Walton Westphalia Development Corporation Reports Third Quarter 2012 Results

Walton Westphalia Development Corporation Reports Third Quarter 2012 Results

CALGARY, Alberta--(BUSINESS WIRE)-- Walton Westphalia 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 $2,890,492, total expenses of $3,116,874 and a net loss and comprehensive loss of $226,382. The revenues earned by the Corporation were comprised of the proceeds from the land sale to Walton Westphalia Europe, LP ("WWE") of $2,882,119 and interest earned on the Corporation's cash on hand. The expenses during the third quarter primarily consisted of $2,882,119 in cost of land sales related to the sale to WWE, $41,978 in costs incurred for the private placement and $113,703 in costs incurred for the management of the Corporation.

On a year-to-date basis, the Corporation generated total revenues of $2,906,277, total expenses of $3,654,489, and a net loss and comprehensive loss of $748,212. The revenues earned by the Corporation during the period from January 4, 2012, to September 30, 2012, were comprised of the proceeds from the land sale to WWE of $2,882,119 and interest earned on the Corporation's cash on hand. The expenses for the year-to-date period primarily consisted of $2,882,119 in cost of land sales related to the sale to WWE, $394,111 in costs incurred for the preparation of the Initial Public Offering (IPO) and Private Placement and $201,528 in costs for the management of the Corporation.

The nature and amount of the expenses incurred by the Corporation for the year-to-date period were consistent with management's expectations for the period. The net loss incurred by the Corporation for the year-to-date period was also 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 of 2012, the main priority of the Corporation was to raise capital through the Private Placement to help the Corporation carry out its investment strategy. In working towards this objective, the Corporation completed several private placements during the third quarter, which resulted in the issuance of a total of 279,852 Units for gross proceeds of $2,798,520. As at September 30, 2012, the Corporation issued a total of 2,627,407 units for gross proceeds of $26,274,070. Subsequently, in October the Corporation held its fifteenth and final closing of its Private Placement. In the aggregate, it issued 1,574,870 units for gross proceeds of $15,748,700.

The Corporation has now terminated its private placement offering. As a result, since and including its prospectus offering, which was completed on March 20, 2012, the Corporation has issued an aggregate 3,017,170 shares and $15,085,850 principal amount of Debentures for aggregate proceeds raised of $30,171,700.

The third quarter also saw the following achievements:

  • In July, the Corporation announced that it had refined and updated its preliminary development plan for the Property to better align the development plan with current and future market opportunities;
  • The significant changes to the Phase 1 development plan were as follows:
    • increased the number of townhomes from 300 units to 347 units;
    • approximately 250,000 square feet of retail will be accelerated from Phase 2 to Phase 1; and
    • the Phase 1 portion of the office component will be shifted to Phase 2.
  • The submission of additional drawings to support a detailed site plan for Phase 1 infrastructure. Subsequently, on October 18, the Corporation received approval of its Detailed Site Plan for infrastructure from the Prince George's County Planning Board. The approval is the first of the Corporation's key critical path approvals required for obtaining a grading permit in February 2013;
  • Submissions of additional information to support the hydraulic planning and analysis amendment to the Washington Suburban Sanitary Commission;
  • Continued meetings with county officials and agencies to ensure continual progress towards the end goal of issuing permits for the project; and
  • In August, the Corporation sold approximately 11.4% or approximately 35 acres of the Property to WWE as part of a planned joint operation to develop the Property. Subsequently in October, WWE acquired an additional 3.1% bringing its aggregate ownership interest to 14.4%.

The project is proceeding as anticipated and management expects that the project will be completed within the approximate seven-year time frame and achieve a net internal rate of return of 15% as disclosed in the Prospectus and Offering Memorandum.

Additional Information

Launched in 2012, the Corporation was formed to provide investors with the opportunity to participate in the acquisition and development of the 310-acre Westphalia property located in Prince George's County, Maryland, seven miles southeast of the District of Columbia.

The Corporation is managed by Walton Asset Management L.P., and development of the Property is managed by Walton Development & Management (USA), Inc., both of which are part 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 Westphalia 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.



Walton Westphalia Development Corporation
Blair Nixon, 1 403-265-4255
BNixon@Walton.com

KEYWORDS:   United States  North America  Canada  Maryland

INDUSTRY KEYWORDS:

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