CALGARY, Feb. 22 /CNW/ - Melcor Developments Ltd., an Alberta based public real estate development company, recorded net earnings of $63,670,000 or $2.05 per share (basic) for the twelve months ended December 31, 2007 on revenue of $207,024,000 compared with earnings of $57,771,000 or $1.87 per share (basic) on revenue of $203,402,000 for the same period in 2006. This represents an increase in earnings of 10.2% and an increase in revenue of 1.8% over the prior year. Earnings for 2007 were the highest annual earnings in the history of the Company.
For the three months ended December 31, 2007, earnings are $25,263,000 or $0.82 per share (basic) on revenue of $67,693,000 compared to earnings of $33,576,000 or $1.09 (basic) per share on revenue of $85,891,000 during the same period in the prior year. While the fourth quarter results have been impacted by a cooling in the demand for lots by the Company's builder customers, it does represent the second highest quarterly earnings in the Company's history. Further, the fourth quarter of 2006 included a material gain on sale of $11,003,000 which equated to about $.29 per share.
Highlights for the year include:
- Growth in assets from $523 million at December 31, 2006 to
$727 million at December 31, 2007;
- The addition of 488,000 square feet of rentable space to the
Investment Property portfolio;
- Acquisition of strategic land holdings totalling 2,135 acres at a
cost of $89,633,000;
- Ongoing development of various assets which will add over 200,000
square feet of rentable space to the Investment Property portfolio
over the next eighteen months, including 115,000 square feet being
completed in the first quarter of 2008;
- The payment of dividends of $0.40 per share compared to $0.30 paid in
2006; and
- Successful financing endeavours resulted in the receipt of mortgage
proceeds of $43,450,000 on investment properties and $54,261,000 on
land inventory.
Management expects 2008 to be an adjustment year for real estate markets while supply, demand, pricing and margins of residential land products rebalance to sustainable levels. While real estate markets in Western Canada are expected to stay strong for several years, it appears that affordability and lower net migration will dampen the rate of growth in real estate markets over levels experienced in the past few years.
The annual meeting of Melcor Developments Ltd. will be on Friday, April 11, 2008 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 or about March 20, 2008.