Walton Big Lake Development L.P. Reports Third Quarter 2012 Results
CALGARY, Alberta--(BUSINESS WIRE)-- Walton Big Lake Development L.P. (the "Partnership"), and its general partner Walton Big Lake Development Corporation announced today the Partnership's results for the third quarter of 2012.
Third Quarter Financial Results
During the third quarter of 2012, the Partnership recognized revenue from the sale of lots of $14,639,728, cost of sales of $12,726,508, other expenses of $204,625, and a net income and comprehensive income of $1,708,595.
Revenue was recognized on the sale of 107 of the 162 Phase 1 lots during the third quarter of 2012. This was triggered by the completion of onsite roads for the committed lots and payment of second deposits for those lots. The marketing expenses incurred during the third quarter of 2012 were consistent with the marketing expenses anticipated by management for the work completed during the third quarter of 2012, and were primarily attributed to the marketing efforts for the Hawks Ridge at Big Lake community.
On a year-to-date basis, the Partnership recognized revenue from the sale of lots of $14,639,728, cost of sales of $12,726,508, other expenses of $532,394, and net income and comprehensive income of $1,380,826. Similar to the increase in other expenses during the three months ended September 30, 2012, the increase in other expenses during the nine months ended September 30, 2012, was primarily attributed to an increase in marketing expenses.
The third quarter of 2012 marked the first period that the Partnership generated positive net income. This was driven by recognizing the revenue from the sale of lots during the third quarter of 2012. The Partnership anticipates to generate an overall positive net income over the life of the project because the total revenues generated by Partnership are expected to exceed its total expenses.
Highlights For The Third Quarter
During the third quarter the following milestones were reached:
- In July, the Partnership completed offsite utilities, including the waterline and sanitary sewer;
- In August the Partnership submitted the Phase 2 zoning and subdivision applications to the City of Edmonton;
- In September, the Partnership completed paving of onsite roadways in Phase 1 and paving of offsite roadways.
- The third quarter marked the first period that the Partnership has generated positive net income. This was driven by recognizing the revenue from the sale of lots during the quarter; and
- Subsequent to the third quarter, single-family and semi-detached show homes were opened to public viewing in November 2012.
Overall, the Partnership expects that it will be able to complete the project within the approximate five-year time frame disclosed in the Partnership's prospectus and remains on track for achieving an internal rate of return of 13.5%.
Launched in 2010, the Corporation owns a three-phase residential 136.5-acre development in northwest Edmonton, Alberta, marketed under the name "Hawks Ridge at Big Lake."
The Partnership is managed by Walton Asset Management L.P. and development of the Property 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.
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.
Walton Big Lake Development L.P.
Blair Nixon, 1 403-265-4255 (Office)
KEYWORDS: North America Canada
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