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Toronto Star
a day ago
- Business
- Toronto Star
Melcor Developments announces second quarter results, declares quarterly dividend of $0.13 per share
EDMONTON, Alberta, Aug. 14, 2025 (GLOBE NEWSWIRE) — Melcor Developments Ltd. ('Melcor') (TSX: MRD), an Alberta-based real estate development and asset management company, today reported results for the second quarter ended June 30, 2025. The second quarter Management Discussion & Analysis (MD&A) and Condensed Interim Financial Statements are available on our website ( under Investors, or on SEDAR+ ( Timothy Melton, Melcor's Executive Chair and Chief Executive Officer, commented: 'Melcor is pleased to report results for the second quarter of 2025. Consolidated revenues year-to-date reached $150.88 million, a 26.3% increase over 2024 . Gross margin also saw an improvement, which was up to 54.6%, from a gross margin of 49.1% to date last year. Funds from operations increased 36.7% to $85.96 million year-to-date (2024: $62.88 million) the result of strong performance across our operating divisions.
Cision Canada
14-05-2025
- Business
- Cision Canada
BIG ROCK BREWERY INC. ANNOUNCES FIRST QUARTER 2025 RESULTS AND 51% INCREASE IN SALES VOLUMES
CALGARY, AB, May 14, 2025 /CNW/ - Big Rock Brewery Inc. (TSX: BR) (" Big Rock" or the " Corporation") today announces its financial results for the three months ended March 31, 2025. Financial Summary For the three months ended March 31, 2025, compared to the three months ended March 31, 2024, the Corporation reported: total sales volumes up 51.2% to 68,344 hl compared to 45,204 hl, driven by contract sales volumes that more than doubled and consistent wholesale volumes; net revenue increased by 30.5% to $11.2 million from $8.6 million because of increased co-packing sales volumes; gross margin increased to 33.1% compared to 20.2%; operating income increased to $0.1 million, compared to an operating loss of $(2.3) million; net loss decreased by $(3.1) million to $nil; and Adjusted EBITDA increased by $2.2 million to $0.7 million. Adjusted EBITDA is a non-GAAP financial measure, see " Non-GAAP Measures". Summary of Results $000, except hl and per share amounts Three months ended March 31 2025 2024 Sales volumes - wholesale (hl) 31,892 32,352 Sales volumes – contract (hl) 36,452 12,852 Total sales volumes (hl) 68,344 45,204 Gross product revenue $ 14,203 $ 11,288 Net revenue 11,200 8,582 Cost of sales 7,491 6,845 Adjusted EBITDA (1) 688 (1,473) Operating income (loss) 100 (2,299) Net loss (49) (3,073) Net loss per share amount (basic & diluted) $ (0.00) $ (0.44) (1) Non-GAAP measure. See " Non-GAAP Measures". Sales volumes increased by 51.2% compared the first quarter of 2024 and a 9.2% increase compared to the fourth quarter of 2024. More importantly, our adjusted EBITDA was a positive $0.7 million, which represents a $2.2 million improvement from the first quarter loss of $1.5 million incurred in 2024. "In these times of uncertainty and significant economic headwinds I am thrilled to announce our first quarter 2025 results. These improvements are the result of the implementation of our strategy that we outlined in 2024. Growth of contract sales volumes allows the Corporation to flatten the historically seasonal production and sales curve which not only improves operational efficiencies but improves profitability as a significant portion of the Corporations costs are fixed. The management team is also working to mitigate the impact of the recently announced changes to the Alberta Markup Share and ongoing turmoil with global tariffs ". said Mr. Kinder Additional Information The unaudited condensed interim consolidated financial statements of the Corporation and the Corporation's Management Discussion & Analysis for the quarter ended March 31, 2025 dated May 13, 2025, can be viewed on Big Rock's website at and on SEDAR+ at under Big Rock Brewery Inc. Big Rock is also pleased to announce that the Annual Meeting of Big Rock shareholders is expected to be held on May 14, 2025 at 2:00 p.m. (Mountain Standard Time). Further details of the Annual Meeting will follow in due course. NON-GAAP MEASURES The Corporation uses certain financial measures referred to in this press release to quantify its results that are not prescribed by Generally Accepted Accounting Principles (" GAAP"). Such financial measures do not have a standardized meaning under GAAP and therefore may not be comparable to similar measures presented by other issuers. This press release contains the term "Adjusted EBITDA". Adjusted EBITDA is a non-GAAP financial measure that the Corporation uses to measure operating performance and borrowing capacity. The calculation of Adjusted EBITDA is a non-GAAP financial measure, whose nearest GAAP measure is net income, or net loss, as applicable, with the reconciliation between the two as follows: Forward-Looking Information Certain statements contained in this press release constitute forward-looking statements. These statements relate to future events or Big Rock's future performance. All statements, other than statements of historical fact, may be forward-looking statements. Forward-looking information are not facts, but only predictions and generally can be identified by the use of statements that include words or phrases such as, "anticipate", "believe", "continue", "could", "estimate", "expect", "intend", "likely", "may", "project", "predict", "propose", "potential", "might", "plan", "seek", "should", "targeting", "will", and similar expressions. