Sale of 78-84 Vaughan Rd to Proceed

We have been informed by the City of Toronto that they have waived their condition and will be proceeding with their purchase of our land assembly at 78-84 Vaughan Rd. The closing date is scheduled for March 19, 2025. The purchase price is $4,740,000. The net proceeds after commissions (3%) and legal costs will be about $4.57MM. Out of these proceeds we will be retiring all of the non-amortizing mortgages in the portfolio (totaling $3.3MM), and will be making a $1MM distribution to LP Unitholders.

In Q2 of this year, we plan to begin allocating our free cash flow towards modest regular cash distributions on a quarterly basis. In December, we transitioned to a new management company for our hotel business and are optimistic about the potential performance of that business in this coming year. The amount of cash available to make distributions will be correlated to that success and we intend to provide a more detailed update within the next few weeks. The next major cash distribution will likely come from the closing of the laneway house sale which we are hopeful will occur later this year. All of the proceeds of that sale (approx. $3.2MM) will be distributed to LP Unitholders upon closing. We also expect to be compensated from the expropriation of the subterranean rights at 244 Queen Street East at some point within the next year. At this time, it is too early in that process to estimate that amount, however, whatever it ends up being will be distributed to LP Unitholders upon receipt.