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Highlights

  • Melcor Developments is involved in development and management of mixed-use residential communities, office buildings, business/industrial parks, and retail commercial centers.
  • MRD’s average sale price on single-family lots has increased by 6% against Q1-2022.
  • The company has paid a quarterly dividend of CAD 0.16 per share for Q1 2023.

Real estate development and asset management player, Melcor Developments Ltd (TSX: MRD) is involved in development and management of mixed-use residential communities, retail commercial centers, business and industrial parks, office buildings, and golf courses.

The company has been able to expand its Canadian property portfolio as more properties got transferred from Property Developments. The occupancy of Canadian property has risen from 89.3% in Q4 2022 to 90.1% in Q1 2023.

Also, there has been a 6% growth in the average sale price on single-family lots, as against Q1-2022. This increase can be attributed to higher estate lot sales in the Kelowna region during the reported period.

For the quarter Q1 2023, Melcor Developments has paid a quarterly dividend of CAD 0.16 per share. At MRD's last closing price of CAD 11.57 on August 4, 2023, dividend yield of the stock was 5.53%.

Despite a 32.5% drop in the company’s revenue to CAD 36.0 million in the first quarter of the year, as compared to CAD 53.3 million in pcp, the company’s operating income surged during Q1 2023 because of decreased cost of sales and adjustments related to REIT units.

Top 10 Shareholders
Around 75.27% of the total stakes in MRD are owned by its top ten shareholders. While Melton Holdings Ltd holds maximum shareholding of approximately ­­­50.73%, and QV Investors Inc. holds around 10.02% in the company.

Stock Price Performance
MRD’s share price has decreased by approximately 1.75% in the past one month. It has decreased by 1.40% in the last three months. The stock’s 52-week high price stands at CAD 13.09, while 52-week low price is at CAD 9.76.

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is August 04, 2023. The reference data in this report has been partly sourced from EODHD/Others.