2024 ANNUAL REPORT
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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Bayview
AIRDRIE
BAYVIEW
AIRDRIE
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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TABLE OF
CONTENTS
Message from the CEO .................................................................07
Genesis Projects and Communities ...........................................08
Community Involvement..................................................................11
Genesis Builders Show Homes....................................................12
Management’s Discussion & Analysis ........................................17
Consolidated Financial Statements............................................57
Contact Information........................................................................97
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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BAYSIDE
AIRDRIE
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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MESSAGE FROM
THE CEO
enesis is pleased to report record after
tax earnings of $39.6 million for 2024
($0.70 per share), with our homebuilding
division contributing earnings of $29.7 million
and $9.9 million being contributed by our
land development division. This marks the
24th consecutive year of positive earnings.
Driven by 401 home sales and 726 lot sales,
annual revenue increased to $361.1 million,
close to three times the trailing five-year
average of $125.1 million.
Since 2019, Genesis has been building a
platform to support ongoing long-term
growth. Some key accomplishments over this
period include:
• $197 million invested through acquiring
` 1,645 acres of well-located land
positions in the Calgary Metropolitan
Area (CMA);
• Growing our homebuilding operations
to take advantage of economies
of scale, to now be active in twelve
communities, effectively tripling home
sales and production while growing
earnings (before tax) from nominal
amounts to $38.7 million;
• Taking a proactive approach in
obtaining land development approvals,
resulting in the commencement of
three new communities over the last
two years;
• Maintaining reasonable debt levels
– net debt to total assets of 19.4% at
December 31, 2024;
• Continued focus on quality and safety
in all of our operations;
• Enhancing our already strong culture
and leadership team; and
• Capitalizing on our land development
expertise and redeploying capital
through the creation of property
development partnerships with other in
market homebuilders and developers.
Since 2019, Genesis has increased its assets
by 95% from $296 million to $578 million, its
revenues by 430% from $68 million to $361
million and its shareholder equity by 37%
from $194 million to $267 million, while
paying dividends of $36 million. Through the
volatile macro-economic environment of
recent years, Genesis has maintained a
steady focus on executing our strategic plan.
This disciplined approach is not only showing
excellent results, but has set Genesis up for
continued success in the years to come. By
sticking to our plan and managing our risks,
Genesis has thrived through some major
challenges.
Genesis is fortunate to have all its assets
located in Alberta, a province with bountiful
resources, an entrepreneurial culture,
relatively low costs and high quality of life.
Increasingly, the value, prosperity and
security provided by Alberta’s energy
resources is becoming apparent. Although
there may be short term economic volatility,
Alberta’s substantial energy resources,
affordability, and quality of life will continue to
underpin Genesis’ long term value proposi-
tion of remaining focused in the CMA.
Behind the numbers, Genesis’ executive team
continues to develop. The team has excelled,
showing growth, integrity and passion,
resulting in promotions and readying Genesis
for its next stage of growth. Key recent
promotions include the appointments of PS
Sidhu to President and Chief Operating
Officer, Brian Whitwell to Chief Investment
Officer, Brendan McCashin to Senior Vice
President, Land Development, Virat Reddy to
VP Finance & Technology and Mike deBoer
to Vice President, Homebuilding. Our team
has been further strengthened with the
recruiting and onboarding of Travis McArthur
as Senior Vice President and General
Counsel. Rob Sekhon, Chief Financial Officer,
recruited in 2023, and I round out the senior
executive ranks.
With strategic land holdings, conservative
debt levels and a strong management team,
Genesis is well positioned to continue
growing well into the future.
On January 31, 2025, two long serving
members of our management team retired
from Genesis. Arnie Stefaniuk first joined
Genesis in 1999 and through much of the
next 25 years led our land development
team. Through his tenure, Genesis
developed over 1,700 acres of land and
created over 11,500 lots that roughly 30,000
people now proudly call home. Arnie is well
known for his creativity and developing the
best community any particular parcel of land
will provide. He leaves a deep legacy, not
only of quality residential communities but
also of “community” – within the team at
Genesis and more broadly in the Calgary
development community.
Wayne King joined Genesis in 2017 as Chief
Financial Officer. Wayne played an integral
role in improving Genesis reporting and
control systems, developing his team,
supporting our growth and helping navigate
the turbulence of the COVID years. Arnie
and Wayne played a big part in laying the
foundation upon which Genesis will grow for
years to come. Personally, I feel a deep
sense of gratitude and appreciation for being
able to work closely with these two gentle-
men and wish them many years of enjoyment
ahead.
Finally, I want to thank all members of our
team, including staff, consultants, and
contractors, for their extraordinary work, and
our board of directors and shareholders for
their consistent support and guidance – I feel
fortunate that I get to work with all of these
people. The growth platform created through
the efforts of the last several years is a
testament to the entire team.
G
IAIN STEWART
Chief Executive Officer
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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GENESIS PROJECTS
& COMMUNITIES
1. BAYSIDE
2. BAYVIEW
3. HUXLEY
5. LOGAN LANDING
4. LEWISTON
ST
O
N
E
Y TRAIL N
W
YANKEE VALLEY
BOULEVARD
VETERANS
BOULEVARD
HWY 1 (16TH AVE)
GLENMORE TRAIL SE
MACLEOD TRAIL
CROWCHILD TRAIL NW
HWY 22
HWY 1A
HWY 22X
D
E
ER
F
O
OT
T
RA
IL
QE II HIGHWAY
PANTONE 2925 C
C77 : M:30 Y:0 K:0
R:28 G:146 B:209
#009ADE
City of
Calgary
Airdrie
Cochrane
Chestermere
STONEY TRAIL SE
DEERFOOT TRAIL
SIMONS VALLEY
EVANSTON
COVENTRY HILLS
ROYAL VISTA
ARBOUR LAKE
BOWNESS
VARSITY
HILLHURST
DOWNTOWN
LAKE
BONAVISTA
LEGACY
SHAWNESSY
SOMERSET
SIGNAL HILL
RIVERBEND
PUMP
HILL
MAHOGANY
SETON
HERITAGE
POINTE
ARTESIA
MARLBOROUGH
SUNRIDGE
TARADALE
SADDLE RIDGE
SKYVIEW
RANCH
YYC
BRENTWOOD
Nose Hill Park
Heritage Park
Genesis Projects & Communities
Non-Genesis Communities -
Genesis Home Sales Activities
Genesis JV Project
1
2
3
4
5
SE LAND
HOLDINGS CALGARY
SAGE HILL ESTATES
LP APARTMENTS
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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Bayview
AIRDRIE
AIRDRIE
DRIVE-IN MOVIE
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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COMMUNITY
INVOLVEMENT
The Genesis Centre of Community Wellness is a great example
of our role as a community builder Community leaders in
Northeast Calgary were determined to bring the dynamic and
diverse cultures of the local communities together to promote
safe, cooperative and actively healthy neighbourhoods.
To realize their dream, these visionary leaders founded
the Northeast Centre of Community Society (NECCS), an
organization dedicated to the challenge of building a facility that
would serve the sport, recreation, educational and cultural needs
of the northeast. We saw the opportunity to support and provide
some funding for this incredible facility as a perfect alignment
of our core values. The dream quickly started to take shape,
gaining support and funding from the City of Calgary and YMCA,
along with a generous naming sponsorship from Genesis.
Genesis continues to play a part in the support of The Genesis
Centre – a 225,000 square foot, $120 million multi-purpose
complex built to enrich the health, wellness, and unity of
communities in Northeast Calgary.
NE CALGARY
Genesis Centre
Inspiring Community Wellness
Genesis Place, the amazing recreation facility in Airdrie, acts
as a gathering place, hub of activity and true heart of the
community. We are proud of our commitment and on-going
support of Genesis Place and what it means to the quality of
life for the community of Airdrie.
AIRDRIE
Genesis Place
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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GENESIS BUILDERS
SHOW HOMES
ALPINE PARK
BENNET
HOMESTEAD
EASTON
BAYVIEW
STANLEY
LEWISTON
CALARIA II
BAYVIEW
JASPER
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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LEWISTON
RUBEN
LOGAN LANDING
CALARIA II
LOGAN LANDING
MATEO
BAYVIEW
SUTTON
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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BAYVIEW
AIRDRIE
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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Bayview
AIRDRIE
LEWISTON
N CALGARY
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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MANAGEMENT’S
DISCUSSION
AND ANALYSIS
The Management’s Discussion and Analysis (“MD&A”) of the financial condition and results of operations of Genesis Land Development
Corp. (“Genesis”, “the Corporation”, “we”, “us”, or “our”) should be read in conjunction with the consolidated financial statements and the
notes thereto for years ended December 31, 2024 and 2023, prepared in accordance with International Financial Reporting Standards
(“IFRS”).
The consolidated financial statements and comparative information have been reviewed by the Corporation’s audit committee,
consisting of three independent direc tors, and approved by the board of directors of the Corporation. Additional information, including
the Corporation’s Annual Information Form (“AIF”) is available on SEDAR+ at www.sedarplus.com.
All amounts are in thousands of Canadian dollars, except per share amounts or unless otherwise noted. This MD&A is dated as of
March 5, 2025.
FOR THE THREE MONTHS AND YEAR ENDED DECEMBER 31, 2024
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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STRATEGY AND 2024 BUSINESS PLAN
Strategy
Genesis Land Development Corp. (“Genesis” or the “Corporation”) is an integrated land developer and residential home builder
operating in the Calgary Metropolitan Area (“CMA”) with a strategy to grow its portfolio of well-located, entitled and unentitled
primarily residential lands and serviced lots in the CMA.
As a land developer, Genesis acquires, plans, rezones, subdivides, services and sells residential lots and commercial and industrial
lands to third party developers and builders, and sells lots and completed homes through a wholly-owned subsidiary, Genesis
Builders Group Inc. (“GBG”), its home building division. The land portfolio is planned, developed, serviced and sold as single-family
lots and townhouse, multi-family and commercial parcels at opportune times with the objective of maximizing returns.
Genesis acquires land strategically and opportunistically ensuring Genesis has a significant and balanced land supply in the CMA
over the next ten to twenty years. Genesis may realize some of the value created through the land approval process by providing
opportunities for industry partners to participate in the final development of communities on the land.
GBG designs, builds and sells homes on a significant portion of Genesis’ single-family lots and townhouse land parcels. GBG also
acquires single-family lots from other land developers to build and sell single-family homes in other CMA communities.
Genesis manages its financial position by prudently and opportunistically allocating its cash resources among the following:
Maintaining a strong balance sheet;
Acquiring and developing land either directly or through land development entities;
Acquiring builder positions in third party communities; and
Returning cash to shareholders by paying dividends and/or buying back its common shares.
Market Overview
The Royal Bank of Canada estimates that Alberta’s 2025 GDP growth will remain relatively steady and remain amongst the highest
in the country at 2.8%. Alberta's economy continues to be strong, supported by robust commodity markets and significant
population growth. However, the pace of growth is expected to moderate in 2025 due to slowing migration and heightened
economic uncertainty. Despite this, Alberta's affordability, business climate, and quality of life should sustain its attractiveness for
interprovincial migrants, while lower interest rates may encourage consumer spending.
According to the Calgary Real Estate Board (“CREB”), residential home sales in 2024 remained strong with sales significantly
higher than long-term trends. Home sales in Calgary were 26,985 for 2024, a year-over-year decrease of 2%. Sales in 2024 were
slightly lower than 2023 as gains for higher-priced homes offset pullbacks in the lower price ranges caused by supply challenges.
While conditions vary depending on price range and property type, more housing options have helped to take some of the pressure
off home prices, which stabilized in the second half of the year. Total residential benchmark prices increased by over seven per
cent compared to 2023. Similar conditions exist in neighbouring Airdrie, where Genesis has two active projects.
Genesis is closely monitoring the potential effects of tariffs between Canada and the United States. While the company has minimal
direct exposure, with no exports and only limited imports from the United States, there remains significant uncertainty regarding
the broader economic impacts on the CMA, Alberta, and Canada which could influence Genesis's land development and housing
businesses. Genesis will continue to monitor the situation and take steps to mitigate any potential impacts on its operations.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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2024 Business Plan
Progress on 2024 Business Plan
Genesis continues to execute its growth business plan. Genesis achieved significant milestones in 2023 and 2024, receiving final
development approvals and proceeding with the development of its Lewiston, Logan Landing and Huxley communities.
Growth also continues for GBG which is now building in twelve communities in the CMA.
The following describes progress made on key elements of the growth plan.
1) Obtaining Additional Zoning and Servicing
Zoning and servicing entitlements are granted by the applicable municipal authorities. The timelines discussed below are
management’s best estimates at this time, given the uncertainties related to the regulatory approval process and market conditions.
In Q2 2024 Genesis closed the acquisition of 160 acres of development land in Calgary’s southeast quadrant in the South Shepard
Area Structure Plan (“ASP”). An ASP was approved to support a new residential community on these lands by Calgary City Council
in 2013. Outline Plan and Land Use Applications have been submitted to the City of Calgary with approvals anticipated in 2025.
Site servicing is anticipated to commence in 2026.
In Rocky View County (“County”), Genesis has received an ASP approval for the OMNI project, a 185-acre commercial and retail
project on a portion of the 610 acres of undeveloped land that Genesis controls in the County bordering the northeast quadrant of
the City of Calgary. Progress continues with the County on the approval of a conceptual scheme for this project, with first reading
received in September 2022. Approval is anticipated in 2025. Genesis and the County have successfully worked with Alberta
Transportation to finalize plans and funding arrangements for an interchange at Stoney and Airport Trail with construction planned
to start in 2025. Funding is in place and the design of the interchange is currently proceeding. Once completed, this interchange
will provide primary transportation access to these lands.
2) Development and Sale of Land Parcels
Genesis continues to develop and implement plans for each of its core land holdings with the objective of maximizing returns by
selling or developing the land at the most opportune time. Please see information provided under the heading “Real Estate Held
for Development and Sale” in this MD&A.
Genesis periodically sells land parcels, generally for multi-family or commercial use, that have been developed within its
communities.
