Timbercreek Financial comments on Calgary office loan

Executive Summary

• Timbercreek Financial Corp. disclosed a credit event regarding its mortgage investment in Stephen Avenue Place, a 40-storey office tower in Calgary, leading to the appointment of a receiver.
• The company’s net exposure to the loan is $15 million, representing 1.3% of its total net mortgage portfolio of $1,114 million.
• The loan was classified as Stage 3 (impaired) as of December 31, 2024, and a receiver was appointed by the Alberta Court of King's Bench on October 15, 2025, following the termination of a forbearance period.

Key Details

• Asset Details: The loan is secured by Stephen Avenue Place, a recently renovated 40-storey office tower in downtown Calgary, owned by affiliates of Slate Canadian Real Estate Opportunity Fund I LP.
• Loan Structure and Exposure:
  • Gross mortgage balance as of June 30, 2025: $139 million.
  • The mortgage is syndicated on a pari passu basis among Timbercreek Financial and two other institutional partners.
  • Timbercreek Financial’s gross exposure: $15 million (10.8% of the total loan).
  • This exposure represents 1.3% of Timbercreek Financial’s net mortgage portfolio of $1,114 million.
• Credit Classification: The loan has been classified as a Stage 3 mortgage in consolidated financial statements since December 31, 2024.
• Receivership Action:
  • On October 15, 2025, Timbercreek Mortgage Servicing Inc. (TMSI), on behalf of the company and syndication partners, applied for the appointment of MNP Ltd. as receiver and manager of the property.
  • The Alberta Court of King's Bench granted the order.
  • The action followed the termination of a forbearance period and was taken to protect stakeholder interests during the realization process.
• Portfolio Context: CEO Blair Tamblyn noted that this is one of the few remaining investments in the portfolio originated prior to the rate hike cycle, highlighting the company's experience managing such situations since launching its lending platform in 2007.

Notable Quotes

• "While we do not typically comment on individual loans, we felt it was important to disclose our net exposure in this situation. Our team has originated more than $18-billion in commercial real estate debt since launching our lending platform in 2007 and actively managed a sizable portfolio through multiple cycles. We are experienced in navigating these kinds of situations to preserve our investors' capital and that is our primary focus with this asset." — Blair Tamblyn, CEO, Timbercreek Financial