AGM 2026

2026 AGM – Skyline Clean Energy Fund Discussion

Wayne Byrd:

Hello everyone. I’m Wayne Byrd, Chief Financial Officer at Skyline. Welcome to our 2026 Skyline Clean Energy Fund AGM discussion. Joining me today is Rob Stein, President of Skyline Clean Energy Fund, to share some highlights from 2025 and perspectives on what lies ahead for the Fund in 2026 and beyond. Thanks for joining me today, Rob.

Rob Stein:

It’s great to be here with you.

Wayne Byrd:

Let’s begin with a high-level overview of the renewable energy landscape. How would you describe the solar and biogas markets today and what does that mean for the Fund’s operating environment?

Rob Stein:

In Canada, the solar and biogas markets are booming, supported by long-term electrification trends and favourable policy.
From a solar perspective, at the end of 2025, Canada had just over five gigawatts of installed solar capacity, or about 1% of total generation, but there are plans to expand capacity to 21 gigawatts by 2035.
So, we haven’t even scratched the surface on the industry’s overall growth potential. This growth is increasingly driven by data centres and AI, EV and transportation, population growth, as well as the electrification of heating and cooling. It’s awesome to see [that] the increase in demand is being met by renewable infrastructure, such as solar systems located where the power is being consumed, and battery energy storage systems.
In 2025, the provincial government of Ontario released a new procurement program to add new renewable energy systems to the grid, which we haven’t seen in over 10 years. And the best part: solar projects won most of the contracts, as it continues to be the lowest cost of electricity generation in Canada.
Biogas, and particularly renewable natural gas, or RNG as we call it, is a smaller but more mature market that offers attractive cash flows. Growth in this market has been supported by expanding RNG mandates, policy incentives, [and] increasing demand for low-carbon energy. The RNG market has expanded significantly in recent years, growing more than twelvefold since 2010, driven by provincial mandates for renewable natural gas.
For us, the combination is compelling. Solar offers significant long-term growth potential, while biogas adds diversification and a more established cash flow component.
Overall, we continue to see strong demand, supportive policy, and meaningful opportunities in both markets, which positions the Fund well for significant growth.

Wayne Byrd:

Great overall narrative, Rob. Now, let’s dig in and look at SCEF’s financial performance. How did the Fund manage its balance sheet during the year, and what were the biggest growth drivers?

Rob Stein:

From a fundamental standpoint, 2025 was a very strong year. Starting with cash and cash equivalents, we increased by 291% to just over $55 million by year end, significantly strengthening the Fund’s liquidity position.
On the leverage side, total debt to assets under management declined from 48% at the beginning of 2025 to 39%, representing approximately 19% reduction over that period. The improvements were driven in part by declining loans payable, which fell nearly 12%. So, we’re rapidly servicing debt on our capital assets while continuing to generate record revenues across the portfolio.
On the top line, the increase in combined biogas and solar revenues was a big driver for overall performance. For the year, revenues topped $73.48 million, which was a 29.3% increase from the year prior. While the rise was primarily driven by the monetization of environmental attributes generated between 2022-2025, we expect this new revenue source to continue in subsequent years as the markets continue to mature.
In combination with expanding operating margins, the increase in revenues contributed to a 47% increase in net operating income, reaching one of the strongest levels in the Fund’s history.
So, we enter 2026 in a great cash position [with] reduced leverage on our balance sheet and a ton of accretive acquisitions available to us. We also enter with $416 million in total assets under management, which is a record for the Fund.

Wayne Byrd:

Revenue growth is one thing, but investors are also focused on quality and consistency. How predictable are these revenue streams?

Rob Stein:

I’m glad you touched on this, Wayne, because one of the Fund’s core strengths is revenue predictability. On the solar side, which represents approximately 53% of total revenue, all projects are backed by long-term fixed-price government contracts.
On the biogas side, which represents the other 47% of revenue, revenue streams are generated from environmental attributes, tipping fees, and RNG sales.
Together, approximately 74% of revenues are derived from government-backed agreements, with a further 10% coming from corporate contracts with investment-grade counterparties. This means that roughly 84% of the Fund’s portfolio benefits from long-term fixed-price contractual revenue streams, resulting in a high degree of cash flow visibility, similar to how public utilities operate.
Nonetheless, the underlying demand for renewable energy remains strong, and policy supports provide a meaningful degree of predictability.

Wayne Byrd:

So, a little bit of future looking here. Can you give us an update on some of the projects and industry trends that the Fund is looking to capitalize on in 2026?

Rob Stein:

We see growth opportunities coming from both external and internal sources. Internally, we are advancing the repowering program across our solar portfolio to increase revenue, extend asset life, and reduce system downtime.
By the end of 2026, we are expecting to have 14 of our 22 solar projects completed, with expected projected level of IRRs in the 13-36% range. To date, we have successfully repowered five projects, meaning we are expecting another nine to be completed before the end of the year.
Once completed, these enhancements are expected to increase energy generation and contribute to higher top-line revenue across the portfolio. Successful execution of this strategy remains our primary focus through the rest of the year.
Externally, we continue to focus on accretive acquisitions that generate immediate cash flow. With ongoing government support of renewable energy across Canada, there’s a steady pipeline of opportunities. However, our focus remains on selecting investments that fit the Fund’s strategy and deliver the appropriate risk-adjusted returns. We’re actively evaluating a number of opportunities at the moment and we’re very excited about what we have on hand.

Wayne Byrd:

Great. Thanks for that update, Rob. Any final thoughts for our investors as we wrap up this discussion?

Rob Stein:

Thanks, Wayne. I’d really like to emphasize that we feel very good about where the Fund stands today. We operate in markets with strong tailwinds, supportive policies, and meaningful long-term growth potential. At the same time, we built a platform that combines external acquisition opportunities with internal optimization strategies like repowering.
And finally, to our investors, thank you. Your trust and support continue to be central to our success, and we’re excited about the opportunities ahead. Thank you, again.

Wayne Byrd:

Thanks, Rob. And thank you to all of our investors for joining us today. If you have any questions or would like to learn more about today’s discussion, please reach out to your Skyline Wealth Relationship Manager. Again, we’re grateful for your continued support.

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