Walton Edgemont Development Corporation (the “Corporation”)
announced today the Corporation’s results for the third quarter of 2012.
Third Quarter Financial Results
During the third quarter of 2012, the Corporation generated total
revenues of $15,654 and incurred total expenses of $246,057, which
translated into a net loss before tax of $230,403. The revenues
generated by the Corporation consisted of interest income earned on the
cash held by the Corporation. The total expenses primarily consisted of
$146,059 in costs for the management of the Corporation, $35,107 in
servicing fees, and $33,906 in marketing expenses.
On a year-to-date basis, the Corporation generated total revenues of
$38,243 and incurred total expenses of $701,088, which translated into a
net loss before tax of $662,845. The revenues generated by the
Corporation consisted of interest income earned on the cash held by the
Corporation. The total expenses primarily consisted of $435,002 in costs
for the management of the Corporation, $104,557 in servicing fees, and
$70,707 in marketing expenses. The increase in management fees,
servicing fees and marketing expense was offset by a $450,000 decrease
in organizational expenses, which were incurred during the comparative
period in relation to the Corporation’s prospectus and private placement
offerings. The nature and amount of expenses incurred during the
year-to-date period were consistent with management’s expectations for
the period. The overall net loss incurred during the third quarter of
2012 was consistent with management’s expectations because the
Corporation is not expected to generate significant revenue, except
during periods when the sale of lots is completed.
Highlights For The Third Quarter
During the third quarter, the following milestones were achieved:
In August, the Corporation executed a draft of the development
servicing agreement (“Development Servicing Agreement”) for the Phase
1 of the project with the City of Edmonton. This agreement allows the
Corporation to commence underground utility construction for Phase 1
of the project while the Development Servicing Agreement is being
finalized by the City; and
During September, the Corporation commenced installation of the
underground utilities for Phase 1 of the project.
In comparison to the anticipated completion dates for the Phase 1
milestones as reported for the second quarter of 2012, the anticipated
completion dates for some of the remaining Phase 1 milestones are
slightly behind schedule. These delays are not, however, expected to
affect the ability of the Corporation to complete the project within the
approximate six-year time frame disclosed in the Corporation’s
prospectus and offering memorandum, and remains on track for achieving
an internal rate of return of 13.5%.
Launched in 2011, the Corporation owns a four-phase residential
201.5-acre development in southwest Edmonton, Alberta, marketed under
the name of “Woodhaven Edgemont.”
The Corporation is managed by Walton Asset Management L.P. and the
development of the properties is managed by Walton Development and
Management L.P., both of which are members of the Walton Group.
The Walton Group is a multinational group of real estate investment and
development companies headquartered in Calgary, Alberta, Canada.
Walton’s expertise is the research, acquisition, management and
development of strategically located land in major North American growth
corridors. With more than 70,000 acres of land under management, the
Walton Group is one of North America’s premier land asset managers.
Walton manages and/or owns land assets in Phoenix, Austin, Dallas,
Atlanta, Charlotte, the Washington D.C. region, Ottawa, Toronto,
Edmonton and Calgary.
For more information about the Walton Edgemont Development Corporation,
please visit www.sedar.com.
For more information about Walton, visit www.Walton.com.
This news release, required by Canadian laws, does not constitute an
offer of securities, and is not for distribution or dissemination
outside Canada. This news release contains forward looking information,
and actual future results may differ from what is disclosed in this news
release. The risks, uncertainties and other factors that could influence
results are described in the prospectus and other documents filed with
Canadian securities regulatory authorities and available online at www.sedar.com.
Except as otherwise noted, all amounts are in Canadian dollars, and
are based on unaudited financial statements for the period ended
September 30, 2012, and related notes, prepared in accordance with
International Financial Reporting Standards.