During 2024, Genesis completed the sale of four development land parcels in the CMA: a 4.55-acre parcel for cash consideration
of $4,778, a 7.24-acre parcel for cash consideration of $9,500, a 1.89-acre parcel in the City of Airdrie for cash consideration of
$2,565 and a 144-acre non-core parcel for $850.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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3) Servicing Additional Phases
Servicing commenced in five communities:
Lewiston: Servicing of the second phase in this north Calgary community commenced in Q2 2024. This phase was fully
serviced in Q4 2024 and adds 133 single-family lots. GBG and two third parties (each with a 20% ownership interest)
will be the home builders in this phase;
Logan Landing: Servicing of the second phase in this southeast Calgary community commenced in Q4 2024 and will
add 172 single-family lots and is anticipated to be fully serviced by Q3 2025. GBG and three third parties will be the
home builders in this phase;
Huxley: Servicing the first phase of this east Calgary community commenced in Q2 2024. This will add 259 single-family
lots and is anticipated to be fully serviced by Q3 2025. GBG and two third parties (each with a 20% ownership interest)
will be the home builders in this phase;
Bayview: Servicing of Phase 3 commenced in Q2 2024. This phase was fully serviced as of Q3 2024 and adds 133
single-family lots and a 1.89-acre commercial parcel. Genesis is in the process of negotiating to contract with GBG and
two third parties as the home builders in this phase; and
Bayside: Servicing of Phase 15 commenced in Q4 2024 and will add 81 single-family lots. Phase 15 is expected to be
fully serviced by Q3 2025 with GBG and one third party builder as the home builders in this phase.
4) Investing in Additional Lands
Building and selling homes in communities developed by other parties is a key strategy adopted in 2020 to drive growth and
profitability in Genesis’ home building division. GBG is now active in twelve communities, eight of which are third party communities.
During 2024, GBG contracted to acquire 398 lots from third party developers. As of December 31, 2024, GBG had outstanding
contracts to purchase 604 lots and had 169 orders to build homes on lots purchased from third party developers.
During Q2 2024, Genesis closed the acquisition of 734 acres of long-term development land located in southeast Calgary for
$53,850. Total cash payments of $11,770 were made by the closing date with the remaining balance of $42,080 being in the form
of a Vendor-take-back (“VTB”) mortgage payable. Genesis also secured an option to purchase an additional 106 acres immediately
south of these lands by paying $400. The option may be exercised between January 1, 2029 and December 31, 2037.
During Q2 2024, Genesis also closed the acquisition of 160 acres of development land located in southeast Calgary for $29,505.
During Q3 2024, Genesis acquired a 16.7% interest in a limited partnership for $5,000 which is expected to commence
development on 243 acres of land in southeast Calgary in 2029.
During Q4 2024, Genesis acquired 12.5% interest in a joint venture for $8,670 which commenced development on 782 acres of
land in east Airdrie in July 2024. Total cash payments of $2,890 were made by the closing date with the remaining balance of
$5,780, being the form of a VTB mortgage payable.
During Q4 2024, Genesis acquired 15% interest in a joint venture for $7,556 which is expected to commence development on 151
acres of land in east Calgary in 2025. Genesis has also contributed $300 towards working capital.
5) Establishing Land Development Partnerships
Genesis considers establishing land partnerships when a new community has received full municipal approvals. Partners are
usually other home builders selected carefully, to add value to the execution of the community’s development program.
Lewiston Lands Limited Partnership (“LLLP”) commenced with approximately 130 acres of residential development land, referred
to as Lewiston, in north Calgary in the Keystone ASP. In Q1 2023, Genesis closed a transaction to sell a 40% ownership stake in
LLLP to two Calgary based third party home builders.
Huxley Lands Limited Partnership (“HLLP”) commenced with approximately 161 acres of residential development land, referred to
as Huxley, located in the Belvedere ASP on the east side of the City of Calgary. In Q4 2024, Genesis closed the transaction to sell
a 40% ownership stake to two Calgary based third party home builders for gross proceeds of $21,440.
Development activities in Lewiston and Huxley are proceeding as described above.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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6) Adding Select Third Party Builders in Genesis Communities
To diversify offerings and increase velocity of sales within its residential communities, Genesis holds regular discussions with
reputable third party builders interested in acquiring lots in future phases in Genesis’ communities. Genesis is currently working
with seven third party builders.
7) Increasing the Velocity of Homes Sold by GBG
In year-end (“YE”) 2024, GBG entered into 419 new home sales contracts compared to 328 new home sales contracts in YE 2023.
During Q4 2024, GBG entered into 107 new home sales contracts compared to 50 new home sales contracts in Q4 2023. As of
December 31, 2024, Genesis had 265 outstanding new home orders compared to 247 as at December 31, 2023. To increase the
velocity of homes sold, Genesis:
acquires lots in communities from third party developers;
adjusts pricing to meet market conditions;
pursues construction cost efficiencies and actively manages supply chain challenges; and
continues to monitor and control overhead costs.
8) Liquidity and Return of Capital
Liquidity: As of December 31, 2024, Genesis had $21,414 of cash and cash equivalents on hand (YE 2023 - $37,546), loan and
credit facilities of $133,494 (YE 2023 - $103,587), real estate assets of $440,792 (YE 2023 - $342,791) and total assets of $577,718
(YE 2023 - $440,083). The ratio of loan and credit facilities to total assets was 23% as at December 31, 2024 compared to 24%
as at December 31, 2023.
Return of Capital to Shareholders: In 2024 Genesis declared and paid dividends of $0.195 per share ($11,074), with $0.095 per
share paid in Q2 2024 and $0.10 per share in Q4 2024. Since 2014, when Genesis paid its first dividend, it has returned an
aggregate of $87,405 to shareholders by way of dividends and, through its Normal Course Issuers Bids (“NCIB”), bought back
nearly 3.1 million common shares for an aggregate cost of $8,973.
Outlook
Genesis continues to execute on its growth strategy in both its land and housing divisions, sustained by a backlog of new home
orders, higher volume of lot sales and the continued strength of the CMA market. Despite ongoing economic pressures on
consumers, home prices continue to move higher due to the low supply of homes for sale, combined with strong housing demand
from increasing population levels.
Genesis is working proactively with key contractor partners and home buyers to address concerns relating to cost increases and
a lack of skilled labour and some products and materials in both our land development and home building divisions.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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OPERATING HIGHLIGHTS
Key financial results and operating data for Genesis were as follows:
Three months ended
December 31, (1)
Year ended
December 31, (2)
($000s, except for per share items or unless otherwise noted)
2024
2023
2024
2023
Key Financial Data
Total revenues
104,647
71,602
361,061
203,312
Direct cost of sales
(72,920)
(54,862)
(264,537)
(157,481)
Gross margin before reversal of write-down (3)
31,727
16,740
96,524
45,831
Gross margin before reversal of write-down (%) (3)
30.3%
23.4%
26.7%
22.5%
Gross margin
31,727
17,440
96,524
46,531
Net earnings attributable to equity shareholders
12,617
8,056
39,597
14,512
Net earnings per share - basic and diluted
0.22
0.15
0.70
0.26
Dividends declared and paid
5,679
4,830
11,074
9,663
Dividends declared and paid - per share
0.10
0.085
0.195
0.17
Key Operating Data
Land Development
Total residential lots sold (units)
157
95
726
305
Residential lot revenues (4)
34,215
14,675
127,919
45,863
Gross margin before reversal of write-down (3)
13,613
3,441
32,555
8,712
Gross margin before reversal of write-down (%) (3)
39.8%
23.4%
25.4%
19.0%
Gross margin on residential lots sold
13,613
4,141
32,555
9,412
Average revenue per lot sold (excluding non-core lots)
218
154
179
150
Development land revenues
12,065
11,958
17,531
16,200
Home Building
Homes sold (units)
107
86
401
286
Revenues (5)
72,163
52,230
258,265
167,126
Gross margin on homes sold
18,834
12,603
64,314
36,423
Gross margin on homes sold (%)
26.1%
24.1%
24.9%
21.8%
Average revenue per home sold
674
607
644
584
New home orders (units)
107
50
419
328
Outstanding new home orders at period end (units)
265
247
Key Balance Sheet Data
As at Dec. 31,
2024 (2)
As at Dec. 31,
2023 (2)
Cash and cash equivalents
21,414
37,546
Total assets
577,718
440,083
Loan and credit facilities
133,494
103,587
Total liabilities
290,520
198,942
Shareholders’ equity
266,480
231,142
Total equity
287,198
241,141
Loan and credit facilities to total assets
23%
24%
(1) Three months ended December 31, 2024 and 2023 (“Q4 2024” and “Q4 2023”, respectively).
(2) Year ended December 31, 2024 and 2023 (“YE 2024” and “YE 2023”).
(3) Non-GAAP financial measure. Refer to heading “Non-GAAP Measures” in this MD&A. There was no reversal of write-down on real estate held for development and sale in Q4 2024
and YE 2024 (2023 - $700).
(4) Includes other revenues and revenues of $10,219 for 44 lots in Q4 2024 and $21,015 for 104 lots in YE 2024 purchased by the Home Building division from LLLP ($Nil in Q4 2023 and
YE 2023). These amounts are eliminated on consolidation.
(5) Includes other revenues and revenues of $3,577 for 24 lots in Q4 2024 and $21,639 for 157 lots in YE 2024 purchased by the Home Building division from the Land Development
division ($7,261 and 53 in Q4 2023; $25,877 and 187 in YE 2023) and sold with the home. These amounts are eliminated from residential lot revenues on consolidation.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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Results from operations, including earnings and cash flows, vary considerably between periods for the reasons explained under
the heading “Factors Affecting Results of Operations” in this MD&A.
Highlights:
$361.1 Million of Revenues in YE 2024: Genesis generated revenues of $361.1 million in YE 2024 up from $203.3
million achieved in YE 2023. Fourth quarter (“Q4”) 2024 revenues of $104.6 million were higher when compared to $71.6
million generated in Q4 2023.
$39.6 Million of Net Earnings in YE 2024: Net earnings attributable to equity shareholders in YE 2024 of $39.6 million
($0.70 net earnings per share - basic and diluted), compared to $14.5 million ($0.26 net earnings per share - basic and
diluted) in YE 2023. Net earnings attributable to equity shareholders in Q4 2024 were $12.6 million ($0.22 net earnings
per share - basic and diluted) compared to $8.1 million ($0.15 net earnings per share - basic and diluted) in Q4 2023.
726 Lots Sold: In YE 2024, Genesis sold 726 residential lots, an increase of 138% from 305 lots in YE 2023. In Q4
2024, Genesis sold 157 residential lots compared to 95 lots in Q4 2023.
401 Homes Sold: In YE 2024, Genesis sold a record 401 homes, an increase of 40% from the 286 sold in YE 2023. In
Q4 2024, Genesis sold 107 homes, compared to 86 sold in Q4 2023.
419 New Home Orders: During YE 2024, Genesis had 419 new home orders compared to 328 for YE 2023. During Q4
2024, Genesis had 107 new home orders compared to 50 in Q4 2023. Genesis had 265 outstanding new home orders
on hand at December 31, 2024 (247 at December 31, 2023).
Dividends of $0.195 per share in 2024: Total cash dividends of $11.1 million ($0.195 per share) were paid during YE
2024 of which $0.10 per share was declared and paid in Q4 2024. Total cash dividends of $9.7 million ($0.17 per share)
were paid during YE 2023 of which $0.085 per share was declared and paid in Q4 2023.
Land Servicing Activity: In YE 2024, land servicing activity amounted to $66.9 million compared to $70.1million in YE
2023. Genesis is actively servicing five communities.
Investment in Additional Lands: In YE 2024, Genesis closed the acquisitions of 894 acres of future residential
development land in southeast Calgary for $83.4 million.
Huxley Lands Limited Partnership: During YE 2024, Genesis sold a 20% ownership stake in HLLP to each of two
Calgary based third party builders. The transaction closed on December 13, 2024, for total proceeds of $21.4 million,
being $15.4 million cash with the balance being the assumption of debt by the purchasers.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
24
7
Factors Affecting Results of Operations
When reviewing the results, there are a number of factors that have historically affected Genesis’ results of operations, including:
the volatility of oil and gas prices and changes in the Canadian/US dollar exchange rate, both of which impact the Alberta
energy industry, and have significant impact on the CMA real estate market and economy;
changes to the regulatory environment, both direct and indirect, including for example, the land development approval
process, mortgage lending rules, immigration policies and economic restrictions imposed by regulatory authorities;
changes in interest rates, including residential mortgage rates and the rates of interest charged to Genesis on its various
credit facilities;
costs incurred for the development and servicing of land and the sale of residential lots and other land parcels occurs
over a substantial period of time and results in cash flows that vary considerably between periods, creating significant
volatility in the revenues, earnings and cash flows from operating activities;
changes in home construction costs due to the availability and timing of trades, material and overall supply chain issues;
land, lot and home prices and gross margins vary by community, by phase and by lot/home type, the nature of the
development work required to be undertaken before the land and lots are ready for sale, and the original cost of the land
and servicing; and
seasonality which has historically resulted in higher revenues and higher cash outflows in the summer and fall months
when home building sales and land servicing often peak.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
25
8
Land Development (Refer to “Location of Genesis’ Land Development Projects” in this MD&A on page 11)
Three months ended December 31,
Year ended December 31,
2024
2023
% change
2024
2023
% change
Key Financial Data
Residential lot revenues (1)
34,215
14,675
133.2%
127,919
45,863
178.9%
Development land revenues
12,065
11,958
0.9%
17,531
16,200
8.2%
Direct cost of sales
(29,479)
(22,496)
31.0%
(108,729)
(52,655)
106.5%
Gross margin before reversal of write-
down (2)
16,801
4,137
N/R (3)
36,721
9,408
N/R (3)
Gross margin before reversal of write-
down (%) (2)
36.3%
15.5%
134.2%
25.2%
15.2%
65.8%
Reversal of write-down of real estate
held for development and sale
-
700
N/R (3)
-
700
N/R (3)
Gross margin
16,801
4,837
N/R (3)
36,721
10,108
N/R (3)
Gain in investments in land
development entities
2,326
1,106
110.3%
2,326
1,106
110.3%
Other expenses
(5,211)
(3,384)
54.0%
(17,368)
(11,554)
50.3%
Earnings (loss) before income taxes
13,916
2,559
N/R (3)
21,679
(340)
N/R (3)
Key Operating Data
Residential lots sold to third parties
89
42
111.9%
452
118
N/R (3)
Residential lots sold through GBG
24
53
(54.7%)
157
187
(16.1%)
Residential lots sold to GBG by
Partnerships (4)
44
-
N/R (3)
104
-
N/R (3)
Residential lots sold to third parties -
non-core lots
-
-
-
13
-
N/R (3)
Total residential lots sold
157
95
65.3%
726
305
138.0%
Average revenue per lot sold
(excluding non-core lots)
218
154
41.6%
179
150
19.3%
(1) Includes residential lot sales to third parties, residential lot sales to GBG and other revenues.
(2) Non-GAAP financial measure. Refer to heading “Non-GAAP Measures” in this MD&A.
(3) Not relevant due to the size of the change.
(4) Refer to “Land Development Partnerships” paragraph under the heading “2024 Business Plan” in this MD&A.
