Medical Facilities (DR) Investor update summary

Business overview

• Owns two highly rated specialty surgical hospitals in the US, focusing on short-duration, non-emergency procedures, with orthopedic and neurosurgical cases as the majority.

• Operates in partnership with 67 physician partners, emphasizing direct physician involvement for operational efficiency.

• Hospitals are Arkansas Surgical Hospital and Sioux Falls Specialty Hospital.

Financial performance

• 2025 revenue and other income reached US $254.2 million, with income from operations at US $46.7 million and EBITDA at US $58.4 million.

• Q1 2026 facility service revenue grew 10.8% year-over-year to US $67.1 million.

• Q1 2026 EBITDA increased 12.7% to US $15.3 million, with EBITDA margin at 22.8%.

• Cash available for distribution in Q1 2026 was C$6.8 million, with a payout ratio of 23.1%.

Capital management and shareholder returns

• Repurchased 439,400 shares for US $5.4 million in 2026 YTD and 5,155,113 shares for US $63.7 million in 2025.

• Since September 2022, 11,973,110 shares bought back for US $121.5 million.

• 1,255,924 shares remain available for repurchase under the current NCIB, expiring November 2026.