EDMONTON, May 1 /CNW/ - Melcor Developments Ltd., an Alberta based real
estate development company recorded net earnings of $7,105,000 or $0.23 per
share (basic) on revenue of $34,428,000 for the three months ended March 31,
2006 compared with net earnings of $2,573,000 or $.09 per share (basic) on
revenue of $15,593,000 for the same period in 2005. All per share amounts have
been restated to reflect the change in the number of shares outstanding caused
by the ten-for-one division of common shares which was approved by the
shareholders on April 12, 2006.
The Company declared a semi-annual dividend of $.15 per share payable on
June 30, 2006 to shareholders of record on June 16, 2006. This compares to a
semi-annual dividend of $.075 per share paid on June 30, 2005. The increased
dividend results from the strength of the Company's financial position, the
growth of shareholders equity and rising share values over the past few years.
Major significant events during the quarter include:
- The current quarter revenue and earnings are significantly higher
than in 2005 due to the increase amount of sales in the Community
Development division. Earnings can fluctuate on both an annual and
quarterly basis due to the cyclical nature of the real estate
business and the timing of registration of subdivisions. This quarter
benefited with the registration of two phases of residential
communities which added 172 lot sales for $11,321,000 in revenue
compared to 2005 which saw one plan registration that generated 20
lot sales and revenue of $1,137,000 during the same period.
- The Property Development Division has begun construction on 115,000
square feet of office space in north west Calgary, Alberta in a
project known as Crowfoot West Business Centre. The Division has also
commenced expansion of developments in Leduc and Chestermere.
- The Investment Property Division operations continue to improve with
the addition of revenue producing assets during 2005 and increased
lease rates and occupancies.
- The Community Development Division has continued its strong sales and
earnings in all company regions as its builder customers continue to
acquire inventory for future sales. The current quarter recorded the
sale of thirty acres in Tuscon, Arizona which is the last of the
Company's developable lands in the United Sates.
- The Company remains active in investigating real estate property
acquisitions throughout Alberta and British Columbia's Okanagan
Valley. During the quarter, Melcor acquired 399 acres of future
residential lands adjacent to the City of Red Deer and 5 acres in the
City of Kelowna, adjoining the Company's Black Mountain development.
Subsequent to the quarter, the company closed on the following
purchases:
- A 50% joint venture interest in 57 acres of business/industrial
lands in the City of Edmonton; and
- 89 acres of immediately developable residential lands in the
City of Red Deer.
