WCM.B Wilmington Capital Management

Wilmington Capital Management Inc. (“Wilmington” or the “Corporation”) reported net loss for the three months ended March 31, 2023 of $0.6 million or $(0.05) per share compared to net income of $0.08 million or $0.07 per share for the same period in 2022.

OPERATIONS REVIEW – For the Quarter Ended March 31, 2023 As at March 31, 2023, Wilmington had assets under management in its operating platforms of approximately $429 million ($100 million representing Wilmington’s share). A summary of the Corporation and the operations of its investees is set out below.

MarinasMaple Leaf Partnerships In Q1 2023, the Maple Leaf Partnerships successfully completed the acquisition of two marquee marinas in Ontario and now own 20 marinas with over 8,000 boat slips and dry rack slips, all within 2 hours driving time of Toronto, Ontario. This represents a 61% increase in the number of slips and dry rack slips owned at the beginning of 2022.Closings of lot sales commenced during the quarter at Champlain Shores (formerly Bay Moorings) and the first completed homes are expected in the summer of 2023. To facilitate the land development and home construction program, the Corporation funded an additional $2 million under the terms of the revolving loan facility. Proceeds from the lot sales will repay the loan of which $1 million was repaid in May 2023.Subsequent to the quarter, the Maple Leaf Partnerships completed the acquisition of a 358 wet and dry rack slip marina funded by cash, proceeds from a fixed rate mortgage and a $7.5 million capital raise (Corporation’s share $1.3 million).Real Estate Bow City Partnership The Bow City Self Storage facility was successful in increasing occupancy levels and rental rates in what is historically a slow quarter in the self storage industry.Sunchaser PartnershipIn Q1 2023, the Sunchaser Partnership acquired a marquee RV resort and marina in British Columbia having 156 full service sites and 70 boat slips situated on 12 acres of waterfront lands. In addition, an expansion of one of the existing RV resorts is well underway and approximately 150 new or upgraded sites will be available for campers later this summer.Private Equity Northbridge, Northbridge Fund 2016, Northbridge Fund 2021 SP#1 and Northbridge Fund 2022 SP#2 and Northbridge Fund SP#4 During Q1 2023, Northbridge called the remaining capital for its most recent fund, Northbridge Fund SP#4. The funds have essentially been invested and have generated good returns to date.Northbridge manages approximately $68 million of assets as at March 31, 2023 (December 31, 2022 - $74 million).Outlook The first quarter of 2023 was an active period for the Corporation which saw follow-on investments in most of its operating platforms.The Maple Leaf Partnerships continued to significantly grow the platform in terms of wet slips and dry rack slip counts and now owns 20 marinas. Early indications are that the Maple Leaf Partnerships will have a successful 2023 boating season. Bow City Self Storage continued to exceed initial expectations in terms of net absorption and rental rates. The Sunchaser Partnership added a marquee property and continues to actively seek additional opportunities while turning its attention to the upcoming recreational season.Wilmington continues to seek growth opportunities for each of its platforms and will continue to be prudent and patient in exploring investment opportunities.

FINANCIAL RESULTS

STATEMENT OF INCOME (LOSS) AND COMPREHENSIVE INCOME (LOSS) (unaudited)

For the					Three months ended March 31,
(CDN $ thousands, except per share amounts)					2023		2022
Management fee revenue					120		95
Interest and other income					626		244
					746		339
Expenses
General and administrative					(467)		(468)
Amortization					(7)		(7)
Finance costs					(2)		(2)
Stock-based compensation					(49)		(138)
					(525)		(615)
Fair value adjustments and other activities
Fair value adjustments to investments					(610)		1,069
Equity accounted income (loss)					(13)		162
					(623)		1,231
Income (loss) before income taxes					(402)		955
Current income tax recovery (expense)					(120)		44
Deferred income tax expense					(52)		(133)
Provision for income taxes					(172)		(89)
Net income (loss)					(574)		866
Other comprehensive income
Items that will not be reclassified to net income (loss):
Fair value adjustments to investments					(170	)	353
Related income taxes					34		(45	)
Other comprehensive income (loss), net of income taxes					(136	)	308
Comprehensive income (loss)					(710	)	1,174
Net income (loss) per share
Basic					(0.05	)	0.07
Diluted					(0.05	)	0.07