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Big Rock believes that the expectations reflected in those forward-looking statements are reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this press release should not be unduly relied upon by readers, as actual results may vary materially from such forward-looking statements. These statements speak only as of the date of this press release and are expressly qualified, in their entirety, by this cautionary statement. This press release contains forward-looking statements pertaining to the following: Big Rock's long-term growth strategy and the anticipated benefits to be derived therefrom; Big Rock strategy of balancing production and sales between quarters to allow for a reduction of operating costs; Big Rock's expectations that management will continue to work with co-packing partners for the purpose of introducing volumes and its expectation of success in achieving its objectives by year end and that execution of such strategy will supports the long-term vision to become Canada's largest and most stable independent brewer; Big Rock's expectation that it will continue to focus on product innovation and development in the premium alcoholic and non-alcoholic beverage categories to better align with consumer demand; Big Rock's expectations regarding the non-alcoholic market and its growth, including the performance of its non-alcoholic beer; Big Rock's expectations with respect to product innovation releases in 2025; Big Rock's expectations regarding the introduction of new Board members and the anticipated benefits therefrom; Big Rock's expectation that it will continue to work with prospective co-packing partners to improve contract volumes and put in place arrangements that will allow it to both achieve its 2025 budget; interpretation of and anticipation of market trends; Big Rock's business plans, outlook, and strategy; and the anticipated date and timing of Big Rock's Annual Meeting of shareholders and Big Rock's expectation that further details in connection therewith will follow in due course. With respect to the forward-looking statements listed above and contained in this press release, management has made assumptions regarding, among other things: volumes in the current fiscal year will remain constant or will increase; there will be no material change to the regulatory environment in which Big Rock operates; there will be no material supply issues with Big Rock's vendors; seasonal fluctuations in demand; balancing production and sales between quarters to allow for a reduction of operating costs; management's work with co-packers will result in increased volumes and that this will lead to success in achieving its objectives by year end; Big Rock's focus on innovation will result in the introduction of new products that will be received well by the market, aligned with market demand; the new Board members will be elected at the Annual Meeting of Big Rock shareholders; increased co-packing volumes, when achieved, will allow Big Rock to achieve its 2025 budget; Big Rock can and will execute it business plans and strategies; and that continued attention to streamlining production and maximizing return on sales and marketing initiatives for Big Rock's branded, white-label and co-packing businesses will help to improve financial results and improve the health of the Corporation's balance sheet. Some of the risks which could affect future results and could cause results to differ materially from those expressed in the forward-looking information and statements contained herein include the risk factors set out in the Corporation's annual information form for the year ended December 30, 2024 which is available on SEDAR+ at and also include, but are not limited to: risks related to Big Rock's credit facility with ATB; the inability to grow demand for Big Rock's products; the inability to execute its product innovation strategy and to introduce such products in the volumes necessary to fulfil its expectations; the risk that Big Rock may not have an increase in market demand or market share; the risk that Big Rock may not realize increased co-packing contract volumes