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Genesis Land Development Corp. Uncommon Communities. Presenters: Jeff Blair, CEO Simon Fletcher, CFO. Forward Looking Statements. - PowerPoint PPT Presentation
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Uncommon Communities
Genesis Land Development Corp.
Presenters:Jeff Blair, CEOSimon Fletcher, CFO
2
Forward Looking StatementsCertain information included in this presentation constitutes forward-looking statements or information (“forward-looking information”) under applicable securities legislation.
This information relates to future events or future performance of Genesis Land Development Corp. (“Genesis”). When used in this presentation, the words "may", "would", "could", "will", "intend", "plan", "anticipate", "believe", "estimate", "forecast", "predict", "seek", "propose", "expect", "potential", "continue", and other similar expressions, are intended to identify forward looking information. This information involves known and unknown risks, uncertainties, and other factors that may cause actual results or events to differ materially from those anticipated in such forward looking information. Such forward-looking information is provided for the purpose of providing information about management's current expectations and plans relating to the future. Reliance on such information may not be appropriate for other purposes, such as making investment decisions. Although management believes that the expectations reflected in such forward-looking information are reasonable, no assurance is given that such expectations will prove to be correct. Many factors could cause Genesis’ actual results, performance or achievements to vary from those described herein. Should one or more of these risks or uncertainties materialize, or should assumptions underlying forward-looking information prove incorrect, actual results may differ materially from those described in this presentation. Forward looking-information in this presentation may include, among others, information pertaining to the following: the completion of property, lot and homes sales, the timing and benefits thereof; the use of proceeds from any financing; opportunities and prospects; development of property, acquisition and disposition plans and opportunities and the timing thereof; potential development and sale of lots and homes, factors upon which Genesis will decide whether or not to undertake a specific course of action; expectations regarding Genesis’ ability to obtain capital; and With respect to forward-looking information in this presentation, Genesis has made assumptions, regarding, among other things: the completion of dispositions and the timing thereof; the impact of increasing competition; the timely receipt of all required regulatory approvals; building development rates and absorption rates; the timing and costs of construction, taxes and environmental matters; the ability of Genesis to successfully market its lots and homes; Genesis’ ability to obtain additional financing on satisfactory terms; property and home prices and exchange rates; and Genesis’ ability to attract and retain qualified personnel. Furthermore, the foregoing list is not exhaustive of all factors and assumptions which may have been used. Genesis’ actual results could differ materially from those anticipated as a result of the risk factors set forth below, including: failure to complete dispositions on the terms agreed upon or at all; competition; liabilities and risks including environmental liability and risks, inherent in development and construction operations; alternatives to and changing demand for lots and homes; changes in legislation and the regulatory environment, such as uncertainties with respect to environmental legislation; title defects; the availability of qualified personnel; and the availability of construction materials and related equipment in the particular areas where such activities will be conducted, economic and financial conditions in Canada; the behaviour of financial markets, including fluctuations in interest rates; availability of equity and debt financing; strategic actions including dispositions; adverse hydrology conditions; regulatory and political factors within Canada; the possible impact of international conflicts and other developments; and other risks and factors detailed from time to time in Genesis’ Annual Information Form and other documents available at www.SEDAR.com. The forward-looking information contained in this presentation is made as of the date hereof and Genesis undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless required by applicable securities laws. The forward-looking information contained in this presentation is expressly qualified by this cautionary statement. All values are in Canadian dollars.
