34 slides from Melcor Developments's shareholder meeting presentation, Apr 26, 2012
Slide 1: 2012 Annual General Meeting
2012 Annual General Meeting April 26, 2012
Slide 2: AGM Agenda
AGM Agenda 1 - Formal Business of the Meeting • Call to Order • Presentation of Financial Statements • Election of Directors • Appointment of Auditors 2 - Management Presentation 3 - Q&A Session
Slide 3: Presentation Agenda
Presentation Agenda 2011: Year in Review CEO’s Report Melcor Operational Overview Outlook: Achieving Long Term Success
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: 2011: Year in Review
2011: Year in Review • Record revenues, assets and earnings in 2011, delivering value to shareholders, customers and other stakeholders • Continued focus on growth and asset portfolio diversification • Maintaining strong corporate governance and management practices
Slide 6: 2011: Year in Review
2011: Year in Review • Dividends of $0.40 per share paid, 23 consecutive years of dividend payments Shareholders • Continuing positive returns on equity Overview • Met all borrowing commitments and covenants Melcor Share Performance Years ended December 31 $800 $700 $100 invested in MRD on $600 $500
Slide 7: 2011: Key Financial Results
2011: Key Financial Results External Revenue (000’s) Total Revenue (000s) 250,000 100% Investment & Recreational 2011 $220,349 Properties Community & Property 90% 2010 $189,911 Development Gross Margin 2009* $136,608 54,737 200,000 29,324 80% 2008* $108,436 49,015 70% 2007* $207,024 150,000 60% 2011
Slide 8: 2011: Key Financial Results
2011: Key Financial Results Earnings and Dividends (000’s) 2011 Highlights 90,000 $3.00 Net Earnings Earnings Per Share Fair value gains on 80,000 Dividends Per Share investment properties $2.50 positively impacted 70,000 earnings by $41.7M. 60,000 $2.00 G&A and interest costs 50,000 higher, but con
Slide 9: 2011: Key Financial Results
2011: Key Financial Results Assets and Shareholders’ Equity (000’s) 1,400,000 40% Assets Equity Return on Assets Return on Equity 2011 Highlights 35% 1,200,000 US assets total $111M, 30% an increase of $86.1M in 1,000,000 2011. Total Land and IP assets increased 16% to 25% $1.02B. 800,000 20% Proper
Slide 10: Credit Facility
Credit Facility Operating Line of Credit (000s) 180,000 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 - 2006 2007 2008 2009 2010 2011 Credit Utilized Supportable Credit Limit Credit Limit Approved Melcor’s operating credit facility limit is $153 million at variable interest rates (incl
Slide 11: Mortgage Financing
Mortgage Financing Land and Investment Property Financing (000s) 350,000 50% 45% 300,000 40% 250,000 35% 30% 200,000 25% 150,000 20% 100,000 15% 10% 50,000 5% - 0% 2007* 2008* 2009* 2010 2011 Mortgage financing Vendor financing Project financing Loan to asset value Average interest rates paid in 201
Slide 12: CEO's Report
MELCOR Poeveconwenrs iro) MELCOR DEVELOPMENTS LTD. CEO’s Report
Slide 13: Melcor's Pledge to its Stakeholders
Melcor’s Pledge to its Stakeholders Integrity in Real Estate since Brand 1923 Reputation Fair dealing, respected, family, professional and durable. Corporate Honesty, Integrity, Loyalty, Values Respect, and Pride To be one of Canada’s leading real Mission estate development and management companies.
