C3.ai, Inc. — Call Transcript 2026

Ladies and gentlemen, please stand by. Your conference is about to begin. Welcome to the Atrium Mortgage Investment Corporation's fourth quarter results conference call. At this time, all lines are in listen-only mode. Later in the call, a question and answer session. At that time, if you have a question, you'll be asked to press star two on your touch tone keypad. Reminder that this conference is being recorded. Friday, February 27th, 2026. Certain statements will be made during this phone call that may be forward-looking statements. Although Atrium believes that such statements are based upon reasonable assumptions, actual results may differ materially. Forward-looking statements are based upon beliefs, estimates, and opinions of Atrium's statements are made. Atrium undertakes no obligations to update these forward-looking statements in the event that management's beliefs, estimates, opinions, or other factors change. I would now like to turn the conference over to your host, Robert Goodall, CEO of Atrium. Mr. Goodall, please go ahead. Thank you all for calling in this morning. Our CFO, Chris Anastasopoulos, is joining me today. Chris will begin with an overview of our financial results, and then I'll speak about our performance from an operational and portfolio perspective. Chris? Thank you, Rob. In the fourth quarter and for the year ended December 31, 2025, Atrium continued to generate strong results for shareholders amid a challenging economic environment. Atrium generated net income of CAD 12.2 million in the fourth quarter, and our basic earnings per share was CAD 0.25 per share, which decreased from CAD 0.27 per share in the fourth quarter of 2024. For the year ended December 31, 2025, Atrium earned net income of CAD 49.1 million, a 2.5% increase over the prior year, resulting in basic earnings per share of CAD 1.03 per share. This was ahead of our fixed dividend rate for the year of CAD 0.93 per share. After considering the CAD 0.10 per share special dividend announced yesterday, our total dividends for the year were CAD 1.03 per share, which is in line with our earnings per share for 2025. We are proud of this performance, particularly given the weak market conditions in 2025. As expected, the average interest rate on the mortgage portfolio decreased to 8.98% at December 31, 2025, down from 9.98% at December 31, 2024. The decrease was largely driven by repayments of loans with higher yields compared to new loan originations and the impact of 4 25 basis point rate reductions by the Bank of Canada during the year, impacting floating interest rates. As at December 31, 2025, 80.8% of the mortgage portfolio was priced based on floating rates, with the majority having rate floors in place. The mortgage portfolio ended the year at CAD 917.1 million, an increase of 3.4% from CAD 886.7 million at December 31, 2024. Despite the difficult market and due to the strength of our underwriting team, we were able to grow the portfolio this year. During the year ended December 31, 2025, mortgage advances exceeded interest in principal repayments, with CAD 358.6 million of mortgage principal advanced and CAD 316.6 million repaid and transferred, net of write-offs of CAD 4.3 million. At December 31, 2025, 95.2% of our mortgages were first mortgages, and we maintain a conservative average loan-to-value ratio of 61.4% for the portfolio, which decreased from 61.9% at December 31, 2024. Our mortgages classified as Stage 1 were CAD 782.4 million at December 31, 2025, down 3.1% from CAD 807.7 million at December 31, 2024. We had CAD 48.7 million in mortgages classified as Stage 2 at year-end, a decrease of 2.6% from CAD 49.9 million at December 31, 2024. Stage 3 loans increased to CAD 86 million at December 31, 2025, compared to CAD 29 million as at December 31, 2024, and CAD 56.3 million at the end of the third quarter. Three commercial loans, totaling approximately CAD 53 million, were migrated to Stage 3 in the fourth quarter as they became impaired, which were offset by repayments of commercial loans of approximately CAD 23 million during the quarter. The allowance for credit losses was CAD 30.5 million at December 31, 2025, a 3.1% increase over December 31, 2024. As a percentage of the mortgage portfolio, this represents a healthy 332 basis points, consistent with the prior year rate of 333 basis points. The total allowance for credit losses related to Stage 1 loans was CAD 6.1 million at December 31, 2025, down from CAD 8.1 million at December 31, 2024. Our allowance for credit losses on Stage 2 mortgages was CAD 2.9 million at year-end, a decrease from CAD 8.1 million at December 31, 2024. Our Stage 3 allowance for credit losses was CAD 21.5 million, up from CAD 13.3 million at December 31, 2024, primarily due to the migration of new loans from Stage 2 during the fourth quarter, offset by loan repayments. We continued to maintain a strong liquid and well-capitalized balance sheet. As at December 31, 2025, balance sheet debt remained low at 40%, with CAD 283 million drawn on our CAD 380 million credit facility, leaving a healthy available capacity. The weighted average cost of borrowing on the credit facility was 5.08% this year, down from 7.03% in the prior year. During the year, we also repaid our 5.6% convertible debenture with principal amount of CAD 28.7 million on March 31, and our 5.5% convertible debenture with a principal amount of CAD 34.4 million on December 31. Our healthy debt capacity provides us with the opportunity to make use of convertible debt in the market in 2026, provided market conditions are favorable. In 2025, we continued our trend of strong financial performance for our shareholders, even under difficult market conditions. We remain committed to our disciplined risk management approach as we pursue new opportunities, strengthening our team to ensure timely transaction analysis, managing our operating expenses prudently, and maintaining a strong balance sheet to confidently navigate the current economic cycle. I will now pass you back to Rob for the business and portfolio update. Thank you. As Chris said, Atrium MIC had a very good quarter, with basic earnings per share of CAD 0.25, identical to the previous quarter. I'm very proud of our annual results of CAD 1.03 per share, which marks the fourth consecutive year in which our earnings exceeded CAD 1 a share. We were able to deliver one of our best years, despite a very weak economy and the severe downturn in residential real estate markets across Canada, for which our team deserves a lot of credit. This strong performance has allowed us to reward our shareholders with a CAD 0.10 special dividend. Overall, the portfolio increased to CAD 917 million, up from CAD 887 million at the end of calendar 2024. I think a big reason for the increase in the portfolio is the growth in our underwriting team, which has more than doubled in size since the beginning of 2020. Loan advances in 2025 were CAD 359 million, which was slightly higher than in calendar 2024. Repayments in calendar 2025 were CAD 317 million, which represents a portfolio turnover of approximately 39%, which is in line with our normal level and is a sign of a healthy portfolio. We made good progress implementing CMCC's strategy to increase our exposure to commercial and single-family mortgages in 2025. The commercial category represented 28.7% of the total portfolio at the end of the year and has seen an increase of CAD 72 million over the past year, representing a 38% increase year-over-year. In the single-family and apartment category, it's risen to 19.2% of the total portfolio, up 14% on a year-over-year basis. Together, these lower-risk sectors now represent approximately 48% of our portfolio. In Q4, Atrium's average mortgage rate dropped from 9.2% last quarter to 8.98% this quarter, which reflects the 25 basis point drop in the prime rate of interest during the fourth quarter. Total of high-ratio loans, that is, loans over 75% loan-to-value, was CAD 85 million, equal to 9.3% of the portfolio. For the single-family mortgage portfolio, loans over 75% loan-to-value totaled just over CAD 30 million, and there were 5 high-ratio commercial loans totaling CAD 54.7 million. One of these loans, totaling CAD 14.25 million, was repaid in full in January, while another, totaling CAD 12.6 million, is expected to be substantially paid down by the end of March. In Q4, the average loan-to-value of the portfolio increased slightly from 60.8% last quarter to 61.4% at year-end, and continues to be well within our desired range of 65%. Atrium's percentage of first mortgages remain very high at 95.2%, and construction loans rose slightly in Q4, but still represent less than 5% of the portfolio. We funded a CAD 12.5 million dollar construction loan with a well-known Toronto developer on a purpose-built rental in Q4. Turning to portfolio quality, the mix of Stage 1, 2, and 3 loans changed in Q4. The good news is that the aggregate of Stage 2 and 3 loans dropped by 13.6% to 14.7% of the portfolio. Stage 2 loans dropped sharply from CAD 96.8 million-CAD 48.7 million. Although Stage 3 loans did increase from CAD 56 million-CAD 86 million, it was due to the addition of a CAD 31 million dollar loan, and that property has been conditionally sold, and we expect it to be repaid in early Q2, 2026. In terms of the loan loss reserve, we expensed a loan loss provision of CAD 1 million in Q4, after having a CAD 1.3 million loan loss provision in Q3, and a total provision expense for the year of CAD 4.5 million. On a net basis, Atrium's total loan loss reserve increased marginally from CAD 29.5 million last quarter to CAD 30.5 million at year-end, equal to 332 