GDC Genesis Land Development Corp

CALGARY, AB, Nov. 2, 2022 /CNW/ - Genesis Land Development Corp. (TSX: GDC) (the "Corporation" or "Genesis") reported its financial and operating results for the three months ("Q3") and nine months ended September 30, 2022 ("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.

The following are highlights of Genesis financial results for the third quarter of 2022:

• Progress on Business Plan: During 2022, Genesis continued to execute its growth oriented business plan. In Q3 2022, Genesis achieved two significant milestones, the removal of Growth Management Overlays ("GMOs") which prohibited development of our Lewiston and Logan Landing lands. Final pre-development approvals appear to be imminent providing Genesis with the possibility of commencing construction of three new communities, Lewiston, Logan Landing and Huxley, in 2023. In addition, through its home building division, Genesis has contracted to purchase 442 lots through third party developers providing growth for our homebuilding division.
• 202 New Home Orders YTD, up 20% from YTD 2021: New home orders for the nine months ended September 30, 2022 were 202 units compared to 168 units for the same period in 2021. The Corporation ended the third quarter of 2022 with 231 outstanding new home orders, compared to 111 at the end of Q3 2021.
• $43.6 Million of Revenues in Q3 2022: In Q3 2022, Genesis sold 45 homes, 54 residential lots to third parties and two development land parcels generating aggregate revenues of $43.6 million. In Q3 2021, Genesis sold 47 homes, 38 residential lots to third parties and three development land parcels generating aggregate revenues of $35.0 million.
• Dividend Declared: The Corporation declared an unconditional special cash dividend of $0.075 per common share for a total of $4.265 million on November 2, 2022, payable on December 15, 2022 to shareholders of record on November 28, 2022. Pursuant to subsection 89(14) of the Income Tax Act (Canada) the dividend qualifies as an eligible dividend for Canadian federal income tax purposes.
• Land Acquisitions: In Q3 2022, Genesis paid $6.7 million to acquire land from two limited partnerships (controlled entities within the consolidated entity). With this transaction Genesis will directly own three land parcels totaling 456 acres in North Conrich, on the eastern edge of Calgary, in Rocky View County. In Q2 2022, Genesis entered into a binding agreement to acquire approximately 160 acres of future residential development land in the southeast sector of the City of Calgary for a total purchase price of up to $30.0 million.
• Cash on Hand of $18.5 Million: On September 30, 2022, Genesis had $18.5 million in cash and cash equivalents and loan and credit facilities of $40.7 million which is 12% of the total book value of assets.

Selected Financial Results and Operating Data:

Selected Financial Results and Operating Data (continued):

Supported by a solid financial position, a strong new-home market and continued strength in the Calgary economy, Genesis remains well-positioned to take advantage of growth opportunities.

Driven by the strong oil and natural gas prices and continued increases in international and interprovincial immigration, prospects for the local economy are positive. However, increasing interest rates, inflationary pressures and tight labor markets are impacting home affordability. While housing price gains, rising lending rates and consumer inflation are weighing on demand, the supply of homes for sale in the Calgary market remains tight at just over 2.3 months. In its September report, the Calgary Real Estate Board noted that further interest rate increases are expected to slow sales activity, with some slippage in price growth possible in the coming months. Considering market conditions and economic uncertainty, Genesis remains cautious in executing its strategy.

The information contained in this press release should be read in conjunction with the unaudited condensed consolidated interim financial statements for the three and nine months ended September 30, 2022 and 2021 and the related Management's Discussion and Analysis ("MD&A") dated November 2, 2022 which have been filed with Canadian securities regulatory authorities. Copies of these documents may be obtained via www.sedar.com or our website at www.genesisland.com.

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, plans and strategies relating to adding additional inventory of serviced lots and future residential development land; planning for the development of the next phases of Genesis' communities; obtaining zoning and service approvals; anticipated general economic and business conditions (including in the context of COVID-19); 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; the uncertainties of real estate development and acquisition activity; fluctuations in interest 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; the impacts of COVID-19 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.