or the anticipated benefits of increased co-packing production; the risk that continued attention to streamlining production and maximizing return on sales and marketing initiatives for Big Rock's branded, white-label and co-packing businesses, won't help the Corporation continue to improve its financial results and strengthen its balance sheet; the risk that Big Rock may not realize operational efficiencies or margin growth; the risk that the prospective Board Members are not elected at the Annual Meeting; the risk that Big Rock may not have sufficient cash flows to cover forecasted expenses or return to profitability; and the risk that Big Rock may not be in compliance with its financial covenants for the next 12 months. Any financial outlook or future oriented financial information (in each case " FOFI") contained in this press release regarding prospective financial position, including, but not limited to: expectations regarding continued improvement in Big Rock's financial results and the anticipated benefits to be derived therefrom and Big Rock's long-term growth strategy and the anticipated benefits to be derived therefrom are based on reasonable assumptions about future events, including those described above, based on an assessment by management of the relevant information that is currently available. The actual results will likely vary from the amounts set forth herein and such variations may be material. Readers are cautioned that any such FOFI contained herein should not be used for purposes other than those for which it is disclosed herein. Such information was made as of the date of this press release and the Corporation disclaims any intention or obligation to update or revise any such information, whether as a result of new information, future events, or otherwise, unless required pursuant to applicable law. Readers are cautioned that the foregoing list of assumptions and risk factors is not exhaustive. The forward-looking information and statements and FOFI contained herein are expressly qualified in their entirety by this cautionary statement. The forward-looking information and statements and FOFI included in this press release are made as of the date hereof and Big Rock does not undertake any obligation to publicly update such forward-looking information and statements to reflect new information, subsequent events or otherwise unless so required by applicable securities laws. About Big Rock Brewery Inc. In 1985, Ed McNally founded Big Rock to contest the time's beer trends. Three bold, European-inspired offerings – Bitter, Porter and Traditional Ale – forged an industry at a time heavy on easy drinking lagers and light on flavour. Today, our extensive portfolio of signature beers, ongoing seasonal offerings, six ciders (Rock Creek Cider® series), custom-crafted private label products and other notable, licensed alcoholic beverages keeps us at the forefront of the craft beer revolution and still proudly contesting the beer and alcoholic beverage trends of today. Big Rock has brewing operations in Calgary, Alberta, Vancouver, British Columbia, and Toronto, Ontario. Big Rock trades on the TSX under the symbol "BR". For more information on Big Rock visit
Yahoo
13-05-2025
- Business
- Yahoo
Melcor Developments announces first quarter results, declares quarterly dividend of $0.11 per share
EDMONTON, Alberta, May 13, 2025 (GLOBE NEWSWIRE) -- Melcor Developments Ltd. ("Melcor") (TSX: MRD), an Alberta-based real estate development and asset management company, today reported results for the first quarter ended March 31, 2025. The first quarter Management Discussion & Analysis (MD&A) and Condensed Interim Financial Statements are available on our website ( under Investors, or on SEDAR+ ( Timothy Melton, Melcor's Executive Chair and Chief Executive Officer, commented: "Melcor is pleased to report results for the first quarter of 2025. Consolidated revenue was $50.74 million, a 2.0% increase over Q1-2024, primarily as a result of an increase in land revenues over Q1-2024. Gross profit rose 15.7% to $27.31 million over Q1-2024 at a gross margin of 53.8%, up 13.3% since Q1-2024. Our Land division had a good first quarter, contributing 44.5% of total revenue before intersegment elimination compared to 40.7% in 2024 for total revenues of $23.28 million. Our US region completed a 44 acre paper-lot sale in the first quarter, bringing in $12.00 million to revenues and $8.18 million to earnings in the period. On April 10, 2025 we sold 154 acres of land in the Greater Pheonix area, AZ for total revenue of $49.36 million ($35.22 million USD). Revenues from our Properties and REIT divisions were down 5.6% to $28.90 million (Q1-2024: $30.60 million) in Q1-2025, with the decrease partly attributed to recent property sales, partially offset by revenue generated from newly developed commercial properties. Our