Our Land division produced strong results, with revenue up 156% to
Our Properties division completed construction on a retail building located in Woodbend Market (
Our
Today the Board declared a dividend of
Financial Highlights
Financial highlights of our performance are summarized below:
First quarter:
- Revenue was up 38% to
$49.75 million in Q1-2024 (Q1-2023:$36.08 million ) - Gross profit up 29% to
$23.61 million (Q1-2023:$18.24 million ). - Net income was up 494% to
$12.79 million in Q1-2024 (Q1-2023:$2.15 million ). - Funds from operations (FFO) was up 95% to
$13.75 million in Q1-2024 (Q1-2023:$7.05 million ). - Basic earnings per share was up 500% to
$0.42 per share (Q1-2023:$0.07 per share)
Revenue was up 38% to
FFO was up 95% to
Net income was up 494% to
Our Land division brought in revenue of
Our Properties division completed construction on one retail building contributing an additional 31,800 sf to our portfolio of income-generating properties located within our Woodbend Retail development.
Our
We continue to strategically assess our assets within our
Subsequent to the quarter, on
SHAREHOLDER HIGHLIGHTS
We continue to return value to our shareholders:
- We repurchased 85,616 shares for cancellation pursuant to the NCIB at a cost of
$0.99 million during Q1-2024. - On
May 14, 2024 we declared a quarterly dividend of$0.11 per share, payable onJune 28, 2024 to shareholders of record onJune 14, 2024 . The dividend is an eligible dividend for Canadian tax purposes.
Melcor REIT:
- The REIT paid a monthly distribution in the amount of
$0.04 per unit for the period ofJanuary 2024 . - On
February 22, 2024 , theBoard of Trustees of Melcor REIT announced the establishment of an Independent Committee (the "Independent Committee") to oversee a broad-based strategic review with a focus on unlocking unitholder value. The Independent Committee has retainedBMO Capital Markets as financial advisor andDLA Piper (Canada) LLP as legal counsel to evaluate a broad range of strategic alternatives to maximize unitholder value. The Independent Committee is chaired byRichard Kirby , and also includesBernie Kollman andBarry James as committee members. The REIT will continue to provide updates to the market as they become available.
Selected Highlights
($000s except as noted) | Three months ended | |||||
2024 | 2023 | Change % | ||||
Revenue | 49,748 | 36,077 | 37.9 | |||
Gross margin1 | 47.5 | % | 50.5 | % | (5.9 | ) |
Net income | 12,788 | 2,153 | 494.0 | |||
Net margin1 | 25.7 | % | 6.0 | % | 328.3 | |
FFO2 | 13,748 | 7,045 | 95.1 | |||
Per Share Data ($) | ||||||
Basic earnings | 0.42 | 0.07 | 500.0 | |||
Diluted earnings | 0.42 | 0.07 | 500.0 | |||
FFO3 | 0.45 | 0.23 | 95.7 | |||
Dividends | 0.11 | 0.16 | (31.3 | ) |
As at ($000s except share and per share amounts) | Change % | |||
Total assets | 2,087,034 | 2,097,473 | (0.5 | ) |
Shareholders' equity | 1,223,272 | 1,209,578 | 1.1 | |
Total shares outstanding | 30,576,837 | 30,662,453 | (0.3 | ) |
Per Share Data ($) | ||||
Book value(3) | 40.01 | 39.45 | 1.4 |
1 Supplementary financial measure. Refer to the Non-GAAP and Non-Standard Measures section of the MD&A for further information.
2 Non-GAAP financial measure. Refer to the Non-GAAP and Non-Standard Measures section of the MD&A for further information.
