Genesis Land Development Corp. · TSX:GDC
Genesis Land Development — Investor Presentation (October 2013)
28 slides from Genesis Land Development's investor presentation, Oct 10, 2013
Slide 1: LP#6 Presentation – October 10, 2013
LAND - HOMES - COMMERCIAL - COMMUNITIES LP#6 Presentation – October 10, 2013
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements that are forward thinking. 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
Slide 3: LP#6 Summary
LP#6 SUMMARY • LIMITED PARTNERSHIP (“LP”) FORMED IN 2006 • ACQUIRED SEVEN FULLY-SERVICED PARCELS – INTENT TO BUILD RESIDENTIAL & COMMERCIAL DEVELOPMENTS THROUGH JOINT VENTURES AND/OR SELL LAND TO DEVELOPERS • SOLD SIX PARCELS & DISTRIBUTED CASH TO PARTNERS 3
Slide 4: LP#6 Summary: Past Issues and Today
LP#6 SUMMARY • PAST ISSUES: – MARKET CONDITIONS CAUSING DELAYS – POOR & INCONSISTENT COMMUNICATION WITH PARTNERS • TODAY: – NEW SENIOR MANAGEMENT TEAM AT GENESIS – FOCUS ON MAXIMIZING VALUE, MONETIZING ASSETS & RESOLVING ANY ISSUES – DEDICATED TO BETTER COMMUNICATION 4
Slide 5: LP#6 Ownership
LP#6 OWNERSHIP Ownership of Property 10% 90% ™@ Genesis
Slide 6: LP#6 Land
LP#6 LAND Delacour CITY LIMITS STONEY TRAIL Delacour (LP) North Conrich CALGARY Taravista/Taralake INTERNATIONAL AIRPORT Genesis Centre of Community Wellness (Calgary NE Rec Centre) CITY OF CALGARY TRANS CANADA HWY CITY LIMITS CITY LIMITS Mountain View Village CITY OF AIRDRIE West Airdrie Lands (LP)
Slide 7: Canals, Solana
CANALS, SOLANA 7
Slide 8: LP#6 Land
LP#6 LAND 8
Slide 9: LP#6 Market
LP#6 MARKET • LP FORMED NEAR PRE-RECESSION PEAK OF REAL ESTATE MARKET – REDUCTIONS IN MARKET PRICES DUE TO UNCERTAIN ECONOMIC CONDITIONS IN SOME MARKETS • IN RETROSPECT, EXPECTATIONS OF AIRDRIE POPULATION GROWTH & DEVELOPMENT TIMING OPTIMISTIC 9
Slide 10: LP#6 Financial Return
LP#6 FINANCIAL RETURN LP#6 Per Unit Contributions $27,707,943 $4,896 Distributions (20,976,585) (3,707) Issuance Costs (3,056,127) (540) G&A (75,352) (13) Project Earnings 3,331,550 589 Net Equity $6,931,429 $1,225 10
Slide 11: Land Valuation
LAND VALUATION Amount Fair Value of Property on Acquisition Date (millions) $9.00 % of Ownership in Assets (millions) 90% Cost of Land Purchased (millions) $8.10 Book Value of Land* (millions) $6.62 Appraised Value of Land** – $7.50 million for 100% $6.75 *As of September 30, 2013 **As per Appraisal
Slide 12: LP Strategy
LP STRATEGY
Slide 13: Original Development Plan (2006)
ORIGINAL DEVELOPMENT PLAN (2006) • ENTER JOINT VENTURE ARRANGEMENTS WITH OTHER BUILDERS • DEVELOP LAND INTO RESIDENTIAL & COMMERCIAL PROPERTIES – INCLUDES MULTI-FAMILY SITES • DISTRIBUTE PROCEEDS FROM JOINT VENTURES OR LAND SALES TO PARTNERS 13
Slide 14: Project Status
PROJECT STATUS • DEVELOPED & SOLD 6 OUT OF 7 PARCELS – DISTRIBUTIONS OF 75.7% OF ORIGINAL INVESTMENT TO DATE • ONE 13.64 ACRE DEVELOPMENT SITE REMAINS – LP HAS 90% UNDIVIDED INTEREST – PROPERTY LEGALLY REGISTERED & SUBDIVIDED – CAN BE IMMEDIATELY SOLD OR DEVELOPED AS A HIGH-DENSITY SITE 14
Slide 15: Market Demand for Area Today
MARKET DEMAND FOR AREA TODAY • MARKET HAS RECOVERED BUT HIGH-DENSITY DEVELOPMENTS REMAIN A CHALLENGE – CURRENT VALUES STILL IMPACTED • GOOD LOCATION – SURROUNDED BY CITY OF AIRDRIE – ESTABLISHED INFRASTRUCTURE & UTILITIES 15
Slide 16: Challenges
CHALLENGES • DIFFICULTIES OBTAINING MULTI-FAMILY BUILDER TO BUY OR DEVELOP PROPERTY – PERCEPTION THAT SITE TOO LARGE – DIFFICULT TO JOINTLY DEVELOP HIGH-DENSITY SITE • BUILD-OUT WOULD TAKE SEVERAL YEARS TO COMPLETE • ZONING CONCERNS IN CURRENT MARKET – WILL REQUIRE TIME TO DOWNZONE IF THAT WILL INCR