leasing team had an active quarter and completed 97,246 sf in renewals and an additional 18,146 sf of new leasing. We closed on the sale of Melcor Crossing (Grande Prairie, AB), a REIT held retail building for gross proceeds of $48.00 million. This asset was classified as assets held for sale at year end. We also sold 3 residential units located at the Edge at Grayhawk in Phoenix, AZ for gross proceeds of $1.22 million. Subsequent to the quarter, on April 23, 2025, Melcor closed on the acquisition of all outstanding public trust units (approximately 45%) in Melcor REIT for $5.50 per unit, for a total of $71.30 million. The REIT used these proceeds to repurchase and cancel all outstanding participating trust units at the same price. This transaction, as previously announced, represents a major milestone for us and reinforces our commitment to long-term value creation for our shareholders. In order to complete the acquisition of REIT, including the redemption of the REIT debenture, Melcor increased its bank operating line to $170 million in 2024. Our intention is to pay down this operating line throughout the year with operating cash flows as well as through sales of Melcor income producing assets. It will be Melcor's objective to strategically dispose of certain assets in order to generate cash to pay down the operating line of credit. The process of selling these assets will consider the best long-term interest of value creation for shareholders, but will also take into account the reality of today's real estate markets. Today the Board declared a dividend of $0.11 per share, payable on June 30, 2025 to shareholders of record on June 16, 2025. The dividend is an eligible dividend for Canadian tax purposes." Transaction with Melcor REIT: On September 12, 2024, Melcor and the REIT announced that they entered into an arrangement agreement (the "Arrangement Agreement") with Melcor REIT GP Inc. (the "GP") pursuant to which, among other steps, Melcor will acquire its unowned equity interest (approximately 44.6%) in Melcor REIT Limited Partnership ('REIT LP') for $4.95 per unit in cash consideration ("REIT LP Sale"). Details on the transaction with the REIT are as follows: On April 11, 2025, the unitholders voted in favour of a special resolution to approve the plan of arrangement for Melcor to purchase its unowned equity interest in Melcor REIT LP for $5.50 per Class A LP Unit or $71.30 million in cash consideration (the 'REIT LP Sale'). The transaction closed on April 23, 2025 and in accordance with the Amended Arrangement Agreement, the REIT used the proceeds from the REIT LP Sale to redeem and cancel all of the REIT's outstanding trust units. This transaction will result in a loss on settlement of the REIT units that will be recognized in the second quarter. This transaction will also result in an increase in deferred tax liabilities in the second quarter. Melcor was only taxable on our share (55.4%) of the REIT and as a result, only recorded 55.4% of the REIT's deferred tax balances. Subsequent to the transaction closing, we own 100% of the REIT LP and will be recognizing 100% of the deferred tax balances related to the REIT LP. As at March 31, 2025, we have recorded $6.79 million in transaction costs and other fees related to this transaction including $3.50 million in contingent fees that were due on completion of the transaction. Included in these expenses, $5.62 million of transaction costs were capitalized to REIT units, with the remaining costs being expensed through G&A in the first quarter. Further details regarding the Transaction is contained in a REIT management information circular which was filed on SEDAR+ under the REIT's profile at Financial HighlightsFinancial highlights of our performance are summarized below:Revenue was up 2.0% to $50.74 million (Q1-2024: $49.75 million) Gross profit was up 15.7% to $27.31 million (Q1-2024: $23.61 million) Net income was down 60.8% to $5.02 million (Q1-2024: $12.79 million) Funds from operations (FFO) was down 2.3% to $13.43 million (Q1-2024: $13.75 million) Basic earnings per share was down 59.5% to $0.17 per share (Q1-2024: $0.42 per share) The real estate industry is impacted by the cyclical nature of development, demand for product, the timing of raw and multi-family land sales and lot registrations. Revenue and net income can also fluctuate significantly from quarter to quarter due to the timing of plan registrations. Lot sales, which have a significant impact on quarterly results, are uneven by nature and it is difficult to predict when they will close. Consolidated revenue was $50.74 million, up 2.0% over Q1-2024 as a direct result of an increase in land revenues over Q1-2024. This increase was partially offset by lower revenue generated by our Properties and REIT divisions, a result of the dispositions described further below. Gross profit was