Melcor Developments announces second quarter results, declares quarterly dividend of $0.15 per share

EDMONTON, Alberta, Aug. 13, 2026 (GLOBE NEWSWIRE) — Melcor Developments Ltd. (“Melcor”) (TSX: MRD), an Alberta-based real estate development and asset management company, today reported results for the second quarter ended June 30, 2026. The second quarter Management Discussion & Analysis (MD&A) and Condensed Interim Financial Statements are available on our website ( www.melcor.ca ) under Investors, or on SEDAR+ ( www.sedarplus.ca ).

Timothy Melton, Melcor’s Executive Chair and Chief Executive Officer, commented: “The first half of 2026 reflects the continued execution of our long-term strategy. While the timing of land sales and recent property dispositions resulted in lower revenue and funds from operations (“FFO”) compared to the prior year, our core Alberta operations remained stable, margins remained strong, and we continued to strengthen our balance sheet. Through disciplined capital allocation, debt reduction, and the strategic sale of non-core assets, we have improved our financial flexibility while maintaining a substantial inventory of development land and a diversified portfolio of income-producing assets. As Alberta continues to benefit from population growth and economic investment, we believe Melcor remains well positioned to capitalize on opportunities across our markets and create long-term value for shareholders.

In the first six months of the year, Melcor reported revenue of $107.36 million and a gross margin of 49.5%, compared to revenues of $150.88 million and a gross margin of 54.6% in 2025. The decrease in revenue was largely attributable to lower land sales activity in the U.S. region, where timing and uneven nature of land sales can significantly impact period-to-period results, as well as the impact of property disposals completed over the past 18 months as part of the Melcor’s asset optimization strategy.

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Despite ongoing uncertainty surrounding economic conditions, construction costs and development timelines, activity within Melcor’s core Alberta markets remained stable. Demand for residential lots continued to support Canadian land sales, while Melcor’s income-producing properties maintained a solid operating base benefiting from our recent completed commercial developments.

Net income for the first half of 2026 increased to $45.11 million from $12.27 million in 2025. As reported earnings were significantly influenced by non-cash and non-operating items, we continue to focus on funds from operations (“FFO”) as a key measure of underlying performance. Year-to-date FFO was $30.23 million, down 39.4% from $49.91 million in 2025, the result of lower land sales and the impact of recent income-producing property dispositions.

While lower land sales in our US region reduced the Land division’s contribution to total revenue to 47.8% year-to-date in 2026 from 60.5% in 2025, demand in Alberta remained strong.