Mr. Blair Tamblyn reports

TIMBERCREEK FINANCIAL PROVIDES UPDATE ON CALGARY OFFICE LOAN

Timbercreek Financial Corp. today provided an update regarding its mortgage investment related to a recently renovated 40-storey office tower located in downtown Calgary, known as Stephen Avenue Place, and owned by affiliates of Slate Canadian Real Estate Opportunity Fund I LP.

Timbercreek Financial is one of several secured creditors with exposure to the property under a mortgage serviced by its affiliate Timbercreek Mortgage Servicing Inc. (TMSI). As of June 30, 2025, the gross mortgage balance was $139-million. This amount reflects the full value of the first-ranking mortgage, which is syndicated on a pari passu basis among Timbercreek Financial and two other institutional syndication partners. Timbercreek Financial's gross exposure, after accounting for syndicated portions, was $15-million, or 10.8 per cent of the total loan, representing 1.3 per cent of its net mortgage portfolio of $1,114-million. The loan has been classified within the company's consolidated financial statements as a stage 3 mortgage since Dec. 31, 2024.

On Oct. 15, 2025, TMSI, on behalf of the company and its syndication partners, applied for the appointment of MNP Ltd. as receiver and manager of the property. The order was granted by the Alberta Court of King's Bench. The decision for TMSI to seek the court appointment of a receiver and manager was made as the next step in the path to realization, following the termination of a forbearance period provided by TMSI, and in order to best protect the interests of all stakeholders in the property.

Blair Tamblyn, chief executive officer of Timbercreek Financial, said: "While we do not typically comment on individual loans, we felt it was important to disclose our net exposure in this situation. Our team has originated more than $18-billion in commercial real estate debt since launching our lending platform in 2007 and actively managed a sizable portfolio through multiple cycles. We are experienced in navigating these kinds of situations to preserve our investors' capital and that is our primary focus with this asset. The Stephen Avenue Place loan is one of the few investments remaining in the portfolio that were originated prior to the rate hike cycle."

Timbercreek Financial is a leading non-bank, commercial real estate lender providing shorter-duration, structured financing solutions to commercial real estate professionals. The company's sophisticated, service-oriented approach allows Timbercreek Financial 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, Timbercreek Financial is able to meet these needs while generating strong risk-adjusted yields for investors.