up 15.7% to $27.31 million in Q1-2025 (Q1-2024: $23.61 million), and our consolidated gross margin was up 13.3% since Q1-2024 to 53.8% . Our Land division delivered strong results in the first quarter of 2025 and contributed 44.5% of total revenue before intersegment elimination compared to 40.7% in 2024. Our Properties and REIT divisions contributed 55.3% of revenue before intersegment eliminations in 2025 compared to 59.1% in 2024. Revenues from our Properties and REIT divisions were down 5.6% to $28.90 million (Q1-2024: $30.60 million) in Q1-2025. The reduction in overall revenues is directly attributed to the recent property disposals partially offset by revenue generated from newly developed commercial properties developed in our Properties division. Our leasing team had an active quarter and completed 97,246 sf in renewals and an additional 18,146 sf of new leasing to date in 2025. Occupancy levels have decreased slightly over year-end to 85.7% (December 31, 2024: 86.1%). The US contributed 29.7% of total revenue or $15.05 million in the year, with $12.00 million related to our Land division, and $3.05 million from our Properties division. This compares to Q1-2024 US revenue of $3.62 million (7.3% of total revenue), with $0.19 million from our Land division and $3.43 million from our Properties division. Overall, FFO decreased by 2.3% to $13.43 million in Q1-2025 (Q1-2024: $13.75 million). FFO was impacted by an increase in G&A expenses related to the transaction between Melcor and Melcor REIT which closed on April 23, 2025 - subsequent to quarter end. Net of certain non-cash items, G&A expenses were up $1.80 million or 33.3% over Q1-2024, of which $1.17 million relates to higher professional fees incurred as a result of the transaction. In the first quarter we recorded net income of $5.02 million (Q1-2024: net income of $12.79 million). Net income was significantly impacted by $5.62 million of transaction costs which were included in Adjustments related to REIT units. These costs were considered directly attributable and incremental to the transaction and negatively impacted net income, but have been adjusted for in our FFO calculations. Other non-cash items that have a significant impact on net income include: Fair value adjustments on investment properties: in Q1-2025, we have recorded fair value gain on investment properties of $4.10 million in the quarter (Q1-2024: fair value loss of $8.83 million) positively affecting our net income in the quarter. Change in the REIT's unit price: this change has a counter-intuitive impact on net income as an increase in unit value decreases net income. In Q1-2025 the fair value adjustment on REIT units was a loss of $2.33 million compared to a gain of $12.06 million in Q1-2024 contributing a swing of $14.39 million negatively affecting our net income in the quarter. Non-cash financing costs: in Q1-2025, we have recorded non-cash financing costs of $1.49 million compared to non-cash financing recoveries of $1.23 million in Q1-2024, negatively affecting our net income in the quarter. These non-cash gains and losses are driven by market forces outside of Melcor's control and are a key reason we focus on FFO as a truer measure of our financial performance. In the past 12 months we have reduced our general debt by 18.6% (Q1-2024: $671.08 million) and since year end general debt is down 10.7% (December 31, 2024: $611.34 million). Our debt to equity ratio on March 31, 2025 was 0.64, down from 0.71 in Q1-2024, and 0.70 at the start of the year. We remain focused on maintaining a strong balance sheet and being prudent with spend in the current inflationary market. DIVISIONAL OPERATING HIGHLIGHTS Our Land division revenue was up 10.5% or $2.22 million in Q1-2025 to $23.28 million (Q1-2024: $21.07 million). The increase was attributed to our US region, which contributed $12.00 million to revenues from a 44.00 acre paper lot sale which closed in the first quarter. In our Canadian market, we had an increase in revenue generated from single-family lot sales of $3.16 million over Q1-2024, with 80 single-family lots sold in the first quarter (Q1-2024: 66 single-family lots). Edmonton contributed our largest sales volume with 58 single-family lot sales in Q1-2025 (Q1-2024: 38 singe-family lot sales). These increases were partially offset by a decrease in revenue generated from commercial and multi-family acres, which was anomalously high in Q1-2024 at $12.90 million from the sale of 22.20 acres, all in our Canadian regions. No multi-family or commercial land was sold in Q1-2025. Our Properties division currently has 81,755 sf under active development or awaiting lease-up on four projects (Chestermere Station, Woodbend Market, Winterburn Point, and Greenwich). Construction and leasing activity resulted in a $1.06 million fair value gain in the period. Our Properties and