Canada's Melcor Developments Q2 revenue jumps

Overview

• Melcor Developments Ltd Q2 revenue up 43.7% driven by US land sales

• Net income down 68.9% due to deferred tax liabilities and transaction costs

• The real estate development firm increases quarterly dividend to C$0.13 per share

Outlook

• Alberta-based Melcor plans to divest non-core assets to reduce borrowings

• Company focuses on core Alberta market for strategic asset sales

• Melcor evaluating strategic asset sales to strengthen balance sheet

Result Drivers

• US LAND SALES - Land division's revenue increased due to strong sales in the US region, contributing C$49.67 mln in Q2 and C$61.67 mln year-to-date

• PROPERTIES DIVISION REVENUE DROP - Revenue from the Properties division decreased by 4.0% in Q2-2025 and 4.1% year-to-date due to recent property sales, partially offset by new commercial developments

• DEFERRED TAX IMPACT - Net income was negatively impacted by a C$22.20 mln increase in deferred tax liabilities following the acquisition of the remaining equity interest in Melcor REIT

Key Details

Press Release: ID:nGNX31gW01