Melcor Developments (MRD) Q2 2024 earnings summary

Executive summary

• Revenue increased 6.8% to $69.71M in Q2-2024 and 17.9% to $119.46M year-to-date compared to 2023.

• Net income rose 7.9% to $23.34M in Q2-2024 and 51.9% to $36.13M year-to-date.

• Funds from operations (FFO) up 15.4% to $20.12M in Q2-2024 and 38.3% to $33.86M year-to-date.

• Quarterly dividend of $0.11 per share declared, payable September 27, 2024.

• Alberta's strong migration and demand for suburban living drove growth, especially in Edmonton and Calgary.

Financial highlights

• Gross profit up 3.6% to $35.09M in Q2-2024 and 12.7% to $58.70M year-to-date.

• Basic EPS up 10.1% to $0.76 in Q2-2024 and 55.3% to $1.18 year-to-date.

• Book value per share increased 3.4% to $40.81 as of June 30, 2024.

• Net margin improved to 33.5% in Q2-2024 and 30.2% year-to-date.

Outlook and guidance

• Focus remains on maintaining a strong balance sheet and prudent spending amid inflation and higher interest rates.

• Strategic emphasis on core Alberta markets and debt reduction.

• Continued product development for builder partners as market demands.