Melcor Developments Ltd., an Alberta-based real estate development Company achieved net earnings of $8,075,000 or $0.26 per share (basic) on revenue of $40,711,000 for the six months ended June 30, 2008 compared to net earnings of $22,394,000 or $0.72 per share (basic) on revenue of $83,377,000 for the same period in 2007. Diluted earnings per share were $0.26 for the six months ended June 30, 2008 compared to $0.71 during the same period in the prior year.
Earnings for the three months ending June 30, 2008 were $3,702,000 or $0.12 per share ($0.12 per share diluted) compared to earnings of $15,953,000 or $0.51 per share ($0.50 per share diluted) during the same period in 2007. Revenue for the second quarter was $19,779,000 compared to the second quarter in 2007 when revenues were $50,526,000.
The comparatively lower levels of company revenues and earnings to date in 2008 is due to the general slowdown that has occurred in the Alberta residential real estate sector for new homes. Earnings are behind the Company's 2008 business plan but generally consistent with our cautionary outlook noted in the Annual Report to Shareholders.
The Company's retail commercial and office portfolio continues to grow and have improved performance as vacancies decline and rents climb to meet market demand. The Company adds new assets to its Investment Property Division as properties are successfully built, leased and financed by its Property Development Division from our strong inventory of commercial and office development sites.
The Company received notice that two annexations involving lands owned by Melcor, were approved by the Alberta Government on July 21, 2008 including 127 acres by the Town of Penhold and 129 acres by the Town of Innisfail.
On July 15, 2008, the Company announced the sale of its Crowfoot West Business Centre, a recently completed 113,500 sq. ft. office building in northwest Calgary, Alberta to an institutional buyer at a sale price of $49,675,000. The sale of this asset will generate a material gain of approximately $0.60 per share and will be included in the third quarter financial results of the Company. -- www.cnxmarketlink.com
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