Business
Melcor Developments Ltd. (TSX: MRD) Reports Earnings for 2007
CALGARY, Feb. 22 /CNW/ - Melcor Developments Ltd., an Alberta based public real estate developmen...
About this update from Melcor Developments Ltd.
[{"type":"text","content":"\n\n\n\nCALGARY, Feb. 22 /CNW/ - Melcor Developments Ltd., an Alberta based\npublic real estate development company, recorded net earnings of $63,670,000\nor $2.05 per share (basic) for the twelve months ended December 31, 2007 on\nrevenue of $207,024,000 compared with earnings of $57,771,000 or $1.87 per\nshare (basic) on revenue of $203,402,000 for the same period in 2006. This\nrepresents an increase in earnings of 10.2% and an increase in revenue of 1.8%\nover the prior year. Earnings for 2007 were the highest annual earnings in the\nhistory of the Company.\n\n\nFor the three months ended December 31, 2007, earnings are $25,263,000 or\n$0.82 per share (basic) on revenue of $67,693,000 compared to earnings of\n$33,576,000 or $1.09 (basic) per share on revenue of $85,891,000 during the\nsame period in the prior year. While the fourth quarter results have been\nimpacted by a cooling in the demand for lots by the Company's builder\ncustomers, it does represent the second highest quarterly earnings in the\nCompany's history. Further, the fourth quarter of 2006 included a material\ngain on sale of $11,003,000 which equated to about $.29 per share.\n\n\nHighlights for the year include:\n - Growth in assets from $523 million at December 31, 2006 to\n $727 million at December 31, 2007;\n - The addition of 488,000 square feet of rentable space to the\n Investment Property portfolio;\n - Acquisition of strategic land holdings totalling 2,135 acres at a\n cost of $89,633,000;\n - Ongoing development of various assets which will add over 200,000\n square feet of rentable space to the Investment Property portfolio\n over the next eighteen months, including 115,000 square feet being\n completed in the first quarter of 2008;\n - The payment of dividends of $0.40 per share compared to $0.30 paid in\n 2006; and\n - Successful financing endeavours resulted in the receipt of mortgage\n proceeds of $43,450,000 on investment properties and $54,261,000 on\n land inventory.\n\n\nManagement expects 2008 to be an adjustment year for real estate markets\nwhile supply, demand, pricing and margins of residential land products\nrebalance to sustainable levels. While real estate markets in Western Canada\nare expected to stay strong for several years, it appears that affordability\nand lower net migration will dampen the rate of growth in real estate mark...