Mr. Iain Stewart reports
GENESIS REPORTS 2022 SECOND QUARTER RESULTS AND DECLARES A DIVIDEND OF $0.075
Genesis Land Development Corp. has released its financial and operating results for the three months (Q2) and six months (year to date (YTD)) ended June 30, 2022. 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.
The following are highlights of Genesis financial results for the first half of 2022.
2022 highlights (Q2 2022 and YTD 2022):
- 198 new home orders YTD, up 47 per cent from YTD 2021:
New home orders for the six months ended June 30, 2022, were 198 units, compared with 135 units for the same period in 2021. The corporation ended the second quarter of 2022 with 272 outstanding new home orders, compared with 125 at the end of Q2 2021.
- Dividend declared:
The corporation declared an unconditional special cash dividend of 7.5 cents per common share for a total of $4,265,000 on July 28, 2022, payable on Aug. 26, 2022, to shareholders of record on Aug. 12, 2022.
- Land acquisitions:
In Q2 2022, Genesis entered into a binding agreement to acquire approximately 160 acres of future residential development land in the southeast sector of the city of Calgary. Depending on the timing of the receipt of certain approvals from the City of Calgary, the closing date will be either June 15, 2023, for a total purchase price of $28.0-million, or Jan. 31, 2025, for a total purchase price of $30.0-million. Subsequent to the period-end, Genesis paid $5.0-million to acquire land from two limited partnerships (controlled entities within the consolidated entity). With this transaction, Genesis will directly own three land parcels totalling 456 acres in North Conrich, on the eastern edge of Calgary, in Rocky View county. The transaction closed on July 28, 2022.
- Cash on hand of $11.9-million:
On June 30, 2022, Genesis had $11.9-million in cash and cash equivalents, and loans and credit facilities of $18.0-million, which is 6 per cent of the total book value of assets.
Supported by a solid financial position, a robust new-home market, and a stronger Alberta and Calgary economy, Genesis remains well positioned to take advantage of growth opportunities.
Driven by improved oil and natural gas prices, and increases in international and interprovincial immigration, prospects for the local economy are positive for 2022. However, increasing interest rates and inflationary pressures are impacting home affordability. While housing price gains, rising lending rates and consumer inflation are expected to weigh on demand in the second half of this year, home supply in the Calgary market remains tight at just under two months. In its June report, the Calgary Real Estate Board noted that further interest rate increases are expected to slow sales activity, with some slippage in price growth possible in the coming months. Considering market conditions and economic uncertainty, Genesis remains cautious in executing its strategy.
The information contained in this news release should be read in conjunction with the unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2022, and June 30, 2021, and the related management's discussion and analysis (MD&A) dated July 28, 2022, which have been filed with Canadian securities regulatory authorities. Copies of these documents may be obtained via SEDAR and the company's website.
We seek Safe Harbor.
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