Slide 17: Future Development Strategy
FUTURE “Maximize value to partners by accelerating development of LP DEVELOPMENT assets.” STRATEGY • OPTIONS: 1. BUILD-OUT A HIGH DENSITY MULTI-FAMILY SITE WITHIN A JOINT VENTURE – EXPECTATION THAT MARKET HOLDS 2. REZONE AND BUILD-OUT A LOWER DENSITY MULTI-FAMILY SITE WITHIN A JOINT VENTURE – EXPECT
Slide 18: Action
ACTION • LIST PROPERTY FOR SALE • RATIONALE: – LISTING PROCESS WILL IDENTIFY POTENTIAL BUYERS OR JOINT VENTURE PARTNERS – SALE MAY GIVE LP CERTAINTY IN NEAR TERM • MARKET IS REASONABLY STRONG • IMMEDIATE MONETIZATION OF VALUE • NET PROCEEDS DISTRIBUTED TO PARTNERS/PARTNERSHIP DISSOLVED 18
Slide 19: Commitment to Limited Partners
COMMITMENT TO LIMITED PARTNERS • IMPROVE COMMUNICATION: – DISTRIBUTE KEY DOCUMENTS • SEMI-ANNUAL FINANCIAL STATEMENTS & MD&A • ANNUAL PROPERTY APPRAISALS • ANNUAL INVESTMENT STATEMENT – HOLD ANNUAL MEETING OF LIMITED PARTNERS – POST PROJECT REGULAR STATUS UPDATES ON WEBSITE – INCREASE DIRECT ACCESSI
Slide 20: Discussion
ISCUSSION: JISCUSSION. -arergeame
Slide 21: TSX: GDC
TSX: GDC 7315 - 8 Street NE Calgary, Alberta T2E 8X2 403-265-8079 genesisland.com
Slide 22: LP#6 Financial Statements
LP#6 FINANCIAL STATEMENTS June 30, 2013 December 31, 2012 Assets Cash and cash equivalents 23,689 313,808 Accounts receivable 4,833,107 4,875,739 Amounts due from related parties 161,125 124,421 Restricted cash 210,448 210,448 Land under development 8,211,901 8,211,901 13,440,270 13,736,317 Liabilit
Slide 23: LP#6 Financial Statements: Comprehensive Income
LP#6 FINANCIAL STATEMENTS Interim Statements of Comprehensive Income (Unaudited) June 30, 2013 December 31, 2012 Revenues Interest income 214,451 222,999 Residential home sales - 13,015 Expenses General and administrative expenses 167 2,243 Earnings being comprehensive income for the year 214,284 23
Slide 24: LP#6 Financial Statements: Partners Equity
LP#6 FINANCIAL STATEMENTS Interim Statements of Partners Equity (Unaudited) Net Partners’ Retained Partners’ Equity Contributions Earnings At December 31,2011 25,654,802 (9,492,481) 16,162,321 Earnings before comprehensive income for the - 233,771 233,771 six months ended June 30, 2012 Distributions
Slide 25: LP#6 Partners Equity
LP#6 PARTNERS EQUITY Equity Start Capital Cash Issuance G&A & Project Equity End of of the Year Contributions Contributions Costs Accruals Earnings Year 2005 - - - - - - - 2006 - 27,707,943 685,324 3,056,127 - (348,145) 23,618,347 2007 23,618,347 - 1,414,000 - 254,102 24,560 21,974,805 2008 21,974,8
Slide 26: LP#6 Project Earnings
LP#6 PROJECT EARNINGS Taralake Canals Canals Bayside Bayside Taralake Taralake Project Commercial Multi-Family Multi-Family Commercial Commercial Multi-Family Single Earnings Family 2005 - - - - - - - - 2006 - - - - - - (348,145) (348,154) 2007 - - - - - 164,174 (139,614) 24,560 2008 - - - - - 3,408
Slide 27: LP#6 Project Financials
LP#6 PROJECT FINANCIALS Canals Canals Bayside Bayside Taralake Taralake Taralake Project Commercial Multi-Family Multi-Family Commercial Commercial Multi-Family Single Family Subtotal Revenues Sales revenue 585,000 - 26,379,061 4,590,000 6,308,250 28,914,755 18,554,597 85,331,663 Rental income - - -
Slide 28: LP#6 Summary
LP#6 SUMMARY LP#6 Per Unit Contributions $27,707,943 $4,896 Distributions (20,976,585) (3,707) Issuance Costs (3,056,127) (540) G&A (75,352) (13) Project Earnings 3,331,550 589 Net Equity $6,931,429 $1,225 28
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