RFA continues $340M asset sale pipeline, marketing plan

Executive Summary

• RFA Financial Inc. reports significant progress in its asset disposition strategy, having completed $60.4 million in property sales and secured $86.8 million in unconditional sale agreements, with an additional $196.6 million in conditional agreements and a marketing process initiated for 1.3 million square feet of real estate.
• The company is recycling capital from its real estate portfolio into higher-return financial services investments, aiming to unlock value and demonstrate disciplined execution to shareholders.
• The aggregate sale price for closed and unconditional transactions represents a 4.1% increase over IFRS values as of December 31, 2025, and a 6.7% increase over values from June 30, 2025.

Key Details

• Completed Sales ($60.4 million):
  • Sale of 90% interest in Corridor Park (development land in Texas, U.S.) for $15.4 million; closed Feb. 3, 2026.
  • Sale of Canarama Mall and Circle West (two retail properties in Saskatchewan, Canada) for an aggregate price of $45.0 million; closed March 13, 2026.
• Unconditional Sale Agreements ($86.8 million):
  • Contracts entered for the sale of one office property, one parkade, and one industrial property (located in Canada and the U.S.).
  • Subject to closing conditions, expected to close in 2026.
• Conditional Sale Agreements (~$196.6 million):
  • Contracts entered for the sale of 1.0 million square feet of assets.
• Marketing Process Initiated:
  • Led by BMO Capital Markets for the sale of an additional 1.3 million square feet of industrial assets.
• Valuation Metrics:
  • Closed and unconditional transactions sold at a 4.1% premium over IFRS values at Dec. 31, 2025.
  • Sold at a 6.7% premium over IFRS values at June 30, 2025.
• Strategic Context:
  • RFA is a Canadian financial services platform anchored by a Schedule I bank and a prime/alternative mortgage business.
  • Strategy involves capital rotation from real estate into higher-returning financial services investments to provide stable earnings and a sustainable dividend profile.

Notable Quotes

• "Our focus on unlocking value within our real estate portfolio and recycling capital into higher-return financial services investments is a key component of our strategy... We are pleased with the significant progress achieved in a short period as we continue to demonstrate for our shareholders that our disciplined execution is translating into tangible outcomes that reaffirm the strength and resilience of our long-term strategy." — Ben Rodney, President and CEO