3 Non-GAAP financial ratio. Refer to the Non-GAAP and Non-Standard Measures section of the MD&A for further information.
MD&A and Financial Statements
Information included in this press release is a summary of results. This press release should be read in conjunction with Melcor’s consolidated financial statements and management's discussion and analysis for the three months ended
Non-GAAP & Non-Standard Measures
FFO is a key measure of performance used by real estate operating companies; however, that is not defined by IFRS Accounting Standards, do not have standard meanings and may not be comparable with other industries or income trusts. This non-IFRS Accounting Standards measure is more fully defined and discussed in the Melcor’s management discussion and analysis for the period ended
Funds from operations (FFO): FFO is a non-GAAP financial measure and is defined as net income in accordance with IFRS Accounting Standards, excluding (i) fair value adjustments on investment properties; (ii) gains (or losses) from sales of investment properties; (iii) amortization of tenant incentives; (iv) fair value adjustments, interest expense and other effects of redeemable units classified as liabilities; (v) acquisition costs expensed as a result of the purchase of a property being accounted for as a business combination; (vi) adjustment for amortization of deferred financing fees, which is included in non-cash financing costs and (vii) fair value adjustment on derivative instrument, after adjustments for equity accounted entities, joint ventures and non-controlling interests calculated to reflect FFO on the same basis as consolidated properties. See tables below for reconciliation of FFO:
Consolidated
($000s) | Three months ended | |||
2024 | 2023 | |||
Net income for the period | 12,788 | 2,153 | ||
Amortization of operating lease incentives | 4,138 | 2,320 | ||
Fair value adjustment on investment properties | 8,833 | 2,484 | ||
Depreciation on property and equipment | 142 | 145 | ||
Stock based compensation expense | 296 | 230 | ||
Non-cash finance costs | (1,227 | ) | 2,778 | |
Gain on sale of asset | (47 | ) | — | |
Deferred income taxes | 881 | (732 | ) | |
Fair value adjustment on REIT units | (12,056 | ) | (2,333 | ) |
FFO | 13,748 | 7,045 |
Properties
($000s) | Three months ended | |
2024 | 2023 | |
Segment Earnings | 4,783 | 3,321 |
Fair value adjustment on investment properties | 575 | 1,617 |
Amortization of operating lease incentives | 750 | 761 |
Divisional FFO | 6,108 | 5,699 |
REIT
($000s) | Three months ended | |
2024 | 2023 | |
Segment Earnings | 509 | 8,292 |
Fair value adjustment on investment properties | 9,056 | 1,586 |
Amortization of operating lease incentives | 959 | 1,058 |
Divisional FFO | 10,524 | 10,936 |
Gross margin (%): Gross margin percent is a supplementary financial measure that indicates the relative efficiency with which we earn revenue. This ratio is calculated by dividing gross profit by revenue.
Net margin (%): Net margin percent is a supplementary financial measure that indicates the relative efficiency with which we earn income. This ratio is calculated by dividing net income by revenue.
Book value per share: Book value per share is a non-GAAP financial ratio and is calculated as shareholders' equity over number of common shares outstanding.
About
Melcor is a diversified real estate development and asset management company that transforms real estate from raw land through to high-quality finished product in both residential and commercial built form. Melcor develops and manages mixed-use residential communities, business and industrial parks, office buildings, retail commercial centres and golf courses. Melcor owns a well diversified portfolio of assets in
Melcor has been focused on real estate since 1923. The company has built over 170 communities and commercial projects across
Melcor’s headquarters are located in
Forward Looking Statements
In order to provide our investors with an understanding of our current results and future prospects, our public communications often include written or verbal forward-looking statements.
Forward-looking statements are disclosures regarding possible events, conditions, or results of operations that are based on assumptions about future economic conditions, courses of action and include future-oriented financial information.
This news release and other materials filed with the Canadian securities regulators contain statements that are forward-looking. These statements represent Melcor’s intentions, plans, expectations, and beliefs and are based on our experience and our assessment of historical and future trends, and the application of key assumptions relating to future events and circumstances. Future-looking statements may involve, but are not limited to, comments with respect to our strategic initiatives for 2024 and beyond, future development plans and objectives, targets, expectations of the real estate, financing and economic environments, our financial condition or the results of or outlook of our operations.
By their nature, forward-looking statements require assumptions and involve risks and uncertainties related to the business and general economic environment, many beyond our control. There is significant risk that the predictions, forecasts, valuations, conclusions or projections we make will not prove to be accurate and that our actual results will be materially different from targets, expectations, estimates or intentions expressed in forward-looking statements. We caution readers of this document not to place undue reliance on forward-looking statements. Assumptions about the performance of the Canadian and US economies and how this performance will affect Melcor’s business are material factors we consider in determining our forward-looking statements. For additional information regarding material risks and assumptions, please see the discussion under Business Environment and Risk in our annual MD&A and the additional disclosure under Business Environment and Risk in this MD&A.
Readers should carefully consider these factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. Except as may be required by law, we do not undertake to update any forward-looking statement, whether written or oral, made by the company or on its behalf.
Contact Information:
Investor Relations
Tel: 1.855.673.6931
ir@melcor.ca
Source:
2024 GlobeNewswire, Inc., source