Financial Data and Key Metrics Changes - The company reported a net loss of $2.6 million or $0.17 per unit for Q4 2025, with cash available for distribution (CAD) at $2.8 million or $0.12 per unit [11] - The book value per unit as of December 31 was $11.70, with the closing unit price on March 18 at $5.87, reflecting a 50% discount to net book value [14][15] Business Line Data and Key Metrics Changes - The company is focused on exiting market rate multifamily joint venture (JV) equity investments while reallocating capital into tax-exempt Mortgage Revenue Bonds, which are expected to provide stable, tax-advantaged earnings [6][9] - The company currently has eight market rate multifamily JV equity investments that are either in lease-up or stabilized, with increasing occupancy noted [7][8] Market Data and Key Metrics Changes - The U.S. municipal bond market saw a recovery in Q4 2025, with the high-grade index showing a 4.3% return for the year [25] - The 10-year MMD was at 2.76% and the 30-year MMD at 4.24% at year-end, with slight increases noted due to inflation uncertainty [26] Company Strategy and Development Direction - The company is repositioning its investment portfolio to focus on tax-exempt Mortgage Revenue Bonds, which are expected to yield stable returns compared to the uneven returns from JV equity investments [5][6] - The strategy aims to increase the proportion of tax-exempt income allocated to unitholders over the long term [7] Management Comments on Operating Environment and Future Outlook - Management acknowledged that it will take time to transition capital from JV equity investments to Mortgage Revenue Bonds, but expects this will enhance recurring earnings in the long run [9][10] - The company is optimistic about the leasing trends as the spring leasing season approaches, indicating a potential recovery in occupancy rates [33][34] Other Important Information - The company reported unrestricted cash and cash equivalents of $39.5 million and approximately $49.2 million available on secured lines of credit as of December 31 [15] - The company has a significant amount of investments maturing in the first half of 2026, which will provide additional liquidity [15] Q&A Session Summary Question: Can you provide specifics on the $7 million losses and how they will be recovered? - The losses were primarily due to four properties completing construction, leading to depreciation and non-capitalized interest expenses. As occupancy increases, these losses are expected to narrow [30][31] Question: What are the leasing trends expected as spring approaches? - Management noted that the March to June period is traditionally strong for leasing, and they are monitoring trends closely with property management firms [33][34] Question: Will the foreclosure of properties result in a loss in Q1? - Initial basis in the foreclosed properties is estimated at $112-$150 million, and management aims to recover the original basis through effective management [39][40] Question: What is the status of the $4.5 million return of capital? - The return of capital relates to refinancing opportunities that allowed for the return of capital to the company, minimizing capital in the deals [44][45] Question: Why has there been little insider buying despite the stock price decline? - Management explained that trading restrictions limit when insiders can buy shares, and there has been no sale activity, indicating confidence in the company [82][85]

Financial Data and Key Metrics Changes - For the quarter ended June 2025, the net investment income (NII) was $79 million, equating to $0.17 per common share, with a net asset value (NAV) of approximately $3 billion or $6.56 per common share [3] - The net debt to total assets ratio stood at 30.4%, with unsecured debt and preferred shares comprising 77.1% of total debt [3] Business Line Data and Key Metrics Changes - The company has increased its focus on first lien senior secured middle market loans, with the first lien mix rising by 642 basis points to 70.5% from the previous year [4][5] - The second lien mix decreased by 202 basis points to 14.4%, and further reduced to 13.7% after two additional second lien loans were repaid [5] - Subordinated structured notes decreased to 0.6% of the investment portfolio, down 781 basis points from the prior year [5][9] Market Data and Key Metrics Changes - The company has invested $12.6 billion in over 350 exited investments, achieving a 12% unlevered investment level gross cash IRR [8] - As of June 2025, the portfolio comprised 97 companies across 33 industries, with an aggregate fair value of $6.7 billion [8] Company Strategy and Development Direction - The company is strategically rotating its asset mix towards first lien senior secured loans, which are expected to generate higher yields compared to real estate investments [10][21] - The focus is on companies with less than $50 million in EBITDA, targeting a market of over 200,000 companies in the U.S. [5][25] - The company aims to enhance portfolio company operations and utilize a cost-efficient floating rate revolver [6][10] Management's Comments on Operating Environment and Future Outlook - Management noted a significant slowdown in inflation affecting property costs, which is favorable for net operating income (NOI) growth, projecting double-digit growth in the future [21] - The company is strategically exiting investments at value-maximizing prices while focusing on middle market lending, which is seen as a value driver [22][26] Other Important Information - The company announced monthly common shareholder distributions of $0.45 per share for September and October, with a total distribution of approximately $4.6 billion since its IPO [4] - The company has a strong liquidity position with $1.3 billion in combined cash and undrawn revolving credit facilities, and 62% of its assets are unencumbered [12][13] Q&A Session Summary Question: Outlook for the REIT and income trajectory amidst industry challenges - Management acknowledged industry challenges but noted a substantial improvement in their portfolio, with a 7% increase in same property NOI over the last year and expectations for double-digit growth going forward [19][21] Question: Strategy regarding real estate investments - Management emphasized a selective exit strategy for real estate investments, focusing on maximizing value and transitioning from lower-yielding real estate to higher-yielding middle market loans [22][26]

Core Viewpoint - Altai Resources Inc. has completed the repositioning of its Canadian investment portfolio to enhance liquidity and eliminate equity market risk [1][2]. Group 1: Repositioning Details - The repositioning involved the sale of all marketable securities and reinvestment of net cash proceeds into cash and cash equivalents [1]. - The total market value of the newly structured Investment Portfolio is approximately $3.9 million [2]. - The market value of the Investment Portfolio per common share is approximately $0.07, based on 56,033,552 issued and outstanding common shares [2]. Group 2: Company Overview - Altai Resources Inc. is based in Toronto, Ontario, and has a producing oil property in Alberta and an exploration gold property in Quebec [3]. - The company’s investment portfolio is now entirely comprised of cash and cash equivalents [2].