Melcor Developments Reports Third-Quarter Results and Declares Dividend

EDMONTON, Alberta, Nov. 03, 2026 /CourierPR/ -- Melcor Developments Ltd., an Alberta-based real estate development and asset management company, reported its third-quarter results for the period ending September 30, 2026. The company disposed of four commercial properties and four residential units during the quarter, reflecting the ongoing execution of its long-term strategy of disciplined capital allocation, debt reduction, and the disposition of non-core assets.

According to the press release, Melcor sold the Telford Industrial property in Leduc, Alberta, for net proceeds of $31.00 million. The Staples Building in Calgary, Alberta, was sold for $12.08 million, and the Stanley Building in Edmonton, Alberta, was sold for $1.70 million. Additionally, the company transferred the Office at the Promenade in Denver, Colorado, as part of a debt settlement arrangement. Four residential units at the Edge at Grayhawk in Scottsdale, Arizona, were also sold for net proceeds of $1.69 million.

General debt declined by 21.0% to $469.10 million from $593.93 million at the end of the third quarter in 2025. The debt-to-equity ratio improved to 0.52 at the end of September 30, 2026, compared with 0.65 at the end of the third quarter in 2025, and 0.62 at the end of the year in 2025. The company's land division saw a year-to-date revenue increase to $70.55 million, supported by higher single-family lot sales, while commercial and raw land sales were lower than in 2025.

Properties revenue declined by 6.4% to $74.66 million year-to-date, primarily reflecting recent property dispositions, but was partially offset by revenue generated from newly developed commercial properties. The golf division faced a challenging season, with a 4.2% decline in rounds played compared to 2025, but total revenue remained stable at $11.73 million (2025: $11.63 million) as increased food and beverage and other clubhouse revenues helped offset lower course activity.

Year-to-date revenue was $167.77 million with a gross margin of 47.8%, compared with revenues of $223.43 million and a gross margin of 53.0% in 2025. Funds from operations (FFO) were $47.32 million compared with $73.31 million in 2025. The decrease in FFO is primarily due to a reduction in gross profits generated from the Land division and the impact of recent property dispositions on revenue and gross profit in the Properties division.

The company declared a quarterly dividend of $0.15 per share, payable on December 31, 2026, to shareholders of record on December 15, 2026. This dividend is an eligible dividend for Canadian tax purposes. Despite the challenges in the real estate market, Melcor's diversified portfolio of land development, income-producing properties, and golf operations provided operational flexibility and contributed to resilient financial and operating results during the period.