CALGARY, AB, July 30, 2024 /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, 2024 (“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 2024:

2024 Highlights (Q2 2024 and YTD 2024)

• $163.3 Million of Revenues in YTD 2024: Genesis generated revenues of $163.3 million in YTD 2024 up from $90.5 million achieved in YTD 2023. Q2 2024 revenues of $95.0 million were higher when compared to $53.2 million generated in Q2 2023.
• $15.0 Million of Net Earnings in YTD 2024: Net earnings attributable to equity shareholders in YTD 2024 were $15.0 million ($0.26 net earnings per share – basic and diluted), compared to net earnings attributable to equity shareholders of $4.3 million ($0.07 net earnings per share – basic and diluted) in YTD 2023. Net earnings attributable to equity shareholders in Q2 2024 were $8.0 million ($0.14 net earnings per share – basic and diluted), compared to net earnings attributable to equity shareholders of $4.1 million ($0.07 net earnings per share – basic and diluted) in Q2 2023.
• Acquired 734 Acres of Development Lands: In Q2 2024, Genesis closed the acquisition of 734 acres of development land in southeast Calgary for $53.9 million. Genesis also closed the acquisition of 160 acres of development land located in southeast Calgary for $29.5 million.
• Huxley Lands Limited Partnership (“HLLP”): In Q2 2024, Genesis entered into binding agreements to sell a 20% ownership stake in HLLP to each of two Calgary based third party home builders for gross proceeds of $21.4 million. The transactions are scheduled to close in Q4 2024. Partners are selected carefully, to add value to the execution of the community’s development program.
• 354 Lots Sold: In YTD 2024, Genesis sold 354 residential lots (213 to third-party builders and 141 through its home building division, Genesis Builders Group Inc. (“GBG”)), an increase of 113% from 166 lots in YTD 2023 (75 to third-party builders and 91 through GBG). In Q2 2024, Genesis sold 231 residential lots (121 to third-party builders and 110 through GBG), an increase of 122% from 104 lots in Q2 2023 (45 to third-party builders and 59 through GBG).
• 192 Homes Sold: In YTD 2024, Genesis sold 192 homes, an increase of 49% from 129 homes sold in YTD 2023. In Q2 2024, Genesis sold 107 homes, an increase of 55% from the 69 sold in Q2 2023.
• 235 New Home Orders: New home orders for the six months ended June 30, 2024 were 235 units compared to 156 units for the same period in 2023. During Q2 2024, Genesis had 122 new home orders compared to 132 for Q2 2023. As of June 30, 2024, Genesis had 290 outstanding new home orders, compared to 232 as at June 30, 2023.
• Land Servicing Activity: In YTD 2024, land servicing activity amounted to $20.3 million compared to $25.4 million in YTD 2023. Genesis continues to make significant progress in servicing the three new communities that commenced in 2023 and two new phases in two existing communities in 2024.
• Cash on Hand of $39.4 Million: On June 30, 2024, Genesis had $39.4 million in cash and cash equivalents and loan and credit facilities of $133.6 million which is 27% of the total book value of assets.

Selected Financial Results and Operating Data:

Outlook

Genesis continues to execute on its growth strategy in both its land and housing divisions, sustained by a backlog of new home orders, higher volume of lot sales, and the continued strength of the CMA market. Despite higher interest rates and inflationary pressures impacting home affordability, home prices continue to move higher due to the low supply of homes for sale, combined with strong housing demand from high levels of migration.

Genesis is working proactively with key contractor partners and home buyers to address concerns relating to cost increases and a lack of skilled labour and some products and materials in both our land development and home building divisions.

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, 2024 and 2023 and the related Management’s Discussion and Analysis (“MD&A”) dated July 30, 2024 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 anticipated future results, performance or achievements 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 and the CMA market; 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.sedarplus.ca, 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 © Rfischia

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