basis points on the overall mortgage portfolio. With regard to our line of credit, we added three new lenders to our lender syndicate in 2025 and increased our committed line of credit from CAD 340 million-CAD 380 million. We used the line of credit to repay two convertible debentures, which matured in 2025. We expect to access the convertible debenture market in 2026, provided market conditions remain favorable. My economic commentary is as follows: The Bank of Canada's latest forecast of GDP growth is for a flat Q4. Bank of Canada has also forecasted slow growth of 1.1% in 2026 and 1.5% in 2027, as Canada adjusts to a new trading relationship with the United States. CPI dropped to 2.3% in January. The Bank of Canada expects inflation to slow further in the coming months. Both Canada and the United States held their rates steady in December. It's unclear when or if more interest rate cuts will occur in either country. Turning to commercial real estate. The commercial real estate market stabilized in 2025 as investor confidence gradually improved. Performance across most commercial real estate sectors has been resilient, particularly the retail and seniors residence sectors. The multi-residential and industrial sectors are still healthy, although rents have dropped from their peak levels and vacancy rates have risen. We view commercial real estate as one of the best areas to focus our lending activities. CMCC has worked hard in the last two years to increase Atrium's exposure to these markets. The office sector, where we have limited exposure, has recently shown signs of recovery in the GTA as a result of return to office requirements by many large employers, with mandates of 4-5 days per week in office. It is still a difficult sector for all but the AAA Class buildings. Looking at the residential and multi-residential real estate markets, in contrast to commercial real estate, unfortunately, the misery continues in residential housing markets. Starting with resales, in the GTA, resales declined by 11% in 2025 on a year-over-year basis, with sales at their lowest level in at least 12 years. Resale activity in the Greater Vancouver area decreased by 10% year-over-year in December, capping a year with the lowest annual sales in 2 decades. Over the past year, benchmark resale prices declined by 6.3% in the GTA and 4.5% in the Greater Vancouver area. Turning to new home sales, the soft resale market conditions have directly contributed to a lack of activity in the new home market, as construction costs and affordability constraints continue to weigh heavily on demand. The new home market remains slow across most urban centers in Canada, with the GTA and the GVA leading the way, with new home sales 81% and 70% lower, respectively, than the average sale for the 10-year period between 2016 and 2025. Other markets are also slow. For example, in 2025, even Calgary and Montreal, two of the stronger markets, had new home sales that were 42% and 70% respectively below their 10-year average from 2016 to 2025. The condo sector is the weakest sector within the residential markets, but fortunately, the supply of new condos should reduce dramatically over the next 2 years. For example, in the GTA, the number of condominium units under construction dropped sharply to 50,000 units by the end of the year, and that number could drop as low as 30,000 units by the end of 2026, which should form the base for a recovery. The housing market clearly needs more government support in the form of an HST rebate for all buyers, not just first-time buyers, and ideally, a major reduction or elimination of development charges. It's worth noting that Mississauga and Burlington have implemented on their own a reduction or elimination of development charges. The housing market, of course, also needs more economic certainty to improve consumer confidence. We believe that the housing markets in the GTA particularly, should stabilize and gradually start to recover in 2027, when the number of project completions starts to drop sharply. To conclude, I'm proud of Atrium's results in 2025, and pleased that we're able to reward our eligible shareholders with a CAD 0.10 special dividend. The results didn't come easily. The new management, senior management, or the senior management team, have all been working very hard to navigate the toughest real estate market that I've seen since the early nineties. We have dealt effectively and decisively where we've had problem loans, rather than kicking the can down the road. This is important because the residential, resale, and new home markets are generally expected to perform poorly in 2026, so a delayed response will likely be costly. The other challenge in 2026 will be continuing to source new loan business due to the lack of overall activity in the market. The banks have, at times, been very aggressive. CMCC recently added two underwriters in the Toronto office in an attempt to free up time to source more new business. Our growth in 2026 will also hopefully come from Western Canada. The BC office has lots of room for growth. We are looking at the possibility of recruiting a new managing director in Alberta. Notwithstanding the challenges, Atrium has a more resilient portfolio than many of our competitors, and as a publicly traded MIC, one of the few publicly traded MICs, but I might add, we have more stable funding sources, including permanent shareholders' equity, better access to syndicate lenders for our line of credit. For instance, in 2025, we added 3 new lenders to our lender syndicate and access to the convertible debenture market. While conditions remain very difficult, Atrium's results have been consistently strong through economic downturns, and our track record confirms that we know how to construct and manage a resilient loan portfolio in all stages of the market cycle. That's all for the presentation. We'd be pleased to take any questions from the listeners. The Q&A session will now begin. Please enter star 2 on your keypad to let the operator know you have a question. Our first question is from Graham Ryding of TD Securities. Graham, please go ahead. Good morning. Maybe, Rob, just to elaborate on sort of your messaging at the end of the call there, or your prepared remarks, just big picture, obviously a tough market, particularly in the GTA condo space. What's your strategy, you know, broadly for managing your portfolio and deploying capital in what seems to be a tough macro backdrop? The strategy, and it really started almost three years ago, it has been to do more single-family mortgages because we still view that as one of the most liquid types of real estate. By the way, condominiums had an enormous supply of completions, as you probably know, over the last two years, 60,000 units. That swamped the market. That will be changing in 2026, and even more, particularly in 2027. It's not like we're focused on the condominium market, but we think that it will gradually improve. Condominiums do have the advantage of being the most affordable type of single-family residence. We're not totally against condominiums. We're obviously wary given the supply, but so we look at single-family mortgages as a good area, and we look at commercial real estate as a good area. We've done a lot of multi-res, and we've done a lot of industrial, occasionally retail. You know, we've looked at senior residents. We haven't won any business there yet, but that's a really strong sector right now, as you probably know. You know, we're avoiding development, except for the very strongest developers who are being opportunistic. Those people we would back, but those, as you know, are few and far between, those type of opportunities. Generally, we're looking at income-producing and single-family mortgages as sort of the two areas we're most focused on. Okay, helpful. Just with your ACLs on the balance sheet, just given the, I guess, the sort of difficult market conditions, you had about, I think, CAD 4.9 million in PCLs in 2025. How are you thinking about your level of provisioning, and should we expect a similar level in 2026? Yeah. Could we move back to 2023, 2024 levels, perhaps? I don't think it'll be back to 2023 and, you know, I think we had well over $10 million in provisions in 2023. I don't think it'll be that. It would surprise me if we have that big a provision. We're thinking it'll probably be similar. It's really, really hard to tell right now because we're so early in the year. We do risk rate every single loan, every single quarter. We know the portfolio inside and out, and we know where, you know, the vulnerabilities are, and we're watching those closely. One thing I'm confident is we're very adequately provisioned on what we put in Stage 3 or put in Stage 2. Okay, great. One more, if I could. Just the, it sounds like you're expecting to get repaid for that CAD 31 million loan in Stage 3, repaid in Q2. Is that a full repayment with no loss? Is that what you're expecting there? That's right. Yeah. Because it's under contract, I don't want to say more about it, but, yeah, it's a full recovery. Okay. That's it for me. Thank you. Thanks. If anyone else has a question, please enter star 2 on your keypad. It appears there are no other questions at this time. I will now give the call back to Robert Goodall for closing statements. Okay. Thank you all for getting up early and attending our conference call. We're pleased with the results, particularly the CAD 0.10 special dividend, and I hope, our shareholders are as well. For existing shareholders, thank you so much for your continued support, and have a great day. Thank you all for participating. This conference call is now concluded. Please hang up.