Gross margin by source of revenue
Three months ended December 31,
Year ended December 31,
2024
2023
% change
2024
2023
% change
Residential lots
Residential lot revenues (1)
34,215
14,675
133.2%
127,919
45,863
178.9%
Direct cost of sales
(20,602)
(11,234)
83.4%
(95,364)
(37,151)
156.7%
Gross margin before reversal of write-
down
13,613
3,441
N/R (2)
32,555
8,712
N/R (2)
Gross margin before reversal of write-
down (%)
39.8%
23.4%
70.1%
25.4%
19.0%
33.7%
Reversal of write-down of real estate
held for development and sale
-
700
N/R (2)
-
700
N/R (2)
Gross margin
13,613
4,141
N/R (2)
32,555
9,412
N/R (2)
(1) Includes residential lot sales to third parties, residential lot sales to GBG and other revenues.
(2) Not relevant due to the size of the change.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
26
9
Three months ended December 31,
Year ended December 31,
2024
2023
% change
2024
2023
% change
Development land
Development land revenues
12,065
11,958
0.9%
17,531
16,200
8.2%
Direct cost of sales
(8,877)
(11,262)
(21.2%)
(13,365)
(15,504)
(13.8%)
Gross margin
3,188
696
N/R (1)
4,166
696
N/R (1)
Gross margin (%)
26.4%
5.8%
N/R (1)
23.8%
4.3%
N/R (1)
(1) Not relevant due to the size of the change.
Results from operations, including earnings and cash flows, vary considerably between periods for the reasons explained under
the heading “Factors Affecting Results of Operations” in this MD&A.
Revenues and unit volumes
Residential lot sales to third party builders usually occur when newly developed phases first become available for sale creating
fluctuations in lot revenues and associated earnings. Total residential lot sales revenues in YE 2024 were $127,919 (726 lots) up
from $45,863 (305 lots) in YE 2023. In YE 2024, 465 lots including 13 non-core lots ($100) were sold to third party builders
compared to 118 lots sold to third party builders in YE 2023. In YE 2024, 261 lots including 104 lots from Partnerships ($21,015)
were sold to GBG compared to 187 lots sold to GBG in YE 2023.
Total residential lot sales revenues in Q4 2024 were $34,215 (157 lots) up from $14,675 (95 lots) in Q4 2023. In Q4 2024, 89 lots
were sold to third party builders compared to 42 lots sold to third party builders in Q4 2023. In Q4 2024, 68 lots including 44 lots
from Partnerships ($10,219) were sold to GBG compared to 53 lots sold to GBG in Q4 2023.
Four parcels of development land were sold for $17,531 in YE 2024 while four parcels of development land were sold for $16,200
in YE 2023. Two parcels of development land were sold for $12,065 in Q4 2024 while three development land parcels were sold
for $11,958 in Q4 2023. Development land sales occur periodically and comprise sales of commercial, multi-family and other lands
that Genesis does not intend to build on through GBG.
Gross margin
Residential lots had a gross margin before reversal of write-down of 25% in YE 2024 compared to 19% in YE 2023. Residential
lots had a gross margin before reversal of write-down of 40% in Q4 2024 compared to 23% in Q4 2023. Residential lot and
development land revenue and margins can vary significantly as described in the “Factors Affecting Results of Operations” in this
MD&A.
Reversal of write-down of real estate held for development and sale
During 2024, Genesis recorded $Nil related to reversal of write-downs on real estate held for development and sale (2023 - $700).
The reversal of the write-down was taken to reflect the estimated returns realizable on completion of development and sale of
these lands.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
27
10
Gain in investments in land development entities
The fair value of investments in land development entities are based on the market value approach method which were obtained
from external third-party appraisals. This method uses prices and other relevant information that have been generated by market
transactions involving identical or comparable assets. During 2024, the Corporation recorded $2,326 as a gain in investment in
two previously acquired land development entities (2023 - $1,106).
Other expenses
Three months ended December 31,
Year ended December 31,
2024
2023
% change
2024
2023
% change
Other expenses
General and administrative expense
(2,516)
(2,123)
18.5%
(9,628)
(7,567)
27.2%
Selling and marketing expense
(839)
(519)
61.7%
(2,034)
(1,798)
13.1%
Finance income
214
393
(45.5%)
1,418
1,406
0.9%
Finance expense
(2,070)
(1,135)
82.4%
(7,124)
(3,595)
98.2%
Total
(5,211)
(3,384)
54.0%
(17,368)
(11,554)
50.3%
The components of other expenses and the changes are shown in the table above.
In YE 2024, other expenses totaled $17,368 or 50% higher than $11,554 incurred in YE 2023. In Q4 2024, other expenses totaled
$5,211 or 54% higher than $3,384 incurred in Q4 2023. Other expenses were higher in both Q4 2024 and YE 2024 mainly due to
higher net finance expense and general and administrative expense, specifically compensation expenses in YE 2024. In YE 2024
compensation expenses were $7,232 compared to $5,188 driven by increases in staffing and salaries reflecting higher activity
levels, a competitive labor market, share-based compensation expenses and performance unit plan expenses relating to long-term
incentives for performance. Share-based compensation and performance unit plan expenses were a significant component of
compensation expenses. In YE 2024 share-based compensation and performance unit plan expenses totaled $2,352 compared
to $1,165 in YE 2023. The increase in stock-based compensation expenses was mainly due to mark-to-market increase for DSUs
issued in prior periods. Net finance expenses were higher due to higher average loan balances in 2024 as compared to the same
periods in 2023.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
28
LOCATION OF GENESIS’ LAND DEVELOPMENT PROJECTS
S
T
O
N
EY TRAIL
N
W
STONEY TRAIL SE
YANKEE VALLEY
BOULEVARD
HWY 1 (16TH AVE)
GLENMORE TRAIL SE
MACLEOD TRAIL
CROWCHILD TRAIL NW
HWY 22X
D
E
E
R
F
O
O
T
TR
AI
L
QE II HIGHWAY
AIRDRIE
Genesis Communities
N CALGARY
ROCKY VIEW COUNTY
OMNI / 425
E CALGARY
SE CALGARY
Hazel (Hotchkiss)
SE CALGARY
SE CALGARY
SE Land
Holdings Calgary
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
29
12
Home Building (Refer to “Location of GBG Building Communities” in this MD&A on page 14)
The home building business of Genesis is operated through its wholly-owned subsidiary, GBG.
Three months ended December 31,
Year ended December 31,
2024
2023
% change
2024
2023
% change
Key Financial Data
Revenues (1)
72,163
52,230
38.2%
258,265
167,126
54.5%
Direct cost of sales
(53,329)
(39,627)
34.6%
(193,951)
(130,703)
48.4%
Gross margin
18,834
12,603
49.4%
64,314
36,423
76.6%
Gross margin (%)
26.1%
24.1%
8.3%
24.9%
21.8%
14.2%
Other expenses
(6,712)
(5,050)
32.9%
(25,636)
(17,858)
43.6%
Earnings before income taxes
12,122
7,553
60.5%
38,678
18,565
108.3%
Key Operating Data
Homes sold in third party communities
(units)
65
33
97.0%
226
99
128.3%
Homes sold in Genesis lots (units)
24
53
(54.7%)
157
187
(16.1%)
Homes sold in Partnerships lots (units)
18
-
N/R (2)
18
-
N/R (2)
Total homes sold (units)
107
86
24.4%
401
286
40.2%
Average revenue per home sold
674
607
11.0%
644
584
10.3%
New home orders (units)
107
50
114.0%
419
328
27.7%
Outstanding new home orders at period end (units)
265
247
7.3%
(1) Revenues include residential home sales and other revenue.
(2) Not relevant due to the size of the change.
Results from operations, including earnings and cash flows, vary considerably between periods for the reasons explained under
the heading “Factors Affecting Results of Operations” in this MD&A.
Revenues and unit volumes
Revenues for single-family homes and townhouses were $258,265 (401 units) in YE 2024, 55% higher than YE 2023 revenues of
$167,126 (286 units). In addition, 419 homes were contracted for sale in YE 2024, an increase of 28%, as compared to 328 in YE
2023. There were 265 outstanding new home orders at the end of 2024 as compared to 247 outstanding new home orders at the
end of 2023.
Revenues for single-family homes and townhouses were $72,163 (107 units) in Q4 2024, 38% higher than Q4 2023 revenues of
$52,230 (86 units). In addition, 107 homes were contracted for sale in Q4 2024, an increase of 114%, as compared to 50 in Q4
2023.
Homes sold in YE 2024 had an average price of $644 per home compared to $584 in YE 2023. Homes sold in Q4 2024 had an
average price of $674 per home compared to $607 per home in Q4 2023. Fluctuations in the average revenue per home sold are
due to differences in product mix, community, and market conditions. During 2024 and 2023, GBG's single-family homes product
ranged in price from $402 to $1,267 depending on the location and the models being offered. Similarly, GBG's townhouse product
ranged in price from $198 to $399 depending on the location and the models being offered. In YE 2024, 386 single-family homes
and 15 townhouses were sold compared to 268 single-family homes and 18 townhouses in YE 2023. In Q4 2024, 105 single-family
homes and 2 townhouses were sold compared to 77 single-family homes and 9 townhouses in Q4 2023.
In YE 2024, 175 of the 401 homes sold were built on residential lots supplied by Genesis and Partnerships while in YE 2023, 187
of the 286 homes sold were built on residential lots supplied by Genesis. In Q4 2024, 42 of the 107 homes sold were built on
residential lots supplied by Genesis and Partnerships, while 53 of the 86 homes sold in Q4 2023 were built on residential lots
supplied by Genesis.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
30
13
During 2024, GBG contracted to acquire 398 lots from third party developers. As of December 31, 2024, GBG had outstanding
contracts to purchase 604 lots and had 169 orders to build homes on lots purchased from third party developers.
GBG builds homes either after receiving a firm sale contract (a “pre-construction home”) or on a quick possession (“spec”) basis.
The delivery time of a pre-construction home is approximately 10 to 12 months. Construction of quick possession homes
commences before GBG receives a firm sale contract to ensure there is sufficient inventory for buyers seeking possession within
a short period of time (often 30-90 days). Townhouses are multi-unit complexes for which GBG commences construction prior to
selling units in any individual building. This provides construction efficiencies and requires GBG to build some townhouses on a
spec basis and to hold them in inventory until sold. The timing of the sale of spec homes is unpredictable, with spec home buyers
usually being time sensitive, wanting to take possession in a short time frame. Genesis closely monitors its home building work-in-
progress to anticipate and react to market conditions in a timely manner. As at YE 2024, GBG had $133,797 of work in progress,
of which $13,891 related to spec homes in progress (YE 2023 - $88,314 of work in progress, of which $11,197 related to spec
homes in progress).
The following table shows the split between quick possession sales and pre-construction homes.
Three months ended December 31,
Year ended December 31,
2024
2023
% change
2024
2023
% change
Quick possession sales (units)
5
18
(72.2%)
57
54
5.6%
Pre-construction home sales (units)
102
68
50.0%
344
232
48.3%
Total home sales (units)
107
86
24.4%
401
286
40.2%
Gross margin
Genesis realized gross margin on home sales of 24.9% in YE 2024 compared to 21.8% in YE 2023 and a gross margin on home
sales of 26.1% in Q4 2024 as compared to 24.1% in Q4 2023. Fluctuations in gross margin are due to changes in market conditions
and differences in product and community mix. In YE 2024, 386 single-family homes and 15 townhouses were sold compared to
268 single-family homes and 18 townhouses in YE 2023. In Q4 2024, 105 single-family homes and 2 townhouses were sold
compared to 77 single-family homes and 9 townhouses in Q4 2023.
Other expenses
Three months ended December 31,
Year ended December 31,
2024
2023
% change
2024
2023
% change
Other expenses
General and administrative expense
(3,500)
(2,796)
25.2%
(13,732)
(10,531)
30.4%
Selling and marketing expense
(3,141)
(2,076)
51.3%
(11,476)
(6,686)
71.6%
Finance income
138
63
N/R (1)
356
137
N/R (1)
Finance expense
(209)
(241)
(13.3%)
(784)
(778)
0.8%
Total
(6,712)
(5,050)
32.9%
(25,636)
(17,858)
43.6%
(1) Not relevant due to the size of the change.
The components of other expenses and the changes are shown in the table above.
In YE 2024, other expenses were $25,636, 44% higher than $17,858 incurred in YE 2023. In Q4 2024, other expenses totaled
$6,712, 33% higher than $5,050 in Q4 2023. Other expenses were higher in both Q4 and YE 2024 mainly due to higher selling
and marketing expense (including sales commissions) and general and administrative expense, specifically compensation
expenses. In YE 2024 compensation expenses were $10,921 compared to $8,175 driven by increases in staffing and salaries
reflecting higher activity levels, a competitive labor market, share-based compensation expenses and performance unit plan
expenses relating to long-term incentives for performance. Share-based compensation and performance unit plan expenses were
a significant component of compensation expenses. In YE 2024 share-based compensation and performance unit plan expenses
totaled $1,568 compared to $777 in YE 2023. The increase in stock-based compensation expenses was mainly due to mark-to-
market increase for DSUs issued in prior periods. Increase in selling and marketing expenses was primarily due to higher levels of
sales activity in the home building business.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
31
LOCATION OF GBG BUILDING COMMUNITIES
S
T
O
N
EY TRAIL
N
W
STONEY TRAIL SE
YANKEE VALLEY
BOULEVARD
HWY 1 (16TH AVE)
GLENMORE TRAIL SE
MACLEOD TRAIL
CROWCHILD TRAIL NW
CHESTERMERE
Clearwater Park
HWY 22X
D
E
E
R
F
O
O
T
TR
AI
L
QE II HIGHWAY
AIRDRIE
Genesis Internal Communities
Genesis External Communities
Genesis Land Parcels
N CALGARY
ROCKY VIEW COUNTY
OMNI / 425
E CALGARY
SE CALGARY
Hazel (Hotchkiss)
SE CALGARY
SE CALGARY
SE Land
Holdings Calgary
HWY 22X
SW CALGARY
SW CALGARY
Vermilion Hill
SW CALGARY
SE CALGARY
Heartwood
NE CALGARY
COCHRANE
NW CALGARY
Harmony
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
32
15
Real Estate Held for Development and Sale
December 31,
2024
2023
% change
Real estate held for development and sale
440,792
342,791
28.6%
Refer to note 5 in the consolidated financial statements for the years ended December 31, 2024 and 2023 which details the
components of the changes in the net book value of real estate held for development and sale.
Real estate held for development and sale increases as a result of acquisitions and development activities and declines as a result
of sales of residential lots, homes and development land parcels. Real estate held for development and sale increased by $98,001
as at YE 2024 compared to YE 2023 with the net increase mainly due to: (i) the acquisition of 894 acres of development land in
southeast Calgary for $75,470; and (ii) increase in residential lots from third party developers for $88,070. These were partially
offset by the sale of residential lots, homes and development land.
