TORONTO, May 24, 2023 (GLOBE NEWSWIRE) — HALMONT PROPERTIES CORPORATION (TSX-V: HMT) (“Halmont” or the “Company”) announced today that net income for the three months ended March 31, 2023, was $2,333,000 as compared to net income of $1,250,000 for the three months ended March 31, 2022.
|(thousands)||Three months ended|
|March 31, 2023||March 31, 2022|
|– for shareholders||2,043||1,086|
|Diluted Net Income per Common Share||1.25||¢||0.67||¢|
Given the deteriorating outlook for low-rise commercial office space over the past two years, we have taken proactive measures to adapt to the changing market conditions. As a result, we successfully completed the sale of three office properties and have entered into a sale agreement to sell a fourth property, scheduled to close in December 2023.
The completion of these property sales will generate approximately $80 million in capital, and our plan is to allocate this capital towards investments in the forestry sector. As for commercial office properties, we intend to defer further investment until they are available at significant discounts compared to their replacement cost or are subject to favorable lease step-ups in line with inflation or other attractive terms.
The fully diluted book value, including the conversion of the capital notes and preferred shares, together with net income in the first quarter, increased to 72¢ per common share compared to 67¢ as at March 2022.
Halmont revalues its principal assets each year in accordance with IFRS accounting principles, considering available market information and the relevant terms of its joint-venture and partnership agreements. As a result, the common share book value approximates their realizable values.
Halmont Properties Corporation invests directly in real assets including commercial, forest, and residential properties.
This news release includes certain forward-looking statements including management’s assessment of the Company’s future plans and operations based on current views and expectations. All statements other than statements of historic facts are forward-looking statements. These statements contain substantial known and unknown risks and uncertainties, some of which are beyond the Company’s control. The Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements. Readers should not place undue reliance on these forward-looking statements which represent estimates and assumptions only as of the date on which such statements are made. The Company undertakes no obligation to publicly revise or update any forward-looking statements, whether as a result of new information, future events or otherwise.
|For additional information:|
|Heather M. Fitzpatrick, President||T: 647-448-7147|