Bridgemarq Real Estate Services® Announces Strategic Capital Allocation Framework to Support Growth and Long-Term Shareholder Value

Bridgemarq Real Estate Services® Announces Strategic Capital Allocation Framework to Support Growth and Long-Term Shareholder Value

Highlights

• Bridgemarq to implement a new capital allocation framework, including a new annualized dividend rate of $0.05 per share, payable on a quarterly basis.
• New framework aims to balance financial flexibility, growth investments, and shareholder returns.
• Bridgemarq will retain cash flow to fund franchise growth, brokerage expansions, and technology and AI investments.
• New framework positions Bridgemarq to pursue accretive opportunities in the consolidating Canadian real estate market and supports long-term shareholder value creation.

TORONTO, July 16, 2026 /CNW/ -- Bridgemarq Real Estate Services Inc. ("Bridgemarq" or the "Company") (TSX: BRE) today announced that its Board of Directors has approved a capital allocation framework designed to support long-term shareholder value creation, strengthen financial flexibility, and increase the Company's capacity to pursue strategic growth and industry consolidation opportunities.

As part of the framework, the Board has approved a new annualized dividend rate of $0.05 per Restricted Voting Share for future dividends, if and when declared by the Board. Such dividends are expected to be paid on a quarterly basis. The Company's previously announced dividend payable on July 31 remains unaffected and will be the final monthly dividend payable to holders of Restricted Voting Shares prior to the implementation of the new policy. The first quarterly dividend under the new framework is expected to be approved and announced at a later date.

The capital allocation framework reflects Bridgemarq's view that the Canadian residential real estate industry is entering a period of rapid consolidation and technology-driven transformation, driven by rising operational complexities and shifting consumer expectations. As these dynamics pressure smaller, independent market participants, the Company believes its national scale, iconic brands, and recurring franchise fee model provide a difficult-to-replicate strategic advantage. This unique positioning allows the Company to drive network expansion through accretive franchise conversions, selective acquisitions, and organic recruiting, as agents and operators increasingly seek a scaled Canadian platform with deep local market expertise.

"Creating lasting shareholder value remains core to our guiding principles, whether through long-term value appreciation or via sustainable returns of capital." said Spencer Enright, Chief Executive Officer, Bridgemarq Real Estate Services Inc. "We believe the current market environment presents an increasingly attractive opportunity set for disciplined strategic reinvestment. This framework is intended to better position the Company to pursue long-term growth initiatives while maintaining financial flexibility and a regular dividend."

Under the capital allocation framework, the Company intends to prioritize:

• Investing in high-return growth and value creation initiatives;
• Enhancing operating efficiency and productivity across the Company's network; and
• Maintaining a regular dividend while prudently managing leverage and liquidity.

Bridgemarq believes the framework will support long-term shareholder value creation by:

• Increasing financial flexibility and improving dividend sustainability across market cycles;
• Expanding the Company's ability to pursue accretive franchise conversion and strategic growth opportunities;
• Supporting investments in technology, digital capabilities and AI-enabled tools that improve operating efficiency and network productivity;
• Strengthening the Company's competitive positioning within a consolidating industry landscape; and
• Enhancing the Company's ability to generate sustainable long-term total shareholder returns and to return excess capital opportunistically through share repurchases and/or special distributions.

"We believe Bridgemarq is uniquely positioned because of the strength and reputation of our brands, the scale of our national network, and the trust we have built with agents and franchisees over decades," added Mr. Enright. "We are excited about the opportunity to pursue attractive growth and value creation initiatives while continuing to deliver meaningful long-term returns to shareholders."

About Bridgemarq Real Estate Services

Bridgemarq is a leading provider of services to residential real estate brokers and a network of more than 20,000 REALTORS^® through its franchise network and corporately owned brokerages. We operate in Canada under the Royal LePage^®, Proprio Direct^®, Via Capitale^®, Johnston & Daniel^® and Les Immeubles Mont-Tremblant brands. For more information, go to www.bridgemarq.com.

BRIDGEMARQ® & DESIGN / BRIDGEMARQ REAL ESTATE SERVICES® and JOHNSTON & DANIEL® are registered trademarks of Residential Income Fund L.P. and are used under licence. ROYAL LEPAGE® is a registered trademark of Royal Bank of Canada and is used under licence. VIA CAPITALE® is a registered trademark of 9120 Real Estate Network L.P. and is used under licence. PROPRIO DIRECT® is a registered trademark of Proprio Direct Inc. and is used under licence.

The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA.

This news release contains forward-looking information and other "forward-looking statements". Words such as "aimed", "expected", "growth", "intended", "prospect", "believes", "allows", "should", "to", "will", "may" and other expressions that are predictions of or could indicate future events and trends and that do not relate to historical matters identify forward-looking statements. Forward-looking statements include references to the Company's ability to execute its capital allocation framework and its priorities thereunder, maintain its dividend at current levels or at all, increase its financial flexibility and improve dividend sustainability, pursue accretive franchise conversion and strategic growth opportunities, support investments in technology, digital capabilities and AI-enabled tools, strengthen its competitive positioning and enhance its ability to generate sustainable long-term total shareholder returns. Reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of the Company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those indicated in the forward-looking statements include, but are not limited to: changes in the supply or demand of houses for sale in Canada or in any particular region within Canada, changes in the selling price for houses in Canada or any particular region within Canada, changes in the Company's cash flow, changes in the Company's strategy with respect to and/or ability to pay dividends, changes in the productivity of the Company's REALTORS® or the commissions they charge their customers, changes in government policy, laws or regulations which could reasonably affect the housing markets in Canada or the economy in general, changes to any products or services developed or offered by the Company, consumer response to any changes in the housing markets in Canada or any changes in government policy, laws or regulations, changes in general economic conditions (including interest rates, consumer confidence, inflation and other general economic factors or indicators), changes in global and regional economic growth (including international trade relations, the impact of tariffs, political uncertainty), changes in the demand for and prices of natural resources on local and international markets, the level of residential real estate transactions, competition from other real estate brokers or from discount and/or Internet-based real estate alternatives, the closing of existing real estate brokerage offices, other developments in the residential real estate brokerage industry or the Company that reduce the number of REALTORS® in the Company's network or revenue from the Company's network of REALTORS®, our ability to maintain brand equity through the use of trademarks, the methods used by shareholders or analysts to evaluate the value of the Company and its publicly-traded securities, natural disasters, war or acts of terrorism, changes in tax laws or regulations, and other risks detailed in the Company's annual information form, which is filed with securities commissions and posted on SEDAR+ at www.sedarplus.ca. Forward-looking information is based on various material factors or assumptions, which are based on information currently available to management. Material factors or assumptions that were applied in drawing conclusions or making estimates set out in the forward-looking statements include, but are not limited to: anticipated economic conditions, anticipated impact of government policies, anticipated financial performance, anticipated market conditions, business prospects, the successful execution of the Company's business and capital allocation strategies and recent regulatory developments. The factors underlying current expectations are dynamic and subject to change. Although the forward-looking statements contained in this release are based upon what management believes are reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

SOURCE Bridgemarq Real Estate Services Inc.