EDMONTON, ALBERTA--(Marketwire - March 14, 2012) - Melcor Developments Ltd. (TSX:MRD), an Alberta-based real estate development company, today reported net income of $81.39 million or $2.70 per share (basic) on record revenue of $220.35 million for the year ended December 31, 2011. These figures represent growth of 43% and 16% over 2010 results. Total assets also grew 19% to $1,218.89 million.

Earnings per share was positively impacted by fair value gains on investment properties as we adopted International Financial Reporting Standards (IFRS) in 2011. The per share impact was $1.21.

Record fourth quarter results contributed to Melcor's strong performance for the full year. Fourth quarter net income was $51.82 million or $1.72 per share (basic) on revenue of $129.43 million compared to net income of $32.03 million or $1.06 per share (basic) on revenue of $84.59 million in the fourth quarter of 2010.

Ralph Young, Melcor's President and CEO reported on the year: "All divisions achieved strong results in 2011, building on our legacy of 88 years of Integrity in Real Estate. While achieving strong results, Melcor was also positioning for future growth by expanding our team, adding 14 new positions, and our assets, with the acquisition of investment properties and raw land in strategic markets. With our inventory of raw and developed land, our financial resources and our strong management group, we are well positioned to take advantage of market opportunities."

Highlights

• The Community Development division had an exceptionally strong year with revenue of $175.90 million, an increase of 21% over 2010.
• The Property Development division had a very active year, completing construction of 9 buildings and recording fair value gains of $8.56 million.
• The Investment Properties division achieved revenue of $47.60 million, an increase of 13% over 2010.
• US assets expanded to $111.43 million, including the acquisition of 617 residential units and 776 acres of raw land in 2011.

Investing in the future

• $40.00 million convertible debenture was issued in a private placement on February 8, 2011, providing the capital resources to execute on growth plans within all divisions.
• Significant investments were made in inventory acquisitions and investment property additions and improvements.

Building Capacity

• Brian Baker was appointed as Chief Operating Officer on June 1, 2011.
• Jonathan Chia, Chief Financial Officer, was welcomed to the executive team on January 24, 2011.
• Expanded overall resource capacity with the creation of 14 new positions (a 19% increase in staff).

Other

• Annual dividend of $0.40 per share was paid to shareholders. Melcor has been paying dividends since 1969.
• 304,300 shares were purchased for cancellation under the Normal Course Issuer Bid, at a total cost of $3.45 million.

Outlook

The majority of Melcor's assets are in Alberta, with a growing inventory of residential units in the US. Management believes that the economic indicators in these regions provide a strong outlook for our business over the next several years. Alberta fundamentals remain strong, with low unemployment rates, net in-migration, higher than the national average weekly earnings, strong capital investment, stabilizing inflation and relative stability in the price of oil. These fundamentals create a favorable environment for both residential and commercial property development. The US continues its slow economic recovery with lingering uncertainty and volatility, limited access to capital and continued distress in the speculative and investment real estate markets. These fundamentals create an environment that favors rentals over home ownership.

With Melcor's inventory of raw and developed land, financial resources and strong management group, the company is well positioned to take advantage of market opportunities.

Annual Results

Complete financial statements, notes to the financial statements and management's discussion and analysis will be filed on SEDAR ([ www.sedar.com ]) on March 14, 2012 and available at [ www.melcor.ca ]. Melcor's information circular and other material will be mailed on or about March 30, 2012.

Annual General Meeting

Shareholders are invited to join us at Melcor's annual meeting on April 26, 2012 at 11:00 am MDT. The meeting will be held at Zeidler Hall, The Citadel Theatre, 9829 - 101A Avenue, Edmonton, Alberta.

About Melcor Developments Ltd.

Melcor is a diversified real estate development and management company with a rich heritage of integrity and innovation in real estate since 1923.

Through four integrated operating divisions, Melcor manages the full life cycle of real estate development: from acquiring raw land, to community planning, to construction and development, to managing leasable office, retail and residential sites. We develop and manage mixed-use residential communities, business and industrial parks, office buildings, retail commercial centres and golf courses.

Our headquarters are in Edmonton, Alberta, with regional offices throughout Alberta and British Columbia. Our developments span western Canada and the US. We have been trading on the Toronto Stock Exchange since 1968 (TSX:MRD).

Contributing Sources

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