Investing in the Future
The company continues to invest in land inventory, develop commercial properties and improve and lease its portfolio of income-producing properties.
-- The Community Development division added several parcels of raw land for future development including: -- a 50% interest in 166 acres of land in St. Albert in the first quarter; and -- 233 acres of land in the third quarter, strategically located near existing land holdings in St. Albert and Red Deer.-- The Property Development division had projects totaling over $62 million under development in 2012, compared to projects under development of $28 million in 2011. The division completed development of 125,000 sq. ft. (11 buildings) in 2012 compared to 69,500 sq. ft. (9 buildings) in the same period last year.-- The Investment Property division acquired a multi-tenant industrial warehouse in Lethbridge in the second quarter and took over management of approximately 70,000 square feet (including four free-standing bank buildings) transferred from the Property Development division.
-- Brian Baker was appointed to the position of President and Chief Operating Officer on June 1, 2012. Mr. Baker was previously Executive Vice President and Chief Operating Officer.-- The company expanded its production capacity in 2012 by expanding its team via the addition of 18 new staff in 2012. This resulted in an increase in overall headcount by 21%. This positions the company to execute on its growth strategies.
The majority of Melcor's business operations and assets remain focused on Alberta. Alberta economic fundamentals remain strong, with low unemployment rates, net in-migration, higher than the national average weekly earnings, strong capital investment, stabilizing inflation and relative stability in the price of oil. These fundamentals create a favorable environment for both residential and commercial property development.
The company continues its focus on US expansion by increasing its stable of residential rental properties, serviced lot inventory and raw development land. These assets now comprise approximately 8.5% of the company's total assets. Management believes that the economic indicators in its US regions provide a strong outlook for overall business success for the foreseeable future. The US continues its gradual economic recovery with clear signs of strengthening in the housing market and capitalization rate compression in the residential rental asset class.
With Melcor's inventory of raw and developed land, financial resources and strong management group, the company is well positioned to take advantage of market opportunities.
Complete financial statements, notes to the financial statements and management's discussion and analysis will be filed on SEDAR (www.sedar.com) on March 6, 2013 and is available at www.melcor.ca. Melcor's information circular and other material will be mailed on or about March 30, 2012.
Annual General Meeting
We invite shareholders to join us at Melcor's annual meeting on April 25, 2013 at 11:00 am MDT. The meeting will be held at The Fairmont Hotel Macdonald, Wedgewood Room, 10065 - 100 Street NW, Edmonton, Alberta
About Melcor Developments Ltd.
Melcor is a diversified real estate development and management company with a rich heritage of integrity and innovation in real estate since 1923.
Through four integrated operating divisions, Melcor manages the full life cycle of real estate development: from acquiring raw land, to community planning, to construction and development, to owning and managing leasable office, retail and residential sites. Melcor develops and manages mixed-use residential communities, business and industrial parks, office buildings, retail commercial centres and golf courses.
Melcor's headquarters are located in Edmonton, Alberta, with regional offices throughout Alberta and British Columbia. Company developments span western Canada and the US. Melcor has been a public company since 1968 and trades on the Toronto Stock Exchange (TSX: MRD).
Forward Looking Statements
In order to provide our investors with an understanding of our current results and future prospects, our public communications often include written or verbal forward-looking statements.
Forward-looking statements are disclosures regarding possible events, conditions, or results of operations that are based on assumptions about future economic conditions, courses of action and include future-oriented financial information.
This news release and other materials filed with the Canadian securities regulators contain statements that are forward-looking. These statements represent Melcor's intentions, plans, expectations, and beliefs and are based on our experience and our assessment of historical and future trends, and the application of key assumptions relating to future events and circumstances. Future-looking statements may involve, but are not limited to, comments with respect to our strategic initiatives for 2013 and beyond, future development plans and objectives, targets, expectations of the real estate, financing and economic environments, our financial condition or the results of or outlook of our operations.
By their nature, forward-looking statements require assumptions and involve risks and uncertainties related to the business and general economic environment, many beyond our control. There is significant risk that the predictions, forecasts, valuations, conclusions or projections we make will not prove to be accurate and that our actual results will be materially different from targets, expectations, estimates or intentions expressed in forward-looking statements. We caution readers of this document not to place undue reliance on forward-looking statements. Assumptions about the performance of the Canadian and US economies and how this performance will affect Melcor's business are material factors we consider in determining our forward-looking statements. For additional information regarding material risks and assumptions, please see the discussion under Business Environment and Risk in our annual MD&A.
Readers should carefully consider these factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements. Except as may be required by law, we do not undertake to update any forward-looking statement, whether written or oral, made by the company or on its behalf.
Melcor Developments Ltd.
President & COO
Melcor Developments Ltd.
Jonathan Chia, CA