An anonymous director reports

WILMINGTON ANNOUNCES FIRST QUARTER 2023 RESULTS

Wilmington Capital Management Inc. had a net loss for the three months ended March 31, 2023, of $600,000 or five cents per share compared with net income of $80,000 or seven cents per share for the same period in 2022.

Operations review -- for the quarter ended March 31, 2023

As at March 31, 2023, Wilmington had assets under management in its operating platforms of approximately $429-million ($100-million representing Wilmington's share). A summary of the corporation and the operations of its investees is set out herein.

Marinas

Maple Leaf Partnerships

In first quarter 2023, the Maple Leaf Partnerships completed the acquisition of two marquee marinas in Ontario and now owns 20 marinas with over 8,000 boat slips and dry rack slips, all within two hours driving time of Toronto, Ont. This represents a 61-per-cent increase in the number of slips and dry rack slips owned at the beginning of 2022.

Closings of lot sales commenced during the quarter at Champlain Shores (formerly Bay Moorings), and the first completed homes are expected in the summer of 2023. To facilitate the land development and home construction program, the corporation financed an additional $2-million under the terms of the revolving loan facility. Proceeds from the lot sales will repay the loan, of which $1-million was repaid in May, 2023.

Subsequent to the quarter, the Maple Leaf Partnerships completed the acquisition of 358 wet and dry rack slip marina financed by cash, proceeds from a fixed-rate mortgage and a $7.5-million capital raise (corporation's share: $1.3-million).

Real estate

Bow City Partnership

The Bow City self-storage facility was successful in increasing occupancy levels and rental rates in what is historically a slow quarter in the self storage industry.

Sunchaser Partnership

In Q1 2023, the Sunchaser Partnership acquired a marquee recreation vehicle resort and marina in British Columbia, having 156 full-service sites and 70 boat slips situated on 12 acres of waterfront lands. In addition, an expansion of one of the existing RV resorts is well under way, and approximately 150 new or upgraded sites will be available for campers later this summer.

Private equity

Northbridge, Northbridge Fund 2016, Northbridge Fund 2021 SP#1, Northbridge Fund 2022 SP#2 and Northbridge Fund SP#4

During Q1 2023, Northbridge called the remaining capital for its most recent fund, Northbridge Fund SP#4. The funds have essentially been invested and have generated good returns to date.

Northbridge manages approximately $68-million of assets as at March 31, 2023 (Dec. 31, 2022: $74-million).

Outlook

The first quarter of 2023 was an active period for the corporation, which saw follow-on investments in most of its operating platforms.

The Maple Leaf Partnerships continued to significantly expand the platform in terms of wet slips and dry rack slip counts, and now owns 20 marinas. Early indications are that the Maple Leaf Partnerships will have a successful 2023 boating season. Bow City self-storage continued to exceed initial expectations in terms of net absorption and rental rates. The Sunchaser Partnership added a marquee property and continues to actively seek additional opportunities while turning its attention to the coming recreational season.

Wilmington continues to seek growth opportunities for each of its platforms, and will continue to be prudent and patient in exploring investment opportunities.

We seek Safe Harbor.