Speaker 3: Ladies and gentlemen, please stand by. Your conference is about to begin. Welcome to the Atrium Mortgage Investment Corporation's fourth quarter results conference call. At this time, all lines are in listen-only mode. Later in the call, a question and answer session. At that time, if you have a question, you'll be asked to press star two on your touch tone keypad. Reminder that this conference is being recorded. Friday, February 27th, 2026. Certain statements will be made during this phone call that may be forward-looking statements. Although Atrium believes that such statements are based upon reasonable assumptions, actual results may differ materially. Forward-looking statements are based upon beliefs, estimates, and opinions of Atrium's statements are made. Atrium undertakes no obligations to update these forward-looking statements in the event that management's beliefs, estimates, opinions, or other factors change. Ladies and gentlemen, please stand by. ladies and gentlemen please stand by Your conference is about to begin. your conference is about to begin Welcome to the Atrium Mortgage Investment Corporation's fourth quarter results conference call. welcome to the atrium mortgage investment corporation's fourth quarter results conference call At this time, all lines are in listen-only mode. at this time all lines are in listen-only mode Later in the call, a question and answer session. later in the call a question and answer session At that time, if you have a question, you'll be asked to press star two on your touch tone keypad. at that time if you have a question you'll be asked to press star two on your touch tone keypad Reminder that this conference is being recorded. reminder that this conference is being recorded Friday, February 27th, 2026. friday february 27th 2026 Certain statements will be made during this phone call that may be forward-looking statements. certain statements will be made during this phone call that may be forward-looking statements Although Atrium believes that such statements are based upon reasonable assumptions, actual results may differ materially. although atrium believes that such statements are based upon reasonable assumptions actual results may differ materially Forward-looking statements are based upon beliefs, estimates, and opinions of Atrium's statements are made. forward-looking statements are based upon beliefs estimates and opinions of atrium's statements are made Atrium undertakes no obligations to update these forward-looking statements in the event that management's beliefs, estimates, opinions, or other factors change. atrium undertakes no obligations to update these forward-looking statements in the event that management's beliefs estimates opinions or other factors change I would now like to turn the conference over to your host, Robert Goodall, CEO of Atrium. Mr. Goodall, please go ahead. I would now like to turn the conference over to your host, Robert Goodall, CEO of Atrium. i would now like to turn the conference over to your host robert goodall ceo of atrium Mr. Goodall, please go ahead. mr goodall please go ahead

Speaker 4: Thank you all for calling in this morning. Our CFO, Chris Anastasopoulos, is joining me today. Chris will begin with an overview of our financial results, and then I'll speak about our performance from an operational and portfolio perspective. Chris? Thank you all for calling in this morning. thank you all for calling in this morning Our CFO, Chris Anastasopoulos, is joining me today. our cfo chris anastasopoulos is joining me today Chris will begin with an overview of our financial results, and then I'll speak about our performance from an operational and portfolio perspective. chris will begin with an overview of our financial results and then i'll speak about our performance from an operational and portfolio perspective Chris? chris

