Melcor Developments announces second quarter results, declares quarterly dividend of $0.13 per share

Core Insights - Melcor Developments Ltd. reported a consolidated revenue of $150.88 million for the year-to-date, marking a 26.3% increase compared to 2024 [2][14] - The company experienced a gross margin improvement to 54.6% year-to-date, up from 49.1% in the previous year [2][14] - Funds from operations (FFO) increased by 36.7% to $85.96 million year-to-date, driven by strong performance across operating divisions [2][22] Financial Performance - Consolidated revenue for Q2 2025 was $100.14 million, a 43.7% increase from $69.71 million in Q2 2024 [14][31] - Gross profit for Q2 2025 rose to $55.04 million, up 56.8% from $35.09 million in Q2 2024 [14][31] - Net income for Q2 2025 decreased by 68.9% to $7.26 million, primarily due to an additional $22.20 million in deferred income taxes related to the acquisition of Melcor REIT [19][31] Divisional Highlights - The Land division's revenue increased by 83.0% to $68.15 million in Q2 2025, attributed to strong sales in the US region [23][24] - The Properties division accounted for 35.5% of total revenue, with occupancy rates decreasing to 81.6% from 86.1% at year-end 2024 [24][16] - The US market contributed 52.6% of total revenue in Q2 2025, highlighting the importance of this region for Melcor's growth [17][23] Strategic Transactions - On April 23, 2025, Melcor completed the acquisition of all outstanding public trust units in Melcor REIT for $5.50 per unit, consolidating its income-producing properties [5][8] - The transaction resulted in a $22.20 million increase in deferred tax liabilities and $7.08 million in transaction costs [19][20] - The company is evaluating strategic asset sales to strengthen its balance sheet and reduce bank operating lines [6][29] Shareholder Returns - The Board declared a quarterly dividend of $0.13 per share, up from $0.11 per share, reflecting a commitment to returning value to shareholders [7][34] - The company repurchased 174,276 shares for cancellation at a cost of $2.24 million in 2025 [34]