Business Environment

• Despite our strong current quarter results, we anticipate the Western Canadian housing market incurring tightening with higher interest rates affecting demand for new home construction.

• Our strategy will be to maintain some geographic diversity in our portfolio, while also emphasizing market segments we consider to be strongest, with consistent turnover.

• On top of maintaining a healthy weighted average loan-to-value ratio in our portfolio, we see opportunity in our market sector for growth to service an under appreciated market segment. Net in migration to Alberta is driving rents higher thereby stimulating demand for housing overall.