Canada's Melcor Developments Q2 revenue falls 38% on lower US land sales

Melcor Developments

13/08/2026 22:41

Overview
Canada real estate developer's Q2 revenue fell 38% yr/yr, driven by lower U.S. land sales
Q2 funds from operations dropped 40% yr/yr due to reduced gross profit and asset disposals
Net income surged in Q2, mainly due to fair value gains and deferred tax benefits

Outlook
Company says Alberta market remains stable with continued demand for residential lots
Melcor expects ongoing uncertainty in economic conditions, construction costs and development timelines
Company continues asset dispositions to enhance liquidity and reduce debt

Result Drivers
LOWER U.S. LAND SALES - Co said revenue decline was mainly due to reduced land sales activity in the U.S. region
PROPERTY DISPOSALS - Asset disposals reduced revenue and funds from operations, as part of portfolio optimization strategy
STRONG ALBERTA DEMAND - Canadian land revenue rose on higher single-family lot sales and continued demand in key residential markets

Company press release: ID:nGNX11XgGG

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Rental Revenue
 
C$61.99 mln
 
Q2 Net Income
 
C$21.94 mln
 
Q2 FFO
 
C$21.72 mln
 

Reuters Recommended Reads
Aug 11 - Real estate developer Dream Unlimited's Q2 revenue rises, posts pre-tax profit
Aug 12 - Canada's H&R REIT Q2 rental income falls amid portfolio repositioning
Aug 13 - Canada's Bridgemarq Q2 revenue falls 10% on market weakness, fewer realtors

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)