05:58:21 EDT Sat 30 Sep 2023
Enter Symbol
or Name

Genesis Land Development Corp
Symbol GDC
Shares Issued 56,853,027
Close 2023-05-04 C$ 2.01
Recent Sedar Documents

Genesis Land earns $160,000 in Q1

2023-05-04 19:27 ET - News Release

Mr. Iain Stewart reports


Genesis Land Development Corp. has released its financial and operating results for the three months ended March 31, 2023. 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 (CMA).

The following are highlights of Genesis Land's financial results for the first quarter of 2023.

Q1 2023 highlights:

  • $37.3-million of revenues in Q1 2023: Genesis Land sold 60 homes and 30 residential lots to third parties in Q1 2023, generating revenues of $37.3-million. In Q1 2022, Genesis Land sold 31 homes, four residential lots to third parties and a development land parcel, generating revenues of $20.4-million.
  • $200,000 net earnings in Q1 2023: Net earnings attributable to equity shareholders in Q1 2023 were $200,000 (nil net earnings per share -- basic and diluted), compared with net loss attributable to equity shareholders of $500,000 (one-cent loss per share -- basic and diluted) in Q1 2022.
  • 62 lots sold: In Q1 2023, Genesis Land sold 62 residential lots (30 to third party builders and 32 through its home building division, GBG), an increase of 94 per cent from 32 lots in Q1 2022 (four to third party builders and 28 through GBG).
  • 60 homes sold: In Q1 2023, Genesis Land sold 60 homes, an increase of 94 per cent from the 31 sold in Q1 2022. During Q1 2023, Genesis Land had 24 new home orders compared with 175 for Q1 2022. As of March 31, 2023, Genesis Land had 169 outstanding new home orders, compared with 285 as at March 31, 2022.
  • Land acquisition: In Q1 2023, Genesis Land paid $1.3-million to a limited partnership (controlled entities within the consolidated entity) to acquire additional interests in the 185-acre Omni project, resulting in Genesis Land holding a 73-per-cent interest (previously 59 per cent) in the project. The remaining 27 per cent is held by another controlled limited partnership.
  • Lewiston Lands Limited Partnership: During Q1 2023, Genesis Land sold two 20-per-cent interests, for a total of 40 per cent, in the Lewiston Lands Limited Partnership to two builder partners. A total of $11.8-million of proceeds were realized by Genesis Land. Prior to these sales, a loan of $20-million was secured against the Lewiston lands. The loan proceeds were fully transferred to Genesis Land. Genesis Land considers establishing land partnerships when a new community has received full municipal approvals. Partners are selected carefully to add value to the execution of the community's development program.
  • Cash on hand of $28.5-million: On March 31, 2023, Genesis Land had $28.5-million in cash and cash equivalents and loan and credit facilities of $49.5-million, which are 14 per cent of the total book value of assets.


Supported by a solid financial position, a backlog of new-home orders and the strength of Calgary's economy, Genesis Land continues to add growth opportunities in both its land and housing divisions. Housing price increases in recent years, rapidly increasing interest rates, inflationary pressures, tight labour markets and continuing supply chain constraints are impacting new home orders, home affordability and its ability to build new homes. These negative factors are being partially offset by housing demand from newcomers to Alberta, the low supply of homes for sale in the tight Calgary market and the growing economy.

The Calgary Real Estate Board is forecasting an overall reduction in home sales in 2023 in Calgary to 25,921 units, down from a record high in 2022 of 29,672 units. Royal Bank of Canada forecasts Alberta gross domestic product to grow by 1.9 per cent in 2023, a marked deceleration from the 4.3-per-cent growth in 2022. Immigration to both Alberta and the CMA continues to be strong into 2023 as evidenced by the 3-per-cent growth in the working age population in the CMA to the end of March, 2023, as compared with March, 2022. In addition to strong international immigration, people are moving to the CMA from across Canada, with the biggest net inflows coming from the two provinces with the most unaffordable housing markets, Ontario and British Columbia. Continued mixed economic indicators and general economic uncertainty lead Genesis Land to remain cautious in planning and executing its strategic and business plans.

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, 2023, and 2022, and the related management's discussion and analysis dated May 4, 2023, which have been filed with Canadian securities regulatory authorities. Copies of these documents may be obtained on SEDAR or the company's website.

We seek Safe Harbor.

© 2023 Canjex Publishing Ltd. All rights reserved.