Mr. George Armoyan reports

CLARKE INC. REPORTS 2025 FOURTH QUARTER AND YEAR END RESULTS

Clarke Inc. has released its results for the three months and year ended Dec. 31, 2025.

Results for the year ended Dec. 31, 2025

The company's net income was $13.0-million compared with $37.8-million in 2024. Net income in the year included fair value adjustment gains of $14.9-million on certain investment properties compared with significantly larger fair value gains of $34.0-million in 2024. Interest and accretion expense increased year-over-year despite lower interest rates on the company's floating-rate debt, due to higher average long-term debt balances driven by ongoing construction expenditures. In addition, a larger portion of construction interest was capitalized in 2024 compared with 2025, reflecting the timing of when dedicated construction financing was in place.

Comprehensive income for the year ended December, 2025, was $17.6-million compared with $46.4-million in 2024. Comprehensive income in the year ended Dec. 31, 2025, was less than 2024 due primarily to decreased earnings and smaller revaluation gains recorded in 2025 compared with those recorded in 2024.

During 2025, the company's book value per common share increased by $1.23, or 6.2 per cent. The company had net income of $13.0-million during the year which included hotel net operating income of $21.5-million, or $1.54 per common share, residential net operating income of $7.4-million, or 53 cents per common share, and fair value adjustments on investment properties of $14.9-million, or $1.07 per common share, offset by depreciation and amortization of $12.3-million, or 88 cents per common share, interest and accretion of $10.8-million, or 78 cents per common share and hotel revaluation losses of $1.5-million, or 11 cents per common share. The company also recorded hotel revaluation gains, of $2.5-million, or 18 cents per common share in other comprehensive income. The company's book value per common share at the end of the year was $21.08, while the common share price was $20.93.

Results for the fourth quarter of 2025

Hotel and rental revenue was stable quarter over quarter at $16.7-million, with incremental rental revenue from the first building of the Talisman's second phase commencing operations offsetting lower quarter over quarter hotel revenue.

The $29.9-million fair value adjustment gain on investment properties recorded in 2024 is the largest factor in the decreased fourth quarter net income quarter over quarter.

The company had other comprehensive losses of $1.5-million in the fourth quarter of 2025 compared with $200,000 in 2024. The primary reason for the increased loss was a higher remeasurement loss on the accrued pension benefit asset in the fourth quarter of 2025 compared with 2024.

For the three months ended Dec. 31, 2025, Clarke's basic and diluted loss per common share was three cents, compared with earnings per common share of $1.54 in 2024.

Additional commentary on the company's results can be found in its management's discussion and analysis for the year ended Dec. 31, 2025.

Other information

Highlights of the consolidated financial statements for the three months and year ended Dec. 31, 2025, compared with the three months and year ended Dec. 31, 2024, are as shown in the attached table.

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 (CKI) trade on the Toronto Stock Exchange.

We seek Safe Harbor.