REIT divisions accounted for 56.9% of revenue, after intersegment eliminations compared to 61.5% in Q1-2024. Occupancy decreased over year-end to 85.7% (December 31, 2024: 86.1%) and was down over last year (Q1-2024: 87.4%). During the quarter we completed 97,246 sf in renewals and an additional 18,146 sf of new leasing. Our Golf division, had revenues of $0.10 million in Q1-2025 (2024: $0.14 million). All of our Edmonton, AB courses opened subsequent to the period. Our Black Mountain course located in Kelowna, BC opened on March 26, 2025. ASSET DISPOSITIONSWe continue to focus on pruning non-core assets within our portfolio:Melcor Crossing, a REIT held retail building located in Grande Prairie, AB for gross proceeds of $48.00 million 3 residential units located at the Edge at Grayhawk in Phoenix, AZ for gross proceeds of $1.22 million (US$0.86 million)14 residential units located at the Edge at Grayhawk in Phoenix, AZ for gross proceeds of $6.14 million (US$4.47 million) 104th Street Building, an office building located in Edmonton, AB for gross proceeds of $2.90 million ($0.96 million at JV%) Lethbridge Industrial, a REIT held industrial building located in Lethbridge, AB for gross proceeds of $4.50 million Parliament Place, a REIT held office building located in Regina, SK for gross proceeds of $5.00 million Richter Street Building, a REIT held office building located in Kelowna, BC for gross proceeds of $7.80 million In 2025, Melcor will focus on divesting select assets to generate cash for the purpose of reducing borrowings on our line of credit. This credit facility was utilized to repay the REIT's maturing debentures in late 2024 and fund the repurchase of the approximately 44.6% unowned equity interest in the REIT in April 2025. Asset sales will be conducted with careful consideration of long-term shareholder value. SHAREHOLDER HIGHLIGHTSWe continue to focus on returning value to our shareholders:We repurchased 87,156 shares for cancellation pursuant to the NCIB at a cost of $1.10 million in Q1-2025. On May 13, 2025, we declared a quarterly dividend of $0.11 per share, payable on June 30, 2025, to shareholders of record on June 16, 2025. The dividend is an eligible dividend for Canadian tax cash distributions have been made since January 2024. On April 23, 2025 Melcor acquired its unowned equity interest in the REIT for $5.50 per Unit. The REIT used the proceeds to repurchase and cancel all of the REIT's outstanding participating trust units. On April 24, 2025 the REIT's Units were delisted from the TSX and the REIT applied to cease to be a reporting issued. Selected Highlights ($000s except as noted) Three months ended March 31, 2025 2024 Change % Revenue 50,743 49,748 2.0 Gross margin1 53.8 % 47.5 % 13.3 Net income 5,016 12,788 (60.8 ) Net margin1 9.9 % 25.7 % (61.5 ) FFO2 13,426 13,748 (2.3 ) Per Share Data ($) Basic earnings 0.17 0.42 (59.5 ) Diluted earnings 0.16 0.42 (61.9 ) FFO3 0.44 0.45 (2.2 ) Dividends 0.11 0.11 — As at ($000s except share and per share amounts) March 31, 2025 December 31, 2024 Change % Total assets 2,036,083 2,108,553 (3.4 ) Shareholders' equity 1,243,488 1,242,630 0.1 Total shares outstanding 30,280,470 30,367,626 (0.3 ) Per Share Data ($) Book value (3) 41.07 40.92 0.4 1 Supplementary financial measure. Refer to the Non-GAAP and Non-Standard Measures section of the MD&A for further information.2 Non-GAAP financial measure. Refer to the Non-GAAP and Non-Standard Measures section of the MD&A for further information.3 Non-GAAP financial ratio. Refer to the Non-GAAP and Non-Standard Measures section of the MD&A for further information. MD&A and Financial Statements Information included in this press release is a summary of results. This press release should be read in conjunction with Melcor's consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2025, which can be found on the company's website at or on SEDAR+ ( Non-GAAP & Non-Standard Measures FFO is a key measure of performance used by real estate operating companies; however, that is not defined by IFRS Accounting Standards, do not have standard meanings and may not be comparable with other industries or income trusts. This non-IFRS Accounting Standards measure is more fully defined and discussed in the Melcor's management discussion and analysis for the period ended March 31, 2025, which is available on SEDAR+ ( Funds from operations (FFO): FFO is a non-GAAP financial measure and is defined as net income in accordance with IFRS Accounting Standards, excluding (i) fair value adjustments on investment properties; (ii) gains (or losses) from sales of investment properties; (iii) amortization of tenant incentives; (iv) fair value adjustments, transaction costs, interest expense and other effects of redeemable units classified as liabilities; (v) acquisition costs expensed as a result of the purchase of a property