The following table presents Genesis’ real estate held for development and sale at net book value as at December 31, 2024:
Net Book Value
Real Estate Held for Development and Sale
Lots, multi-
family &
commercial
parcels
Land held for
development (1)
Total
Communities Directly Controlled
Airdrie - Bayside, Bayview, Canals
28,029
13,967
41,996
Calgary SE - Logan Landing
9,342
52,752
62,094
Calgary SE - Hazel (Hotchkiss)
-
30,170
30,170
Calgary SE Land Holdings
-
68,896
68,896
Rocky View County - North Conrich (425)
-
6,977
6,977
Rocky View County - OMNI
-
6,053
6,053
Other land (2) - non-core
-
902
902
Communities Controlled through Partnerships - 60%
Calgary N - Lewiston (owned by LLLP)
339
34,492
34,831
Calgary E - Huxley (owned by HLLP)
-
55,076
55,076
Total land development
37,710
269,285
306,995
Home building construction work-in-progress
45,241
Third party lots
88,556
Total home building
133,797
Total real estate held for development and sale
440,792
(1) Land held for development comprises lands not yet subdivided into single-family lots or parcels.
(2) Other land is non-core and available for sale.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
33
16
The following table presents the breakdown of Genesis’ serviced single-family lots, multi-family and commercial parcels shown
above, by community as at December 31, 2024:
The following table presents the estimated equivalent, by community of single-family lots and multi-family and commercial acres
of Genesis’ land held for development (shown previously) as at December 31, 2024, based on the Corporation’s plans for the
development of its lands. Refer to the section in this MD&A entitled “Obtaining Additional Zoning and Servicing Entitlements” for
the status of North Conrich (425). The timelines discussed are management’s best estimates at this time, given the uncertainties
related to the regulatory approval process and market conditions.
Estimated Equivalent if/when Developed
Land Held for Development, by
Community
Net Book
Value
Land (1)
(acres)
Single-family
(lots)
Multi-family
(acres)
Commercial
(acres)
Communities Directly Controlled
Airdrie - Bayside, Bayview
13,967
66
274
2
-
Calgary SE - Logan Landing
52,752
327
1,340
7
3
Calgary SE - Hazel (Hotchkiss)
30,170
160
1,184
3
-
Calgary SE Land Holdings (2)
68,896
1,194
-
-
-
Rocky View County - North Conrich (425) (2)
6,977
425
-
-
-
Rocky View County - OMNI (2)
6,053
185
-
-
-
Other land - non-core
902
156
-
-
-
Communities Controlled through
Partnerships - 60%
Calgary N - Lewiston (owned by LLLP)
34,492
96
635
3
4
Calgary E - Huxley (owned by HLLP)
55,076
161
1,378
-
-
Total
269,285
2,770
4,811
15
7
(1) Land not yet subdivided into single-family and other lots or parcels.
(2) Lands are in early stage and the estimated equivalents awaiting regulatory approval.
Serviced Lots, Multi-family and
Commercial Parcels, by Community
Net Book
Value
Single-family
lots
Townhouse
units
Townhouse/
multi-family
parcels
Commercial
parcels
Communities Directly Controlled
Airdrie - Bayside, Bayview, Canals
28,029
328
1
1
-
Calgary SE - Logan Landing
9,342
120
-
-
-
Communities Controlled through
Partnerships - 60%
Calgary N - Lewiston (owned by LLLP)
339
4
-
-
-
Total
37,710
452
1
1
-
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
34
17
Amounts Receivable
December 31,
2024
2023
% change
Amounts receivable
66,363
28,156
N/R (1)
(1) Not relevant due to the size of the change.
Genesis generally receives non-refundable deposits ranging from 5% to 20% at the time of entering into a sale agreement for
residential lots with a third party builder. Amounts receivable are recognized on receipt of a minimum 15% non-refundable deposit
and after agreed-to-services pertaining to the property have been substantially performed. Title to a lot or home that is contracted
for sale is not transferred by Genesis to the builder or purchaser until full payment is received, thus mitigating credit risk. There are
no amounts receivable past due and there have been no write-offs or allowance for doubtful accounts in 2024 or 2023.
The increase of $38,207 in amounts receivable was mainly due to higher lot sales to third party builders. As at YE 2024, Genesis
had $64,384 (409 lots) in amounts receivable related to third party builders compared to $26,623 (191 lots) in amounts receivable
as at YE 2023.
Individual balances due from third party builders at YE 2024 that were 10% or more of total amounts receivable were $57,956 from
four third party builders (YE 2023 - $26,623 from two third party builders).
VTB Mortgage Receivable
December 31,
2024
2023
% change
Vendor-take-back mortgage receivable
641
1,976
(67.6%)
During 2024, the Corporation closed the sale of a 144-acre parcel of non-core development land for $850, which comprised cash
consideration of $80 and the remainder being a $770 four-year VTB mortgage receivable at 0% interest per annum. The VTB
mortgage receivable is payable in four equal annual installments of approximately $193, commencing December 1, 2025 and
ending December 1, 2028.
During 2023, the Corporation closed the sale of a 2.91-acre parcel of development land for $3,929, comprised of cash consideration
and a VTB mortgage receivable bearing annual interest at the prime rate. The principal and interest on the VTB mortgage
receivable totaling $2,006 was received in March 2024.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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Cash Flows from (used in) Operating Activities
Results from operations, including earnings and cash flows, vary considerably between periods for the reasons explained under
the heading “Factors Affecting Results of Operations” in this MD&A.
Three months ended
December 31,
Year ended
December 31,
2024
2023
2024
2023
Cash flows from (used in) operating activities
13,348
(13,501)
27,555
(7,799)
Cash flows from (used in) operating activities per share - basic and
diluted
0.24
(0.24)
0.49
(0.14)
The changes in cash flows from (used in) operating activities between Q4 2024 and Q4 2023 consist of the following:
Three months ended December 31,
Operating Activities - Inflows (Outflows)
2024
2023
$ change
Residential home sales
71,152
52,835
18,317
Proceeds from sale of ownership interest in Limited Partnership
8,040
-
8,040
Residential lot sales
8,193
5,289
2,904
Development land sales
9,965
9,995
(30)
Residential home construction
(34,192)
(28,178)
(6,014)
Land development
(22,415)
(32,099)
9,684
Lots and land acquisitions
(17,455)
(12,686)
(4,769)
Suppliers and employees
(9,393)
(8,278)
(1,115)
Income tax
(1,284)
(682)
(602)
Other
737
303
434
Total
13,348
(13,501)
26,849
The changes in cash flows from (used in) operating activities between YE 2024 and YE 2023 consist of the following:
Year ended December 31,
Operating Activities - Inflows (Outflows)
2024
2023
$ change
Residential home sales
258,970
167,673
91,297
Proceeds from sale of ownership interest in Limited Partnerships
16,440
11,760
4,680
Residential lot sales
49,825
16,948
32,877
Development land sales
18,887
14,237
4,650
Residential home construction
(127,881)
(104,662)
(23,219)
Land development
(68,754)
(68,146)
(608)
Lots and land acquisitions
(86,022)
(19,590)
(66,432)
Suppliers and employees
(30,334)
(24,056)
(6,278)
Income tax
(5,844)
(3,332)
(2,512)
Other
2,268
1,369
899
Total
27,555
(7,799)
35,354
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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The increases in cash inflows from the sale of residential homes by GBG are primarily related to increases in the volume of homes
sold. Genesis sells residential lots to third party builders and typically receives deposits ranging from 5% to 20% of the purchase
price from the builder. On receipt of a minimum 15% non-refundable deposit after agreed-to-services pertaining to the property
have been substantially performed, Genesis recognizes all of the sales revenue. The balance of the purchase price is generally
received in cash at the time of closing of the sale by the third party builder to a home buyer, which can be many months later,
resulting in a timing difference between sales revenue recognition and the actual receipt of cash.
The year-over-year change in cash flows from operating activities is mainly due to higher cash inflows from residential homes,
residential lots and development land sales. These were partially offset by higher cash outflows for home building activities and for
the acquisition of residential lots and land. In addition, higher income tax payments were made in YE 2024 compared to YE 2023.
LIABILITIES AND SHAREHOLDERS’ EQUITY
The following table presents Genesis’ liabilities and equity at YE 2024 and YE 2023:
December 31,
December 31,
2024
% of total
2023
% of total
Loan and credit facilities
133,494
23%
103,587
24%
Provision for future development costs
36,236
6%
20,569
5%
Customer deposits
19,577
3%
17,470
4%
Accounts payable and accrued liabilities
26,795
5%
22,579
5%
Accounts payable related to residential lot purchases
63,374
11%
32,319
7%
Lease liabilities
953
0%
712
0%
Income tax payable
10,091
2%
1,706
0%
Total liabilities
290,520
50%
198,942
45%
Non-controlling interest
20,718
4%
9,999
2%
Shareholders’ equity
266,480
46%
231,142
53%
Total liabilities and equity
577,718
100%
440,083
100%
The ratio of total liabilities to equity is as follows:
December 31, 2024
December 31, 2023
Total liabilities
290,520
198,942
Total equity
287,198
241,141
Total liabilities to equity (1)
101%
83%
(1) Calculated as total liabilities divided by total equity.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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Loan and Credit Facilities
Q4 2024
Q3 2024
Q2 2024
Q1 2024
Q4 2023
Corporate revolving line of credit
13,885
20,079
26,798
10,152
12,800
Demand land project servicing loans
3,813
3,808
8,329
11,682
12,729
Demand land project servicing loans - LLLP
4,318
3,006
328
15,927
13,455
Demand land project servicing loan - HLLP
12,317
5,648
-
-
-
Demand operating line - LLLP
23,256
22,998
22,439
21,500
21,500
Demand operating line - HLLP
16,191
15,941
15,665
15,377
15,098
Demand operating line for single-family homes and
lots
8,167
3,100
11,210
8,805
13,664
VTB mortgages payable - Calgary SE Land
Holdings
55,646
60,168
60,168
18,088
18,088
VTB mortgage payable - Investment in Land
Development Joint Venture
5,780
-
-
-
-
143,373
134,748
144,937
101,531
107,334
Unamortized portions of the discount on the VTB
mortgages payable
(9,020)
(9,456)
(10,457)
(2,707)
(3,010)
Unamortized deferred fees on loan and credit
facilities
(859)
(969)
(875)
(932)
(737)
Balance, end of period
133,494
124,323
133,605
97,892
103,587
The continuity of Genesis’ loan and credit facilities, excluding deferred fees, is as follows:
Year ended December 31, 2024
Year ended
December 31, 2023
VTB mortgages
payable
Loan and credit
facilities
Total
Total
Balance, beginning of year
15,078
89,246
104,324
65,710
Advances
39,004
71,269
110,273
100,975
Repayments
(4,522)
(79,788)
(84,310)
(59,450)
Interest expense
2,846
1,220
4,066
(2,911)
Balance, end of year
52,406
81,947
134,353
104,324
Loan and credit facilities are used primarily to finance the costs of developing land, building homes and for land purchases. Genesis
accesses these facilities, cash from operations and cash on hand in a balanced manner to finance its operations.
Genesis has various covenants in place with its lenders with respect to its loan and credit facilities. Such covenants include credit
usage restrictions; cancellation, prepayment, confidentiality and cross default clauses; sales coverage requirements; conditions
precedent for funding; and other terms such as, but not limited to, maintaining contracted lot prices, restrictions on encumbrances,
liens and charges, material changes to project plans, and material changes in the Corporation’s ownership structure.
Genesis and its consolidated entities were in compliance with all lender covenants for all periods in this MD&A.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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Corporate revolving line of credit
Genesis has a $50,000 corporate revolving line of credit with a major Canadian financial institution at an interest rate per annum
of prime +1.65%. This is secured by specific dedicated lands and a general corporate charge on all assets of the Corporation. As
at December 31, 2024, the amount drawn on this facility was $13,885 (YE 2023 - $12,800). In March 2024, the interest rate was
reduced from prime + 1.90% previously and now matures on February 1, 2027.
Demand land project servicing loans
Genesis has land project servicing facilities up to $9,121 with a major Canadian chartered bank at an interest rate per annum of
prime +0.50%. These facilities are secured by agreements receivable, real estate held for development and sale, and a corporate
guarantee, and mature between May 12, 2025 and November 28, 2025. As at December 31, 2024, the amount drawn on these
facilities was $3,813 (YE 2023 - $12,729). Subsequent to December 31, 2024, a loan facility with the ability to borrow $2,848 and
a due date of May 12, 2025 was closed.
Demand land project servicing loans for LLLP
LLLP has demand land project servicing facilities up to $26,497 with a major Canadian chartered bank at an interest rate per
annum of prime +0.50%. These facilities are secured by specific lands, and a Genesis corporate guarantee, and mature between
July 31, 2026 and November 26, 2027. As at December 31, 2024, the amount drawn on these facilities were $4,318 (YE 2023 -
$13,455).
Demand land project servicing loan for HLLP
HLLP has a demand land project servicing facility up to $52,135 with a major Canadian chartered bank bearing per annum interest
at the prime rate. This facility is secured by specific lands, and a Genesis corporate guarantee, and matures on September 3,
2027. As at December 31, 2024, the amount drawn on this facility was $12,317 (YE 2023 - $Nil).
Demand operating line for LLLP
LLLP has a demand operating credit facility of $24,500 with a major Canadian chartered bank at an interest rate per annum of
prime +0.50%. This facility is secured by specific lands, and a Genesis corporate guarantee, and matures on October 27, 2025.
As at December 31, 2024, the amount drawn on this facility was $23,256 (YE 2023 - $21,500). In Q2 2024, the facility limit was
increased to $24,500 from $21,500.
Demand operating line for HLLP
HLLP has a demand operating credit facility up to $17,000 with a major Canadian chartered bank at an interest rate per annum of
prime +0.25%. This facility is secured by specific lands, and a Genesis corporate guarantee, and matures on November 30, 2026.
As at December 31, 2024, the amount drawn on this facility was $16,191 (YE 2023 - $15,098). In Q2 2024, the facility limit was
increased to $17,000 from $16,000.
Demand operating line for single-family homes and lots
GBG has a demand operating line of $25,000 bearing interest at prime +0.75% per annum. This facility is secured by housing
projects under development and a corporate guarantee. As at December 31, 2024, the amount drawn on this facility was $8,167
(YE 2023 - $13,664). The facility is renewed annually.
VTB mortgages payable
Genesis entered into a $18,088 VTB mortgage payable on the purchase of 460-acres of development land in southeast Calgary
in December 2023. The VTB mortgage payable is secured by specific lands, has an interest rate of 0% per annum and is repayable
in four equal annual installments of $4,522 each, commencing November 20, 2024 and ending November 20, 2027. The first
installment of $4,522 was paid in November 2024. As at December 31, 2024, the VTB mortgage payable had an outstanding
balance of $13,566 with an unamortized discount of $1,819 for a net amount of $11,747 (YE 2023 - $18,088 and $3,010
respectively for a net amount of $15,078).
