Slide 1: 2021 Melcor AGM
2021 Melcor AGM
Slide 2: Voting Instructions
VOTING INSTRUCTIONS = 407-772.307 1. Appointment of Auditors To appoint PricewaterhouseCoopers LLP as auditors for the Company for the ensuing year and to authorize the directors to fix the auditor's remuneration. MELCOR
Slide 3: Q&A Instructions
Q&A INSTRUCTIONS = 407-772.307 MELCOR Melcor 2021 Annual General and Special Meeting Lumi Operator PARTICIPATING IN THE MEETING MELCOR
Slide 4: Agenda
AGENDA Management Presentation on Formal Business Strategy, Operations & ● Call to Order Results ○ Financial Statements ○ Fixing the Size of the Board ○ Election of Directors ○ ○ Appointment of Auditors Amendment to Bylaws Q&A ● Adjournment
Slide 5: Director Nominees
DIRECTOR NOMINEES Doug Goss Ross Grieve Andrew Melton Kathy Melton Edmonton, AB Edmonton, AB Calgary, AB Calgary, AB Timothy Melton Bruce Pennock Catherine Roozen Ralph Young Edmonton, AB Edmonton, AB Edmonton, AB Edmonton, AB
Slide 6: Agenda
AGENDA Management Presentation on Formal Business Strategy, Operations & ● Call to Order Results ○ Financial Statements ○ Fixing the Size of the Board ○ Election of Directors ○ ○ Appointment of Auditors Amendment to Bylaws Q&A ● Adjournment
Slide 7: Your Executive Team
YOUR EXECUTIVE TEAM Darin Rayburn Naomi Stefura President & Chief Financial Officer Chief Executive Officer Years with Melcor: 13 Years with Melcor: 19 Industry Experience: 15 Industry Experience: 30
Slide 8: Forward Looking Statements
Forward Looking Statements This presentation contains statements that are forward-looking. Forward-looking statements are disclosures regarding possible events, conditions, or results of operations that are based on assumptions about future economic conditions, courses of action and include future-o
Slide 9: Who We Are
Slide 10: Community Property Investment
Investment Community Property Recreational Properties / Development Development REIT Properties 10,500 84,606 4.63m 4 acres raw land sf under sf commercial championship development property golf courses 648 4.7m 604 single-family sf future residential lots development units 176 multi-family & other
Slide 11: 2020 Canadian Raw Land (acres)
2020 CANADIAN RAW LAND (acres) FRASER-FORT GEORGE 94 EDMONTON 2951 RED DEER 1778 CALGARY 2197 REGINA KELOWNA 460 616 LETHBRIDGE 737
Slide 12: 2020 US Raw Land
2020 US RAW LAND AURORA (DENVER) 1205 COLORADO ARIZONA BUCKEYE 135 PHOENIX 321
Slide 13: What We Did
Slide 14: 2020 Financial Results
2020 FINANCIAL RESULTS REVENUE GROSS MARGIN NET INCOME $226.8m 43.3% $11.5m 2019 $208m 2019 46.5% 2019 $37.7m FFO FFO/SHARE DIVIDEND PAID $51.4m $1.55 $0.34 2019 $38.3m 2019 $1.15 2019 $0.49
Slide 15: 2020 Key Metrics
2020 KEY METRICS RAW/COMM/MF LAND LOTS SOLD (CAD) LOTS SOLD (US) SOLD 770 241 15.66 2019 668 2019 72 2019 145.3 SF TRANSFERRED OCCUPANCY ROUNDS PLAYED 132,498 86% 116,473 2019 99,794 2019 88% 2019 101,357
Slide 16: How We Did It
Slide 17: Sustain, Grow, Diversify
SUSTAIN PEOPLE Financial discipline Culture Reputation Values SUSTAIN PEOPLE GROW DIVERSIFY GROW DIVERSIFY Land harvesting Business lines Commercial assets Geographic
Slide 18: Community Development
Community Development REVENUE 600 LOT SALES BY REGION $115m 500 2019 400 2020 2019 $123m 300 LOT SALES 200 100 1,011 0 2019 770
Slide 19: Property Development
Property Development REVENUE TRANSFERRED $40m 132,500sf 2019 $42m 2019 99,800 FAIR VALUE GAIN $3.7m 2019 $6.9m
Slide 20: Investment Properties
Investment Properties REVENUE OCCUPANCY $38m 81% 2019 $39.5m 2019 86% GROSS MARGIN 59% 2019 59%
Slide 21: REIT
REIT REVENUE OCCUPANCY $75m 88% 2019 $71m 2019 86% GROSS MARGIN 58% 2019 60%
