EDMONTON, ALBERTA -- (Marketwire) -- 03/06/13 -- Melcor Developments Ltd. (TSX: MRD), an Alberta-based real estate development company, today reported record results for the year ended December 31, 2012. Melcor earned net income of $105.02 million or $3.49 per share (basic), an increase of 29% from 2011. Revenue was $274.93 million, an increase of 25% from 2011. Total assets grew 19% to 1.45 billion with fair value gains of $59.10 million or $1.96 per share (basic) compared fair value gains of $41.70 million or $1.39 per share (basic) in 2011.
Record fourth quarter results contributed to Melcor's strong performance for the full year. Fourth quarter net income was $55.47 million or $1.84 per share (basic) on revenue of $141.96 million compared to net income of $51.82 million or $1.73 per share (basic) on revenue of $129.43 million in the fourth quarter of 2011.
Funds from operations (FFO) was $2.22 per share in 2012, an increase of $0.42 per share or 23% from 2011. FFO per share adjusts for all non-cash items included in income such as fair value adjustments on investment properties and stock based compensation expense.
Brian Baker, Melcor's President and Chief Operating Officer commented on the year: "Top and bottom line growth in 2012 was a result of the coordinated efforts and diligence of all operating divisions. Our company is comprised of the most talented and hardest working team in the industry: a reality that is reflected in our record results for 2012. As we enter our 90th year, we are eager to compete and win in each of our divisions. With a solid base of assets and a strong financial position, managed by effective leaders and dedicated employees, we are well positioned for continued growth and success."
2012 Highlights
-- Melcor achieved several records in 2012: -- Record consolidated revenues of $274.93 million -- Record basic earnings per share of $3.49 -- Fair value gains of $59.10 million or $1.96 per share -- Total assets of $1.45 billion (up 19%)-- Revenues were higher across all divisions in 2012 as a result of increased activity and growth. -- The Community Development division had a record year, starting four new residential communities and continuing to build out existing developments. They also acquired strategic land parcels to maintain inventory levels and support future growth. -- The Property Development division completed 11 buildings totalling 125,000 square feet. These projects have been leased predominantly to well-recognized national and multinational tenants. In addition, the Property Development division broke ground on three new large- scale projects that will provide the division with a sustained activity pipeline. The division was also successful in advancing several future projects through the land use and development approvals process. -- Leasing activity in the Investment Properties division was strong with portfolio-wide occupancy rates rising to 89%. The division continues its capital expenditure strategies to enhance the efficiency and market desirability of existing assets through on- going improvements. -- The Recreational Properties division increased both revenue and earnings in 2012 through effective and efficient operations management and an increased emphasis on its food and beverage operation. The number of rounds played at its four championship golf courses also increased by 3.4%.-- Melcor paid an annual dividend of $0.45 per share to shareholders. The company has been paying dividends since 1969.-- Subsequent to the end of the year, Melcor announced that it had initiated a strategic process to advance its business interests through the potential creation of a Real Estate Investment Trust (REIT).