During Q2 2024, Genesis entered into a $42,080 VTB mortgage payable on the purchase of 734-acres of development land in
southeast Calgary. The VTB mortgage payable is secured by specific lands, has an interest rate of 0% per annum and is repayable
in four annual installments of $7,000, $8,000, $13,680 and $13,400 respectively, commencing June 19, 2025 and ending June 19,
2028. As at December 31, 2024, the VTB mortgage payable had an outstanding balance of $42,080 with an unamortized discount
of $6,676 for a net amount of $35,404.
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During Q4 2024, Genesis entered into a $5,780 VTB mortgage payable on the investment of land development joint venture. The
VTB mortgage payable is secured by specific lands, has an interest rate of 0% per annum and is repayable in two annual
installments of $2,890, commencing November 15, 2025 and November 15, 2026. As at December 31, 2024, the VTB mortgage
payable had an outstanding balance of $5,780 with an unamortized discount of $525 for a net amount of $5,255.
Provision for Future Development Costs
When Genesis sells lots, land parcels and homes, it remains responsible for the payment of certain future development costs
known as provision for future development costs (“FDC”).
In Genesis’ land development business, FDC represents the estimated remaining construction and other development costs related
to each lot or parcel that has previously been sold by Genesis, if any. These estimated costs include the direct and indirect
construction and other development costs, including municipal levies, expected to be incurred by Genesis during the remainder of
the development process, net of expected future recoveries from third parties that are allocable to the relevant lot or parcel. FDC
is reviewed periodically and, when a prior estimate is known to be different from the actual costs incurred or expected to be incurred,
an adjustment is made to FDC and a corresponding adjustment is made to cost of sales and in some cases, to real estate held for
development and sale.
FDC for GBG are estimated future costs relating to previously sold homes, which are primarily for seasonal and other work (such
as finishing and landscaping) and estimated warranty expenses over the one-year warranty period.
FDC as at YE 2024 was $29,423 for the land division (YE 2023 - $15,899) and $6,813 for GBG (YE 2023 - $4,670). For additional
details, see information provided under the heading “Critical Accounting Estimates” in this MD&A.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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LIQUIDITY AND CAPITAL RESOURCES
Genesis had cash and cash equivalents of $21,414 and drawn loan and credit facilities of $133,494 as at YE 2024 compared to
$37,546 and $103,587 respectively as at YE 2023, resulting in net debt (refer to heading “Non-GAAP Measures” in this MD&A) of
$112,080 as at YE 2024 compared to net debt of $66,041 as at YE 2023. The components of loan and credit facilities are detailed
below. For additional details, please see information provided under the heading “Loan and Credit Facilities” in this MD&A.
December 31,
2024
2023
Cash and cash equivalents
21,414
37,546
Corporate revolving line of credit
13,359
12,274
Demand land project servicing and home building loans
11,967
26,367
Demand land project servicing and operating lines - LLLP
27,482
34,832
Demand land project servicing and operating lines - HLLP
28,280
15,036
VTB mortgages payable, net of unamortized portions of the discount
52,406
15,078
Total loan and credit facilities
133,494
103,587
Net debt (2) (3)
(112,080)
(66,041)
(1) Not relevant due to the size of the change.
(2) Calculated as the difference between cash and cash equivalents and total loan and credit facilities.
(3) Non-GAAP financial measure. Refer to heading “Non-GAAP Measures” in this MD&A.
December 31,
Loan and credit facilities as a percentage of total assets (1)
2024
2023
Corporate revolving line of credit
2.3%
2.8%
Demand land project servicing and home building loans
2.0%
6.0%
Demand land project servicing and operating lines - LLLP
4.8%
7.9%
Demand land project servicing and operating lines - HLLP
4.9%
3.4%
VTB mortgages payable, net of unamortized portions of the discount
9.1%
3.4%
Loan and credit facilities to total assets
23.1%
23.5%
Total liabilities to equity (3)
101.2%
82.5%
(1) Calculated as each component of loan and credit facilities divided by total assets.
(2) Not relevant due to size of the change.
(3) Calculated as total liabilities divided by total equity.
December 31,
Net debt (1) as a percentage of total assets
2024
2023
% change
Cash and cash equivalents
21,414
37,546
(43.0%)
Loan and credit facilities
(133,494)
(103,587)
28.9%
Net debt (1) (2)
(112,080)
(66,041)
69.7%
Net debt to total assets (3)
(19.4%)
(15.0%)
29.3%
(1) Non-GAAP financial measure. Refer to heading “Non-GAAP Measures” in this MD&A.
(2) Calculated as the difference between cash and cash equivalents and total loan and credit facilities.
(3) Calculated as net debt divided by total assets.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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Based on the Corporation’s operating history, relationships with lenders and committed sales contracts, management believes that
Genesis has the ability to continue to renew or repay its financial obligations as they become due. The Corporation expects to
generate sufficient liquidity from its cash flows from operating activities, undrawn credit facilities and cash on hand to meet its
financial obligations (including the above liabilities) and commitments as they become due.
Finance Expense
Three months ended December 31,
Year ended December 31,
2024
2023
2024
2023
Interest incurred
(1,382)
(1,534)
(6,113)
(4,912)
Imputed interest relating to VTB
mortgages payable
(1,007)
(199)
(2,846)
(199)
Financing fees amortized
(122)
(106)
(447)
(386)
Interest and financing fees capitalized
232
463
1,498
1,124
(2,279)
(1,376)
(7,908)
(4,373)
Finance expenses were higher in Q4 2024 and YE 2024 compared to the same periods in 2023 mainly due to higher average loan
balances. Interest and financing fees are recorded as a component of real estate held for development and sale.
The weighted average interest rate of loan agreements with various financial institutions was 6.05% (YE 2023 - 7.90%) based on
December 31, 2024 balances.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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Income Tax Payable
The continuity in income tax payable is as follows:
December 31, 2024
December 31, 2023
Balance, beginning of year
1,706
704
Provision for current income tax
14,229
4,334
Net payments
(5,844)
(3,332)
Balance, end of year
10,091
1,706
As at December 31, 2024, income tax payable is a result of tax on the current year’s income, partially offset by installment payments
made during the year.
Shareholders’ Equity
As at March 5, 2025, the Corporation had 56,758,947 common shares issued and outstanding. The common shares of the
Corporation are listed for trading on the Toronto Stock Exchange under the symbol “GDC”.
The Corporation renewed its NCIB on December 13, 2024. The renewed NCIB commenced on December 18, 2024 and will
terminate on the earlier of: (i) December 17, 2025; and (ii) the date on which the maximum number of common shares are
purchased pursuant to the bid. The Corporation may purchase for cancellation up to 2,839,275 common shares under the NCIB.
The prior NCIB, which expired on December 17, 2024, allowed the Corporation to purchase for cancellation up to 2,840,528
common shares.
The Corporation purchased and cancelled common shares under its NCIBs as follows:
Three months ended
December 31,
Year ended
December 31,
2024
2023
2024
2023
Number of shares purchased and cancelled
3,482
30,505
20,282
61,027
Total cost
11
69
51
135
Average price per share purchased
3.47
2.23
2.55
2.20
Shares cancelled as a % of common shares
outstanding at beginning of period
0.01%
0.05%
0.04%
0.11%
During YE 2024, the Corporation purchased and cancelled 20,282 common shares for $51 at an average cost of $2.55 per share
(representing 0.04% of issued and outstanding shares at the beginning of period) compared to 61,027 common shares for $135
at an average cost of $2.20 per share (representing 0.11% of issued and outstanding shares at the beginning of period) in YE
2023.
During Q4 2024, the Corporation purchased and cancelled 3,482 common shares for $11 at an average cost of $3.47 per share
(representing 0.01% of issued and outstanding shares at the beginning of period) compared to 30,505 common shares for $69 at
an average cost of $2.23 per share (representing 0.05% of issued and outstanding shares at the beginning of period) in Q4 2023.
The Corporation purchased and cancelled 23,079 common shares between January 1, 2025 and March 5, 2025 for $77 at an
average cost of $3.34 per share under the NCIB. As of the date of this MD&A, there are 2,812,714 common shares remaining for
purchase under the currently authorized NCIB.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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Contractual Obligations and Debt Repayment
Contractual obligations (excluding accounts payable, accrued liabilities, income tax payable, customer deposits, lease liabilities
and provision for FDCs) at YE 2024 were as follows:
Loan and
Credit
Facilities (1)
Levies and
Municipal Fees
Lot Purchase
Contracts (2)
Lease
Obligations (3)
Total
Current
49,649
12,769
8,054
237
70,709
January 2026 to December 2026
35,515
11,504
26,955
237
74,211
January 2027 to December 2027
44,812
7,337
2,735
265
55,149
January 2028 and thereafter
13,397
-
-
8,168
21,565
Total
143,373
31,610
37,744
8,907
221,634
(1) Excludes deferred fees on loan and credit facilities and unamortized portions of the discount on the VTB mortgages payable.
(2) Lot purchase contracts are from third-party developers and from Partnerships controlled and managed by Genesis.
(3) Includes variable operating costs.
Levies and municipal fees are related to municipal agreements signed by Genesis on commencement of development of certain
real estate assets. Non-payment of levies and municipal fees could result in the municipalities drawing upon letters of credit or
surety bonds, impact the development of the associated real estate assets and impact Genesis’ status as a developer with the
municipality. Genesis is current with regard to all levies and fees due to municipal authorities.
Lot purchase contracts are related to the purchase of lots from third-party developers and limited partnerships as part of GBG’s
operations. These contracts generally require an initial deposit with the balance of the contract price being paid at agreed future
dates or upon the sale of the lot (and home) to an end user. In the event GBG fails to complete the purchase of lots pursuant to
the terms of these lot purchase contracts, any deposits paid would be forfeited as liquidated damages without limiting the third-
party developer’s ability to seek further remedies available at law.
Genesis has certain lease agreements that are entered in the normal course of operations. Genesis' sublease for its head office
signed in April 2020 expires in February 2027. The total payments over the remaining term of the office lease for variable operating
costs are $513. In the event the office lease is terminated early, Genesis is liable to pay the landlord for the loss of its income for
the unexpired portion of the lease, in addition to damages and other expenses incurred by the landlord, if any. Genesis also has
other minor operating leases. In October 2024, Genesis signed a 10-year lease for its new head office location, which commences
in March 2027 and expires in December 2037. The total estimated payments for its new head office location, including variable
operating costs, base rent and parking are $8,394. In the event the office lease is terminated early due to a default by Genesis,
Genesis is liable to pay the landlord the aggregate of Basic Rent and Additional Rent (as defined in the lease) for a period of one
year, being the estimated time required to re-lease the premises together with any other costs and expenses, including lawyer’s
fees, incurred by the landlord, if any.
As a normal part of business, Genesis has entered into arrangements and incurred obligations that will impact future operations
and liquidity, some of which are reflected as short-term liabilities.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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Current Contractual Obligations and Commitments
December 31, 2024
December 31, 2023
Loan and credit facilities, excluding deferred fees on loan and credit facilities and
unamortized portions of the discount on the VTB mortgages payable
49,649
26,916
Accounts payable and accrued liabilities
26,795
22,579
Accounts payable related to residential lot purchases
47,889
24,131
Total short-term liabilities
124,333
73,626
Levies and municipal fees
12,769
8,516
Lot purchase contracts
8,054
12,158
Lease obligations
237
585
145,393
94,885
At YE 2024, Genesis had obligations due within the next 12 months of $145,393 of which $49,649 related to loan and credit
facilities. Repayment is either linked directly to the collection of lot receivables and sales proceeds or due at maturity. Management
expects that Genesis will have sufficient liquidity from its cash flows from operating activities, supplemented by undrawn credit
facilities and cash on hand, to meet its financial obligations (including the above liabilities) as they become due.
OFF BALANCE SHEET ARRANGEMENTS
Letters of Credit and Surety Bonds
Genesis has an ongoing requirement to provide irrevocable letters of credit and surety bonds to municipalities as part of the sub-
division plan registration process. These letters of credit and surety bonds indemnify the municipalities by enabling them to draw
upon them if Genesis does not perform its contractual obligations. At YE 2024, these amounted to $9,446 (YE 2023 - $7,103).
Levies and Municipal Fees
For additional details, please see information provided under the heading “Contractual Obligations and Debt Repayment” in this
MD&A.
Land and Lot Purchase Contracts
For additional details, please see information provided under the heading “Contractual Obligations and Debt Repayment” in this
MD&A.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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SELECTED ANNUAL INFORMATION
2024
2023
2022
2021
2020
Total revenues
361,061
203,312
140,357
109,761
103,933
Gross margin before reversal of write-down / write-down (1)
96,524
45,831
26,072
27,575
27,352
Gross margin
96,524
46,531
27,158
31,843
15,715
Net earnings attributable to equity shareholders
39,597
14,512
4,520
10,877
199
Net earnings per share - basic and diluted
0.70
0.26
0.08
0.24
0.00
Total assets
577,718
440,083
364,140
324,929
266,494
Loan and credit facilities
133,494
103,587
65,057
32,668
21,470
Cash dividends per share (2)
0.195
0.17
0.15
0.14
-
(1) Non-GAAP financial measure. Refer to heading “Non-GAAP Measures” in this MD&A.
(2) Amount paid in the year. Genesis declared dividends of $0.195 per share, $0.17 per share and $0.15 per share in 2024, 2023 and 2022, respectively.
2024
2023
2022
2021
2020
Return on shareholders’ equity (“ROE”) (1)
15.9%
6.4%
2.0%
5.2%
0.1%
Net book value per share(2)
4.69
4.07
3.95
5.12
4.46
Average shareholders’ equity (3)
248,811
227,887
226,628
208,150
190,817
(1) Calculated as net earnings attributable to equity shareholders divided by average shareholders’ equity.
(2) Calculated as the book value of shareholders’ equity divided by the weighted average number of common shares outstanding.
(3) Calculated as the sum of shareholders’ equity per the financial statements at the beginning and end of each year divided by two.
Factors that affect net earnings have been explained throughout this MD&A. In addition, shareholders’ equity was affected by
dividends and the repurchase and cancellation of shares under Genesis’ NCIB. For additional details on dividends and NCIB,
please see information provided under the heading “Liquidity and Return of Capital” in this MD&A.
For additional details, please see information provided under the heading “Factors Affecting Results of Operations” in this MD&A
which discusses the factors that affect Genesis’ results and seasonality.
