SCULLY ROYALTY ISSUES FURTHER UPDATE ON ANNUAL SHAREHOLDERS' MEETING AND COURT PROCEEDINGS

Scully Royalty Ltd. (NYSE: SRL) has announced a significant update regarding its upcoming annual general meeting and ongoing legal proceedings. Following a December 19, 2025 ruling from the Grand Court of the Cayman Islands concerning the nomination notice from MILFAM LLC, the Company has filed an appeal against that decision. The appeal focuses on whether MILFAM complied with the timing requirements outlined in the Company’s Memorandum and Articles of Association.

In light of the pending appeal, Scully Royalty has temporarily postponed its annual general meeting, which was originally set for December 27, 2025. This decision was approved by the Company’s board of directors following recommendations from its Compensation, Nominating and Corporate Governance Committee. The board concluded that postponing the meeting would serve the best interests of the Company and its shareholders by alleviating uncertainties related to the recent court ruling.

The postponement aims to provide shareholders with adequate time to evaluate MILFAM's nominations while the appeal is underway. By allowing for a short delay, Scully Royalty seeks to ensure that the meeting can be conducted smoothly and that shareholders can make informed decisions based on comprehensive information from all parties involved.

The Company has extended an invitation to MILFAM to collaborate and engage in good faith efforts throughout this process. The decision to delay represents a strategic effort to promote transparent and informed decision-making among shareholders, allowing them to fully consider the implications of the court proceedings before the annual meeting takes place. Further updates and developments are expected as the appeal process unfolds.

Scully Royalty Ltd. (NYSE: SRL) is currently navigating a critical juncture in its corporate governance, highlighted by recent court proceedings and the postponement of its annual general meeting (AGM). Investors should closely monitor these developments, as they may significantly impact shareholder sentiment and the stock's performance.

The appeal of the December 19 decision by the Grand Court of the Cayman Islands concerning MILFAM LLC's nomination for board positions hints at underlying tensions in the company’s governance structure. The postponement of the AGM allows Scully to address the uncertainties created by this legal challenge and may create a platform for improved dialogue between management and shareholders. This strategic pause could provide the board with critical time to reinforce its narrative and maintain shareholder trust amidst potential factional interests.

From a market perspective, the resolution of these legal matters and the subsequent AGM will likely drive the stock’s short-term volatility. Investors should be prepared for potential fluctuations, especially if the court’s ruling is not favorable to Scully or if tension escalates with MILFAM.

Long-term investors might view this situation as an opportunity to enter a position should the stock decline post-decision, especially if they believe in the fundamentals and operational integrity of the company. Conversely, those with a lower risk appetite may opt to wait for clearer governance signals post-AGM.

In summary, while Scully Royalty is currently in a state of flux, strategic engagement with its stakeholders and the resolution of its legal issues could pave the way for enhanced corporate stability and long-term value creation. Investors should keep an eye on court developments and the strategic response from the board to inform their investment decisions.