An anonymous director reports

WILMINGTON ANNOUNCES 2023 YEAR-END RESULTS AND DECLARES A SPECIAL DIVIDEND

Wilmington Capital Management Inc. had a net loss for the three months ended Dec. 31, 2023, of $200,000 or two cents per share, compared with a net income of $500,000 or four cents per share for the same period in 2022. For the year ended Dec. 31, 2023, the corporation reported net income of $2.3-million or 18 cents per share, compared with a net income of $2.8-million or 23 cents per share for the same period in 2022.

A summary of the corporation and the operations of its investees is set out in this news release.

Real estate

Sunchaser partnership

The success of the 2023 camping season is expected to continue into 2024 as the business continues to offer compelling value and experiences for its customers. With the onset of higher interest rates, owners of RV (recreational vehicle) resorts are adjusting their pricing expectations, which are becoming more realistic. The Sunchaser partnership continues to actively pursue opportunities to expand its footprint in the RV resort business.

Land held for development

The corporation's development plan for the Seton project, which consists of a 92,000-square-foot self-storage facility, retail complex and a 17-bay car condo project, advanced during the fourth quarter. The tendering process is expected to be completed in the first quarter of 2024.

Maple Leaf partnerships

As previously announced, the corporation sold its investment in its marinas business for $22-million after the determination was made that the embedded value had been substantially realized. The investment culminated in an attractive return for the corporation over a 6.5-year period. The remaining investment in a redevelopment property, Champlain Shores, continues to advance with the continuing sale of homes and home sites. Of the 50 available home sites, 21 sites have been sold. The development is also zoned to accommodate an 88-condominium-unit complex.

Private equity

Northbridge and energy securities

During the fourth quarter, the corporation monetized its investment in Northbridge, along with the windup of all but one of the funds managed by Northbridge. The windup resulted in the corporation receiving cash and energy securities. As at Dec. 31, 2023, the corporation held $5.3-million in direct holdings in energy securities and $2.3-million in the remaining fund, which will be wound up in the first quarter of 2024.

Outlook

The corporation has a long history of investing in alternative real estate asset sectors, which provide shareholders with capital appreciation over the medium to longer term as opposed to current income returns. The corporation seeks to monetize its investments once the determination is made that the embedded value had been substantially realized. The capital is then recycled into alternative investments capable of attracting superior returns or is returned to shareholders through distributions. In the preceding nine months, the corporation monetized its investment in the Bow City Partnerships, Northbridge and certain underlying energy funds, and more recently in its investment in the marina business.

In keeping with this history and after reassessing opportunities in a changing economic environment, the corporation has set its sights on simplifying its business and focusing on growth opportunities in the RV business. The corporation also made a determination that capital should be returned to shareholders out of proceeds from the monetization of its investments and after assessing its continuing liquidity needs. As a result, the corporation declared a special dividend of $2.75 per share to shareholders of record on March 18, 2024. Payment of the special dividend will be March 28, 2024.

Executive officers of the corporation will be available at 403-705-8038 to answer any questions on the corporation's financial results.

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