being accounted for as a business combination; (vi) adjustment for amortization of deferred financing fees, which is included in non-cash financing costs and (vii) fair value adjustment on derivative instrument, after adjustments for equity accounted entities, joint ventures and non-controlling interests calculated to reflect FFO on the same basis as consolidated properties. See tables below for reconciliation of FFO: Consolidated ($000s) Three months ended March 31 2025 2024 Net income for the period 5,016 12,788 Amortization of operating lease incentives 1,488 4,138 Fair value adjustment on investment properties (4,098 ) 8,833 Depreciation on property and equipment 117 142 Stock based compensation expense 316 296 Non-cash finance costs 1,486 (1,227 ) Gain on sale of asset (1 ) (47 ) Deferred income taxes 1,149 881 Fair value adjustment on REIT units 2,333 (12,056 ) Transaction costs on REIT units acquisition 5,620 — FFO 13,426 13,748 Properties ($000s) Three months ended March 31 2025 2024 Segment Earnings 7,688 4,783 Fair value adjustment on investment properties (2,951 ) 575 Amortization of operating lease incentives 550 750 Divisional FFO 5,287 6,108 REIT ($000s) Three months ended March 31 2025 2024 Segment Earnings 9,626 509 Fair value adjustment on investment properties (712 ) 9,056 Amortization of operating lease incentives 938 959 Divisional FFO 9,852 10,524 Gross margin (%): Gross margin percent is a supplementary financial measure that indicates the relative efficiency with which we earn revenue. This ratio is calculated by dividing gross profit by revenue. Net margin (%): Net margin percent is a supplementary financial measure that indicates the relative efficiency with which we earn income. This ratio is calculated by dividing net income by revenue. Book value per share: Book value per share is a non-GAAP financial ratio and is calculated as shareholders' equity over number of common shares outstanding. About Melcor Developments Ltd. Melcor is a diversified real estate development and asset management company that transforms real estate from raw land through to high-quality finished product in both residential and commercial built form. Melcor develops and manages mixed-use residential communities, business and industrial parks, office buildings, retail commercial centres and golf courses. Melcor owns a well diversified portfolio of assets in Alberta, Saskatchewan, British Columbia, Arizona and Colorado. Melcor has been focused on real estate since 1923. The company has built over 170 communities and commercial projects across Western Canada and today manages 4.48 million sf in commercial real estate assets and 449 residential rental units. Melcor is committed to building communities that enrich quality of life - communities where people live, work, shop and play. Melcor's headquarters are located in Edmonton, Alberta, with regional offices throughout Alberta and in Kelowna, British Columbia and Phoenix, Arizona. 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 2025 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 and the additional disclosure under Business Environment and Risk in this 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. Investor RelationsTel: 780-945-4795ir@ in to access your portfolio
Yahoo
07-05-2025
- Business
- Yahoo
Firm Capital Apartment REIT Provides Strategic Review Update and Q1
The Board will continue to assess matters on a quarterly basis and determine if the Trust should: (i) distribute excess income; (ii) distribute net proceeds from asset sales, after debt repayment; (iii) reinvest net proceeds into other investments; (iv) distribute proceeds as a return of capital or special distribution; and/or (v) use excess proceeds to repurchase Trust units in the marketplace. It is the Trust's current intention not to disclose developments with respect to the Strategic Review unless and until it is determined that disclosure is necessary or appropriate, or as required under applicable securities laws The board continues to work to dispose of its remaining Wholly Owned Assets and evaluate uses for the Trust. Senior management has had multiple discussions with a number of third parties as to the best path forward for the entity. Senior management and the board will report back to unitholders in due course. Hartford, Connecticut joint venture refinanced existing first mortgage in excess of the original principal balance, resulting in net proceeds of $2.2 million available to the joint venture (October 1, 2024). The joint venture repaid the preferred investment owing to the Trust of $1.7 million and made a partial return of common equity of approximately $0.1 million to the Trust. Completed the sale (January 31, 2024) of one of its joint venture properties located in Maryland for $15.9 million (100% of the property). Net sale proceeds were approximately $4.1 