CALGARY, Nov. 7 /CNW/ - Melcor Developments Ltd., an Alberta based real
estate development company achieved net earnings of $38,407,000 or $1.23 per
share ($1.21 per share diluted) on revenue of $139,331,000 for the nine months
ended September 30, 2007 compared to net earnings of $24,195,000 or $0.78 per
share ($0.77 per share diluted) on revenue of $117,511,000 for the same period
Earnings for the three months ending September 30, 2007 were $16,013,000
or $0.51 per share ($0.50 per share diluted) on revenue of $55,954,000
compared to earnings of $9,178,000 or $0.29 per share ($0.29 per share
diluted) on revenue of $45,133,000 during the same period in 2006.
The Company has declared a semi-annual dividend of $0.20 per share
payable on December 28, 2007 to Shareholders of record on December 14, 2007.
This compares to a semi-annual dividend of $0.15 per share paid during the
same period for 2006. The dividend will total $0.40 per share for 2007 which
compares to $0.30 in 2006 and $0.25 in 2005.
Significant acquisitions during the third quarter:
- Two retail centers on Albert Street in Regina, Saskatchewan. One
property comprises 42,600 square feet and the other property,
anchored by a major national retailer, consists of 116,000 square
- 318 acres of Land in the MD of Rockyview, adjacent to the current
municipal boundaries of the City of Airdrie; and
- Subsequent to the quarter, the Company acquired a 24,000 sq. ft.
office building in the City of Regina and a 50% interest in a 431,000
sq. ft. mixed retail/office property in the City of Lethbridge,
Alberta known as Lethbridge Centre. This 10.8 acre site is in the
heart of downtown Lethbridge.
Update Regarding Annexations
The Company has received annexation approval for 156 acres of land to the
City of Spruce Grove. In addition, the City of Calgary annexed 392 acres of
land of the 514 acres that the Company owns on the City's western boundary.
The Company expects to begin development of these lands in 2008 with sales
commencing in 2009. The balance of the lands (122 acres) that remain in the MD
of Rockyview are expected to be developed with similar densities as if they
were included in the annexation. The Company has additional lands in various
stages of annexation, including 942 acres in central Alberta and 686 acres
adjacent to the City of Regina, Saskatchewan.
CMHC's recent forecast indicates that 2007 housing starts in Alberta are
expected to be slightly below the 2006 starts and that 2008 starts will be
similar to the number of housing starts experienced in 2005. Based on
conversations with builders and other industry experts, management believes
that this uncertainty in the market place will cause some consumers to delay
major purchases and wait for a possible market correction. Further, new home
sales are declining and our builder customers are carrying adequate lot
inventory which will reduce demand for our lots in the near term. This,
combined with an increase in the number of single family units for sale, in
part due to speculators exiting the market, has created a backlog in the
market. Residential lot sales activity will be somewhat lower until this
backlog of inventory in the new and resale markets has been absorbed. We
remain confident in the fundamental strength of the Alberta economy. It is our
view that a market correction is overdue and will ultimately result in a more
balanced and sustainable market that will create new opportunities. Melcor is
well positioned to adapt to changing market conditions and to continue to
produce satisfactory results for our shareholders.
For further information:
For further information: please contact the undersigned, Business
Contact, Ralph B. Young, President & CEO, Melcor Developments Ltd.,
email@example.com, Tel: (780) 423-6931; Investor Relations, Michael D. Shabada,
C.A., VP Finance & CFO, Melcor Developments Ltd., firstname.lastname@example.org, Tel: (780)