43 slides from Melcor Developments's shareholder meeting presentation, Apr 19, 2011
Slide 1: 2011 Annual General Meeting
2011 Annual General Meeting April 19, 2011
Slide 2: AGM Agenda
| Porveronments iro.) ! | an ans Eaaene AGM Agenda us 1. - Formal Business of the Meeting e Call to Order e Presentation of Financial Statements e Election of Directors e Appointment of Auditors 2 - Management Presentation 3 - Q&A Session
Slide 3: Presentation Agenda
wa 2010: Year in Review wa 2011: Looking Ahead = Agenda ma Divisional Update ¢ Community Development e Property Development e Investment Properties e Corporate Finance
Slide 4: Forward Looking Statements
Forward Looking Statements This presentation contain statements that are forward-looking. These statements represent Melcor’s intentions, plans, expectations, and beliefs and are based on the our experience and assessment of historical and future trends, and the application of key assumptions relati
Slide 5: 2010: Year in Review
2010: Year in Review • Returning key financial performance measures to 5-year averages • Maintaining and building corporate growth and diversification • Maintaining strong corporate management and governance
Slide 6: 2010: Year in Review
2010: Year in Review Shareholders JV Partners Lenders MELCOR DEVELOPMENTS LTD. Customers Suppliers Employees Communities
Slide 7: 2010: Year in Review
2010: Year in Review e Share appreciation SETS e Dividends of $0.35 per share paid tat t ee Continuing positive returns on equity Lenders e Met all borrowing commitments and covenants Melcor Share Performance (Years Ending December 31) _ $100 invested ino in MRD on $120 December 31, * seo 2005 is $1
Slide 8: 2010: Year in Review
2010: Year in Review @ Gc). ¢ Delivering communities & e 1,163 residential lots sold e 30 acres of multi-family parcels sold Suppliers e Planning for the future e Acquired 653 acres of land inventory ¢ Building capacity e Property Development Division completed 65,800 sq. ft. of leased commercial sp
Slide 9: 2010: Year in Review
MELCOR '2010: Year in Review e Attract and developing talent e 86 full time employees at December 31, 2010. e 18 new employees hired in 2010. e Leading with experience | e 8 employees with over 25 years of service to Melcor.
Slide 10: 2010: Year in Review
2010: Year in Review e Staying involved in our communities Geypaanltieiay | © Over $400,000 in support for local charities and initiatives. e 2010 Platinum Award from The United Way. e Invested with our youth ¢ $3,000,000 endowment for the Stanley Melton Chair in Real Estate at the University of Alb
Slide 11: 2010: Key Financial Results
2010: Key Financial Results Total Revenue (000s) 2010 $193,027 2009 $136,608 2008 $108,436 2007 $207,024 2006 $203,402 2010 Highlights Strong revenue in fourth quarter of $85,253. Investment Property Division continues growth trend. Gross margins recover to 2008 levels.
Slide 12: 2010: Key Financial Results
2010: Key Financial Results 2010 Highlights Strong land sales resulting in higher earnings in 2010. G&A costs in line with expectations. Dividends paid of $0.35 per share in 2010. Aggregate dividends over last 5 years is $1.72 (average yield of 2.4%).
Slide 13: 2010: Key Financial Results
2010: Key Financial Results 2010 Highlights Land and Investment Property acquisition activity increased in 2010. Property Development also completed 9 properties in 2010. Agreements receivable increased 19.8% resulting from strong land sales in Q4. Return on equity recovered on strong results. Equit
Slide 14: 2011: Looking Ahead
MELCOR Docveronmenre ro] 2011: Looking Ahead Proven business model for profitability and growth ga Portfolio of high quality assets wa ©=Strong and experienced team mas ReSOurces to execute strategy Market opportunities in Canada and United States
Slide 15: Community Development Division
Community Development Division
Slide 16: Community Development Division Mandate
| P| ie B | | a 1 | | a | a | | a _ Community Development Division Mandate e Acquisition, planning, development and marketing of urban communities. e Development of large-scale commercial and industrial centres. Lil Centre of Activities eEdmonton’ e Calgary e Spruce Grove eRed Deer eLethbridge eLedu
Slide 17: New Project: Cochrane, Alberta
New Project: Cochrane, Alberta
Slide 18: Cochrane, Alberta: Project Details
Cochrane, Alberta: Project Details
Slide 19: Cochrane, Alberta: Site Map
nis | elie cel ell wale lente Relation 4 « ------ ite ee el er
Slide 20: Regional Market Analysis
