We believe the risk profile of BCF's portfolio remains stable, with no notable changes in first mortgages, property types, or geographical diversification. BCF also experienced no material increase in stage three (impaired) mortgages. We were pleasantly surprised, given that most comparables reported a rise in stage three mortgages in the last quarter. Note that property developers, and landlords, have been facing challenges stemming from high borrowing costs, low pre-sales, and dampened real estate activity. As a conservative response to the deceleration in the sector, BCF raised its loan loss allowances (total reserves assigned for potential loan losses) by 30 bp to 1.58% of mortgage receivables. We anticipate the Bank of Canada will initiate rate cuts within the next six months, driven by rising unemployment, financial instability, mortgage costs, and consumer confidence, and cooling inflation. Earlier this month, major Canadian banks slashed their mortgages rates by 20 bp on average. We anticipate transaction volumes will pick up in 2024, driven by lower interest rates. Anticipating a decline in rates, we project higher demand for high-yield stocks, such as BCF. We believe the current price level presents a narrow window to lock in a 9.1% yield. Mortgage advancements were down 16% YoY; repayments were down 27% YoY Net mortgage receivables were up 0.7% QoQ to 36M - the highest in BCF's history irst mortgages remained relatively flat No material changes in geographical diversification Remains focused on single-family units (construction) The average mortgage size was up 8% QoQ LTV was down 1.7 pp QoQ, implying lower risk profile Raised lending rates No material changes in stage three mortgages (impaired), or foreclosed assets However, loan loss allowances were raised by 30 bp as a conservative response to the deceleration in the sector For conservatism, we are continuing to model a 100% YoY increase in allowances in 2024 In summary, we believe the portfolio’