Clarke Inc. Reports Refinancing of Credit Facilities and 2025 Second Quarter Results
HALIFAX, NS, Aug. 8, 2025 /CNW/ - Clarke Inc. ("Clarke" or the "Company") (TSX:CKI) today announced its results for the three and six months ended June 30, 2025.
Refinancing of Credit Facilities
The Company completed the refinancing of its Talisman development construction financing during the quarter. This resulted in a new $250.0 million facility consisting of a $115.0 million term loan—partially used to repay the existing $85.0 million construction loan from the development's first phase, and a $135.0 million construction facility to fund the development's second phase. Previously, the Company had financed the construction of phase two through its cashflow from operations and existing revolving credit facilities. This refinancing allowed the Company to pay down its revolving credit facilities, increase its liquidity, and fully repay its $30.0 million, unsecured credit facility, which was due to a related party.
"With this $250 million facility now in place, we've secured the funding needed to support both the stabilization of phase one and to complete the build-out of phase two", said Tom Casey, Chief Financial Officer of Clarke Inc. "Tenant, lender, and stakeholder response to our development has been overwhelmingly positive, and we're very pleased with the outcome. The facility's competitive pricing and flexible terms speak to the quality of the asset, the strength of our balance sheet, and our track record of execution. We want to thank the Toronto RBC Real Estate Markets team for their support and for executing a smooth transaction."
Also, during the quarter, the Company refinanced an investment property in St. John's, NL. This marked a milestone in our financing strategy, as we were able to secure the loan using residential loan terms rather than hospitality terms after the conversion of the property. The repurposing of the property not only enhanced the asset's results but also led to a meaningful capitalization rate compression and a substantial improvement in financing terms. "This financing is a strong validation of this strategy," said Casey. "We appreciate the CIBC Real Estate Finance Division team for their support of our conversion strategy and for facilitating an efficient, well-executed transaction."
Second Quarter Results1
The Company's net loss for the three and six months ended June 30, 2025, was $0.1 million and $2.4 million, respectively, compared to net income of $1.8 million and $4.2 million for the same periods in 2024. The net loss in the quarter was primarily attributable to certain interest outlays expensed in the current period, compared to a portion in the prior period that had been capitalized due to ongoing construction. The net loss for the six-month period was primarily attributable to a pension expense resulting from past service costs following a pension plan amendment, as well as higher interest and a reduced deferred income tax recovery. Hotel and rental revenue increased primarily due to the operations of the first phase of the Talisman, which did not have occupancy until June 1, 2024.
The other comprehensive loss of $1.3 million during the quarter is a result of remeasurement losses in the Company's pension plans because of an increase to the discount rate. Remeasurement gains in the first quarter of 2025 more than offset these second quarter losses, resulting in net other comprehensive income of $4.0 million for the six-month period. Other comprehensive losses in each of the respective 2024 periods were driven by remeasurements losses on the Company's pension plans.
During the second quarter of 2025, the Company's book value per common share decreased by $0.15, or 0.7%. The Company had a net loss of $0.1 million during the quarter which included hotel net operating income of $5.3 million, or $0.38 per common share, offset by depreciation and amortization of $2.9 million, or $0.21 per common share and interest and accretion of $3.2 million, or $0.23 per common share. The Company also recorded remeasurement losses on its pension surplus of $1.3 million, or $0.10 per common share in other comprehensive income. The Company's book value per common share at ...
