Business
Melcor Developments Ltd., (TSX:MRD) Releases Second Quarter Results
EDMONTON, July 30 /CNW/ - SECOND QUARTER RESULTS ----------------------
About this update from Melcor Developments Ltd.
[{"type":"text","content":"\n\n\n\nEDMONTON, July 30 /CNW/ -\n\n\nSECOND QUARTER RESULTS\n\n\n----------------------\n\n\nMelcor Developments Ltd., an Alberta-based real estate development\nCompany achieved net earnings of $8,075,000 or $0.26 per share (basic) on\nrevenue of $40,711,000 for the six months ended June 30, 2008 compared to net\nearnings of $22,394,000 or $0.72 per share (basic) on revenue of $83,377,000\nfor the same period in 2007. Diluted earnings per share were $0.26 for the six\nmonths ended June 30, 2008 compared to $0.71 during the same period in the\nprior year.\n\n\nEarnings for the three months ending June 30, 2008 were $3,702,000 or\n$0.12 per share ($0.12 per share diluted) compared to earnings of $15,953,000\nor $0.51 per share ($0.50 per share diluted) during the same period in 2007.\nRevenue for the second quarter was $19,779,000 compared to the second quarter\nin 2007 when revenues were $50,526,000.\n\n\nThe comparatively lower levels of company revenues and earnings to date\nin 2008 is due to the general slowdown that has occurred in the Alberta\nresidential real estate sector for new homes. Earnings are behind the\nCompany's 2008 business plan but generally consistent with our cautionary\noutlook noted in the Annual Report to Shareholders.\n\n\nThe Company's retail commercial and office portfolio continues to grow\nand have improved performance as vacancies decline and rents climb to meet\nmarket demand. The Company adds new assets to its Investment Property Division\nas properties are successfully built, leased and financed by its Property\nDevelopment Division from our strong inventory of commercial and office\ndevelopment sites.\n\n\nThe Company received notice that two annexations involving lands owned by\nMelcor, were approved by the Alberta Government on July 21, 2008 including 127\nacres by the Town of Penhold and 129 acres by the Town of Innisfail.\n\n\nOn July 15, 2008, the Company announced the sale of its Crowfoot West\nBusiness Centre, a recently completed 113,500 sq. ft. office building in\nnorthwest Calgary, Alberta to an institutional buyer at a sale price of\n$49,675,000. The sale of this asset will generate a material gain of\napproximately $0.60 per share and will be included in the third quarter\nfinancial results of the Company.\n\n\nThe Company paid a semi-annual dividend of $0.25 per share on June 30,\n...