3
Corporate Snapshot
History Established in 1993 Listed on TSX 1999
Symbol: TSX : GDC Share Price: $3.33 52 Week High / Low: $3.59 / $2.30 Common Shares Outstanding:
44,659,912 Market Capitalization:
$148,767,467
(All stock data as at September 6, 2012)
Key Points Eleven Years of positive
earnings. Large inventory of approved
lands in high growth areas. Solid asset base. Positioned benefit from
mature land base
4
Earnings Per Share- (EPS)
5
2011 Results Summary
• $0.25 EPS on revenues of $95.760 million• Non income producing debt reduced by $11.5 million• Agreement for $31.7 million commercial sale to Rio-Can• Completed servicing of 332 lots• Sold 255 residential lots • Sold 3 multi family sites totaling 16.02 acres• Cost of borrowing reduced from 8.21% to 6.57%• Genesis Builders Group (GBG) sold 100 residential units• GBG closed 68 residential units• GBG opened 6 show homes in 4 communities
6
Calgary Market Overview
Population Growth for Calgary Metropolitan Area (CMA) Calgary Population = 1.1 million, CMA = 1.2 million. Calgary CMA increase of 12.6% (2006-2011) Net in-migration to the CMA expected to be 21,000 in 2012 and 18,000 in
2013. City of Calgary population expected to increase by 170,700 between 2011
and 2021 with an annual growth rate of 16,484 per year Airdrie population increase of 47.1% (2006-2011). Population expected to
increase from 47,000 in 2012 to 56,000 in 2018 and 63,000 in 2023
Housing Market CMA Starts Q2-2012 = 7,044 Q2-2011 = 3,530 Q2-2012 New Home Price: $581,415 +8% over Q2-2011 – $536,624 Balanced resale market & low interest rates* Statistics Canada Census,CREB – Calgary’s Economic Edge 2012, City of Calgary, City of Airdrie CMHC Residential Construction Digest, CMHC Housing Now
7
Calgary Area and Land Holdings
NOTE: * Shown net of 836 acres held in Limited Partnerships (LP’s) ** Joint Venture with Melcor
North West CalgarySymons ValleySage Hill Crossing
Sage Meadows Kinwood ** Sherwood
Kincora416 Acres
Mitford (Cochrane)157 Acres Delacour *
1,797 Acres (approx.)
North East * Calgary Lands 315 Acres
North East CalgarySaddlestone160 Acres
Mountain View144 Acres
AirdrieBayside, Canals417 Acres
Airdrie *Future Lands170 Acres (approx.)
8
British Columbia Land Holdings
9
Added Value Concept
10
Full Cycle Land Inventory
IMMEDIATE LANDS• Serviced Lot Inventory (CMA): 424 Lots (8/31/12)• Approved Lands (CMA): 815 Acres
– 235 acres of commercial/industrial– 580 residential acres providing for +/-4,600 future residential units.
MID TERM LANDS• Raw Land – Alberta 1,637 AcresLONG TERM LANDS• Raw Land – AB/B.C. 3,295 Acres
(Partially Approved/Developed) • L.P. Lands (Partially Approved) 1,333 AcresTOTAL 7,080 Acres
11
Land Program NE Calgary
Immediate Development Land Taravista &Taralake completed Saddlestone 160 acres 972 Single Family lots 975 Multi Family doors 5 year program 2011/12 – PH1–4 = 295 lots
PH 5-6= 1 Commercial lot, 1 Multi-family site & 153 Single Family lots
12
Land Program NW Calgary
SYMONS VALLEY Immediate Development Land 300 acres fully approved Sage Meadows Phases 1 – 2 = 200 lots Future single family lots ±76 Future multi-family doors ± 1575 9.2 acre mixed use site
SAGEHILL SHOPPING CENTER 138 acres (gross) ± 33 acres conditional sale to
Riocan 900,000 square ft office space 4,400 multi-family units ± 1million square ft commercial
13
Land Program Airdrie
AIRDRIE BAYSIDE & CANALSImmediate Development Land• Bayside Phase 7 – 150 lots• Bayside 9 – 106 lots• Additional 344 acres fully
approved providing ± 2,750 future residential doors.
Future Development Land• 318 acres annexed March
2012
14
County of Rockyview
MID-TERM LANDS• Total Landholdings
of 2,692 acres.• 307 acres with
approved Concept Plan ± 1,500 residential doors
• Further planning underway
• 610 acres Industrial/Commercial
15
Home BuildingAverage ±100 home closing over the last 6 years
GBG CLOSINGS SINCE 2006
Note: 2012 & 2013 are forecasts
16
Key Performance Indicators: Corporate
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
Actual/Projected $5,292 $6,964 $4,847 $2,566 $3,749 $7,746 $2,515 $4,350 $9,167 $9,574 $8,447 $9,939
$0
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
000'
s
Cash at month-end
