Business
Genesis Announces After-Tax Net Asset Value of $8.25 Per Basic and Fully Diluted Share
Genesis Announces After-Tax Net Asset Value of $8.25 Per Basic and Fully Diluted Share
About this update from Genesis Land Development Corp.
[{"type":"text","content":"\n\n\n\nCALGARY, Apr. 15, 2010 (Canada NewsWire Group) -- /CNW/ -- Genesis Land Development Corp. (\"Genesis\" or the \"Corporation\") (TSX:GDC) is pleased to announce that it has received its previously announced (see press release dated March 3, 2010) independent appraisal of its entire land development portfolio and has estimated Genesis' after-tax net asset value as at December 31, 2009.Independent Appraisal---------------------Cushman & Wakefield Ltd. (\"Cushman\") of Calgary, Alberta conducted an independent appraisal of all of Genesis' properties as at December 31, 2009 using a direct comparison approach. The direct comparison approach is based on an analysis of sales, offers and listings on sites considered comparable to the subject property with respect to location, parcel size, development potential and other relevant factors. The appraised pre-tax value of Genesis' properties is Cdn. $513.5 million (\"Total Pre-Tax Land Value\").After-Tax Net Asset Value as at December 31, 2009-------------------------------------------------Genesis estimates its after-tax net asset value (\"NAV\") at December 31, 2009 to be $364.0 Million or $8.25 per basic and fully diluted share. The estimated NAV was calculated using the Cushman Total Pre-Tax Land Value plus additional balance sheet assets less balance sheet liabilities and a 29% corporate tax rate as at December 31, 2009. The book value of all remaining assets and liabilities as set forth in the audited consolidated financial statements of the Corporation for the year ended December 31, 2009 has been added to the Total Pre-Tax Land Value to calculate the Pre-Tax \"Net\" Asset Value. Estimated taxes have been deducted from the Pre-Tax Net Asset Value as if all properties were sold at their December 31, 2009 market values to determine NAV. The NAV calculation is as follows (all figures in $CDN):Net Asset Value Calculation:Cushman Appraisal Values (See Note 1 below and 2)-------------------------------------------------Serviced Single-Family Lot Inventory: $ 89.0 MServiced Multi-Family Sites: $ 23.5 MFully Approved Commercial/Industrial Sites - Calgary,Airdrie & Edmonton: $ 91.1 MFully Approved Developable Lands - Calgary & Airdrie: $ 218.0 MOther Raw and Partially Approved Lands: $ 91.9 MTOTAL PRE-TAX LAND VALUE: $ 513.5 MOther Balance Sheet Assets (See Note 3 below): $ 59.2 MBalan...