EDMONTON, Feb. 23 /CNW/ - Melcor Developments Ltd., an Alberta based public real estate development company, recorded net earnings of $57,771,000 or $1.87 per share (basic) for the twelve months ended December 31, 2006 on revenue of $203,402,000 compared with earnings of $41,776,000 or $1.38 per share (basic) on revenue of $161,500,000 for the same period in 2005. This represents an increase in earnings of 38% and an increase in revenue of 26% over the prior year. Earnings for 2006 were the highest annual earnings in the history of the Company.
For the three months ended December 31, 2006, earnings are $33,576,000 or $1.09 per share (basic) on revenue of $85,891,000 compared to earnings of $15,386,000 or $.51 (basic) per share on revenue of $69,506,000 during the same period in the prior year.
The increase in earnings is due to an increase in the volume of business for the Company as the strong economy in the Province of Alberta has fueled the demand for residential and commercial real estate. Further, during the third quarter of 2006, the Company recorded a material transaction which generated a gain on sale that contributed earnings of $0.29 per share.
Highlights for the year include: - Growth in assets from $396 million at December 31, 2005 to $523 million at December 31, 2006; - The addition of 103,000 square feet of rentable space to the Investment Property portfolio while increasing the occupancy rate from 92% to 93%; - Acquisition of strategic land holdings totalling 1,305 acres at a cost of $55,349,000; - Ongoing development of various assets which will add over 220,000 square feet of rentable space to the Investment Property portfolio over the next two years; - The payment of dividends of $0.30 per share compared to $0.25 (including a special dividend of $0.10 per share) paid in 2005; and - Successful financing endeavours resulted in the receipt of net mortgage proceeds of $22,644,000 on investment properties and $16,333,000 on land inventory excluding vendor financing.
The annual meeting of Melcor Developments Ltd. will be on Thursday, April 19, 2007 at 11:00 a.m. MDT at The Fairmont Hotel Macdonald, Wedgwood Room, 10065 - 100 Street, Edmonton, Alberta. The annual report is expected to be mailed out on March 21, 2007.