Sep financings consist of: - $15M Saddlestone ph 6 development financings - $12M Canals ph 6 development financingsNov: $68M SHC dev't financing with $17M paid to Firm on existing loan
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
Upcoming financings $- $- $- $- $- $- $- $- $27,000 $- $68,000 $-
Fin bal at month-end $85,075 $82,157 $78,344 $74,412 $76,324 $80,488 $78,332 $90,871 $90,182 $87,293 $117,355 $92,437
$-
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
000'
s
2012 Financings
Sep-12 Oct-12 Nov-12 Dec-12 Jan-13 Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13
FFO w/o fin $4,817 $407 $(1,127) $1,492 $(1,273) $6,945 $(430) $(2,621) $(2,540) $(7,896) $2,222 $(285)
FFO w/ fin $4,817 $407 $(1,127) $1,492 $(1,273) $6,945 $(430) $(2,621) $(2,540) $(7,896) $2,222 $(285)
Funds to debt $9,989 $7,272 $4,624 $44,821 $5,648 $9,414 $9,085 $6,344 $4,921 $9,342 $9,074 $5,302
($20,000)
($10,000)
$0
$10,000
$20,000
$30,000
$40,000
$50,000
000'
s
12-month rolling FFO outlook
12 months roll
Projected cash in $215,521
Projected cash out -$215,810
Projected net cash $(289)
($250,000)
($200,000)
($150,000)
($100,000)
($50,000)
$0
$50,000
$100,000
$150,000
$200,000
$250,000
000'
s
Sep'12 - Aug'13 FFO (with financings)
12 months roll
Projected cash in 198,521
Projected cash out $(198,810)
Projected net cash $(289)
($250,000)
($200,000)
($150,000)
($100,000)
($50,000)
$0
$50,000
$100,000
$150,000
$200,000
$250,000
000'
s
Sep'12 - Aug'13 FFO w/o financings
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12
Actual $3.00 $3.10 $3.13 $3.16 $3.28 $3.31 $3.13 $3.17
$2
$3
$4
Avg daily share price
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12
Actual 78,741 28,533 36,239 66,314 57,696 36,686 11,491 13,230
0
20,000
40,000
60,000
80,000
100,000
Avg daily share volume
17
Key Performance Indicators: Land
98, 29%
0, 0%
75, 22%
167, 49%
Target 340 lot closings
TPB - contracted
TPB - fut. sales
GBG
Closed
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 2012
Actual 46% 47% 63% 52% 37% 35% 37% 44% 49%
0%
10%
20%
30%
40%
50%
60%
70%
Gros
s mar
gin
Lot gross margin %
2011 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
Budget - - - 132 - - - - - 73 - 148 -
Actual 404 - - 132 - - - - - - - - -
-50
100 150 200 250 300 350 400 450
Lots
serv
iced
Monthly lots serviced
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
Budget 2 5 86 16 27 20 10 8 27 33 137 40
Actual 2 5 75 30 46 55 46 9 - - - -
-
20
40
60
80
100
120
140
160
Lot s
ales
Monthly lot sales
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
Budget 18 11 26 17 28 12 16 11 35 48 32 86
Actual 18 11 26 20 25 25 20 17
-10 20 30 40 50 60 70 80 90
100
Lot c
losin
gs
Monthly lot closings
2012
Budget 340
Actual 162
-
50
100
150
200
250
300
350
400
Lot c
losin
gs
2012 lot closings
YTD Aug-12
Budget 139
Actual 162
-20 40 60 80
100 120 140 160 180
Lot c
losi
ngs
YTD lot closings
18
Key Performance Indicators: GBG
50 , 40%
75 , 60%
Target 125 home closings
Closed
Sold
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12 2012
Actual 25% 16% 24% 20% 21% 18% 24% 14% 20%
0%
5%
10%
15%
20%
25%
30%
Gros
s mar
gin
Housing gross margin %
2011 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
Budget 5 12 12 14 14 10 8 12 15 15 13 8
Actual 32 5 13 13 14 19 17 5 21
-
5
10
15
20
25
30
35
Hom
e sa
les
Monthly home sales
2012
Budget 138
Actual 107
-
20
40
60
80
100
120
140
160
Hom
e sa
les
2012 home sales
YTD Aug-12
Budget 87
Actual 107
-
20
40
60
80
100
120
Hom
e sa
les
YTD home sales
Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Sep-12 Oct-12 Nov-12 Dec-12
Budget 1 4 3 4 13 10 8 8 11 14 17 32
Actual 1 4 2 5 14 12 6 6
-
5
10
15
20
25
30
35
Hom
e cl
osin
gs
Monthly home closings
2012
Budget 125
Actual 50
-
20
40
60
80
100
120
140
Hom
e cl
osin
gs
2012 home closings
2012
Pre-sales 80
Spec 45
0%
20%
40%
60%
80%
100%
Hom
e cl
osin
gs
2012 closings distribution
19
Strategic Objectives
• Sale of non core assets• Elimination of non income producing debt• Improve balance sheet• Reduce borrowing costs• Increase home sales and closings• Accelerate monetization of approved land holdings• Evaluate and advance opportunities to wrap up limited
partnerships• Adopt a rolling five year business plan• Establish and monitor key performance indicators