Bridgemarq Real Estate Services : Q4 2023 Investor Presentation

INVESTOR PRESENTATION

Q 4 2 0 2 3

BRIDGEMARQ® & DESIGN / BRIDGEMARQ REAL ESTATE SERVICES® are registered trademarks of Residential Income Fund L.P. and are used under licence by Bridgemarq Real Estate Services Inc.

Royal LePage® is a registered trademark of Royal Bank of Canada and is used under licence by Bridgemarq Real Estate Services Inc.

FORWARD-LOOKING STATEMENTS

This presentation contains forward-looking information and other "forward-looking statements". Words such as: "achieves", "assist", "attract", "continues", "contributing", "drivers", "enhanced", "growth", "leveraging", "new", "ongoing", "opportunities", "potential", "provides", "renewal", "retain", "stability", "training", and other expressions that are predictions of or could indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those indicated in the forward-looking statements include: any resurgence of COVID-19 (including any impact of COVID-19 on the economy and the Company's business), changes in the supply or demand of houses for sale in Canada or in any particular region within Canada, changes in the selling price for houses in Canada or any particular region within Canada, changes in the Company's cash flow, changes in the Company's strategy with respect to and/or ability to pay dividends, changes in the productivity of the Company's REALTORS® or the commissions they charge their customers, changes in government policy, laws or regulations which could reasonably affect the housing markets in Canada or the economy in general, changes to any products or services developed or offered by the Company, consumer response to any changes in the housing markets in Canada or any changes in government policy, laws or regulations, changes in general economic conditions (including interest rates, consumer confidence and other general economic factors or indicators), changes in global and regional economic growth, changes in the demand for and prices of natural resources on local and international markets, the level of residential real estate transactions, competition from other real estate brokers or from discount and/or Internet-based real estate alternatives, the closing of existing real estate brokerage offices, other developments in the residential real estate brokerage industry or the Company that reduce the number of REALTORS® in the Company's network or revenue from the Company's network, the Company's ability to maintain brand equity through the use of trademarks, the methods used by shareholders or analysts to evaluate the value of the Company and its publicly traded securities, changes in tax laws or regulations and other risks detailed in the Company's annual information form, which is filed with securities commissions and posted on SEDAR+ at www.sedarplus.ca. Forward-looking information is based on various material factors or assumptions, which are based on information currently available to management. Material factors or assumptions that were applied in drawing conclusions or making estimates set out in the forward-looking statements include, but are not limited to: anticipated economic conditions, anticipated impact of government policies, anticipated financial performance, anticipated market conditions, anticipated benefits from the Transaction, business prospects and the successful execution of the Company's business strategies. The factors underlying current expectations are dynamic and subject to change. Although the forward-looking statements contained in this presentation are based upon what management believes are reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

This document should be read in conjunction with the Company's quarterly financial statement and quarterly MD&A.

The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA.

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2023 COMPANY HIGHLIGHTS

• Revenue for 2023 was $48.5 million compared to $49.9 million the prior year, due to weaker real estate markets on an annual basis in 2023.
• The Company generated net earnings of $4.0 million or $0.42 per share in 2023, on a fully diluted basis, compared to $21.0 million or $1.19 per share in 2022, as a result of a loss of $1.1 million on the valuation of the Exchangeable Units compared to an $11.5 million gain in 2022.
• Cash provided by operating activities amounted to $13.7 million in 2023 compared to $15.6 million in 2022, as weaker markets and higher administration expenses negatively affected cash flow.
• Bridgemarq received shareholder approval on March 25, 2024, to acquire the Canadian residential real estate brokerage operations owned by Brookfield Business Partners and to internalize the management of the Company. The transaction closed on March 31, 2024.
• The Company's network of REALTORS® totaled 20,529 as at December 31, 2023, down modestly from 20,686 in 2022.

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KEY BUSINESS DRIVERS

Time-tested strategy, contributing to growth and stability

Stability of the	Number of REALTORS®	Transactional	REALTOR®	Products and
Company's Revenues in the Company Network	Dollar Volume	Productivity	Services Offered

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COMPANY FINANCIAL HIGHLIGHTS

(Unaudited)

(in 000's) except per share amounts

	Q4 2023	Q4 2022	Q4 2023	Q4 2022
	For three months ended	For three months ended	For twelve months ended	For twelve months ended
	December 31	December 31	December 31	December 31
Total revenue	$10,825	$10,424	$48,454	$49,871
Net earnings (loss)	($1,039)	$6,005	$3,997	$20,969
Diluted earnings (loss) per share	($0.11)	$0.18	$0.42	$1.19
Dividends per share	$0.34	$0.34	$1.35	$1.35

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STRONG NETWORK GROWTH

• Since 2017, the Company has grown its network of REALTORS® by 13%
• On December 31, 2023, the Company network consisted of 20,529 REALTORS® operating through 288 franchise agreements at 723 locations.

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The Company historically achieves a contract renewal rate of more than 96%

• In 2023, 25 Franchise Agreements, representing 972 REALTORS® in the Company Network, extended their term or renewed.
• Royal LePage Franchise Agreements, which represent 94% of the Company's REALTORS®, are 10- to 20-year terms with a standard renewal term of 10 years.

BALANCED, LOWER

RISK CONTRACT

PORTFOLIO

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THE MARKET: Q4 2023 OVER Q4 2022

	CANADA		VANCOUVER		TORONTO		MONTREAL
Average
+4%			+6%			+2%			+4%
Price
Unit	+1%			+3%			-2%			-6%
Sales

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BEST-IN-CLASS OFFERING

The Company's network continues to receive new and enhanced products, tools and services to assist Franchisees in managing their businesses.

2023 highlights:

• During the year, the Company made further enhancements to the rlpSPHERE platform including the rollout of new tools like CORE Listing Machine and Design Centre, new website templates, a new integrated user interface, automation optimizations and new branded marketing templates.
• The Company rebranded and relaunched its commercial real estate website, including the integration of external listings and the addition of Smart Leads.
• The Company also enhanced its innovative and modern corporate marketing studio, [RE] CREATE, available to members of the Johnston & Daniel® brand.
• Via Capitale® launched ViaTV, an online video platform that provides agents with access to the latest news, training, events information, and other useful video content.

The products and services offered by the Company are supported by ongoing training programs for Brokers and REALTORS®, which assist in leveraging the Company's competitive advantages to attract and retain REALTORS®.

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APPENDIX

Investor Presentation Q4 2023