Slide 22: Recreational Properties
Recreational Properties REVENUE ROUNDS PLAYED $7.7m 116,473 2019 $8.5m 2019 96,263 GROSS MARGIN 43% 2019 27%
Slide 23: Q1-2021: Where We Are Now
Q1-2021: WHERE WE ARE NOW
Slide 24: Q1-2021 Financial Results
Q1-2021 FINANCIAL RESULTS REVENUE NET INCOME FFO $43.3m ( $14.0m) $10.2m Q1-2020 $33.8m Q1-2020 $66.6m Q1-2020 $5.9m FFO/SHARE DIVIDEND PAID NCIB $0.31 $0.10 $55.6k Q1-2020 $0.18 Q1-2020 $0.10 Q1-2020 $
Slide 25: Diversification Strategy: 10 Years Later
Diversification Strategy: 10 Years Later Build Grow Income- Presence in Generating USA Portfolio
Slide 26: Build Presence in USA
BUILD PRESENCE IN USA
Slide 27: Community Development, Investment Properties in USA
Community Development Investment Properties 462 519,056 acres in AZ sf commercial property 1,205 214 acres in CO residential units
Slide 28: 10 Year USA Revenue Growth
10 YEAR USA REVENUE GROWTH ($000s) $350,000 100% 10 YEAR US CAN US% $300,000 COMPOUND 75% ANNUAL $250,000 GROWTH $200,000 50% RATE (CAGR) $150,000 37.5% $100,000 $50,000 25% $0 0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 29: Years of USA Evolution
10 YEARS OF USA EVOLUTION AB Residential AZ Residential TX Residential US Commercial GLA 1,400 700,000 1,200 600,000 Gross Leasable Area 1,000 500,000 Residential Units 800 400,000 600 300,000 400 200,000 200 100,000 0 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 30: 10 Year Raw Land Inventory
10 YEAR RAW LAND INVENTORY ACRES 12,000 Northern AB Central AB Southern AB BC/SK USA 10,000 8,000 6,000 4,000 2,000 0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 31: Grow Income-Generating Portfolio
GROW INCOME- GENERATING PORTFOLIO
Slide 32: 10 Year GLA Growth Composition
10 GLA GROWTH COMPOSITION 5,000,000 100% GLA Total PD Contribution (Cumulative) % from PD 4,500,000 Property 4,000,000 80% Development 3,500,000 GLA 3,000,000 60% 0.67m sf 1.94m sf 2,500,000 2,000,000 40% % of GLA 1,500,000 32% 42% 1,000,000 20% 500,000 0 0% 2010 2011 2012 2013 2014 2015 2016 20
Slide 33: 10 Year Asset Composition
10 YEAR ASSET COMPOSITION ($000s) $2,000,000 Land Assets IP Assets Properties under Development $1,800,000 $1,600,000 $1,400,000 $1,200,000 ASSETS $1,000,000 • Land is at cost $800,000 • IP is Fair Value $600,000 adjusted $400,000 $200,000 $0 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
Slide 34: It All Starts with Raw Land
IT ALL STARTS WITH RAW LAND 2013 Melcor buys 35.6 acres & services the land
Slide 35: It All Starts with Raw Land
IT ALL STARTS WITH RAW LAND 2013 2016 Property Development buys 16.8 acres
Slide 36: It All Starts with Raw Land
IT ALL STARTS WITH RAW LAND 2013 2016 2017-20 PD develops 8 CRUs for total cost of $32.7M
Slide 37: It All Starts with Raw Land
IT ALL STARTS WITH RAW LAND 2013 2016 2017-20 2018-20 8 CRUs (77,000 sf) transfer to IP for Fair Value $43.2M
Slide 38: It All Starts with Raw Land
IT ALL STARTS WITH RAW LAND 2013 2016 2017-20 2018-20 2021 IP Rent totals $2.3M/year 3 CRUs | 7.7 acres remain for future development
Slide 39: Environmental, Social & Governance
Environmental, Social & Governance WOMEN LEAD HERE ENERGY STAR RATING ● Women Lead Here 38% ● Energy Star Building 88% of sr. management more efficient than are female similar properties Globe & Mail Report on Business 2021 Natural Resources Canada MANDATORY MENTAL REDUCED GREENHOUSE HEALTH TRAINING
Slide 40: 2021 Melcor AGM
2021 Melcor AGM
Slide 41: Q&A Instructions
Q&A INSTRUCTIONS = 407-772.307 MELCOR Melcor 2021 Annual General and Special Meeting Lumi Operator PARTICIPATING IN THE MEETING MELCOR
Slide 42: Thank You for Attending
THANK YOU FOR ATTENDING