EDMONTON, ALBERTA--(Marketwire - Nov. 3, 2011) - Melcor Developments Ltd. (TSX:MRD), an Alberta-based real estate development company, today reported financial results for the nine month period ended September 30, 2011. Melcor recorded net income of $29.57 million or $0.98 per share (basic) on revenue of $90.92 million compared with net income of $24.84 million or $0.82 per share (basic) on revenue of $105.32 million for the same period in 2010.

Third quarter net income was $21.14 million or $0.70 per share (basic) on revenue of $41.45 million compared to net income of $11.65 million or $0.39 per share (basic) on revenue of $40.92 million in the third quarter of 2010.

Ralph Young, Melcor's President and CEO, stated: "Development and sales activities are maintaining healthy levels consistent with the Company's business plan objectives for the year. We are well positioned to have a strong finish to the 2011 fiscal year."

Additional highlights for Q3-2011 include:

• Fair value gains of $14.55 million were realized on our investment properties primarily resulting from increased leasing activity and construction progress on Property Development projects, decreased capitalization rates on retail developments, and capital improvements on office properties.
• The Investment Properties division sold "The Market at Magrath", a 78,400 sq. ft. retail and office property in Edmonton, Alberta, for sale proceeds of $34.50 million. The sale closed on September 1, 2011 and resulted in net cash proceeds to the company of $15.42 million.
• The Company announced its intention to make a Normal Course Issuer Bid on August 30, 2011, and has purchased a total of 304,300 shares for cancellation as at November 3, 2011, at a total cost of $3.45 million.

Subsequent to the end of the third quarter:

• The Investment Properties division acquired a 240 unit multi-family project in North Dallas, Texas for US$19.80 million. This acquisition is line with the division's objective to continue to build its US holdings and brings Melcor's Texas multi-family portfolio to 744 units.
• The Community Development division is in the final stages of closing on a 75% interest in approximately 1,000 acres of raw land located in Denver, Colorado for US$15.30 million. The lands have municipal development approvals and offsite infrastructure for residential development. Development is anticipated to commence in the next two years as market conditions improve. This will be Melcor's first major land development project in the US since 1988.
• Melcor's Board of Directors declared a semi-annual dividend of $0.20 per share, payable on December 30, 2011 to shareholders of record on December 16, 2011.

The company remains cautiously optimistic that the basic fundamentals of the western Canadian economy, particularly in Alberta, will have a positive effect on Melcor's future growth. In addition, Melcor continues its planned expansion into the US real estate market where it believes good investment opportunities are available.

[ www.melcor.ca ]