CALGARY, Nov. 4 /CNW/ - Melcor Developments Ltd., an Alberta-based real estate development company, reported net earnings of $13,306,000 or $0.45 per share (basic) on revenue of $87,736,000 for the nine months ended September 30, 2009 compared to net earnings of $26,617,000 or $0.85 per share (basic) on revenue of $66,678,000 for the same period in 2008.
Earnings for the three months ending September 30, 2009 were $9,377,000 or $0.32 per share (basic) on revenue of $44,374,000 compared to earnings of $18,542,000 or $0.59 per share (basic) on revenue of $25,967,000 during the same period in 2008. Earnings for the third quarter of 2008 were buoyed up by the sale of the Crowfoot West Business Centre, which generated a gain of $0.57 per share (without that gain, the prior year basic earnings per share would be $0.02 in the third quarter of 2008 and $0.28 year to date).
The Board of Directors declared a semi-annual dividend of $0.15 per share payable on December 30, 2009 to Shareholders of record on December 16, 2009 which compares to $0.17 for the same period in 2008. Dividends for 2009 will total $0.25 per share compared to $0.42 in 2008 and $0.40 in 2007.
The Community Development Division achieved a significant increase in lot sale activity. Although sales increased, gross margins were lower than the prior year. The Company received notice that, effective September 1, 2009, 815 acres of lands owned by the Company were annexed to the City of Red Deer. This provides a significant long term land supply to the Company in our Red Deer region.
Property Development Division activities continue to add value to the Company by successfully completing projects under construction and advancing plans for future projects. During the quarter, one property was completed and transferred to the Investment Property Division.
The Investment Property Division continues its steady growth as leases are being renewed at current market rates and occupancy is holding steady. The Investment Property Division has a conditional agreement to acquire 240 residential units in Houston, Texas during the first quarter of 2010, pending loan assumption approval.
The golf courses experienced excellent weather for the quarter which resulted in increased play and stronger earnings. Earnings were also buoyed by the first full quarter of revenues from the Black Mountain Golf Course in Kelowna, BC, which opened in June.
Subsequent to the quarter end, the Company completed gross financings of $39,800,000 and continues to maintain good relationships with its many lenders.
We are cautiously optimistic that Alberta residential real estate markets are stabilizing and buyer confidence is improving. The Company remains confident that it has the appropriate assets, capital resources and an experienced management team to manage operations through the remainder of the current real estate market adjustment.
SOURCE MELCOR DEVELOPMENTS LTD.
For further information: For further information: please contact the undersigned. Business Contact: Ralph B. Young, President & CEO, email@example.com, Tel: (780) 423-6931; Investor Relations, Michael D. Shabada, C.A., V.P. Finance & CFO, firstname.lastname@example.org, Tel: (780) 945-2819; www.melcor.ca