Melcor Developments announces first quarter results, declares quarterly dividend of $0.15 per share

About this update from Melcor Developments Ltd.

Melcor Developments announces first quarter results, declares quarterly dividend of $0.15 per share EDMONTON, Alberta, May 07, 2026 (GLOBE NEWSWIRE) -- Melcor Developments Ltd. ("Melcor") (TSX: MRD), an Alberta-based real estate development and asset management company, today reported results for the first quarter ended March 31, 2026. The first quarter Management Discussion & Analysis (MD&A) and Condensed Interim Financial Statements are available on our website (www.melcor.ca) under Investors, or on SEDAR+ (www.sedarplus.ca). Timothy Melton, Melcor’s Executive Chair and Chief Executive Officer, commented: "For the first quarter of 2026, Melcor generated revenues of $45.37 million at a gross margin of 48.1%, compared to revenues of $50.74 million at a gross margin of 53.8% in Q1-2025 . The year-over-year decline primarily reflects the timing and uneven nature of land sales in our U.S. operations, as well as the impact of recent non-core property dispositions. While economic conditions remain uncertain, particularly with respect to development timing and costs, our core Alberta operations continued to demonstrate stability. Net income for the quarter was $23.17 million, an increase of $18.16 million from $5.02 million in Q1-2025, largely driven by non-cash items recorded in the quarter. These items can introduce period-over-period fluctuations into reported earnings, and as such, management continues to rely on funds from operations ("FFO") as a better indicator of underlying performance. FFO for the quarter was $8.52 million, down 36.6% from $13.43 million in Q1-2025, reflecting lower gross profits from our Land division and reduced contributions from the Properties division following recent property disposals. Our Land division contributed 44.1% of total revenue before intersegment elimination to date in 2026 compared to 45.7% in 2025. Land revenues declined due to lower contributions from land sales in our US region; however, within our Canadian market, revenues increased $8.58 million to $19.87 million as result of an increase in single-family lot sales. Our Properties division contributed 55.7% of revenue before intersegment eliminations in 2026 compared to 54.1% in 2025. Revenues from our Properties division was down 7.9% to $25.35 million in the quarter as a result of recent property disposals partially offset by revenue ge...

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