Speaker 1: Thank you, Rob. In the fourth quarter and for the year ended December 31, 2025, Atrium continued to generate strong results for shareholders amid a challenging economic environment. Atrium generated net income of CAD 12.2 million in the fourth quarter, and our basic earnings per share was CAD 0.25 per share, which decreased from CAD 0.27 per share in the fourth quarter of 2024. For the year ended December 31, 2025, Atrium earned net income of CAD 49.1 million, a 2.5% increase over the prior year, resulting in basic earnings per share of CAD 1.03 per share. Thank you, Rob. thank you rob In the fourth quarter and for the year ended December 31, 2025, Atrium continued to generate strong results for shareholders amid a challenging economic environment. in the fourth quarter and for the year ended december 31 2025 atrium continued to generate strong results for shareholders amid a challenging economic environment Atrium generated net income of CAD 12.2 million in the fourth quarter, and our basic earnings per share was CAD 0.25 per share, which decreased from CAD 0.27 per share in the fourth quarter of 2024. atrium generated net income of cad 12.2 million in the fourth quarter and our basic earnings per share was cad 0.25 per share which decreased from cad 0.27 per share in the fourth quarter of 2024 For the year ended December 31, 2025, Atrium earned net income of CAD 49.1 million, a 2.5% increase over the prior year, resulting in basic earnings per share of CAD 1.03 per share. for the year ended december 31 2025 atrium earned net income of cad 49.1 million a 2.5% increase over the prior year resulting in basic earnings per share of cad 1.03 per share This was ahead of our fixed dividend rate for the year of CAD 0.93 per share. After considering the CAD 0.10 per share special dividend announced yesterday, our total dividends for the year were CAD 1.03 per share, which is in line with our earnings per share for 2025. We are proud of this performance, particularly given the weak market conditions in 2025. As expected, the average interest rate on the mortgage portfolio decreased to 8.98% at December 31, 2025, down from 9.98% at December 31, 2024. The decrease was largely driven by repayments of loans with higher yields compared to new loan originations and the impact of 4 25 basis point rate reductions by the Bank of Canada during the year, impacting floating interest rates. This was ahead of our fixed dividend rate for the year of CAD 0.93 per share. this was ahead of our fixed dividend rate for the year of cad 0.93 per share After considering the CAD 0.10 per share special dividend announced yesterday, our total dividends for the year were CAD 1.03 per share, which is in line with our earnings per share for 2025. after considering the cad 0.10 per share special dividend announced yesterday our total dividends for the year were cad 1.03 per share which is in line with our earnings per share for 2025 We are proud of this performance, particularly given the weak market conditions in 2025. we are proud of this performance particularly given the weak market conditions in 2025 As expected, the average interest rate on the mortgage portfolio decreased to 8.98% at December 31, 2025, down from 9.98% at December 31, 2024. as expected the average interest rate on the mortgage portfolio decreased to 8.98% at december 31 2025 down from 9.98% at december 31 2024 The decrease was largely driven by repayments of loans with higher yields compared to new loan originations and the impact of 4 25 basis point rate reductions by the Bank of Canada during the year, impacting floating interest rates. the decrease was largely driven by repayments of loans with higher yields compared to new loan originations and the impact of 4 25 basis point rate reductions by the bank of canada during the year impacting floating interest rates As at December 31, 2025, 80.8% of the mortgage portfolio was priced based on floating rates, with the majority having rate floors in place. The mortgage portfolio ended the year at CAD 917.1 million, an increase of 3.4% from CAD 886.7 million at December 31, 2024. Despite the difficult market and due to the strength of our underwriting team, we were able to grow the portfolio this year. During the year ended December 31, 2025, mortgage advances exceeded interest in principal repayments, with CAD 358.6 million of mortgage principal advanced and CAD 316.6 million repaid and transferred, net of write-offs of CAD 4.3 million. As at December 31, 2025, 80.8% of the mortgage portfolio was priced based on floating rates, with the majority having rate floors in place. as at december 31 2025 80.8% of the mortgage portfolio was priced based on floating rates with the majority having rate floors in place The mortgage portfolio ended the year at CAD 917.1 million, an increase of 3.4% from CAD 886.7 million at December 31, 2024. the mortgage portfolio ended the year at cad 917.1 million an increase of 3.4% from cad 886.7 million at december 31 2024 Despite the difficult market and due to the strength of our underwriting team, we were able to grow the portfolio this year. despite the difficult market and due to the strength of our underwriting team we were able to grow the portfolio this year During the year ended December 31, 2025, mortgage advances exceeded interest in principal repayments, with CAD 358.6 million of mortgage principal advanced and CAD 316.6 million repaid and transferred, net of write-offs of CAD 4.3 million. during the year ended december 31 2025 mortgage advances exceeded interest in principal repayments with cad 358.6 million of mortgage principal advanced and cad 316.6 million repaid and transferred net of write-offs of cad 4.3 million At December 31, 2025, 95.2% of our mortgages were first mortgages, and we maintain a conservative average loan-to-value ratio of 61.4% for the portfolio, which decreased from 61.9% at December 31, 2024. Our mortgages classified as Stage 1 were CAD 782.4 million at December 31, 2025, down 3.1% from CAD 807.7 million at December 31, 2024. We had CAD 48.7 million in mortgages classified as Stage 2 at year-end, a decrease of 2.6% from CAD 49.9 million at December 31, 2024. At December 31, 2025, 95.2% of our mortgages were first mortgages, and we maintain a conservative average loan-to-value ratio of 61.4% for the portfolio, which decreased from 61.9% at December 31, 2024. at december 31 2025 95.2% of our mortgages were first mortgages and we maintain a conservative average loan-to-value ratio of 61.4% for the portfolio which decreased from 61.9% at december 31 2024 Our mortgages classified as Stage 1 were CAD 782.4 million at December 31, 2025, down 3.1% from CAD 807.7 million at December 31, 2024. our mortgages classified as stage 1 were cad 782.4 million at december 31 2025 down 3.1% from cad 807.7 million at december 31 2024 We had CAD 48.7 million in mortgages classified as Stage 2 at year-end, a decrease of 2.6% from CAD 49.9 million at December 31, 2024. we had cad 48.7 million in mortgages classified as stage 2 at year-end a decrease of 2.6% from cad 49.9 million at december 31 2024 Stage 3 loans increased to CAD 86 million at December 31, 2025, compared to CAD 29 million as at December 31, 2024, and CAD 56.3 million at the end of the third quarter. Three commercial loans, totaling approximately CAD 53 million, were migrated to Stage 3 in the fourth quarter as they became impaired, which were offset by repayments of commercial loans of approximately CAD 23 million during the quarter. The allowance for credit losses was CAD 30.5 million at December 31, 2025, a 3.1% increase over December 31, 2024. As a percentage of the mortgage portfolio, this represents a healthy 332 basis points, consistent with the prior year rate of 333 basis points. Stage 3 loans increased to CAD 86 million at December 31, 2025, compared to CAD 29 million as at December 31, 2024, and CAD 56.3 million at the end of the third quarter. stage 3 loans increased to cad 86 million at december 31 2025 compared to cad 29 million as at december 31 2024 and cad 56.3 million at the end of the third quarter Three commercial loans, totaling approximately CAD 53 million, were migrated to Stage 3 in the fourth quarter as they became impaired, which were offset by repayments of commercial loans of approximately CAD 23 million during the quarter. three commercial loans totaling approximately cad 53 million were migrated to stage 3 in the fourth quarter as they became impaired which were offset by repayments of commercial loans of approximately cad 23 million during the quarter The allowance for credit losses was CAD 30.5 million at December 31, 2025, a 3.1% increase over December 31, 2024. the allowance for credit losses was cad 30.5 million at december 31 2025 a 3.1% increase over december 31 2024 As a percentage of the mortgage portfolio, this represents a healthy 332 basis points, consistent with the prior year rate of 333 basis points. as a percentage of the mortgage portfolio this represents a healthy 332 basis points consistent with the prior year rate of 333 basis points The total allowance for credit losses related to Stage 1 loans was CAD 6.1 million at December 31, 2025, down from CAD 8.1 million at December 31, 2024. Our allowance for credit losses on Stage 2 mortgages was CAD 2.9 million at year-end, a decrease from CAD 8.1 million at December 31, 2024. Our Stage 3 allowance for credit losses was CAD 21.5 million, up from CAD 13.3 million at December 31, 2024, primarily due to the migration of new loans from Stage 2 during the fourth quarter, offset by loan repayments. We continued to maintain a strong liquid and well-capitalized balance sheet. The total allowance for credit losses related to Stage 1 loans was CAD 6.1 million at December 31, 2025, down from CAD 8.1 million at December 31, 2024. the total allowance for credit losses related to stage 1 loans was cad 6.1 million at december 31 2025 down from cad 8.1 million at december 31 2024 Our allowance for credit losses on Stage 2 mortgages was CAD 2.9 million at year-end, a decrease from CAD 8.1 million at December 31, 2024. our allowance for credit losses on stage 2 mortgages was cad 2.9 million at year-end a decrease from cad 8.1 million at december 31 2024 Our Stage 3 allowance for credit losses was CAD 21.5 million, up from CAD 13.3 million at December 31, 2024, primarily due to the migration of new loans from Stage 2 during the fourth quarter, offset by loan repayments. our stage 3 allowance for credit losses was cad 21.5 million up from cad 13.3 million at december 31 2024 primarily due to the migration of new loans from stage 2 during the fourth quarter offset by loan repayments We continued to maintain a strong liquid and well-capitalized balance sheet. we continued to maintain a strong liquid and well-capitalized balance sheet As at December 31, 2025, balance sheet debt remained low at 40%, with CAD 283 million drawn on our CAD 380 million credit facility, leaving a healthy available capacity. The weighted average cost of borrowing on the credit facility was 5.08% this year, down from 7.03% in the prior year. During the year, we also repaid our 5.6% convertible debenture with principal amount of CAD 28.7 million on March 31, and our 5.5% convertible debenture with a principal amount of CAD 34.4 million on December 31. Our healthy debt capacity provides us with the opportunity to make use of convertible debt in the market in 2026, provided market conditions are favorable. As at December 31, 2025, balance sheet debt remained low at 40%, with CAD 283 million drawn on our CAD 380 million credit facility, leaving a healthy available capacity. as at december 31 2025 balance sheet debt remained low at 40% with cad 283 million drawn on our cad 380 million credit facility leaving a healthy available capacity The weighted average cost of borrowing on the credit facility was 5.08% this year, down from 7.03% in the prior year. the weighted average cost of borrowing on the credit facility was 5.08% this year down from 7.03% in the prior year During the year, we also repaid our 5.6% convertible debenture with principal amount of CAD 28.7 million on March 31, and our 5.5% convertible debenture with a principal amount of CAD 34.4 million on December 31. Our healthy debt capacity provides us with the opportunity to make use of convertible debt in the market in 2026, provided market conditions are favorable. during the year we also repaid our 5.6% convertible debenture with principal amount of cad 28.7 million on march 31 and our 5.5% convertible debenture with a principal amount of cad 34.4 million on december 31. our healthy debt capacity provides us with the opportunity to make use of convertible debt in the market in 2026 provided market conditions are favorable In 2025, we continued our trend of strong financial performance for our shareholders, even under difficult market conditions. We remain committed to our disciplined risk management approach as we pursue new opportunities, strengthening our team to ensure timely transaction analysis, managing our operating expenses prudently, and maintaining a strong balance sheet to confidently navigate the current economic cycle. I will now pass you back to Rob for the business and portfolio update. In 2025, we continued our trend of strong financial performance for our shareholders, even under difficult market conditions. in 2025 we continued our trend of strong financial performance for our shareholders even under difficult market conditions We remain committed to our disciplined risk management approach as we pursue new opportunities, strengthening our team to ensure timely transaction analysis, managing our operating expenses prudently, and maintaining a strong balance sheet to confidently navigate the current economic cycle. we remain committed to our disciplined risk management approach as we pursue new opportunities strengthening our team to ensure timely transaction analysis managing our operating expenses prudently and maintaining a strong balance sheet to confidently navigate the current economic cycle I will now pass you back to Rob for the business and portfolio update. i will now pass you back to rob for the business and portfolio update

