GDC Genesis Land Development Corp

CALGARY, AB, May 5, 2022 /CNW/ - Genesis Land Development Corp. (TSX: GDC) (the "Corporation" or "Genesis") reported its financial and operating results for the three months ended March 31, 2022 ("Q1"). Genesis is an integrated land developer and residential home builder owning and developing a growing portfolio of well-located, entitled and unentitled residential, commercial and mixed-use lands and serviced lots throughout the Calgary Metropolitan Area.

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

Q1 2022 Highlights

• 175 New Home Orders, up 143% from Q1 2021: New home orders for the three months ended March 31, 2022 were 175 units compared to 72 units for the same period in 2021. The Corporation ended the first quarter of 2022 with 285 outstanding new home orders, compared to 124 at the end of Q1 2021.
• $20.4 Million of Revenues in Q1 2022: In Q1 2022, Genesis sold 31 homes, 4 residential lots to third parties and a development land parcel, generating aggregate revenues of $20.4 million. In Q1 2021, Genesis sold 31 homes, 16 residential lots to third parties and a development land parcel held by a controlled limited partnership, generating aggregate revenues of $18.7 million.
• $0.5 Million Net Loss in Q1 2022: Net loss attributable to equity shareholders in Q1 2022 was $0.5 million ($0.01 net loss per share - basic and diluted), compared to net earnings attributable to equity shareholders of $1.3 million ($0.03 net earnings per share - basic and diluted) in Q1 2021.
• $29.2 Million Land Acquisition: In Q1 2021, Genesis entered into a binding agreement to acquire approximately 157 acres of future residential development land in the City of Calgary. A non-refundable deposit of $2.2 million was paid in February 2021. Genesis closed the transaction on April 4, 2022 and paid the balance of $27.0 million to the seller. This project, now called "Huxley", is expected to be under development in 2023.
• Cash on Hand of $23.0 Million: On March 31, 2022, Genesis had $23.0 million in cash and cash equivalents, which exceeded outstanding loans and credit facilities balances of $15.4 million by $7.6 million.

Selected Financial Results and Operating Data:

Selected Financial Results and Operating Data (continued):

Outlook

Supported by a solid financial position, a strong new-home market and a buoyant Alberta economy, Genesis is well-positioned to take advantage of growth opportunities in 2022.

Driven by improved oil and natural gas prices and increases in international and interprovincial immigration, prospects for the local economy are excellent for 2022. The Calgary Real Estate Board reports that Calgary has some of the tightest market conditions seen in over a decade and housing market momentum will continue. Housing price gains, rising lending rates and consumer inflation are expected to weigh on demand in the second half of this year. Nonetheless, persistently tight housing inventories are expected to continue over the next several months. In light of geo-political events and resulting economic uncertainty, Genesis remains cautious in executing its strategy.

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 months ended March 31, 2022 and 2021 and the related Management's Discussion and Analysis ("MD&A") dated May 5, 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.

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, 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.