Summary analysis for last three years
Total revenues consist of residential lot sales, development land sales, residential home sales and other revenues. Residential lot
sales volumes were 726, 305 and 236 units in 2024, 2023, and 2022, respectively, reflecting the development of new phases and
market conditions in each period. In addition, development land sales were $17,531 $16,200 and $15,991 for 2024, 2023 and 2022
respectively. Development land sales are lumpy in nature and comprise sales of non-core lands, commercial lands and other lands
on which Genesis has no intention to build.
Residential homes sold were 401, 286 and 169 in 2024, 2023, and 2022 respectively. Included in this were single-family homes
sales of 386, 268 and 162 units in 2024, 2023, and 2022 respectively.
Gross margin before reversal of write-down was $96,524 in 2024, higher than the prior year mainly due to higher volumes and
higher margins on residential lots and home sales. Higher margins were received on development land sales in 2024. Gross margin
before reversal of write-down was $45,831 in 2023, higher than the prior year mainly due to higher volumes of residential lots and
homes sales. Gross margin before reversal of write-down was $26,072 in 2022, lower than the prior year mainly due to lower
margin on residential lots, partially offset by higher margin on residential homes and development land. Gross margins on
development land sales can vary significantly and are also impacted by write-downs or reversal of write-downs on real estate held
for development and sale. There was no reversal of write-down on real estate held for development and sale in 2024, a reversal
of write-down of $700 on residential lot sales in 2023 and a net reversal of write-down of $1,086 on development land sales in
2022 respectively. Net earnings and net earnings per share - basic and diluted were affected as a result of the above. Net earnings
attributable to equity shareholders were $39,597, $14,512 and $4,520 in 2024, 2023 and 2022, respectively. Net earnings per
share (basic and diluted) were $0.70 per share, $0.26 per share and $0.08 per share in 2024, 2023 and 2022, respectively.
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Total assets increased by $137,635 in 2024 compared to 2023. This was mainly due to an increase in real estate held for
development and sale by $98,001, an increase of $38,207 in amounts receivable, and an increase of $19,391 in investments in
land development entities in the CMA, partially offset by a reduction of $16,132 in cash and cash equivalents during the year.
Total assets increased by $75,943 in 2023 compared to 2022. This was mainly due to an increase in real estate held for
development and sale by $77,108 and an increase of $7,967 in amounts receivable and VTB mortgage receivable, partially offset
by a reduction of $9,772 in other operating assets during the year.
Total assets increased by $39,211 in 2022 compared to 2021. This was mainly due to an increase in real estate held for
development and sale by $46,828 and an increase of $8,533 in amounts receivable, partially offset by a reduction of $27,377 in
cash and cash equivalents during the year.
Total loan and credit facilities increased by $29,907 in 2024 compared to 2023. This was due to the addition of two VTB mortgages
payable related to the purchase of a parcel in Genesis’ southeast Calgary lands and the investment in a land development joint
venture. In addition, a $12,317 servicing loan draw was made in HLLP. The increase was partially offset by the repayment of the
first $4,522 installment related to acquisition of a $18,088 VTB for the purchase of the Calgary southeast land and lower land
project servicing and home building project loan balances.
Total loan and credit facilities increased by $38,530 in 2023 compared to 2022. This was mainly due to the addition of the VTB
mortgage payable related to the purchase of the southeast Calgary lands, the addition of a $15,098 demand operating credit facility
in HLLP and higher land project servicing and home building project loan balances.
Total loan and credit facilities increased by $32,389 in 2022 compared to 2021. This was mainly due to addition of a LLLP loan of
$20,198, higher land project servicing and home building project loan draws used to develop new phases and home building
projects. The increase was partially offset by the repayment of the final $9,312 installment related to the acquisition of a $18,624
VTB for the purchase of the Calgary north lands.
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SUMMARY OF QUARTERLY RESULTS
Q4
2024
Q3
2024
Q2
2024
Q1
2024
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Revenues
104,647
93,131
94,978
68,305
71,602
41,173
53,188
37,349
Net earnings (1)
12,617
12,003
8,027
6,950
8,056
2,203
4,093
160
EPS (2)
0.22
0.22
0.14
0.12
0.15
0.04
0.07
0.00
(1) Net earnings attributable to equity shareholders.
(2) Net earnings per share - basic and diluted.
Q4
2024
Q3
2024
Q2
2024
Q1
2024
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Dividends declared and paid
5,679
-
5,395
-
4,830
-
4,833
-
Dividends declared and paid
- per share
0.100
-
0.095
-
0.085
-
0.085
-
Q4
2024
Q3
2024
Q2
2024
Q1
2024
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Residential lots sold to third
parties (units)
89
163
121
92
42
1
45
30
Residential lots sold
through GBG (units)
24
52
50
31
53
43
59
32
Residential lots sold to GBG
by Partnerships (units)
44
-
60
-
-
-
-
-
Total residential lots sold
(units)
157
215
231
123
95
44
104
62
Q4
2024
Q3
2024
Q2
2024
Q1
2024
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Homes sold in third party
communities (units)
65
50
57
54
33
28
10
28
Homes sold in Genesis lots
(units)
24
52
50
31
53
43
59
32
Homes sold in Partnerships
lots (units)
18
-
-
-
-
-
-
-
Homes sold (units)
107
102
107
85
86
71
69
60
Q4
2024
Q3
2024
Q2
2024
Q1
2024
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Development land revenues
12,065
-
5,466
-
11,958
-
4,242
-
Cash flows from (used in)
operating activities
Q4
2024
Q3
2024
Q2
2024
Q1
2024
Q4
2023
Q3
2023
Q2
2023
Q1
2023
Amount
13,348
(2,193)
6,758
9,642
(13,501)
(9,922)
7,590
8,034
Per share - basic and diluted
0.24
(0.04)
0.12
0.17
(0.24)
(0.17)
0.13
0.14
In general, revenues and net earnings are mainly affected by the volume of residential lot and home sales, development land
parcel sales, and write-downs or reversals of write-downs, if any. Seasonality affects the land development and home building
industry in Canada, particularly winter weather conditions. For additional details, please see information provided under the heading
“Factors Affecting Results of Operations” in this MD&A which discusses the factors that affect Genesis’ results and seasonality
further.
During Q4 2024, Genesis sold 89 residential lots to third party builders and 107 homes of which 42 homes were built on Genesis’
and Partnerships’ lots. Revenues were higher in Q4 2024, compared to Q3 2024, due to higher residential home sales and
development land sales, partially offset by lower residential lot sales to third parties during the quarter. Gross margins in Q4 2024
were higher than in Q3 2024 with residential home and development land sales all contributing to this. In Q4 2024, the Corporation
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recorded $2,326 as a gain in investments in land development entities with no gain recorded in Q3 2024. Selling and marketing
expenses were higher in Q4 2024 compared to Q3 2024 while general and administrative expenses and net finance expenses
were comparative in Q4 2024 and Q3 2024. Income tax expenses were $4,919 in Q4 2024 compared to $3,592 in Q3 2024. As a
result of these factors, net earnings were $12,617 in Q4 2024 compared to net earnings of $12,003 in Q3 2024.
During Q3 2024, Genesis sold 163 residential lots to third party builders and 102 homes of which 52 homes were built on Genesis’
lots. Revenues were slightly lower in Q3 2024, compared to Q2 2024, due to there being no development land sales and lower
residential home sales, partially offset by higher residential lot sales to third parties during the quarter. Gross margins in Q3 2024
were higher than in Q2 2024 with residential lot sales contributing to this. General and administrative expenses, selling and
marketing expenses and net finance expenses were higher in Q3 2024 compared to Q2 2024. Income tax expenses were $3,592
in Q3 2024 compared to $1,281 in Q2 2024. As a result of these factors, net earnings were $12,003 in Q3 2024 compared to net
earnings of $8,027 in Q2 2024.
During Q2 2024, Genesis sold 121 residential lots to third party builders and 107 homes of which 50 homes were built on Genesis’
lots. Revenues were higher in Q2 2024, compared to Q1 2024, due to higher residential home sales, residential lot sales to third
parties and development land sales during the quarter. Gross margins in Q2 2024 were higher than in Q1 2024 with residential
home and development land sales all contributing to this. General and administrative expenses, selling and marketing expenses
and net finance expenses were marginally higher in Q2 2024 compared to Q1 2024. Income tax expenses were $1,281 in Q2 2024
compared to $2,261 in Q1 2024. As a result of these factors, net earnings were $8,027 in Q2 2024 compared to net earnings of
$6,950 in Q1 2024.
During Q1 2024, Genesis sold 92 residential lots to third party builders and 85 homes of which 31 homes were built on Genesis’
lots. Revenues were lower in Q1 2024, compared to Q4 2023, due to no development land sales during the quarter, partially offset
by higher residential lot sales to third parties and residential home sales. Q1 2024 included no write-down or reversal of write-
down, while Q4 2023 included $700 related to reversal of write-downs previously taken. Gross margins in Q1 2024 were higher
than in Q4 2023 with residential lots and residential home sales all contributing to this. In Q1 2024, there was no change in the fair
value of the Corporation’s investments in land development entities, while a gain of $1,106 was recorded in Q4 2023. General and
administrative expenses and selling and marketing expenses were higher in Q1 2024 compared to Q4 2023. Income tax expenses
were $2,261 in Q1 2024 compared to $2,246 in Q4 2023. As a result of these factors, net earnings were $6,950 in Q1 2024
compared to net earnings of $8,056 in Q4 2023.
During Q4 2023, Genesis sold 42 residential lots to third party builders and 86 homes of which 53 homes were built on Genesis’
lots. Revenues were higher in Q4 2023, compared to Q3 2023, due to higher residential home sales, residential lot sales to third
parties and development land sales during the quarter. Q4 2023 included $700 related to reversal of write-downs previously taken,
while there were no write-downs or reversal of write-downs in Q3 2023. Gross margins in Q4 2023 were higher than in Q3 2023
with residential lots, residential home and development land sales all contributing to this. In Q4 2023, the Corporation recorded
$1,106 as a gain in investments in land development entities with no gain recorded in Q3 2023. Selling and marketing expenses
and net finance expenses were higher compared to Q3 2023. Income tax expenses were $2,246 in Q4 2023 compared to $807 in
Q3 2023. As a result of these factors, net earnings were $8,056 in Q4 2023 compared to net earnings of $2,203 in Q3 2023.
During Q3 2023, Genesis sold one residential lot to third party builders and 71 homes of which 43 homes were built on Genesis’
lots. Revenues were lower in Q3 2023, compared to Q2 2023, due to lower residential lot sales to third parties, lower residential
home sales, and no development land sales during the quarter. Gross margins in Q3 2023 were lower than in Q2 2023. General
and administrative expenses and net finance expenses were higher compared to Q2 2023. Income tax expenses were $807 in Q3
2023 compared to $1,070 in Q2 2023. As a result of these factors, net earnings were $2,203 in Q3 2023 compared to net earnings
of $4,093 in Q2 2023.
During Q2 2023, Genesis sold 45 residential lots to third party builders and 69 homes of which 59 homes were built on Genesis’
lots. Revenues were higher in Q2 2023, compared to Q1 2023, due to higher residential home sales, residential lot sales to third
parties and a development land sale during the quarter. Gross margins in Q2 2023 were higher than in Q1 2023. General and
administrative expenses and net finance expenses were lower while selling and marketing expenses were higher in Q2 2023
compared to Q1 2023. Income tax expenses were $1,070 in Q2 2023 compared to $39 in Q1 2023. As a result of these factors,
net earnings were $4,093 in Q2 2023 compared to net earnings of $160 in Q1 2023.
During Q1 2023, Genesis sold 30 residential lots to third party builders and 60 homes of which 32 homes were built on Genesis’
lots. Revenues were lower in Q1 2023, compared to Q4 2022, due to lower residential home sales, residential lot sales to third
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parties and development land sales during the quarter. Q1 2023 included no write-down or reversal of write-down, while Q4 2022
included $1,086 related to net reversal of write-downs previously taken. Therefore, gross margins in Q1 2023 were lower than in
Q4 2022. In Q1 2023, there was no change in the fair value of the Corporation’s investments in land development entities, while a
gain of $560 was recorded in Q4 2022. Selling and marketing expenses, general and administrative expenses and net finance
expenses were marginally higher in Q1 2023 compared to Q4 2022. Income tax expenses were $39 in Q1 2023 compared to $836
in Q4 2022. As a result, net earnings were $160 in Q1 2023 compared to net earnings of $3,062 in Q4 2022.
SUMMARY OF ACCOUNTING CHANGES
The Corporation adopted no new IFRSs or interpretations as of January 1, 2024.
NEW ACCOUNTING PRONOUNCEMENTS
There were no new accounting pronouncements or amendments to existing standards that impacted or are expected to impact the
Corporation in 2024 and 2025.
CRITICAL ACCOUNTING ESTIMATES
The preparation of consolidated financial statements in accordance with IFRS requires management to make judgments and
estimates that affect the reported amounts of revenues, expenses (including stock-based compensation), assets and liabilities,
and the disclosure of contingent liabilities at the reporting date for the land development and the home building businesses. On an
ongoing basis, management evaluates its judgments and estimates in relation to revenues, expenses, assets and liabilities.
Management uses historical experience, third party appraisals and reports and various other factors it believes to be reasonable
under the given circumstances as the basis for its judgments and estimates. Actual outcomes may differ from these estimates
under different assumptions and conditions. There were no material changes made to the critical accounting estimates for YE 2024
and YE 2023. Refer to note 2(r) in the consolidated financial statements for the years ended December 31, 2024 and 2023 for
additional information on judgments and estimates.
Provision for Future Development Costs
Changes in estimated FDCs, which are generally obtained from third party service providers, directly impact the amount recorded
for the future development liability, cost of sales, gross margin and, in some cases, the value of real estate under development
and held for sale. This liability is subject to uncertainty due to the long time frames involved, specifically in land development.
Reversal of Write-down / Write-down of Real Estate Held for Development and Sale
The Corporation estimates the net realizable value (“NRV”) of real estate held for development and sale at least annually or
whenever events or changes in circumstances indicate the carrying value may exceed NRV. The estimate is based on valuations
conducted by independent real estate appraisers, other professional reports and estimates and takes into account recent market
transactions of similar and adjacent lands and housing projects in the same geographic area.
Valuation of Amounts Receivable
Amounts receivable are reviewed on a regular basis to estimate recoverability of balances. Any overdue amounts and any known
issues about the financial condition of debtors are taken into account when estimating recoverability.
Investments in Land Development Entities
The fair value of investments in land development entities are based on the market approach method. This method uses prices
and other relevant information that have been generated by market transactions involving identical or comparable assets.