Speaker 4: Thank you. As Chris said, Atrium MIC had a very good quarter, with basic earnings per share of CAD 0.25, identical to the previous quarter. I'm very proud of our annual results of CAD 1.03 per share, which marks the fourth consecutive year in which our earnings exceeded CAD 1 a share. We were able to deliver one of our best years, despite a very weak economy and the severe downturn in residential real estate markets across Canada, for which our team deserves a lot of credit. This strong performance has allowed us to reward our shareholders with a CAD 0.10 special dividend. Overall, the portfolio increased to CAD 917 million, up from CAD 887 million at the end of calendar 2024. Thank you. thank you As Chris said, Atrium MIC had a very good quarter, with basic earnings per share of CAD 0.25, identical to the previous quarter. as chris said atrium mic had a very good quarter with basic earnings per share of cad 0.25 identical to the previous quarter I'm very proud of our annual results of CAD 1.03 per share, which marks the fourth consecutive year in which our earnings exceeded CAD 1 a share. i'm very proud of our annual results of cad 1.03 per share which marks the fourth consecutive year in which our earnings exceeded cad 1 a share We were able to deliver one of our best years, despite a very weak economy and the severe downturn in residential real estate markets across Canada, for which our team deserves a lot of credit. we were able to deliver one of our best years despite a very weak economy and the severe downturn in residential real estate markets across canada for which our team deserves a lot of credit This strong performance has allowed us to reward our shareholders with a CAD 0.10 special dividend. this strong performance has allowed us to reward our shareholders with a cad 0.10 special dividend Overall, the portfolio increased to CAD 917 million, up from CAD 887 million at the end of calendar 2024. overall the portfolio increased to cad 917 million up from cad 887 million at the end of calendar 2024 I think a big reason for the increase in the portfolio is the growth in our underwriting team, which has more than doubled in size since the beginning of 2020. Loan advances in 2025 were CAD 359 million, which was slightly higher than in calendar 2024. Repayments in calendar 2025 were CAD 317 million, which represents a portfolio turnover of approximately 39%, which is in line with our normal level and is a sign of a healthy portfolio. We made good progress implementing CMCC's strategy to increase our exposure to commercial and single-family mortgages in 2025. I think a big reason for the increase in the portfolio is the growth in our underwriting team, which has more than doubled in size since the beginning of 2020. i think a big reason for the increase in the portfolio is the growth in our underwriting team which has more than doubled in size since the beginning of 2020 Loan advances in 2025 were CAD 359 million, which was slightly higher than in calendar 2024. loan advances in 2025 were cad 359 million which was slightly higher than in calendar 2024 Repayments in calendar 2025 were CAD 317 million, which represents a portfolio turnover of approximately 39%, which is in line with our normal level and is a sign of a healthy portfolio. repayments in calendar 2025 were cad 317 million which represents a portfolio turnover of approximately 39% which is in line with our normal level and is a sign of a healthy portfolio We made good progress implementing CMCC's strategy to increase our exposure to commercial and single-family mortgages in 2025. we made good progress implementing cmcc's strategy to increase our exposure to commercial and single-family mortgages in 2025 The commercial category represented 28.7% of the total portfolio at the end of the year and has seen an increase of CAD 72 million over the past year, representing a 38% increase year-over-year. In the single-family and apartment category, it's risen to 19.2% of the total portfolio, up 14% on a year-over-year basis. Together, these lower-risk sectors now represent approximately 48% of our portfolio. In Q4, Atrium's average mortgage rate dropped from 9.2% last quarter to 8.98% this quarter, which reflects the 25 basis point drop in the prime rate of interest during the fourth quarter. Total of high-ratio loans, that is, loans over 75% loan-to-value, was CAD 85 million, equal to 9.3% of the portfolio. The commercial category represented 28.7% of the total portfolio at the end of the year and has seen an increase of CAD 72 million over the past year, representing a 38% increase year-over-year. the commercial category represented 28.7% of the total portfolio at the end of the year and has seen an increase of cad 72 million over the past year representing a 38% increase year-over-year In the single-family and apartment category, it's risen to 19.2% of the total portfolio, up 14% on a year-over-year basis. in the single-family and apartment category it's risen to 19.2% of the total portfolio up 14% on a year-over-year basis Together, these lower-risk sectors now represent approximately 48% of our portfolio. together these lower-risk sectors now represent approximately 48% of our portfolio In Q4, Atrium's average mortgage rate dropped from 9.2% last quarter to 8.98% this quarter, which reflects the 25 basis point drop in the prime rate of interest during the fourth quarter. in q4 atrium's average mortgage rate dropped from 9.2% last quarter to 8.98% this quarter which reflects the 25 basis point drop in the prime rate of interest during the fourth quarter Total of high-ratio loans, that is, loans over 75% loan-to-value, was CAD 85 million, equal to 9.3% of the portfolio. total of high-ratio loans that is loans over 75% loan-to-value was cad 85 million equal to 9.3% of the portfolio For the single-family mortgage portfolio, loans over 75% loan-to-value totaled just over CAD 30 million, and there were 5 high-ratio commercial loans totaling CAD 54.7 million. One of these loans, totaling CAD 14.25 million, was repaid in full in January, while another, totaling CAD 12.6 million, is expected to be substantially paid down by the end of March. In Q4, the average loan-to-value of the portfolio increased slightly from 60.8% last quarter to 61.4% at year-end, and continues to be well within our desired range of 65%. Atrium's percentage of first mortgages remain very high at 95.2%, and construction loans rose slightly in Q4, but still represent less than 5% of the portfolio. For the single-family mortgage portfolio, loans over 75% loan-to-value totaled just over CAD 30 million, and there were 5 high-ratio commercial loans totaling CAD 54.7 million. for the single-family mortgage portfolio loans over 75% loan-to-value totaled just over cad 30 million and there were 5 high-ratio commercial loans totaling cad 54.7 million One of these loans, totaling CAD 14.25 million, was repaid in full in January, while another, totaling CAD 12.6 million, is expected to be substantially paid down by the end of March. one of these loans totaling cad 14.25 million was repaid in full in january while another totaling cad 12.6 million is expected to be substantially paid down by the end of march In Q4, the average loan-to-value of the portfolio increased slightly from 60.8% last quarter to 61.4% at year-end, and continues to be well within our desired range of 65%. in q4 the average loan-to-value of the portfolio increased slightly from 60.8% last quarter to 61.4% at year-end and continues to be well within our desired range of 65% Atrium's percentage of first mortgages remain very high at 95.2%, and construction loans rose slightly in Q4, but still represent less than 5% of the portfolio. atrium's percentage of first mortgages remain very high at 95.2% and construction loans rose slightly in q4 but still represent less than 5% of the portfolio We funded a CAD 12.5 million dollar construction loan with a well-known Toronto developer on a purpose-built rental in Q4. Turning to portfolio quality, the mix of Stage 1, 2, and 3 loans changed in Q4. The good news is that the aggregate of Stage 2 and 3 loans dropped by 13.6% to 14.7% of the portfolio. Stage 2 loans dropped sharply from CAD 96.8 million-CAD 48.7 million. Although Stage 3 loans did increase from CAD 56 million-CAD 86 million, it was due to the addition of a CAD 31 million dollar loan, and that property has been conditionally sold, and we expect it to be repaid in early Q2, 2026. We funded a CAD 12.5 million dollar construction loan with a well-known Toronto developer on a purpose-built rental in Q4. we funded a cad 12.5 million dollar construction loan with a well-known toronto developer on a purpose-built rental in q4 Turning to portfolio quality, the mix of Stage 1, 2, and 3 loans changed in Q4. turning to portfolio quality the mix of stage 1 2 and 3 loans changed in q4 The good news is that the aggregate of Stage 2 and 3 loans dropped by 13.6% to 14.7% of the portfolio. the good news is that the aggregate of stage 2 and 3 loans dropped by 13.6% to 14.7% of the portfolio Stage 2 loans dropped sharply from CAD 96.8 million- CAD 48.7 million. stage 2 loans dropped sharply from cad 96.8 million- cad 48.7 million Although Stage 3 loans did increase from CAD 56 million- CAD 86 million, it was due to the addition of a CAD 31 million dollar loan, and that property has been conditionally sold, and we expect it to be repaid in early Q2, 2026. although stage 3 loans did increase from cad 56 million- cad 86 million it was due to the addition of a cad 31 million dollar loan and that property has been conditionally sold and we expect it to be repaid in early q2 2026 In terms of the loan loss reserve, we expensed a loan loss provision of CAD 1 million in Q4, after having a CAD 1.3 million loan loss provision in Q3, and a total provision expense for the year of CAD 4.5 million. On a net basis, Atrium's total loan loss reserve increased marginally from CAD 29.5 million last quarter to CAD 30.5 million at year-end, equal to 332 basis points on the overall mortgage portfolio. With regard to our line of credit, we added three new lenders to our lender syndicate in 2025 and increased our committed line of credit from CAD 340 million-CAD 380 million. We used the line of credit to repay two convertible debentures, which matured in 2025. In terms of the loan loss reserve, we expensed a loan loss provision of CAD 1 million in Q4, after having a CAD 1.3 million loan loss provision in Q3, and a total provision expense for the year of CAD 4.5 million. in terms of the loan loss reserve we expensed a loan loss provision of cad 1 million in q4 after having a cad 1.3 million loan loss provision in q3 and a total provision expense for the year of cad 4.5 million On a net basis, Atrium's total loan loss reserve increased marginally from CAD 29.5 million last quarter to CAD 30.5 million at year-end, equal to 332 basis points on the overall mortgage portfolio. on a net basis atrium's total loan loss reserve increased marginally from cad 29.5 million last quarter to cad 30.5 million at year-end equal to 332 basis points on the overall mortgage portfolio With regard to our line of credit, we added three new lenders to our lender syndicate in 2025 and increased our committed line of credit from CAD 340 million- CAD 380 million. with regard to our line of credit we added three new lenders to our lender syndicate in 2025 and increased our committed line of credit from cad 340 million- cad 380 million We used the line of credit to repay two convertible debentures, which matured in 2025. we used the line of credit to repay two convertible debentures which matured in 2025 We expect to access the convertible debenture market in 2026, provided market conditions remain favorable. My economic commentary is as follows: The Bank of Canada's latest forecast of GDP growth is for a flat Q4. Bank of Canada has also forecasted slow growth of 1.1% in 2026 and 1.5% in 2027, as Canada adjusts to a new trading relationship with the United States. CPI dropped to 2.3% in January. The Bank of Canada expects inflation to slow further in the coming months. Both Canada and the United States held their rates steady in December. It's unclear when or if more interest rate cuts will occur in either country. Turning to commercial real estate. The commercial real estate market stabilized in 2025 as investor confidence gradually improved. We expect to access the convertible debenture market in 2026, provided market conditions remain favorable. we expect to access the convertible debenture market in 2026 provided market conditions remain favorable My economic commentary is as follows: The Bank of Canada's latest forecast of GDP growth is for a flat Q4. my economic commentary is as follows the bank of canada's latest forecast of gdp growth is for a flat q4 Bank of Canada has also forecasted slow growth of 1.1% in 2026 and 1.5% in 2027, as Canada adjusts to a new trading relationship with the United States. bank of canada has also forecasted slow growth of 1.1% in 2026 and 1.5% in 2027 as canada adjusts to a new trading relationship with the united states CPI dropped to 2.3% in January. cpi dropped to 2.3% in january The Bank of Canada expects inflation to slow further in the coming months. the bank of canada expects inflation to slow further in the coming months Both Canada and the United States held their rates steady in December. both canada and the united states held their rates steady in december It's unclear when or if more interest rate cuts will occur in either country. it's unclear when or if more interest rate cuts will occur in either country Turning to commercial real estate. turning to commercial real estate The commercial real estate market stabilized in 2025 as investor confidence gradually improved. the commercial real estate market stabilized in 2025 as investor confidence gradually improved Performance across most commercial real estate sectors has been resilient, particularly the retail and seniors residence sectors. The multi-residential and industrial sectors are still healthy, although rents have dropped from their peak levels and vacancy rates have risen. We view commercial real estate as one of the best areas to