Slide 1: Genesis Land Development Corp. Corporate Update
GENESIS LAND DEVELOPMENT CORP. CORPORATE UPDATE September 30, 2019
Slide 2: Advisories
ADVISORIES Forward-looking Statements This presentation may contain certain statements which constitute forward-looking statements or information within the meaning of applicable securities laws concerning the business, operations and financial performance and condition of Genesis. Generally, these
Slide 3: A proven record of acquiring raw land in the Calgary area
A proven record of acquiring raw land in the Calgary area and, utilizing its integrated land development/ home building approach, transforming it into inspired communities that enrich lives. 3
Slide 4: Contents
CONTENTS 1 ………… ABOUT GENESIS 2 ………… PROVEN TRACK RECORD 3 ………… CORE LAND HOLDINGS 4 ………… EXPERIENCED MANAGEMENT TEAM 5 ………… STRATEGY & BUSINESS PLAN 6 ………… STRONG OPERATING RESULTS 7 ………… APPENDIX: CORE LAND HOLDINGS 4
Slide 5: About Us
ABOUT US One of Western Canada’s Pre-Eminent Development Companies Genesis Land Development Corp. (TSX: GDC) has been developing lands and building homes in the Calgary Metropolitan Area (CMA) since 1991. With a significant portfolio of well-located, entitled and unentitled residential, commercial a
Slide 6: Historical Timeline
HISTORICAL TIMELINE DREAM. DESIGN. BUILD. At Genesis, our mission is to imagine and develop inspired communities that enrich lives—one home, one family, and one neighbourhood at a time. 1991 1997 1998 1999 2001 2005 2006 2013 2014 2018 Development of Outline plan for first Genesis Builders Smoothwat
Slide 7: Genesis At-a-Glance
GENESIS AT-A-GLANCE $230 M 29 YEARS 15 YEARS $60 M in real estate of land development of home building returned to shareholders assets experience (1991) experience (2005) since 2014 3,200 of developed/ developing land in the CMA 13% net debt to total assets 10,000 Over 1,300 acres developed in 9 res
Slide 8: A Solid Foundation
A SOLID FOUNDATION We’re building our legacy with: • Proven track record • Well-located core land holdings • Highly experienced management team • An integrated, focused strategy • Strong financial position 8
Slide 9: Proven Track Record
PROVEN TRACK COMMUNITY START DATE TOTAL UNITS TOTAL ACRES ACRES REMAINING RECORD AIRDRIE CANALS 1997 1,920 240 - BAYSIDE 2001 2,520 315 70 BAYVIEW 2015 1,320 165 138 5,760 720 208 CALGARY NE Genesis has developed 1,366 TARAVISTA - acres of residential land, creating 2001 1,280 160 TARALAKE 2005 1,28
Slide 10: Core Land Holdings
CORE LAND HOLDINGS September 30, 2019 LAND SERVICED FUTURE PARCELS SF LOTS SF LOTS (ACRES) AIRDRIE: BAYSIDE, BAYVIEW 346 1,214 14 CALGARY NW: SAGE MEADOWS 46 - 18 CALGARY NW: SAGE HILL CROSSING - 282 28 CALGARY N: LEWISBURG - 830 7 CALGARY NE: SADDLESTONE 227 - 2 CALGARY SE: RICARDO RANCH - 1,190 16
Slide 11: Management Team
MANAGEMENT ARNIE STEFANIUK Vice president, Land Development 25 years residential land development experience TEAM “Genesis Land takes great pride in building communities that are integrated into the natural environment, while providing access to all the urban amenities.” IAIN STEWART PS SIDHU Presid
Slide 12: Strategy & Business Plan
STRATEGY & A HIGHLY FOCUSED APPROACH BUSINESS PLAN Genesis strategy is carefully and thoughtfully designed to maximize shareholder value while leveraging opportunities for future growth. AT-A-GLANCE OVERVIEW Targeted CMA focus Land acquisitions Obtaining zoning and Planning the development service e
Slide 13: Targeted Calgary Metropolitan Area (CMA) Focus
TARGETED CALGARY METROPOLITAN AREA (CMA) FOCUS Genesis knows the CMA and is able to: • Anticipate local market conditions and develop communities based on consumer needs • Be first in-the-know about current and upcoming acquisition opportunities • Act quickly on potential quality land investments •
Slide 14: Why Calgary?
