.

(1) Book value per share and net operating income are non-IFRS (international financial reporting standards) measures and ratios.

Other information

Highlights of the interim condensed consolidated financial statements for the three months ended March 31, 2026, compared with the three months ended March 31, 2025, are provided in an attached table.

Election of directors

Clarke also announced today that the director nominees listed in the management information circular dated April 8, 2026, were elected as directors of the company. The detailed results of the vote for the election of directors held at Clarke's annual general and special meeting of shareholders held on May 8, 2026, in Halifax, N.S., are set out in an attached table.

Final voting results on all matters voted on at the annual general and special meeting of shareholders held on May 8, 2026, will be filed on the company's issuer profile on SEDAR+.

About Clarke Inc.

Clarke is a real estate company with holdings across real estate sectors -- primarily residential, furnished suites and hospitality. Clarke's common shares trade on the Toronto Stock Exchange. Further information about Clarke, including Clarke's interim condensed consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2026, is available on SEDAR+ and on Clarke's website.

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