focus our lending activities. CMCC has worked hard in the last two years to increase Atrium's exposure to these markets. The office sector, where we have limited exposure, has recently shown signs of recovery in the GTA as a result of return to office requirements by many large employers, with mandates of 4-5 days per week in office. It is still a difficult sector for all but the AAA Class buildings. Performance across most commercial real estate sectors has been resilient, particularly the retail and seniors residence sectors. performance across most commercial real estate sectors has been resilient particularly the retail and seniors residence sectors The multi-residential and industrial sectors are still healthy, although rents have dropped from their peak levels and vacancy rates have risen. the multi-residential and industrial sectors are still healthy although rents have dropped from their peak levels and vacancy rates have risen We view commercial real estate as one of the best areas to focus our lending activities. we view commercial real estate as one of the best areas to focus our lending activities CMCC has worked hard in the last two years to increase Atrium's exposure to these markets. cmcc has worked hard in the last two years to increase atrium's exposure to these markets The office sector, where we have limited exposure, has recently shown signs of recovery in the GTA as a result of return to office requirements by many large employers, with mandates of 4-5 days per week in office. the office sector where we have limited exposure has recently shown signs of recovery in the gta as a result of return to office requirements by many large employers with mandates of 4-5 days per week in office It is still a difficult sector for all but the AAA Class buildings. it is still a difficult sector for all but the aaa class buildings Looking at the residential and multi-residential real estate markets, in contrast to commercial real estate, unfortunately, the misery continues in residential housing markets. Starting with resales, in the GTA, resales declined by 11% in 2025 on a year-over-year basis, with sales at their lowest level in at least 12 years. Resale activity in the Greater Vancouver area decreased by 10% year-over-year in December, capping a year with the lowest annual sales in 2 decades. Over the past year, benchmark resale prices declined by 6.3% in the GTA and 4.5% in the Greater Vancouver area. Turning to new home sales, the soft resale market conditions have directly contributed to a lack of activity in the new home market, as construction costs and affordability constraints continue to weigh heavily on demand. Looking at the residential and multi-residential real estate markets, in contrast to commercial real estate, unfortunately, the misery continues in residential housing markets. looking at the residential and multi-residential real estate markets in contrast to commercial real estate unfortunately the misery continues in residential housing markets Starting with resales, in the GTA, resales declined by 11% in 2025 on a year-over-year basis, with sales at their lowest level in at least 12 years. starting with resales in the gta resales declined by 11% in 2025 on a year-over-year basis with sales at their lowest level in at least 12 years Resale activity in the Greater Vancouver area decreased by 10% year-over-year in December, capping a year with the lowest annual sales in 2 decades. resale activity in the greater vancouver area decreased by 10% year-over-year in december capping a year with the lowest annual sales in 2 decades Over the past year, benchmark resale prices declined by 6.3% in the GTA and 4.5% in the Greater Vancouver area. over the past year benchmark resale prices declined by 6.3% in the gta and 4.5% in the greater vancouver area Turning to new home sales, the soft resale market conditions have directly contributed to a lack of activity in the new home market, as construction costs and affordability constraints continue to weigh heavily on demand. turning to new home sales the soft resale market conditions have directly contributed to a lack of activity in the new home market as construction costs and affordability constraints continue to weigh heavily on demand The new home market remains slow across most urban centers in Canada, with the GTA and the GVA leading the way, with new home sales 81% and 70% lower, respectively, than the average sale for the 10-year period between 2016 and 2025. Other markets are also slow. For example, in 2025, even Calgary and Montreal, two of the stronger markets, had new home sales that were 42% and 70% respectively below their 10-year average from 2016 to 2025. The condo sector is the weakest sector within the residential markets, but fortunately, the supply of new condos should reduce dramatically over the next 2 years. The new home market remains slow across most urban centers in Canada, with the GTA and the GVA leading the way, with new home sales 81% and 70% lower, respectively, than the average sale for the 10-year period between 2016 and 2025. the new home market remains slow across most urban centers in canada with the gta and the gva leading the way with new home sales 81% and 70% lower respectively than the average sale for the 10-year period between 2016 and 2025 Other markets are also slow. other markets are also slow For example, in 2025, even Calgary and Montreal, two of the stronger markets, had new home sales that were 42% and 70% respectively below their 10-year average from 2016 to 2025. for example in 2025 even calgary and montreal two of the stronger markets had new home sales that were 42% and 70% respectively below their 10-year average from 2016 to 2025 The condo sector is the weakest sector within the residential markets, but fortunately, the supply of new condos should reduce dramatically over the next 2 years. the condo sector is the weakest sector within the residential markets but fortunately the supply of new condos should reduce dramatically over the next 2 years For example, in the GTA, the number of condominium units under construction dropped sharply to 50,000 units by the end of the year, and that number could drop as low as 30,000 units by the end of 2026, which should form the base for a recovery. The housing market clearly needs more government support in the form of an HST rebate for all buyers, not just first-time buyers, and ideally, a major reduction or elimination of development charges. It's worth noting that Mississauga and Burlington have implemented on their own a reduction or elimination of development charges. The housing market, of course, also needs more economic certainty to improve consumer confidence. For example, in the GTA, the number of condominium units under construction dropped sharply to 50,000 units by the end of the year, and that number could drop as low as 30,000 units by the end of 2026, which should form the base for a recovery. for example in the gta the number of condominium units under construction dropped sharply to 50,000 units by the end of the year and that number could drop as low as 30,000 units by the end of 2026 which should form the base for a recovery The housing market clearly needs more government support in the form of an HST rebate for all buyers, not just first-time buyers, and ideally, a major reduction or elimination of development charges. the housing market clearly needs more government support in the form of an hst rebate for all buyers not just first-time buyers and ideally a major reduction or elimination of development charges It's worth noting that Mississauga and Burlington have implemented on their own a reduction or elimination of development charges. it's worth noting that mississauga and burlington have implemented on their own a reduction or elimination of development charges The housing market, of course, also needs more economic certainty to improve consumer confidence. the housing market of course also needs more economic certainty to improve consumer confidence We believe that the housing markets in the GTA particularly, should stabilize and gradually start to recover in 2027, when the number of project completions starts to drop sharply. To conclude, I'm proud of Atrium's results in 2025, and pleased that we're able to reward our eligible shareholders with a CAD 0.10 special dividend. The results didn't come easily. The new management, senior management, or the senior management team, have all been working very hard to navigate the toughest real estate market that I've seen since the early nineties. We have dealt effectively and decisively where we've had problem loans, rather than kicking the can down the road. This is important because the residential, resale, and new home markets are generally expected to perform poorly in 2026, so a delayed response will likely be costly. We believe that the housing markets in the GTA particularly, should stabilize and gradually start to recover in 2027, when the number of project completions starts to drop sharply. we believe that the housing markets in the gta particularly should stabilize and gradually start to recover in 2027 when the number of project completions starts to drop sharply To conclude, I'm proud of Atrium's results in 2025, and pleased that we're able to reward our eligible shareholders with a CAD 0.10 special dividend. to conclude i'm proud of atrium's results in 2025 and pleased that we're able to reward our eligible shareholders with a cad 0.10 special dividend The results didn't come easily. the results didn't come easily The new management, senior management, or the senior management team, have all been working very hard to navigate the toughest real estate market that I've seen since the early nineties. the new management senior management or the senior management team have all been working very hard to navigate the toughest real estate market that i've seen since the early nineties We have dealt effectively and decisively where we've had problem loans, rather than kicking the can down the road. we have dealt effectively and decisively where we've had problem loans rather than kicking the can down the road This is important because the residential, resale, and new home markets are generally expected to perform poorly in 2026, so a delayed response will likely be costly. this is important because the residential resale and new home markets are generally expected to perform poorly in 2026 so a delayed response will likely be costly The other challenge in 2026 will be continuing to source new loan business due to the lack of overall activity in the market. The banks have, at times, been very aggressive. CMCC recently added two underwriters in the Toronto office in an attempt to free up time to source more new business. Our growth in 2026 will also hopefully come from Western Canada. The BC office has lots of room for growth. We are looking at the possibility of recruiting a new managing director in Alberta. Notwithstanding the challenges, Atrium has a more resilient portfolio than many of our competitors, and as a publicly traded MIC, one of the few publicly traded MICs, but I might add, we have more stable funding sources, including permanent shareholders' equity, better access to syndicate lenders for our line of credit. The other challenge in 2026 will be continuing to source new loan business due to the lack of overall activity in the market. the other challenge in 2026 will be continuing to source new loan business due to the lack of overall activity in the market The banks have, at times, been very aggressive. the banks have at times been very aggressive CMCC recently added two underwriters in the Toronto office in an attempt to free up time to source more new business. cmcc recently added two underwriters in the toronto office in an attempt to free up time to source more new business Our growth in 2026 will also hopefully come from Western Canada. our growth in 2026 will also hopefully come from western canada The BC office has lots of room for growth. the bc office has lots of room for growth We are looking at the possibility of recruiting a new managing director in Alberta. we are looking at the possibility of recruiting a new managing director in alberta Notwithstanding the challenges, Atrium has a more resilient portfolio than many of our competitors, and as a publicly traded MIC, one of the few publicly traded MICs, but I might add, we have more stable funding sources, including permanent shareholders' equity, better access to syndicate lenders for our line of credit. notwithstanding the challenges atrium has a more resilient portfolio than many of our competitors and as a publicly traded mic one of the few publicly traded mics but i might add we have more stable funding sources including permanent shareholders' equity better access to syndicate lenders for our line of credit For instance, in 2025, we added 3 new lenders to our lender syndicate and access to the convertible debenture market. While conditions remain very difficult, Atrium's results have been consistently strong through economic downturns, and our track record confirms that we know how to construct and manage a resilient loan portfolio in all stages of the market cycle. That's all for the presentation. We'd be pleased to take any questions from the listeners. For instance, in 2025, we added 3 new lenders to our lender syndicate and access to the convertible debenture market. for instance in 2025 we added 3 new lenders to our lender syndicate and access to the convertible debenture market While conditions remain very difficult, Atrium's results have been consistently strong through economic downturns, and our track record confirms that we know how to construct and manage a resilient loan portfolio in all stages of the market cycle. That's all for the presentation. while conditions remain very difficult atrium's results have been consistently strong through economic downturns and our track record confirms that we know how to construct and manage a resilient loan portfolio in all stages of the market cycle. that's all for the presentation We'd be pleased to take any questions from the listeners. we'd be pleased to take any questions from the listeners

