CALGARY, AB, July 27, 2023 /CNW/ – Genesis Land Development Corp. (TSX: GDC) (the “Corporation” or “Genesis”) reported its financial and operating results for the three months (“Q2”) and six months ended June 30, 2023 (“YTD”). 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 first half of 2023:

2023 Highlights (Q2 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 our Lewiston and Logan Landing communities in 2023. Subsequent to June 30, 2023, Genesis received Outline Plan and Land Use approval from the City of Calgary for the 157 acres it acquired in Q2 2022, in the Belvedere ASP. Final approvals required prior to commencement of site servicing activity are expected to be received this fall. More growth is coming through expansion of its home building division. Genesis has contracted to purchase 505 lots through third party developers. In all, Genesis is now building homes in 9 communities which provides additional growth opportunities.
• $90.5 Million of Revenues in YTD 2023: Genesis generated revenue of $90.5 million in YTD 2023 up from $42.6 million achieved in YTD 2022. Q2 2023 revenues of $53.2 million were higher when compared to $22.2 million generated in Q2 2022.
• Net Earnings in YTD 2023 were $4.3 Million: Net earnings attributable to equity shareholders in YTD 2023 were $4.3 million ($0.07 net earnings per share – basic and diluted), compared to net loss attributable to equity shareholders of $0.4 million ($0.01 loss per share – basic and diluted) in YTD 2022. Net earnings attributable to equity shareholders in Q2 2023 were $4.1 million (($0.07 net earnings per share – basic and diluted), compared to net earnings attributable to equity shareholders of $0.01 million ($0.00 earnings per share – basic and diluted) in Q2 2022.
• 166 Lots Sold: In YTD 2023, Genesis sold 166 residential lots (75 to third-party builders and 91 through its home building division, GBG), an increase of 196% from 56 lots in YTD 2022 (6 to third-party builders and 50 through GBG). In Q2 2023, Genesis sold 104 residential lots (45 to third-party builders and 59 through GBG), an increase of 333% from 24 lots in Q2 2022 (2 to third-party builders and 22 through GBG).
• 129 Homes Sold: In YTD 2023, Genesis sold 129 homes, an increase of 93% from the 67 sold in YTD 2022. In Q2 2023, Genesis sold 69 homes, an increase of 92% from the 36 sold in Q2 2022.
• 132 New Home Orders in Q2 2023: During Q2 2023, Genesis had 132 new home orders compared to 23 for Q2 2022. New home orders for the six months ended June 30, 2023 were 156 units compared to 198 units for the same period in 2022. As of June 30, 2023, Genesis had 232 outstanding new home orders, compared to 272 as at June 30, 2022.
• Cash on Hand of $40.2 Million: On June 30, 2023, Genesis had $40.2 million in cash and cash equivalents and loan and credit facilities of $60.1 million which is 15% of the total book value of assets.

Selected Financial Results and Operating Data:

 

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 negative factors are being offset by strong housing demand from newcomers to Alberta, the continued historic low supply of homes for sale in the tight Calgary market and the growing economy.

The Calgary Real Estate Board is forecasting an overall reduction in home sales in 2023 in Calgary, to 25,921 units, down from a record high in 2022 of 29,672 units. The Royal Bank of Canada forecasts Alberta GDP to grow by 2.4% in 2023, which is the strongest in Canada but a marked deceleration from the 5.1% growth in 2022. Immigration to both Alberta and the CMA continues to be strong into 2023 as evidenced by the 4% growth in the working age population in the CMA to the end of June 2023 as compared to June 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. However, 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 press release should be read in conjunction with the unaudited condensed consolidated interim financial statements for the three and six months ended June 30, 2023 and 2022 and the related Management’s Discussion and Analysis (“MD&A”) dated July 27, 2023 which have been filed with Canadian securities regulatory authorities. Copies of these documents may be obtained via www.sedarplus.ca or our website at www.genesisland.com.

ADVISORIES

Cautionary Note Regarding Forward-Looking Statements

This news release contains certain statements which constitute forward-looking statements or information (“forward-looking statements”) within the meaning of applicable securities legislation, including Canadian Securities Administrators’ National Instrument 51-102 – Continuous Disclosure Obligations, concerning the business, operations and financial performance and condition of Genesis. Generally, these forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “proposed”, “scheduled”, “future”, “likely”, “seeks”, “estimates”, “plans”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur” or “be achieved”.

Although Genesis believes that the anticipated future results, performance or achievements expressed or implied by forward-looking statements are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements because they involve assumptions, known and unknown risks, uncertainties and other factors many of which are beyond the Corporation’s control, which may cause the actual results, performance or achievements of Genesis to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Accordingly, Genesis cannot give any assurance that its expectations will in fact occur and cautions that actual results may differ materially from those in the forward-looking statements.

Forward-looking statements are based on factors or assumptions made by us with respect to, among other things, opportunities that may or may not be pursued by us; changes in the real estate industry; fluctuations in the Canadian and Alberta economy; changes in the number of lots sold and homes delivered per year; and changes in laws or regulations or the interpretation or application of those laws and regulations. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control.

Forward-looking statements in this news release include, but are not limited to, Genesis’ strategy; the ability to take advantage of growth opportunities; anticipated general economic and business conditions (including prospects for the local economy); and areas of continued operational focus.

Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include, but are not limited to: the impact of contractual arrangements and incurred obligations on future operations and liquidity; local real estate conditions, including the development of properties in close proximity to Genesis’ properties and the strength and growth of the Calgary economy; the uncertainties of real estate development and acquisition activity; fluctuations in interest and inflation rates; ability to access and raise capital on favorable terms; not realizing on the anticipated benefits from transactions or not realizing on such anticipated benefits within the expected time frame; the cyclicality of the oil and gas industry; changes in the Canadian / U.S. dollar exchange rate; labor matters; governmental regulations; general economic and financial conditions; stock market volatility; and other risks and factors described from time to time in the documents filed by Genesis with the securities regulators in Canada available at www.sedar.com, including in the Corporation’s MD&A under the heading “Risks and Uncertainties” and the Corporation’s annual information form under the heading “Risk Factors”.

Furthermore, the forward-looking statements contained in this news release are made as of the date of this news release and, except as required by applicable law, Genesis does not undertake any obligation to publicly update or to revise any of the forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Genesis Land Development Corp.

Featured image: Megapixl © Andreypopov

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