From GlobeNewswire: 2024-11-07 18:05:00

Melcor Developments Ltd. reported third quarter results for 2024, with revenue at $59.51 million, down from $88.78 million in 2023. Year-to-date revenue reached $178.96 million, compared to $190.11 million in 2023, primarily due to a reduction in US sales. Funds from operations decreased by 26.4% to $16.51 million in the quarter.

The real estate industry in Alberta is experiencing growth due to increased demand for residential housing. The Land division saw year-to-date revenue of $85.63 million, up 20.7% from last year, with an increase in single-family home sales and stable sales in multi-family, commercial, and other land.

Melcor’s Properties division completed one building in the quarter and has four buildings under active development. Overall revenue from Properties and REIT divisions was stable at $29.00 million in the quarter and $88.75 million year-to-date. The company sold eleven residential units in Arizona for net proceeds of $4.78 million.

Melcor has focused on maintaining a strong balance sheet, reducing general debt by 7.8% in the past 12 months. The company declared a dividend of $0.11 per share, payable on December 31, 2024. Melcor also announced a transaction with the REIT, where Melcor will acquire its unowned equity interest in the REIT LP for $4.95 per unit in cash consideration.

Financial highlights for the third quarter show revenue down 33.0% to $59.51 million, gross profit down 29.6% to $28.61 million, net income down 221.1% to a loss of $34.98 million, and funds from operations down 26.4% to $16.51 million. Year-to-date revenue was down 5.9% to $178.96 million.

Melcor’s Land division revenue decreased by 57.3% to $27.33 million in the quarter, with the US region not recognizing any revenue. The Properties division has 103,268 sf under active development, resulting in fair value gains. The REIT division faced challenges, with fair value losses on office assets.

Melcor’s Golf division saw stable performance compared to 2023, with 115,595 rounds played to date and year-to-date revenues of $10.70 million. The company continues to strategically assess investment properties owned to focus on the core Alberta market. Melcor has repurchased shares, paid dividends, and declared a quarterly dividend of $0.11 per share.

As of September 30, 2024, Melcor’s total assets were $2,072,614, and shareholders’ equity was $1,202,220. The company’s total shares outstanding were 30,393,450. Book value per share was $39.56. Melcor’s full financial statements and MD&A for the third quarter can be found on their website or SEDAR+.



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