Mr. Iain Stewart reports

GENESIS REPORTS 2023 THIRD QUARTER RESULTS AND DECLARES A SPECIAL DIVIDEND OF $0.085

Genesis Land Development Corp. has released its financial and operating results for the three months (Q3) and nine months (year to date (YTD)) ended Sept. 30, 2023. Genesis is an integrated land developer and residential home builder with a strategy to grow 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 financial results for the third quarter of 2023.

2023 highlights (Q3 2023 and YTD 2023):

• Progress on business plan: During 2023, Genesis has continued to execute its growth business plan. Genesis achieved some significant milestones in 2022, with the removal of growth management overlays (GMOs) and, in 2023, with receiving final development approvals enabling Genesis to proceed with development of its Lewiston, Logan Landing and Huxley communities in 2023. More growth is coming through expansion of its home building division. Genesis has contracted to purchase 554 lots through third party developers. In all, Genesis is now building homes in nine communities in the CMA.
• $131.7-million of revenues in YTD 2023: Genesis generated revenues of $131.7-million in YTD 2023, up from $86.2-million achieved in YTD 2022. Q3 2023 revenues of $41.2-million were lower when compared with $43.6-million generated in Q3 2022.
• Net earnings in YTD 2023 of $6.5-million: Net earnings attributable to equity shareholders in YTD 2023 were $6.5-million (11 cents per share -- basic and diluted), compared with net earnings attributable to equity shareholders of $1.5-million (three cents per share -- basic and diluted) in YTD 2022. Net earnings attributable to equity shareholders in Q3 2023 were $2.2-million (four cents per share -- basic and diluted), compared with net earnings attributable to equity shareholders of $1.9-million (four cents per share -- basic and diluted) in Q3 2022.
• 210 lots sold: In YTD 2023, Genesis sold 210 residential lots (76 to third party builders and 134 through its home building division, GBG), an increase of 62 per cent from 130 lots in YTD 2022 (60 to third party builders and 70 through GBG). In Q3 2023, Genesis sold 44 residential lots (one to third party builders and 43 through GBG), a decrease of 41 per cent from 74 lots in Q3 2022 (54 to third party builders and 20 through GBG).
• 200 homes sold: In YTD 2023, Genesis sold 200 homes, an increase of 79 per cent from the 112 sold in YTD 2022. In Q3 2023, Genesis sold 71 homes, an increase of 58 per cent from the 45 sold in Q3 2022.
• 278 new home orders in YTD 2023: New home orders for the nine months ended Sept. 30, 2023, were 278 units, compared with 202 units for the same period in 2022. During Q3 2023, Genesis had 122 new home orders, compared with four for Q3 2022. As of Sept. 30, 2023, Genesis had 283 outstanding new home orders, compared with 231 as at Sept. 30, 2022.
• Cash on hand of $35.0-million: On Sept. 30, 2023, Genesis had $35.0-million in cash and cash equivalents, and loan and credit facilities of $66.4-million, which is 16 per cent of the total book value of assets.
• Dividend declared: The corporation declared an unconditional special cash dividend of 8.5 cents per common share for a total of $4.8-million on Nov. 8, 2023, payable on Dec. 8, 2023, to shareholders of record on Nov. 21, 2023. Pursuant to Subsection 89(14) of the Income Tax Act (Canada), the dividend qualifies as an eligible dividend for Canadian federal income tax purposes.
• Land acquisitions: In Q3 2023, Genesis entered into an agreement to acquire approximately 460 acres of future residential development land in the southeast sector of the city of Calgary for a total purchase price of $25.8-million.

Outlook

Supported by a solid financial position, a backlog of new home orders and the strength of Calgary's economy, Genesis 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 and home affordability. These factors are being offset by continued strong housing demand from newcomers to Alberta, historic low supply of homes for sale in the tight Calgary market and the growing economy.

According to the Calgary Real Estate Board, total residential home sales for the first nine months of 2023 were 22,110 units, with only 25,921 units forecast for all of 2023 in Calgary, down from a record high of 29,672 units in 2022. Royal Bank of Canada forecasts Alberta GDP (gross domestic product) to grow by 2.2 per cent in 2023, which is the strongest in Canada but a marked deceleration from the 5.1-per-cent growth in 2022. Immigration to both Alberta and the CMA continues to be strong into 2023 as evidenced by the 4.5-per-cent growth in the working age population in the CMA to the end of September, 2023, as compared with September, 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. Nonetheless, continued mixed economic indicators and general economic uncertainty lead Genesis to remain cautious in planning and executing its strategic and business plans.

Additional information

The information contained in this news release should be read in conjunction with the unaudited condensed consolidated interim financial statements for the three and nine months ended Sept. 30, 2023, and Sept. 30, 2022, and the related management's discussion and analysis (MD&A) dated Nov. 8, 2023, which have been filed with Canadian securities regulatory authorities. Copies of these documents may be obtained on SEDAR+ and the company's website.

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