HALIFAX, NS, Aug. 13, 2026 /CNW/ -- Clarke Inc. ("Clarke" or the "Company") (TSX: CKI) today announced its results for the three and six months ended June 30, 2026.
Second Quarter Results1
During the quarter, the Company completed the acquisition of Ravelin Properties REIT ("Ravelin") pursuant to which the Company acquired all of the outstanding trust units of Ravelin (the "REIT units") and all of Ravelin's outstanding convertible unsecured subordinated debentures (the "REIT Debentures") by way of a court-approved plan of arrangement under the Canada Business Corporations Act (the "Transaction"). The Company issued 2,490,647 common shares in connection with the Transaction.
The acquisition added 54 commercial properties comprised of 6.5 million square feet of commercial real estate, one hotel with 250 hotel rooms, and one residential building with 15 units.
During the second quarter of 2026, the Company's book value per common share increased by $4.00, or 18%. The Company had earnings per common share of $3.68, which included a bargain purchase gain of $33.3 million, or $2.43 per common share and fair value gains on its investment properties of $20.0 million, or $1.46 per common share. The Company's book value per common share at the balance sheet date was $26.01, while the common share price was $22.32.
The Company had net income of $50.5 million and $64.7 million for the three and six months ended June 30, 2026, respectively, compared with net losses of $0.1 million and $2.4 million in the comparable periods, respectively. The Company recognized fair value gains of $20.0 million and $39.0 million on certain investment properties for the three and six months ended June 30, 2026, respectively, which, together with the bargain purchase gain, significantly drove net income compared with the comparable periods.
In our commercial segment, commercial revenue and net operating income were $15.2 million and $7.2 million, respectively in the three and six months ended June 30, 2026, which represents one month of operations since the Transaction.
In our hospitality segment, hotel revenue increased by $1.1 million year over year, increasing from $14.9 million in the three months ended June 30, 2025 to $16.0 million in the three months ended June 30, 2026. Hotel net operating income increased from $5.3 million to $5.6 million year over year. The increase was due to one month of operating results from the newly acquired Delta Brunswick hotel in Saint John, NB, acquired in the Transaction.
In our residential segment, residential revenue increased year over year by $1.1 million, increasing from $2.8 million for the three months ended June 30, 2025 to $3.9 million for the three months ended June 30, 2026, driven by the commencement of operations of two additional Talisman buildings which were under construction, and not operational in the comparative period. Residential net operating income increased year over year from $1.8 million to $2.5 million.
Additional commentary on our second quarter results can be found in our Management's Discussion & Analysis for the three and six months ended June 30, 2026.
_____________________________________ |
Other Information
Highlights of the interim condensed consolidated financial statements for the three and six months ended June 30, 2026 compared to the three and six months ended June 30, 2025 are as follows:
(in millions, except per share amounts) |
Three months ended June 30, 2026 $ |
Three months ended June 30, 2025 $ |
Six months ended June 30, 2026 $ |
Six months ended June 30, 2025 $ |
Rental and hotel revenue |
34.9 |
17.7 |
53.4 |
35.4 |
Provision of services revenue |
2.5 |
1.9 |
2.8 |
2.1 |
Interest income on finance lease receivable |
0.2 |
―. |
0.2 |
―. |
Bargain purchase gain |
33.3 |
―. |
33.3 |
―. |
Net income (loss) |
50.5 |
(0.1) |
64.7 |
(2.4) |
Other comprehensive income (loss) |
(0.8) |
(1.3) |
(2.0) |
4.0 |
Comprehensive income (loss) |
49.7 |
(1.4) |
62.6 |
1.6 |
Basic and diluted earnings (loss) per share ("EPS") |
3.68 |
(0.01) |
4.78 |
(0.18) |
Total assets |
1,872.4 |
577.0 |
1,872.4 |
577.0 |
Total liabilities |
1,470.4 |
305.2 |
1,470.4 |
305.2 |
Long-term financial liabilities |
902.4 |
170.7 |
902.4 |
170.7 |
Book value per share |
26.01 |
19.91 |
26.01 |
19.91 |
About Clarke
Clarke is a leading real estate company engaged in the development, ownership, and management of a diversified portfolio of commercial, hospitality, residential, and mixed-use properties. Clarke's common shares (CKI) trade on the Toronto Stock Exchange. Further information about Clarke, including Clarke's Interim Condensed Consolidated Financial Statements and Management's Discussion & Analysis for the three and six months ended June 30, 2026, is available on SEDAR+ at www.sedarplus.ca and www.clarkeinc.com.