Slide 14: Melcor: By The Numbers
Melcor: By The Numbers 1923 - 2012 176x Asset growth to $1.2B 150 Number of suites in Melcor YMCA Village 100x Share growth to $15.00 89 Founding by Melton family in 1923 58x Revenue growth to $220 million 44 Years as a public company 41 Years of dividends 40x Dividend growth to $0.40 / Years of ser
Slide 15: Melcor's History of Presidents
Melcor’s History of Presidents Stan Melton (1968 to 1973) Garry Holmes (1973 to 1975) Tim Melton (1975 to 1997) Ralph Young (1997 to 2012)
Slide 16: Introducing Brian Baker
Introducing Brian Baker Appointment of Brian Baker as President & Chief Operating Officer, effective June 1, 2012 Key Experiences University of Alberta, B.Ed. With 1994 Distinction Development Manager 1997 Senior Development Manager 2002 Division Manager, Property 2002 Development Vice President, Pr
Slide 17: Community Engagement
Community Engagement • Staying involved in our communities Melcor • Over $670,000 contributed in support Cares for local charities and initiatives. • $1,500,000 pledged for Melcor-YMCA Welcome Village, inner-city transitional housing initiative. • $250,000 pledged in support of Valour Place, family
Slide 18: Melcor Operational Overview
Shareholders Customers JV Partners Suppliers Lenders Employees Communities Melcor Operational Overview
Slide 19: Community Development Division Key Facts
Community Development Division Key Facts • Over 9,200 acres of land holdings across Western Canada and US • 5-year average: • Revenue: $133.6M • Earnings: $58.5M • Gross Margin: 45% Centre of Activities Alberta Saskatchewan BC Arizona Colorado Texas
Slide 20: Investment Property Division Key Facts
Investment Property Division Key Facts • Over 3M square feet of leasable space • 65 assets • Fair value: $494M • Revenue: $48M Portfolio Mix 23% Centre of Activities 45% 32% Edmonton Calgary Red Deer Spruce Grove Leduc Lethbridge Airdrie Chestermere Kelowna Regina Houston, TX Phoenix, AZ Office Resi
Slide 21: Property Development Division Key Facts
Property Development Division Key Facts • 9 years of development activity • 44 assets • Over $236M in assets developed for IP portfolio • $64M in value creation since 2002 Centre of Activities Edmonton Calgary Red Deer Spruce Grove Leduc Airdrie Chestermere
Slide 22: Melcor's Value Chain
MELCOR Melcor’s Value Chain Acquire & Plan Build & Develop Acquire & Manage (raw land) Develops high-quality Manages & leases high Non-Residential: fetail, office & industrial quality retail, office, Plans, services & markets jij revenue-producing industrial & residential land for large scale proper
Slide 23: Step 1: Community Development
Step 1: Community Development
Slide 24: Step 2: Property Development
Step 2: Property Development
Slide 25: Step 3: Investment Properties
Step 3: Investment Properties
Slide 26: How it Works
How it Works Clearview Market – Phase 1 Total Project Cost $5.55M Net Operating Income $639K Return on Investment 11.6% Appraised Cap Rate 6.5% Appraised Value $9.8M Mortgage (70% LTV) $6.9M Net Investment ($1.4M) Fair Value Gain $4.3M Net mortgage proceeds re-invested in land acquisition, continuin
Slide 27: Achieving Long-Term Success
Shareholders Customers JV Partners Suppliers Lenders Employees Communities Achieving Long-Term Sucess
Slide 28: Strategic Plan Objectives
Strategic Plan Objectives Philosophy: – Integrity, Quality, Urgency, Value, Growth. Business Objectives: – Protect and grow shareholder investment. – Provide acceptable and consistent dividends to shareholders. – Protect the assets and financial health of the Company.
Slide 29: Our Aspiration
Our Aspiration To be the leader in our markets for Innovation, Quality and Value.
Slide 30: Our People
Our People • Foundation of Melcor’s success • 10 current employees are members of our Quarter Century Club
Slide 31: Capital Resources
Capital Resources • Effective capital deployment • Focus on value and returns
Slide 32: MELCOR
MELCOR
Slide 33: Question and Answers
Question and Answers
Slide 34: Thank you for attending Melcor's 2011 Annual General Meeting
Thank you for attending Melcor’s 2011 Annual General Meeting