Mr. Iain Stewart reports

GENESIS REPORTS 2022 FIRST QUARTER RESULTS

Genesis Land Development Corp. has released its financial and operating results for the three months ended March 31, 2022 (Q1). Genesis is an integrated land developer and residential home builder owning and developing a growing portfolio of well-located, entitled and unentitled residential, commercial and mixed-use lands, and serviced lots throughout the Calgary Metropolitan Area.

Herein are highlights of Genesis financial results for the first quarter of 2022:

Q1 2022 highlights

• 175 new home orders, up 143 per cent from Q1 2021: New home orders for the three months ended March 31, 2022, were 175 units compared with 72 units for the same period in 2021. The corporation ended the first quarter of 2022 with 285 outstanding new home orders, compared with 124 at the end of Q1 2021.
• $20.4-million of revenues in Q1 2022: In Q1 2022, Genesis sold 31 homes, four residential lots to third parties and a development land parcel, generating aggregate revenues of $20.4-million. In Q1 2021, Genesis sold 31 homes, 16 residential lots to third parties and a development land parcel held by a controlled limited partnership, generating aggregate revenues of $18.7-million.
• $500,000 net loss in Q1 2022: Net loss attributable to equity shareholders in Q1 2022 was $500,000 (one-cent net loss per share -- basic and diluted), compared with net earnings attributable to equity shareholders of $1.3-million (three cents of net earnings per share -- basic and diluted) in Q1 2021.
• $29.2-million land acquisition: In Q1 2021, Genesis entered into a binding agreement to acquire approximately 157 acres of future residential development land in the city of Calgary. A non-refundable deposit of $2.2-million was paid in February, 2021. Genesis closed the transaction on April 4, 2022, and paid the balance of $27.0-million to the seller. This project, now called Huxley, is expected to be under development in 2023.
• Cash on hand of $23.0-million: On March 31, 2022, Genesis had $23.0-million in cash and cash equivalents, which exceeded outstanding loans and credit facilities balances of $15.4-million by $7.6-million.

Outlook

Supported by a solid financial position, a strong new-home market and a buoyant Alberta economy, Genesis is well positioned to take advantage of growth opportunities in 2022.

Driven by improved oil and natural gas prices and increases in international and interprovincial immigration, prospects for the local economy are excellent for 2022. The Calgary Real Estate Board reports that Calgary has some of the tightest market conditions seen in over a decade and housing market momentum will continue. Housing price gains, rising lending rates and consumer inflation are expected to weigh on demand in the second half of this year. Nonetheless, persistently tight housing inventories are expected to continue over the next several months. In light of geopolitical events and resulting economic uncertainty, Genesis remains cautious in executing its strategy.

Additional information

The information contained in this press release should be read in conjunction with the unaudited condensed consolidated interim financial statements for the three months ended March 31, 2022, and 2021 and the related management's discussion and analysis (MD&A) dated May 5, 2022, which have been filed with Canadian securities regulatory authorities. Copies of these documents may be obtained via SEDAR or on the company's website.

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