Mr. Blair Tamblyn reports

TIMBERCREEK FINANCIAL COMMENTS ON GROUPE HUOT LOANS

Timbercreek Financial Corp. has provided commentary and clarification on its loans to Groupe Huot Inc., a Quebec-based real estate developer.

As disclosed in the company's second quarter 2023 financial results, Timbercreek is a secured creditor to Groupe Huot on seven recently constructed, income-producing multifamily assets in Quebec. Several recent media articles have stated that Timbercreek's investments to Groupe Huot total approximately $253-million. Timbercreek is in the business of originating commercial mortgages and often works with third party lenders to share loans based on different risk and return criteria. This total amount represents the gross amount of the registered and secured hypothecs (mortgages). Net of syndicated amounts, Timbercreek's total commitment to Groupe Huot is $143.3-million ($139.8-million on six assets that are first ranking with the balance of $3.5-million on one asset being a second mortgage).

As previously disclosed, the company, along with a broader lender group, moved to put a receiver in place to resolve these loans through a sales process, with the voluntary consent of the borrower. This enforcement process is being run separately from any announced actions by the president of the borrower whose personal financial issues were reported in the Quebec media in recent days.

As at June 30, 2023, Timbercreek's net mortgage investments were $1,123.7-million.

About Timbercreek Financial Corp.

Timbercreek is a leading non-bank, commercial real estate lender, providing shorter-duration, structured financing solutions to commercial real estate professionals. Its sophisticated, service-oriented approach allows it to meet the needs of borrowers, including faster execution and more flexible terms, that are not typically provided by Canadian financial institutions. By employing thorough underwriting, active management and strong governance, it is able to meet these needs while generating strong risk-adjusted yields for investors.

We seek Safe Harbor.