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DISCLOSURE CONTROLS AND PROCEDURES AND INTERNAL CONTROL OVER FINANCIAL REPORTING
The Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”) are responsible for establishing and maintaining disclosure
controls and procedures (“DC&P”) and internal control over financial reporting (“ICFR”), as those terms are defined in National
Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings. The CEO and CFO have designed, or caused
to be designed under their direct supervision, Genesis’ DC&P to provide reasonable assurance that:
(i)
material information relating to the Corporation, including its consolidated subsidiaries, is made known to them by others
within those entities, particularly during the period in which the annual filings are being prepared; and
(ii)
information required to be disclosed in the annual filings, interim filings or other reports filed or submitted under securities
legislation is recorded, processed, summarized and reported on a timely basis.
The CEO and CFO have also designed, or caused to be designed under their direct supervision, Genesis’ ICFR to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external
purposes in accordance with IFRS. The ICFR have been designed using the control framework established in Internal Control –
Integrated Framework (2013) published by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”).
The CEO and CFO have evaluated the design and operating effectiveness of Genesis' DC&P and ICFR and concluded that
Genesis' DC&P and ICFR were effective as at December 31, 2024. While Genesis’ CEO and CFO believe that the Corporation’s
internal controls and procedures provide a reasonable level of assurance that such controls and procedures are reliable, an internal
control system cannot prevent all errors and fraud. It is management’s belief that any control system, no matter how well conceived
or operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.
There were no changes in the Corporation’s ICFR during the three months and year ended December 31, 2024 that have materially
affected or are reasonably likely to materially affect the Corporation’s ICFR.
RISKS AND UNCERTAINTIES
In the normal course of business, Genesis is exposed to certain risks and uncertainties inherent in the real estate development
and home building industries. Real estate development and home building are cyclical and capital-intensive businesses. As a
result, the profitability and liquidity of Genesis could be adversely affected by external factors beyond the control of management.
Risks and uncertainties faced by Genesis include industry risk, competition, supply and demand, geographic risk, development
and construction costs, credit and liquidity risks, finance risk, interest risk, management and key personnel risk, mortgage rates
and financing risk, general uninsured losses, cyber-security and business continuity risk, environmental risk and government
regulations.
In Q4 2024, the Alberta economy continued to grow driven by population gains, relative housing affordability and supportive
commodity markets. This was somewhat offset by increasing home prices, relatively higher lending rates and continued inflationary
pressures that weighed on demand. Given the volatile economy, it is not possible to reliably estimate the length and overall impact
of these developments and the impact on the financial results and condition of the Corporation in future periods.
There may be additional risks that management may need to consider from time to time. For a more detailed discussion on the
Corporation’s risk factors, refer to Genesis’ AIF for the year ended December 31, 2024 available on SEDAR+ at www.sedarplus.ca.
Development and Construction Cost Risk
Genesis may be impacted by higher prices of labour, consulting fees, construction services and materials. Costs of development
and building have fluctuated over the past several years and are typically passed on to the end customer through higher pricing.
Any significant increase that Genesis cannot pass on to the end customer may have a negative material impact on profits. Supply
chain pressures have become an increasing risk due to economic restrictions put in place and the impacts are unknown and largely
unpredictable but could impact both the price and timely availability of materials.
Credit and Liquidity Risk
Credit risk arises from the possibility that third-party builders who agree to acquire lots from Genesis may experience financial
difficulty and be unable to fulfill their lot purchase commitments.
Liquidity risk is the risk that Genesis will not be able to obtain financing for its servicing and other needs or be able to meet its
financial obligations as they fall due. If Genesis is unable to generate sufficient sales, renew existing credit facilities or secure
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additional financing, its ability to meet its obligations as they become due may be impacted. Based on the Corporation’s operating
history, relationships with lenders and committed sales contracts, management believes that Genesis has the ability to continue to
renew or repay its financial obligations as they become due.
Finance Risk
Genesis uses debt and other forms of financing in its business to execute the corporate strategy. Genesis uses project specific
credit facilities to fund land development costs and construction operating lines for home construction purposes. Should Genesis
be unable to retain or obtain such credit facilities, its ability to achieve its goals could be impacted. In order to reduce finance risk,
Genesis endeavors to match the term of financing with the expected revenues of the underlying land asset.
Management regularly reviews the Corporation’s credit facilities in accordance with review and renewal dates prescribed in the
related agreements. The Corporation has successfully managed the requirements in accordance with project development plans
and operating requirements.
Litigation Risk
All industries are subject to legal claims, with or without merit. The Corporation may be involved from time to time in various legal
proceedings which may include potential liability from its operating activities and, as a public company, possibly from violations of
securities laws or breach of fiduciary duty by its directors or officers. Defense and settlement costs can be substantial, even with
respect to legal claims that have no merit. Due to the inherent uncertainty associated with litigation, the resolution of any legal
proceeding could have a material effect on the financial position and results of operations of the Corporation.
Cybersecurity and Business Continuity Risk
Genesis’ operations, performance and reputation depend on how its technology networks, systems, offices and sensitive
information are protected from cyberattacks. Genesis’ operations and business continuity depend on how well it protects, tests,
maintains and replaces its networks, systems and associated equipment. The protection and effective organization of Genesis’
systems, applications and information repositories are central to the security and continuous operation of its business.
Cyberattacks and threats (such as hacking, computer viruses, denial of service attacks, industrial espionage, unauthorized access
to confidential information, or other breaches of network or IT security) continue to evolve and Genesis’ IT defenses need to be
regularly monitored and adapted. Vulnerabilities could harm Genesis’ brand and reputation as well as its business relationships
and could adversely affect its operations and financial results.
Genesis continues to carefully manage cybersecurity risk. To do so, Genesis has the following in place: third party reviews and
implementation of all reasonable recommendations, enterprise grade firewalls with the ability to detect port scanning, denial of
service attacks and content filtering and application control to permit or deny traffic on the network. Genesis also has anti-virus
software with behaviour based real-time threat end-point protection, ability to scan and lock down unauthorized system changes
and/or file encryption and prevent suspicious network behaviour. In addition, all incoming and outgoing emails are scanned for
content, suspicious URLs and the existence of recipients within the organization. Regular internal backups of network databases
and files are made in case of data corruption or encryption. Internet facing services are additionally protected by MFA security
methods. The Corporation maintains various types of insurance to cover certain potential risks and regularly evaluates the
adequacy of this coverage.
There may be additional risks that management may need to consider as circumstances require. For a more detailed discussion
on the Corporation’s risk factors, refer to Genesis’ AIF for the year ended December 31, 2024 available on SEDAR+ at
www.sedarplus.ca.
NON-GAAP MEASURES
Non-GAAP measures do not have any standardized meaning according to IFRS, and therefore may not be comparable to similar
measures presented by other reporting issuers.
Gross margin before reversal of write-down / write-down is a non-GAAP measure, and therefore may not be comparable to
similar measures presented by other reporting issuers. Gross margin before write-down is calculated by adjusting for write-down
of real estate held for development and sale. Gross margin before write-down of real estate held for development and sale is used
to assess the performance of the business without the effects of the non-cash write-down of real estate held for development and
sale. Management believes it is useful to exclude write-down from the analysis as it could affect the comparability of financial
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results between periods and could potentially distort the analysis of trends in business performance. Excluding this item does not
imply it is non-recurring. The most comparable GAAP financial measure is gross margin.
The tables below show the calculation of gross margin before reversal of write-down, which is derived from gross margin:
Development Land
Three months ended
December 31,
Year ended
December 31,
2024
2023
2024
2023
Development land revenues
12,065
11,958
17,531
16,200
Gross margin
3,188
696
4,166
696
Write-down of real estate held for development and sale
-
-
-
-
Gross margin before write-down
3,188
696
4,166
696
Gross margin before write-down (%)
26.4%
5.8%
23.8%
4.3%
Residential Lots
Three months ended
December 31,
Year ended
December 31,
2024
2023
2024
2023
Residential lot revenues
34,215
14,675
127,919
45,863
Gross margin
13,613
4,141
32,555
9,412
(Reversal of write-down) of real estate held for development and
sale
-
(700)
-
(700)
Gross margin before reversal of write-down
13,613
3,441
32,555
8,712
Gross margin before reversal of write-down (%)
39.8%
23.4%
25.4%
19.0%
Homes
Three months ended
December 31,
Year ended
December 31,
2024
2023
2024
2023
Revenues for homes
72,163
52,230
258,265
167,126
Gross margin
18,834
12,603
64,314
36,423
Write-down of real estate held for development and sale
-
-
-
-
Gross margin before write-down
18,834
12,603
64,314
36,423
Gross margin before write-down (%)
26.1%
24.1%
24.9%
21.8%
Development Land, Residential Lots and
Homes
Three months ended
December 31,
Year ended
December 31,
2024
2023
2024
2023
Total revenues
104,647
71,602
361,061
203,312
Gross margin (1)
31,727
17,440
96,524
46,531
(Reversal of write-down) of real estate held for development
and sale
-
(700)
-
(700)
Gross margin before reversal of write-down
31,727
16,740
96,524
45,831
Gross margin before reversal of write-down (%)
30.3%
23.4%
26.7%
22.5%
(1) Includes gross margin of $3,908 for 26 lots in Q4 2024 and $4,511 for 86 lots in YE 2024 purchased by the Home Building division from LLLP ($Nil in Q4 2023 and YE 2023) where
homes built on these lots are not closed yet. These amounts are eliminated on consolidation.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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36
Net debt is a non-GAAP measure, and therefore may not be comparable to similar measures presented by other reporting issuers.
Net debt is calculated as the difference between cash and cash equivalents and loan and credit facilities. Management believes
that net debt is an important measure to monitor leverage and evaluate the balance sheet. The most comparable GAAP financial
measure is loan and credit facilities.
The table below shows the calculation of net debt:
December 31,
2024
December 31,
2023
Cash and cash equivalents
21,414
37,546
Loan and credit facilities
133,494
103,587
Net debt
(112,080)
(66,041)
TRADING AND SHARE STATISTICS
The Corporation’s trading and share statistics for 2024 and 2023 are provided below:
2024
2023
Average daily trading volume
6,876
2,844
Share price ($/share)
High
4.25
2.50
Low
2.19
1.95
Close
3.33
2.30
Market capitalization at December 31,
189,084
130,645
Shares outstanding
56,782,026
56,802,308
OTHER
Additional information relating to the Corporation can be found on SEDAR+ at www.sedarplus.ca.
ADVISORIES
Cautionary Note Regarding Forward-Looking Statements
This MD&A contains certain statements which constitute forward-looking statements or information (“forward-looking statements”) within the
meaning of applicable securities legislation, including Canadian Securities Administrators’ National Instrument 51-102 - Continuous Disclosure
Obligations, concerning the business, operations and financial performance and condition of Genesis. Generally, these forward-looking
statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”,
“proposed”, “scheduled”, “future”, “likely”, “seeks”, “estimates”, “plans”, “forecasts”, “intends”, “anticipates” or “does not anticipate”, or “believes”,
or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will be taken”, “occur”
or “be achieved”.
Although Genesis believes that the anticipated future results, performance or achievements expressed or implied by forward-looking statements
are based upon reasonable assumptions and expectations, the reader should not place undue reliance on forward-looking statements because
they involve assumptions, known and unknown risks, uncertainties and other factors many of which are beyond the Corporation’s control, which
may cause the actual results, performance or achievements of Genesis to differ materially from anticipated future results, performance or
achievement expressed or implied by such forward-looking statements. Accordingly, Genesis cannot give any assurance that its expectations
will in fact occur and cautions that actual results may differ materially from those in the forward-looking statements.
Forward-looking statements are based on material factors or assumptions made by us with respect to, among other things, opportunities that
may or may not be pursued by us; changes in the real estate industry; fluctuations in the Canadian and Alberta economy; changes in the number
of lots sold and homes delivered per year; and changes in laws or regulations or the interpretation or application of those laws and regulations.
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are
difficult to predict and many of which are outside of our control. Forward-looking statements in this MD&A and factors that could cause actual
results to differ materially from such statements include, but are not limited to, those outlined in the following table:
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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37
Forward-looking statements in this MD&A include, but are not limited to:
the availability of excess cash on hand and its proposed use;
the future exercise of any right to purchase;
the timing and approval of the conceptual scheme for the OMNI ASP, and
timing of completion of an interchange to provide primary transportation
access to these lands;
the anticipated number of housing units in the various communities upon
completion;
the expected completion dates of various projects that GBG is currently
engaged in, the timeline for pre-construction homes and anticipated lot
yields for projects under development;
plans and strategies surrounding the acquisition of additional land;
commencement of the servicing phase and the construction phase of
various communities and projects;
the financing of Genesis' business, including community and project phases,
and expected increased leverage;
anticipated general economic and business conditions, including forecasted
economic growth;
potential changes, if any, to the federal mortgage lending rules and other
rules that may impact home ownership in Canada;
expectations for lot and home prices;
construction starts and completions;
FDCs;
anticipated expenditures on land development activities;
GBG’s sales process and construction margins;
common share buybacks;
the payment of dividends; and
the ability to continue to renew or repay financial obligations and to meet
liabilities as they become due.
Factors that could cause actual results to differ
materially from those set forth in the forward-
looking statements include, but are not limited to:
the impact of contractual arrangements and
incurred obligations on future operations and
liquidity;
local real estate conditions, including the
development of properties in close proximity
to Genesis’ properties and the strength and
growth of the Calgary economy;
the uncertainties of real estate development
and acquisition activity;
fluctuations in interest and inflation rates;
the ability to access and raise capital and
debt financing on favorable terms, or at all;
not realizing on the anticipated benefits from
transactions or not realizing on such
anticipated benefits within the expected time
frame;
the cyclicality of the oil and gas industry;
changes in the Canadian / US dollar
exchange rate;
labour matters;
product availability due to supply chain issues
and (or) cost increases;
governmental laws and regulations;
general economic and financial conditions;
stock market volatility; and
other risks and factors described from time to
time in the documents filed by Genesis with
the securities regulators in Canada available
at www.sedarplus.ca, including in this MD&A
under the heading “Risks and Uncertainties”
and the AIF under the heading “Risk Factors”.
The forward-looking statements contained in this MD&A are made as of the date of this MD&A, based only on information currently available to
us, and, except as required by applicable law, Genesis does not undertake any obligation to publicly update or to revise any of the forward-
looking statements, whether as a result of new information, future events or otherwise.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
55
Bayview
AIRDRIE
GRAND OPENING
BAYVIEW, AIRDRIE
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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Bayview
AIRDRIE
LOGAN LANDING
SE CALGARY
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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DECEMBER 31, 2024 AND 2023
CONSOLIDATED
FINANCIAL
STATEMENTS
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
58
To the Shareholders of Genesis Land Development Corp.:
The consolidated financial statements and all information in
the Management’s Discussion and Analysis (“MD&A”) are the
responsibility of management. The consolidated financial
statements have been prepared by management in accordance
with the accounting policies in the notes to the consolidated
financial statements. In the opinion of management, the
consolidated financial statements have been prepared within
acceptable limits of materiality, and are in accordance with
International Financial Reporting Standards (“IFRS”) appropriate
in the circumstances. The financial information in the MD&A has
been reviewed by management to ensure consistency with the
consolidated financial statements.
