On Thursday the S&P 500 was up 0.6% and Toronto was up 0.2%.
After the close, Melcor Developments reported Q2 results. Results were good in my opinion but that was expected.
The dividend was increased to 12 cents from 10 partly restoring to pre-covid levels.
Lot sales and revenues were up quite significantly. FFO was 49 cents per unit.
They are very active in developing new lots for sale to meet continued strong demand. Q3 and especially Q4 are typically by far the best quarters and Melcor is on track for a very strong profit this year it appears.
They do note the uncertainty in their rental buildings especially office due to continued Covid impacts.
Gross profit on lots seems too low at 35%. Indications are that their costs of lot development are somewhat high.
The shares closed Thursday at $12.21 versus book value of $32.10 It’s been a long wait but this gap should begin to close as they post better results. Hopefully, the dividend increase will spark some interest starting today.