BALANCE SHEETS

(unaudited)			March 31,	December 31,
(CDN $ thousands)			2023	2022
Assets
NON-CURRENT ASSETS
Investment in Maple Leaf Partnerships			21,236	18,637
Investment in Bow City Partnerships			3,864	3,864
Investment in Sunchaser Partnership			2,911	1,806
Investment in Northbridge and Energy Securities			8,493	7,284
Right-of-use asset			85	92
			36,589	31,683
CURRENT ASSETS
Cash			1,366	4,007
Short term securities			19,000	22,000
Amounts receivable and other assets			12,927	13,083
Total assets			69,882	70,773
Liabilities
NON-CURRENT LIABILITIES
Deferred income tax liabilities			1,334	1,316
Lease liabilities			118	116
			1,452	1,432
CURRENT LIABILITIES
Lease liabilities			19	38
Income taxes payable			238	118
Amounts payable and other			721	790
Total liabilities			2,430	2,378
Equity
Shareholders’ equity			51,270	51,179
Contributed surplus			1,158	1,482
Retained earnings			6,808	7,382
Accumulated other comprehensive income			8,216	8,352
Total equity			67,452	68,395
Total liabilities and equity			69,882	70,773

Executive Officers of the Corporation will be available at 403-705-8038 to answer any questions on the Corporation’s financial results.

STATEMENT REGARDING FORWARD-LOOKING STATEMENTS AND OTHER MEASUREMENTSCertain statements included in this document may constitute forward-looking statements or information under applicable securities legislation. Forward-looking statements that are predictive in nature, depend upon or refer to future events or conditions, include statements regarding the operations, business, financial conditions, expected financial results, performance, opportunities, priorities, ongoing objectives, strategies and outlook of the Corporation and its investee entities and contain words such as "anticipate", "believe", "expect", "plan", "intend", "estimate", "propose", or similar expressions and statements relating to matters that are not historical facts constitute “forward-looking information” within the meaning of applicable Canadian securities legislation.

While the Corporation believes the anticipated future results, performance or achievements reflected or implied in those forward-looking statements are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements and information because they involve known and unknown risks, uncertainties and other factors, many of which are beyond the Corporation’s control, which may cause the actual results, performance and achievements of the Corporation to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements and information.

Factors and risks that could cause actual results to differ materially from those contemplated or implied by forward-looking statements include but are not limited to: the ability of management of Wilmington and its investee entities to execute its and their business plans; availability of equity and debt financing and refinancing within the equity and capital markets; strategic actions including dispositions; business competition; delays in business operations; the risk of carrying out operations with minimal environmental impact; industry conditions including changes in laws and regulations including the adoption of new environmental laws and regulations and changes in how they are interpreted and enforced; operational matters related to investee entities business; incorrect assessments of the value of acquisitions; fluctuations in interest rates; stock market volatility; general economic, market and business conditions; risks associated with existing and potential future law suits and regulatory actions against Wilmington and its investee entities; uncertainties associated with regulatory approvals; uncertainty of government policy changes; uncertainties associated with credit facilities; changes in income tax laws, tax laws; changes in accounting policies and methods used to report financial condition (including uncertainties associated with critical accounting assumptions and estimates); the effect of applying future accounting changes; and other risks, factors and uncertainties described elsewhere in this document or in Wilmington's other filings with Canadian securities regulatory authorities.

The foregoing list of important factors that may affect future results is not exhaustive. When relying on the forward-looking statements, investors and others should carefully consider the foregoing factors and other uncertainties and potential events. Except as required by law, the Corporation undertakes no obligation to publicly update or revise any forward-looking statements or information, that may be as a result of new information, future events or otherwise. These forward-looking statements are effective only as of the date of this document.