Speaker 3: The Q&A session will now begin. Please enter star 2 on your keypad to let the operator know you have a question. Our first question is from Graham Ryding of TD Securities. Graham, please go ahead. The Q&A session will now begin. the q&a session will now begin Please enter star 2 on your keypad to let the operator know you have a question. please enter star 2 on your keypad to let the operator know you have a question Our first question is from Graham Ryding of TD Securities. our first question is from graham ryding of td securities Graham, please go ahead. graham please go ahead

Speaker 2: Good morning. Maybe, Rob, just to elaborate on sort of your messaging at the end of the call there, or your prepared remarks, just big picture, obviously a tough market, particularly in the GTA condo space. What's your strategy, you know, broadly for managing your portfolio and deploying capital in what seems to be a tough macro backdrop? Good morning. good morning Maybe, Rob, just to elaborate on sort of your messaging at the end of the call there, or your prepared remarks, just big picture, obviously a tough market, particularly in the GTA condo space. maybe rob just to elaborate on sort of your messaging at the end of the call there or your prepared remarks just big picture obviously a tough market particularly in the gta condo space What's your strategy, you know, broadly for managing your portfolio and deploying capital in what seems to be a tough macro backdrop? what's your strategy you know broadly for managing your portfolio and deploying capital in what seems to be a tough macro backdrop