million, of which the Trust received approximately $1.1 million given its 25% ownership in the property; and As part of the transaction to sell the Trust's only property located in Florida (May 20, 2024) the Trust agreed to provide seller financing of $4.0 million that generates a minimum 9% return; STRATEGIC REVIEW UPDATE In summary, the Strategic Review has yielded the following results. For further details, please refer to the Trust's Management Discussion & Analysis (' MD&A ') as filed on the Trust's website ( ) and/or SEDAR+ ( ) under the Trust's search profile: TORONTO, May 07, 2025 (GLOBE NEWSWIRE) -- Firm Capital Apartment Real Estate Investment Trust ('the ' Trust '), (TSXV: FCA.U), (TSXV: is pleased to report its financial results for the three months ended March 31, 2025 and provide a Strategic Review update: Story Continues NET ASSET VALUE ('NAV') $6.56 PER TRUST UNIT (CAD $9.04): Including disposition costs of assets held for sale, the Trust reported NAV of $6.6 per Trust Unit (CAD $9.04). EARNINGS Excluding non-cash fair value adjustments, net income for the three months ended March 31, 2025 was approximately $0.16 million, in comparison to the $0.14 million reported for the three months ended December 31, 2024 and $0.06 million loss reported for the three months ended March 31, 2024; and AFFO for the three months ended March 31, 2025 was $0.2 million, in comparison to the $0.16 million reported for the three months ended December 31, 2024 and the negative $0.04 million reported for the three months ended March 31, 2024. Three Months Ended Mar 31, 2025 Dec 31, 2024 Mar 31, 2024 Net Income (Loss) $ (73,877 ) $ (126,074 ) $ (1,298,849 ) Net Income (Loss) Before Fair Value Adjustments $ 167,126 $ 140,008 $ (57,937 ) FFO $ 238,070 $ 202,009 $ (813,630 ) AFFO $ 197,426 $ 156,015 $ (42,166 ) CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS: Certain information in this news release constitutes forward-looking statements under applicable securities law. Any statements that are contained in this news release that are not statements of historical fact may be deemed to be forward-looking statements. Forward-looking statements are often identified by terms such as "may", "should", "anticipate", "expect", "intend" and similar expressions. Forward-looking statements necessarily involve known and unknown risks, including, without limitation, risks associated with general economic conditions; adverse factors affecting the U.S. real estate market generally or those specific markets in which the Trust holds properties; volatility of real estate prices; inability to access sufficient capital from internal and external sources, the completion of the Strategic Review; and/or inability to access sufficient capital on favourable terms; industry and government regulation; changes in legislation, income tax and regulatory matters; the ability of the Trust to implement its business strategies; competition; currency and interest rate fluctuations and other risks. Additional risk factors that may impact the Trust or cause actual results and performance to differ from the forward looking statements contained herein are set forth in the Trust's Annual Information form under the heading Risk Factors (a copy of which can be obtained under the Trust's profile on ). Readers are cautioned that the foregoing list is not exhaustive. Readers are further cautioned not to place undue reliance on forward-looking statements as there can be no assurance that the plans, intentions or expectations upon which they are placed will occur. Such information, although considered reasonable by management at the time of preparation, may prove to be incorrect and actual results may differ materially from those anticipated. Forward-looking statements contained in this news release are expressly qualified by this cautionary statement. Except as required by applicable law, the Trust undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Certain financial information presented in this press release reflect certain non-International Financial Reporting Standards ('IFRS') financial measures, which include, but not limited to NOI, FFO and AFFO. These measures are commonly used by real estate investment companies as useful metrics for measuring performance, however, they do not have standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other real estate investment companies. These terms are defined in the Trust's Management Discussion and Analysis for the three and twelve months ended December 31, 2024, filed on . Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. For further information, please contact: Sandy Poklar Mordechai Roth President & Chief Executive Officer Chief Financial Officer (416) 635-0221 (416) 635-0221 For Investor Relations information, please contact: Victoria Moayedi Director, Investor Relations (416) 635-0221
