Mr. Iain Stewart reports

GENESIS REPORTS FOURTH QUARTER AND 2023 RESULTS

Genesis Land Development Corp. has released its financial and operating results for the three months (Q4) and year-end Dec. 31, 2023 (YE). 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 fourth quarter of 2023:

2023 highlights (Q4 2023 and YE 2023)

• $203.3-million of revenues in YE 2023: Genesis generated revenues of $203.3-million in YE 2023 up from $140.4-million achieved in YE 2022. Q4 2023 revenues of $71.6-million were higher when compared with $54.2-million generated in Q4 2022.
• Net earnings in YE 2023 were $14.5-million: Net earnings were positive for the 23rd consecutive year with net earnings attributable to equity shareholders in YE 2023 of $14.5-million (26 cents per share -- basic and diluted), compared with $4.5-million (eight cents per share -- basic and diluted) in YE 2022. Net earnings attributable to equity shareholders in Q4 2023 were $8.0-million (15 cents per share -- basic and diluted) compared with $3.1-million (five cents per share -- basic and diluted) in Q4 2022.
• 305 lots sold: In YE 2023, Genesis sold 305 residential lots (118 to third party builders and 187 through its home-building division, Genesis Builders Group Inc. (GBG), an increase of 29 per cent from 236 lots in YE 2022 (144 to third party builders and 92 through GBG). In Q4 2023, Genesis sold 95 residential lots (42 to third party builders and 53 through GBG) compared with 106 lots in Q4 2022 (84 to third party builders and 22 through GBG).
• 286 homes sold: In YE 2023, Genesis sold a record 286 homes, an increase of 69 per cent from the 169 sold in YE 2022. In Q4 2023, Genesis sold 86 homes, compared with 57 sold in Q4 2022. During YE 2023, Genesis had 328 new home orders compared with 233 for YE 2022. Genesis had 247 outstanding new home orders on hand at Dec. 31, 2023 (205 at Dec. 31, 2022).
• $16.2-million of development land sales: In YE 2023, Genesis sold four development land parcels for $16.2-million versus five parcels for $16.0-million in YE 2022. Genesis sold three development land parcels for $12.0-million in Q4 2023 versus two parcels for $6.3-million sold in Q4 2022.
• Cash on hand of $37.5-million: On Dec. 31, 2023, Genesis had $37.5-million in cash and cash equivalents.
• Dividends of 17 cents per share in 2023: Total cash dividends of $9.7-million (17 cents per share) were paid during the year ended Dec. 31, 2023, of which 8.5 cents was declared and paid in Q4 2023.
• Land acquisitions: In Q4 2023, Genesis closed the acquisition of 460 acres of future residential development land in the southeast sector of the City of Calgary for $25.8-million.
• Lewiston Lands LP (LLLP): During the year ended Dec. 31, 2023, Genesis sold a 20-per-cent ownership stake in LLLP to each of two Calgary-based third party builders. The transaction closed on Jan. 16, 2023, for total proceeds of $19.8-million, being $11.8-million cash with the balance being the assumption of debt by the purchasers.

Outlook

Genesis continues to execute on its growth strategy in both its land and housing divisions, sustained by a backlog of new home orders and the continued strength of the CMA market. Housing demand remains relatively strong with the continued historic low supply of homes for sale supported by housing demand from migrants to Alberta. This has been somewhat offset by housing price increases, higher interest rates, inflationary pressures, tight labour markets and continuing supply chain constraints impacting new home orders, and home affordability.

Supply chain issues and inflation are moderating but continue to impact construction costs and timelines in both the company's land development and home-building divisions. Some of the strain eased through 2023 as home sales activity slowed across most North American markets. However, the lack of skilled labour and of some products and materials remain concerns. Genesis continues to address these concerns by working pro-actively with key contractor partners and home buyers.

Genesis annual meeting

Genesis will hold its annual general meeting on Tuesday, May 14, 2024, at 2:30 p.m. (Mountain Time) in the Logan Landing Boardroom at the Genesis head office, 6240, 333 -- 96 Ave. NE, Calgary, Alta., T3K 0S3.

Additional information

The information contained in this press release should be read in conjunction with the consolidated financial statements for the years ended Dec. 31, 2023, and 2022 and the related management's discussion and analysis (MD&A) dated March 6, 2024, which have been filed with Canadian securities regulatory authorities. Copies of these documents may be obtained via SEDAR+ or the company's website.

We seek Safe Harbor.