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EDMONTON, Feb. 23 /CNW/ - Melcor Developments Ltd., an Alberta based public real estate development company, recorded net earnings of $41,021,000 or $1.32 per share (basic) for the twelve months ended December 31, 2008 on revenue of $108,436,000 compared with earnings of $63,670,000 or $2.05 per share (basic) on revenue of $207,024,000 for the same period in 2007. The decrease in revenue and earnings is due to the continued recession in the residential housing industry.
For the three months ended December 31, 2008, earnings are $14,404,000 or $0.47 per share (basic) on revenue of $41,758,000 compared to earnings of $25,263,000 or $0.82 (basic) per share on revenue of $67,693,000 during the same period in the prior year.
Highlights for the year include:
- The sale of the Crowfoot West Business Centre, a recently completed
113,500 sq. ft. office building in northwest Calgary, Alberta which
generated a material gain of approximately $0.60 per share;
- The completion of the Market at Magrath office building, which will
be transferred to the Investment Property Division in the second
quarter of 2009;
- The addition of almost 100,000 sq. ft. to the investment property
portfolio and an increase of over 140,000 sq. ft. in occupied space
since December 31, 2007;
- The successful mortgage financing of $50 million on investment
properties at competitive terms;
- The increase of its credit facility with its major lender from
$90,000,000 to $120,000,000;
- Payment of dividends totalling $0.42 per share for the year versus
$0.40 in 2007; and
- The purchase of 1,398,700 Common Shares during the fourth quarter
under the normal course issuer bid at an average cost of $3.83 per
share, which is substantially below the book value of $10.42 per
share at December 31, 2008.
Management expects that markets, in general, will remain depressed throughout 2009 and start to show improvement in 2010. While the recession will continue to cast a shadow over real estate markets, we believe that the basic fundamentals (low interest rates, strong employment in Alberta, above average in migration into Alberta, business friendly government and the expected implementation of Federal Government programs which should stimulate spending) will have a positive affect on the real estate markets.
The annual meeting of Melcor Developments Ltd. will be on Tuesday, April 7, 2009 at 11:00 a.m. MDT at The Fairmont Hotel Macdonald, Wedgwood Room, 10065 - 100 Street, Edmonton, Alberta.