Speaker 4: The strategy, and it really started almost three years ago, it has been to do more single-family mortgages because we still view that as one of the most liquid types of real estate. By the way, condominiums had an enormous supply of completions, as you probably know, over the last two years, 60,000 units. That swamped the market. That will be changing in 2026, and even more, particularly in 2027. It's not like we're focused on the condominium market, but we think that it will gradually improve. Condominiums do have the advantage of being the most affordable type of single-family residence. We're not totally against condominiums. The strategy, and it really started almost three years ago, it has been to do more single-family mortgages because we still view that as one of the most liquid types of real estate. the strategy and it really started almost three years ago it has been to do more single-family mortgages because we still view that as one of the most liquid types of real estate By the way, condominiums had an enormous supply of completions, as you probably know, over the last two years, 60,000 units. by the way condominiums had an enormous supply of completions as you probably know over the last two years 60,000 units That swamped the market. that swamped the market That will be changing in 2026, and even more, particularly in 2027. that will be changing in 2026 and even more particularly in 2027 It's not like we're focused on the condominium market, but we think that it will gradually improve. it's not like we're focused on the condominium market but we think that it will gradually improve Condominiums do have the advantage of being the most affordable type of single-family residence. condominiums do have the advantage of being the most affordable type of single-family residence We're not totally against condominiums. we're not totally against condominiums We're obviously wary given the supply, but so we look at single-family mortgages as a good area, and we look at commercial real estate as a good area. We've done a lot of multi-res, and we've done a lot of industrial, occasionally retail. You know, we've looked at senior residents. We haven't won any business there yet, but that's a really strong sector right now, as you probably know. You know, we're avoiding development, except for the very strongest developers who are being opportunistic. Those people we would back, but those, as you know, are few and far between, those type of opportunities. Generally, we're looking at income-producing and single-family mortgages as sort of the two areas we're most focused on. We're obviously wary given the supply, but so we look at single-family mortgages as a good area, and we look at commercial real estate as a good area. we're obviously wary given the supply but so we look at single-family mortgages as a good area and we look at commercial real estate as a good area We've done a lot of multi-res, and we've done a lot of industrial, occasionally retail. we've done a lot of multi-res and we've done a lot of industrial occasionally retail You know, we've looked at senior residents. you know we've looked at senior residents We haven't won any business there yet, but that's a really strong sector right now, as you probably know. we haven't won any business there yet but that's a really strong sector right now as you probably know You know, we're avoiding development, except for the very strongest developers who are being opportunistic. you know we're avoiding development except for the very strongest developers who are being opportunistic Those people we would back, but those, as you know, are few and far between, those type of opportunities. those people we would back but those as you know are few and far between those type of opportunities Generally, we're looking at income-producing and single-family mortgages as sort of the two areas we're most focused on. generally we're looking at income-producing and single-family mortgages as sort of the two areas we're most focused on

Speaker 2: Okay, helpful. Just with your ACLs on the balance sheet, just given the, I guess, the sort of difficult market conditions, you had about, I think, CAD 4.9 million in PCLs in 2025. How are you thinking about your level of provisioning, and should we expect a similar level in 2026? Okay, helpful. okay helpful Just with your ACLs on the balance sheet, just given the, I guess, the sort of difficult market conditions, you had about, I think, CAD 4.9 million in PCLs in 2025. just with your acls on the balance sheet just given the i guess the sort of difficult market conditions you had about i think cad 4.9 million in pcls in 2025 How are you thinking about your level of provisioning, and should we expect a similar level in 2026? how are you thinking about your level of provisioning and should we expect a similar level in 2026

Speaker 4: Yeah. Yeah. yeah

Speaker 2: Could we move back to 2023, 2024 levels, perhaps? Could we move back to 2023, 2024 levels, perhaps? could we move back to 2023 2024 levels perhaps

Speaker 4: I don't think it'll be back to 2023 and, you know, I think we had well over $10 million in provisions in 2023. I don't think it'll be that. It would surprise me if we have that big a provision. We're thinking it'll probably be similar. It's really, really hard to tell right now because we're so early in the year. We do risk rate every single loan, every single quarter. We know the portfolio inside and out, and we know where, you know, the vulnerabilities are, and we're watching those closely. One thing I'm confident is we're very adequately provisioned on what we put in Stage 3 or put in Stage 2. I don't think it'll be back to 2023 and, you know, I think we had well over $10 million in provisions in 2023. i don't think it'll be back to 2023 and you know i think we had well over $10 million in provisions in 2023 I don't think it'll be that. i don't think it'll be that it It would surprise me if we have that big a provision. it would surprise me if we have that big a provision We're thinking it'll probably be similar. we're thinking it'll probably be similar It's really, really hard to tell right now because we're so early in the year. it's really really hard to tell right now because we're so early in the year We do risk rate every single loan, every single quarter. we do risk rate every single loan every single quarter We know the portfolio inside and out, and we know where, you know, the vulnerabilities are, and we're watching those closely. we know the portfolio inside and out and we know where you know the vulnerabilities are and we're watching those closely One thing I'm confident is we're very adequately provisioned on what we put in Stage 3 or put in Stage 2. one thing i'm confident is we're very adequately provisioned on what we put in stage 3 or put in stage 2

Speaker 2: Okay, great. One more, if I could. Just the, it sounds like you're expecting to get repaid for that CAD 31 million loan in Stage 3, repaid in Q2. Is that a full repayment with no loss? Is that what you're expecting there? Okay, great. okay great One more, if I could. one more if i could Just the, it sounds like you're expecting to get repaid for that CAD 31 million loan in Stage 3, repaid in Q2. just the it sounds like you're expecting to get repaid for that cad 31 million loan in stage 3 repaid in q2 Is that a full repayment with no loss? is that a full repayment with no loss Is that what you're expecting there? is that what you're expecting there

Speaker 4: That's right. Yeah. Because it's under contract, I don't want to say more about it, but, yeah, it's a full recovery. That's right. that's right Yeah. yeah Because it's under contract, I don't want to say more about it, but, yeah, it's a full recovery. because it's under contract i don't want to say more about it but yeah it's a full recovery

Speaker 2: Okay. That's it for me. Thank you. Okay. okay That's it for me. that's it for me Thank you. thank you

Speaker 4: Thanks. Thanks. thanks

Speaker 3: If anyone else has a question, please enter star 2 on your keypad. It appears there are no other questions at this time. I will now give the call back to Robert Goodall for closing statements. If anyone else has a question, please enter star 2 on your keypad. if anyone else has a question please enter star 2 on your keypad It appears there are no other questions at this time. it appears there are no other questions at this time I will now give the call back to Robert Goodall for closing statements. i will now give the call back to robert goodall for closing statements

Speaker 4: Okay. Thank you all for getting up early and attending our conference call. We're pleased with the results, particularly the CAD 0.10 special dividend, and I hope, our shareholders are as well. For existing shareholders, thank you so much for your continued support, and have a great day. Okay. okay Thank you all for getting up early and attending our conference call. thank you all for getting up early and attending our conference call We're pleased with the results, particularly the CAD 0.10 special dividend, and I hope, our shareholders are as well. we're pleased with the results particularly the cad 0.10 special dividend and i hope our shareholders are as well For existing shareholders, thank you so much for your continued support, and have a great day. for existing shareholders thank you so much for your continued support and have a great day

Speaker 3: Thank you all for participating. This conference call is now concluded. Please hang up. Thank you all for participating. thank you all for participating This conference call is now concluded. this conference call is now concluded Please hang up. please hang up