WHY CALGARY? A resilient market forecast to outperform • Out of favour market presents opportunities • Western Canada’s business centre • Population growth even through recession • Above average growth forecast going forward (2.2%) • Relatively affordable • Attractive to new businesses • Low tax rat
Slide 15: CMA Market Snapshot
CMA MARKET SNAPSHOT 4 th 4th largest market 36.8 Median age of Calgary residents 2.2% The Calgary economy is expected to in Canada, homes to 1.5 million 2nd youngest in the country grow 2.2% per year over the next five years; residents (across major metropolitan areas) exceeding Canadians average of
Slide 16: Strong Operating Results
STRONG OPERATING RESULTS Previous five years (2014 – 2018) • 18 consecutive years of positive net earnings • 2014 - 2018 cumulative results: • Net earnings of $59 million • Total revenues of over $600 million • $128 million in operating cash flow 16
Slide 17: Strong Balance Sheet
STRONG (000’S) BOOK PER SHARE BALANCE VALUE ($) ($) REAL ESTATE ASSETS 230,245 5.46 SHEET WORKING CAPITAL 1 8,193 0.19 NET DEBT 2 (27,794) (0.66) NON-CONTROLLING INTEREST (18,424) (0.44) September 30, 2019 SHAREHOLDERS’ EQUITY 192,220 4.56 • Market capitalization to shareholders’ equity ratio of 0.5
Slide 18: Positioned for Growth
POSITIONED FOR GROWTH Building on our successes with: • Proven track record • Well-located core land holdings • Highly experienced management team • An integrated, focused strategy • Strong financial position 18
Slide 19: Appendix
APPENDIX CORE LAND HOLDINGS 19
Slide 20: Core Land Holdings
CORE LAND COMMUNITY ACRES TARGETED DEVELOPMENT TIMEFRAME HOLDINGS AIRDRIE BAYSIDE 70 2019 - 2028 September 30, 2019 BAYVIEW 138 2019 - 2031 208 CALGARY - 2019 - 2022 Genesis is well-positioned to SADDLESTONE SAGE MEADOWS - 2019 – 2021 build on its successes with an 64 2020 - 2029 SAGE HILL CROSSING
Slide 21: Airdrie: Bayside & Bayview
CORE LAND HOLDINGS AIRDRIE: BAYSIDE & BAYVIEW DEVELOPMENT TIMELINE • Servicing started in 1997 • 512 acres serviced • 319 acres of raw land sold after annexation • Target completion in 2031 CURRENT INVENTORY • 276 single family lots • 70 townhomes • 3 acres of multi-family land • 208 acres of undeve
Slide 22: NE Calgary: Saddlestone
CORE LAND HOLDINGS NE CALGARY: SADDLESTONE DEVELOPMENT TIMELINE • 480 acres serviced • Target completion in 2022 CURRENT INVENTORY • 187 single family lots • 40 townhomes • 2 acres of multi-family land 22
Slide 23: NW Calgary: Sage Meadows
CORE LAND HOLDINGS NW CALGARY: SAGE MEADOWS DEVELOPMENT TIMELINE • Servicing started in 2010 • 374 acres serviced • 252 acres sold after obtaining land use • Target completion in 2021 CURRENT INVENTORY • 46 single family lots • 18 acres of multi-family land 23
Slide 24: NW Calgary: Sage Hill Crossing
CORE LAND HOLDINGS NW CALGARY: SAGE HILL CROSSING DEVELOPMENT TIMELINE CURRENT INVENTORY • 100 acres developed and 42 acres sold • 15 acres serviced multi-family/commercial • 49 acres to be serviced in 2021 • 49 acres of future development land • Target completion in 2029 • Proposed mix of single fa
Slide 25: N Calgary: Lewisburg
CORE LAND HOLDINGS N CALGARY: LEWISBURG DEVELOPMENT TIMELINE • Target start year for servicing of 2021 • Target completion in 2030 CURRENT INVENTORY • 130 acres of undeveloped land 25
Slide 26: SE Calgary: Ricardo Ranch
CORE LAND HOLDINGS SE CALGARY: RICARDO RANCH DEVELOPMENT TIMELINE • Acquired in October 2014 • Target start year for servicing of 2021 • Target completion in 2031 CURRENT INVENTORY • 349 acres of undeveloped land 26
Slide 27: Rocky View County: Omni
CORE LAND HOLDINGS ROCKY VIEW COUNTY: OMNI DEVELOPMENT TIMELINE • Target start year for servicing of 2021 • Target completion in 2035 CURRENT INVENTORY • 185 acres future commercial site • 425 acres of future development land • Genesis owns 51.2% undivided interest in the land and manages the develo
Slide 28: Genesis Land Development Corp. Contact Information
GENESIS LAND DEVELOPMENT CORP. Contact Information Iain Stewart, CPA, CA, President and Chief Executive Officer Wayne King, CPA, CA, Chief Financial Officer 7315 - 8th Street NE Calgary AB T2E 8A2 P: 403-265-8079 Toll free: 1-800-341-7211 Email: genesis@genesisland.com Website: www.genesisland.com 2