MELCOR Regional Market Analysis CALGARY REGIONAL SINGLE FAMILY BUILDING PERMITS 2010 Chestermere 10'
Slide 21: Property Development Division
Property Development Division
Slide 22: Property Development Division Mandate
Property Development Division Mandate e Identify, develop and lease high-quality retail, office and industrial revenue- producing properties. e Create value through asset appreciation, risk diversification of Melcor portfolio, generate long-term income, and high ROE. Centre of Activities eEdmonton'
Slide 23: Leduc Common
MELCOR Leduc Comm S Bers ‘3 : on e Leduc, Alberta ¢ 488,782 sq. ft. e Value: $78.2 MM e NOI: $5.08 MM/ Annum e 2004 - 2013
Slide 24: Clearview Market Square
MELCOR Clearview Market Square CVvrcie rview MARKET SQUARE e Red Deer, Alberta ¢ 190,600 sq. ft. e Est. Value: $44.5 MM e Est. NOT: $3.1 MM/ Annum e 2011 - 2017
Slide 25: Kingsview Market
MELCOR Kingsview Market AS A KINGSVIEW * MARKET ® ee Se ee eS an Reg FP AnINN.|| = F MROeyie = 7 ¢ ba | if a =. j Kingsview Blvd. Kingsview Ra. e Airdrie, Alberta - 6 371,965 'sq. ft. e Est. Value: $88.5 MM e Est. NOT: $6.2 MM/ Annum e 2010 - 2016
Slide 26: The District at North Deerfoot
The District at North Deerfoot
Slide 27: Investment Property Division
Investment Property Division
Slide 28: Investment Properties
| P| ie B | | a 1 | | a | a | | a Bi BE Investment Properties e Edmonton e Kelowna e Lethbridge e Chestermere e Spruce Grove e Phoenix, AZ Division Mandate e Acquire, own and manage a portfolio of high-quality residential, office, retail and industrial properties. Centre of Activities e Calgary e Re
Slide 29: Portfolio Snapshot
Portfolio Snapshot Portfolio Size | e 2,136,040 sa. ft. e 41 assets e Office: 20 projects (55%) e Retail: 10 projects (40%) e Industrial: 2 projects (5%) e Manufactured housing: 308 units e Multi-family: 429 units e Edmonton - 11 e Houston — 240 e Phoenix - 154 ete) |) | 1 | Te r ae +—
Slide 30: US Asset Portfolio
US Asset Portfolio • Strategic growth region for Melcor – Focus on residential land and investment assets within Houston, TX and Phoenix, AZ markets. – Positive cash flow and returns + asset appreciation. • Over $38 million invested in assets over last 2 years.
Slide 31: Pebble Creek Ranch
MELCOR | |Pebble Creek Ranch e 240 residential units e Value: $21M+ e Long-term hold e 94% occupied
Slide 32: Dakotas at Camelback
MELCOR |'Dakotas at Camelback % <i <i e 70 residential units e Value: $5M+ e Long-term hold ¢ 96% occupied
Slide 33: Edge at Greyhawk
MELCOR |Edge at Greyhawk e 82 residential units e Value: $8.5M+ e Long-term hold ¢ 86% occupied
Slide 34: Turney Brownstones
MELCOR Docveronmenre ro] Turney Brownstones Phoenix, AZ e 11 residential units e Value: $2M+ ¢ Complete construction and sale e Medium term outlook
Slide 35: Tres Rios Community
MELCOR Docveronmenre ro] Tres Rios Community a aT a ie ‘ ad S Hee Avondale, AZ e 60 serviced residential lots e Est. value: $2.4M+ e Market and sale e Short term outlook
Slide 36: Corporate Finance
Corporate Finance ee | MELCO fll
Slide 37: Corporate Financing
Corporate Financing Division Mandate e Obtain, manage and utilize financing to meet operational requirements and enhance performance of assets. e Balance financial risk and manage costs to facilitate growth of business operations. | P| ie B | | a 1 | | a | a | a 1 | =
Slide 38: Overview
Overview Credit e Operating line of credit Facility e Letters of credit Secured by current assets a3) ~ N e Conventional mortgage financing Term eSecured by investment properties Financing — e Vendor financing Secured by land assets 4 —~ Public e Convertible debenture Markets eSecured by corporate w
Slide 39: Credit Facility
Credit Facility Melcor’s operating credit facility limit is $153 million at variable interest rates (including MRD’s interest in joint ventures).
Slide 40: Mortgage Financing
Mortgage Financing Average interest rates in 2010 ranged from 4.25% to 7.53%.
Slide 41: International Financial Reporting Standards (IFRS)
International Financial Reporting Standards (IFRS) • Results for first quarter of 2011 (planned release in early June 2011) will be in accordance with IFRS including comparative figures for 2010. • On track with implementation, will impact on certain accounting policies and balance sheet classificat
Slide 42: Question and Answers
Wn as oO = n c < Oo c O c 2 + ” oO S Oo
Slide 43: Thank you for attending Melcor's 2010 Annual General Meeting
Thank you for attending Melcor’s 2010 Annual General Meeting