Overview

* Melcor Developments Ltd ( MODVF ) 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

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 C$100.14

Rental mln

Revenue

Q2 Net C$7.26

Income mln

Q2 FFO C$36.12

mln

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)