TORONTO, April 28, 2023 (GLOBE NEWSWIRE) — HALMONT PROPERTIES CORPORATION (TSX-V: HMT) (“Halmont” or the “Company”) announced today that net income to shareholders for the year ended December 31, 2022, was $9.57 million as compared to net income of $7.10 million for the year ended December 31, 2021.
|(millions, except per share amounts)||Year Ended|
|December 31, 2022||December 31, 2021|
|Net income||– total||10.67||7.25|
|– for shareholders||9.57||7.10|
|Earnings per common share||6.68||¢||4.76||¢|
Given the deterioration over the past two years in the outlook for low-rise commercial office space, Halmont completed the sale of a third office property in 2022. We have also entered a sale agreement to sell a fourth property, which is currently scheduled to close in December 2023.
The completion of these property sales will generate approximately $80 million of capital, which we plan to invest in the forestry sector and defer further investment in commercial office properties until they become available at meaningful discounts to their replacement cost or are subject to inflation or other attractive lease step-ups.
Fortunately, at the current time we are uniquely positioned to increase our investments in the forestry sector by subscribing for additional shares of Haliburton Forest, which owns and manages approximately 250,000 acres of unencumbered freehold timberlands in Ontario. Halmont also holds a 7% toe-hold investment in Acadian Timber Corp., the owner of approximately 1,100,000 acres of forest lands in New Brunswick and Maine. Together, these companies manage over 3,000,000 acres of Crown Forest.
The diluted book value of each common share increased to 71¢ at December 31, 2022 compared to 64¢ at December 31, 2021, assuming the conversion of the outstanding preferred shares and capital notes. 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 l T: 647-448-7147