Cautionary Statement Regarding Use of Non-IFRS Accounting Measures and Ratios
This press release makes reference to "book value per share" and "net operating income". Book value per share and net operating income are not financial measures or ratios calculated and presented in accordance with International Financial Reporting Standards ("IFRS") and should not be considered in isolation or as a substitute to any financial measures or ratios of performance calculated and presented in accordance with IFRS. These non-IFRS financial measures and ratios are presented in this press release because management of Clarke believes that such measures and ratios enhance the user's understanding of our historical and current financial performance.
Book value per share is measured by dividing shareholders' equity of the Company at the date of the statement of financial position by the number of common shares outstanding at that date. Net operating income is defined as revenue less expenses. Net operating income measures operating results before interest, depreciation, amortization and income taxes. Net operating income excludes non-cash straight-line rent and the amortization of leasing costs recorded in revenue, which management believes better reflects the cash-generating activity of the Company's properties. As a result of the fair value accounting applied to the acquired properties as part of the Transaction, there were no material amounts related to these items in the current period; however, such amounts are expected to arise in future periods. These items are generally not material to the Company's hospitality and residential segments.
Note on Forward-Looking Statements and Risks
This press release may contain or refer to certain forward-looking statements relating, but not limited, to the Company's expectations, intentions, plans and beliefs with respect to the Company. Forward-looking information may relate to Clarke's future business, financial outlook and anticipated events or results and may include information regarding its financial position, business strategy, growth strategies, addressable markets, market share, budgets, operations, financial results, taxes, trading liquidity of common shares, operating environment, business plans and objectives. Particularly, information regarding the Company's expectations of future results, upside, performance, growth, achievements, prospects or opportunities or the markets in which it operates. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "does not expect", "is expected", "budgets", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes", or equivalents or variations of such words and phrases, or state that certain actions, events or results, "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Forward-looking statements include, without limitation, those with respect to the future or expected performance of the Company's underlying assets, the Company's ability to increase occupancy and lease approximately 1.6 million square feet of vacant commercial space, the expected impact of leasing initiatives, renovations and show suites on occupancy, rental revenue and operating results, the disposition, redevelopment, densification or repositioning of certain properties, the integration and future performance of the assets and operations acquired in the Transaction, the realization and timing of anticipated operating efficiencies and cost savings from the Transaction, changes in the property holdings, changes to the Company's hedging practices, currency fluctuations, requirements for additional capital and management's expectation that the Company will not be required, without choosing to do so, to repay its construction financing or revolving credit facilities within the next twelve months.
Forward-looking statements rely on certain underlying assumptions that, if not realized, can result in such forward-looking statements not being achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, the Company's investment strategy, legal and regulatory risks in Canada, the United States and Ireland, general market risk, potential lack of diversification in the Company's investments, interest rates, foreign currency fluctuations, the sale of Company assets, the Company's ability to lease vacant space on anticipated terms and timelines, tenant demand, occupancy levels, rental rates, tenant inducements and leasing costs, the expectation that the Company's redeployment of capital from its asset dispositions, renovations and repurposes will be accretive to the Company's shareholders, the anticipated timing of completion of the construction projects and renovations, the ability to successfully execute planned dispositions, redevelopment, densification and repositioning initiatives, the integration of the assets and operations acquired in the Transaction, the realization of anticipated operating efficiencies and cost savings, reliance on key executives and other factors.
The real estate industry is subject to various risks that could impact our financial performance and asset values. These risks include fluctuations in property values, changes in market demand, interest rate volatility, foreign currency fluctuations and broader economic conditions such as inflation, employment levels and consumer confidence in the markets in which the Company operates, including Canada, the United States and Ireland. Tourism levels, economic activity and changing competition in our markets can have a significant impact on the underlying results of our assets. Competition from new developments and alternative accommodation options could affect occupancy rates and rental pricing. Regulatory and legislative changes, including zoning laws, rent control measures, taxation and environmental policies, may impose additional costs or restrictions on operations. Additionally, unforeseen capital expenditures, rising maintenance costs, and disruptions in supply chains may impact profitability. Our ability to successfully acquire, develop, integrate and manage real estate assets depends on effective risk mitigation strategies, financial flexibility, and market adaptability. With respect to the ferry operations, such risks and uncertainties include, among others, weather conditions, safety, claims and insurance, uninsured losses, changes in levels of business and commercial travel and tourism and other factors.
Although the Company has attempted to identify important factors that could cause actions, events or results not to be as estimated or intended, there can be no assurance that forward-looking statements will prove to be accurate as actual results, and future events could differ materially from those anticipated in such statements. Other than as required by applicable Canadian securities laws, the Company does not update or revise any such forward-looking statements to reflect events or circumstances after the date of this document or to reflect the occurrence of unanticipated events. Accordingly, readers should not place undue reliance on forward-looking statements.
SOURCE Clarke Inc.
For further information, please contact Tom Casey, President, at (902) 420-6446 or Steve Cyr, Chief Financial Officer, at (902) 442-3415.
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