Mr. Iain Stewart reports
GENESIS REPORTS 2022 THIRD QUARTER RESULTS AND DECLARES A SPECIAL DIVIDEND OF $0.075
Genesis Land Development Corp. has released its financial and operating results for the three months and nine months ended Sept. 30, 2022. Genesis Land is an integrated land developer and residential home builder with a strategy to expand its portfolio of well-located, entitled and unentitled primarily residential lands and serviced lots throughout the Calgary metropolitan area.
The following are highlights of Genesis Land financial results for the third quarter of 2022
2022 highlights (third quarter 2022 and year-to-date 2022):
Progress on business plan:
During 2022, Genesis Land continued to execute its growth-oriented business plan. In Q3 2022, Genesis Land achieved two significant milestones and the removal of growth management overlays (GMOs), which prohibited development of its Lewiston and Logan Landing lands. Final predevelopment approvals appear to be imminent, providing Genesis Land with the possibility of commencing construction of three new communities: Lewiston, Logan Landing and Huxley, in 2023. In addition, through its home building division, Genesis Land has contracted to purchase 442 lots through third party developers providing growth for its home building division.
202 new home orders YTD, up 20 per cent from YTD 2021:
New home orders for the nine months ended Sept. 30, 2022, were 202 units compared with 168 units for the same period in 2021. The corporation ended the third quarter of 2022 with 231 outstanding new home orders, compared with 111 at the end of Q3 2021.
revenues in Q3 2022:
In Q3 2022, Genesis Land sold 45 homes, 54 residential lots to third parties and two development land parcels, generating aggregate revenues of $43.6-million. In Q3 2021, Genesis Land sold 47 homes, 38 residential lots to third parties and three development land parcels generating aggregate revenues of $35.0-million.
The corporation declared an unconditional special cash dividend of 7.5 cents per common share for a total of $4,265,000 on Nov. 2, 2022, payable on Dec. 15, 2022, to shareholders of record on Nov. 28, 2022. Pursuant to Subsection 89(14) of the Income Tax Act (Canada), the dividend qualifies as an eligible dividend for Canadian federal income tax purposes.
In Q3 2022, Genesis Land paid $6.7-million to acquire land from two limited partnerships (controlled entities within the consolidated entity). With this transaction, Genesis Land will directly own three land parcels totalling 456 acres in North Conrich, on the eastern edge of Calgary, in Rocky View county. In second quarter 2022, Genesis Land entered into a binding agreement to acquire approximately 160 acres of future residential development land in the southeast sector of Calgary for a total purchase price of up to $30.0-million.
Cash on hand of $18.5-million:
On Sept. 30, 2022, Genesis Land had $18.5-million in cash and cash equivalents and loan and credit facilities of $40.7-million, which are 12 per cent of the total book value of assets.
Supported by a solid financial position, a strong new-home market and continued strength in the Calgary economy, Genesis Land remains well positioned to take advantage of growth opportunities.
Driven by the strong oil and natural gas prices and continued increases in international and interprovincial immigration, prospects for the local economy are positive. However, increasing interest rates, inflationary pressures and tight labour markets are impacting home affordability. While housing price gains, rising lending rates and consumer inflation are weighing on demand, the supply of homes for sale in the Calgary market remains tight at just over 2.3 months. In its September 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 Land remains cautious in executing its strategy.
The information contained in this press release should be read in conjunction with the unaudited condensed consolidated interim financial statements for the three and nine months ended Sept. 30, 2022, and 2021, and the related management's discussion and analysis dated Nov. 2, 2022, which have been filed with Canadian securities regulatory authorities. Copies of these documents may be obtained on SEDAR or the company's website.
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