Management maintains appropriate systems of internal control.
Policies and procedures are designed to give reasonable
assurance that transactions are properly authorized, assets are
safeguarded and financial records properly maintained to provide
reliable information for the preparation of consolidated financial
statements.
The consolidated financial statements have been further examined
by the Board of Directors and by its Audit Committee, which meets
regularly with the auditors and management to review the activities
of each. The Audit Committee is composed of three independent
directors, and reports to the Board of Directors.
MNP LLP, an independent firm of Chartered Professional
Accountants, was engaged to audit the consolidated financial
statements in accordance with Canadian generally accepted
auditing standards and IFRS to provide an independent auditors’
opinion.
March 5, 2025
IAIN STEWART
Chief Executive Officer
ROB SEKHON
Chief Financial Officer
MANAGEMENT’S REPORT
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
59
To the Shareholders of Genesis Land Development Corp.:
Opinion
We have audited the consolidated financial statements of Genesis
Land Development Corp. and its subsidiaries (the “Corporation”),
which comprise the consolidated balance sheets as at December
31, 2024 and December 31, 2023, and the consolidated statements
of comprehensive income, changes in equity and cash flows for
the years then ended, and notes to the consolidated financial
statements, including material accounting policy information.
In our opinion, the accompanying consolidated financial
statements present fairly, in all material respects, the consolidated
financial position of the Corporation as at December 31, 2024 and
December 31, 2023, and its consolidated financial performance
and its consolidated cash flows for the years then ended in
accordance with IFRS® Accounting Standards as issued by the
International Accounting Standards Board.
Basis for Opinion
We conducted our audits in accordance with Canadian generally
accepted auditing standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities
for the Audit of the Consolidated Financial Statements section of
our report. We are independent of the Corporation in accordance
with the ethical requirements that are relevant to our audits of
the consolidated financial statements in Canada, and we have
fulfilled our other ethical responsibilities in accordance with
these requirements. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the consolidated
financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
INDEPENDENT AUDITOR’S REPORT
KEY AUDIT MATTERS DESCRIPTION
AUDIT RESPONSE
Real Estate Held for Development and Sale
As at December 31, 2024, approximately 76% of the Corporation’s
total assets or $440.8 million are comprised of real estate held for
development and sale. Real estate held for development and sale
should be measured at low of cost or net realizable value.
The determination of the net realizable value of real estate
held for development and sale is considered to be a significant
estimate and risk of material misstatement. Each valuation
requires consideration of various inputs including but not limited
to the type of the real estate, its location, stage of development
and comparable market transactions. We therefore considered
real estate held for development and sale as a key audit matter.
We responded to this matter by performing procedures in
relation to real estate held for development and sale. Our
audit work in relation to this included, but was not restricted
to, the following:
• For certain real estate held for development and sale
we obtained the independent appraisals completed
for the Corporation’s real estate holdings. We verified
management had appropriately deducted future
development costs and estimated selling costs from the
appraised values to determine the net realizable value.
We compared the carrying value to the estimated net
realizable value.
• We obtained a reliance letter from the experts and
confirmed their professional qualifications and their role
as specialists.
• We engaged our valuation expert to review the
independent appraisals to verify the methodology used
by the independent appraisers was generally accepted.
• For real estate held for development and sale in which no
appraisal was obtained, we assessed the carrying value
based on recent sales made in the various phases by
using the average sales amount of the lots that are sold in
the same phase during the reporting period. We
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
60
performed a recalculation using the current year average
sale price, multiplied by the number of lots remaining in
each phase. We ensured expected future development
costs and estimated selling costs were applied to
the values in order to analyze the reasonability of net
realizable value when compared to the carrying values in
the general ledger.
• For real estate properties held for development and
sale where no independent appraisal was available and
no sales transactions had occurred, we obtained a net
realizable value analysis prepared by management. We
conducted a review of this analysis, focusing on the
underlying assumptions employed by management. We
performed procedures to ensure that the inputs utilized
and the analytical methodologies applied were consistent
with prevailing market conditions.
• We assessed the appropriateness of the disclosures
relating to the assumptions used in real estate held for
development and sale in the notes to the consolidated
financial statements.
Provision for Future Development Costs
The Corporation has obligations related to the completion of
land under development and housing projects. The Corporation
recognizes a liability for the future costs to be incurred.
The liability recognized for future land development and housing
projects costs involves data inputs which rely on significant
judgment from management, as well as significant reliance on the
estimates made by third party engineers and architects. As such,
future development and housing projects costs are susceptible
to risk of material misstatement due to the subjective nature of
assumptions. We therefore considered the provision for future
development costs as a key audit matter.
We responded to this matter by performing procedures in
relation to provision for future development costs. Our audit
work in relation to this included, but was not restricted to, the
following:
• We obtained copies of the estimated cost reports
prepared by independent experts (engineers and
architects) engaged by management.
• We obtained a reliance letter from the independent
experts in which we confirmed the objectives of the
expert’s procedures. We also held discussions with the
experts to obtain an understanding of the estimation
process.
• For internally estimated future development costs, we
had thorough discussions with managers in the land
and home divisions of the Corporation to understand
management’s estimation process. We considered the
reasonableness of the internal estimates based on known
historical and current information. We compared prior year
costs to complete (“CTC”) balance to current year CTC by
community and analyzed significant variances to ensure
the change is reasonable.
• We also compared estimates in managements calculation
to the reports obtained from independent engineer
specialists. In addition, we recalculated the allocation of
community costs to specific development phases and
completed analytical procedures based on percentage of
sold lots to identify unexpected and unusual variances in
expected CTC balance.
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61
Other Information
Management is responsible for the other information. The other
information comprises:
• Management’s Discussion and Analysis.
• The information, other than the consolidated financial
statements and our auditor’s report thereon, in the Annual
Report.
Our opinion on the consolidated financial statements does not
cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audits of the consolidated financial
statements, our responsibility is to read the other information and,
in doing so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our
knowledge obtained in the audits or otherwise appears to be
materially misstated.
We obtained Management’s Discussion and Analysis prior to
the date of this auditor’s report. If, based on the work we have
performed on this other information, we conclude that there is a
material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
The Annual Report is expected to be made available to us after
the date of the auditor’s report. If, based on the work we will
perform on this other information, we conclude that there is a
material misstatement therein, we are required to communicate
the matter to those charged with governance.
Responsibilities of Management and Those Charged with
Governance for the Consolidated Financial Statements
Management is responsible for the preparation and fair
presentation of the consolidated financial statements in
accordance with IFRS Accounting Standards as issued by the
International Accounting Standards Board, and for such internal
control as management determines is necessary to enable the
preparation of consolidated financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management
is responsible for assessing the Corporation’s ability to continue
as a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting
unless management either intends to liquidate the Corporation or
to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing
the Corporation’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated
Financial Statements
Our objectives are to obtain reasonable assurance about whether
the consolidated financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to
issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with Canadian generally
accepted auditing standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud
or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these
consolidated financial statements.
As part of an audit in accordance with Canadian generally
accepted auditing standards, we exercise professional judgment
and maintain professional skepticism throughout the audit. We
also:
• Identify and assess the risks of material misstatement of the
consolidated financial statements, whether due to fraud or
error, design and perform audit procedures responsive to
those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is
higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing
an opinion on the effectiveness of the Corporation’s internal
control.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by management.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
62
• Conclude on the appropriateness of management’s use of
the going concern basis of accounting and, based on the
audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant
doubt on the Corporation’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we
are required to draw attention in our auditor’s report to the
related disclosures in the consolidated financial statements
or, if such disclosures are inadequate, to modify our opinion.
Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or
conditions may cause the Corporation to cease to continue as
a going concern.
• Evaluate the overall presentation, structure and content of the
consolidated financial statements, including the disclosures,
and whether the consolidated financial statements represent
the underlying transactions and events in a manner that
achieves fair presentation.
• Plan and perform the group audit to obtain sufficient
appropriate audit evidence regarding the financial information
of the entities or business units within the Corporation as a
basis for forming an opinion on the consolidated financial
statements. We are responsible for the direction, supervision
and review of the audit work performed for the purposes of
the group audit. We remain solely responsible for our audit
opinion.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the audits
and significant audit findings, including any significant deficiencies
in internal control that we identify during our audits.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all
relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the consolidated financial statements
of the current period and are therefore the key audit matters.
We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when,
in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse
consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent
auditor’s report is Scott Laluk.
Calgary, Alberta
March 5, 2025
Chartered Professional Accountants
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
63
GENESIS LAND DEVELOPMENT CORP.
CONSOLIDATED BALANCE SHEETS
(In thousands of Canadian dollars)
Notes
December 31, 2024
December 31, 2023
Assets
Real estate held for development and sale
5
440,792
342,791
Amounts receivable
6
66,363
28,156
Vendor-take-back mortgage receivable
7
641
1,976
Investments in land development entities
8
26,551
7,160
Investment in other real estate entity
9
4,029
3,581
Other operating assets
10
9,614
10,907
Right-of-use assets
11
705
482
Deferred tax assets
12
7,609
7,484
Cash and cash equivalents
21,414
37,546
Total assets
577,718
440,083
Liabilities
Loan and credit facilities
13
133,494
103,587
Customer deposits
14
19,577
17,470
Accounts payable and accrued liabilities
22a
26,795
22,579
Accounts payable related to residential lot purchases
22a
63,374
32,319
Lease liabilities
11
953
712
Income tax payable
10,091
1,706
Provision for future development costs
15
36,236
20,569
Total liabilities
290,520
198,942
Commitments and contingencies
21
Subsequent events
13b, 17a
Equity
Share capital
16
82,263
82,293
Contributed surplus
1,063
1,063
Retained earnings
183,154
147,786
Shareholders’ equity
266,480
231,142
Non-controlling interest
20,718
9,999
Total equity
287,198
241,141
Total liabilities and equity
577,718
440,083
See accompanying notes to the consolidated financial statements.
ON BEHALF OF THE BOARD:
/s/ Stephen J. Griggs
/s/ Steven Glover
8
Director and Chair
Director and Chair of the Audit Committee
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
64
9
GENESIS LAND DEVELOPMENT CORP.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
For the years ended December 31, 2024 and 2023
(In thousands of Canadian dollars except per share amounts)
Year ended December 31,
Notes
2024
2023
Revenues
Sales revenue
360,920
203,202
Other revenue
141
110
23
361,061
203,312
Direct cost of sales
(264,537)
(157,481)
Reversal of write-down of real estate held for development and sale
5
-
700
(264,537)
(156,781)
Gross margin
96,524
46,531
Gain in fair value on investments in land development entities
8
2,326
1,106
General and administrative
18
(23,360)
(18,098)
Selling and marketing
19
(13,510)
(8,484)
(34,544)
(25,476)
Earnings from operations
61,980
21,055
Finance income
1,774
1,543
Finance expense
20
(7,908)
(4,373)
Earnings before income taxes
55,846
18,225
Income tax expense
12
(12,053)
(4,162)
Net earnings being comprehensive earnings
43,793
14,063
Attributable to non-controlling interest
24, 25
4,196
(449)
Attributable to equity shareholders
39,597
14,512
Net earnings per share - basic and diluted
16b
0.70
0.26
See accompanying notes to the consolidated financial statements.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
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10
GENESIS LAND DEVELOPMENT CORP.
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
For the years ended December 31, 2024 and 2023
(In thousands of Canadian dollars except number of shares)
Equity attributable to Corporation’s shareholders
Common shares - Issued
Notes
Number of
Shares
Amount
Contributed
Surplus
Retained
Earnings
Total
Shareholders’
Equity
Non-
Controlling
Interest
Total
Equity
At December 31, 2022
56,863,335
82,383
1,063
141,186
224,632
2,705
227,337
Dividends
16d
-
-
-
(9,663)
(9,663)
-
(9,663)
Normal course issuer bid
16c
(61,027)
(90)
-
(45)
(135)
-
(135)
Distributions
-
-
-
-
-
(1,398)
(1,398)
Changes of ownership
interest / Contribution
24
-
-
-
1,796
1,796
9,141
10,937
Net earnings (loss) being
comprehensive earnings
(loss)
-
-
-
14,512
14,512
(449)
14,063
At December 31, 2023
56,802,308
82,293
1,063
147,786
231,142
9,999
241,141
At December 31, 2023
56,802,308
82,293
1,063
147,786
231,142
9,999
241,141
Dividends
16d
-
-
-
(11,074)
(11,074)
-
(11,074)
Normal course issuer bid
16c
(20,282)
(30)
-
(21)
(51)
-
(51)
Changes of ownership
interest / Contribution
24
-
-
-
6,866
6,866
6,523
13,389
Net earnings being
comprehensive earnings
-
-
-
39,597
39,597
4,196
43,793
At December 31, 2024
56,782,026
82,263
1,063
183,154
266,480
20,718
287,198
See accompanying notes to the consolidated financial statements.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
66
11
GENESIS LAND DEVELOPMENT CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended December 31, 2024 and 2023
(In thousands of Canadian dollars)
Year ended December 31,
Notes
2024
2023
Operating activities - inflows (outflows)
Residential home sales
258,970
167,673
Residential lot sales
49,825
16,948
Development land sales
18,887
14,237
Proceeds from sale of ownership interest in Limited Partnerships
24
16,440
11,760
Interest
1,774
1,543
Residential home construction
(127,881)
(104,662)
Land development
(68,754)
(68,146)
Lots and land acquisitions
(86,022)
(19,590)
Suppliers and employees
(30,334)
(24,056)
Income tax
(5,844)
(3,332)
Other
494
(174)
Cash flows from (used in) operating activities
27,555
(7,799)
Investing activities
Investment in joint venture
9
(455)
-
Acquisition of equipment
(1,483)
(663)
Change in restricted cash
38
1,325
Investments in land development entities
8
(15,746)
-
Distributions received from joint ventures
8
3,590
676
Cash flows (used in) from investing activities
(14,056)
1,338
Financing activities
Advances from loans and credit facilities
13
71,269
82,887
Repayments of loans and credit facilities
13
(79,788)
(59,450)
Repayment of vendor-take-back mortgage payable
13c
(4,522)
-
Interest and fees paid on loans and credit facilities
(5,465)
(5,244)
Distributions to unit holders of limited partnerships
-
(986)
Repurchase of shares under NCIB
16c
(51)
(135)
Dividends paid
16d
(11,074)
(9,663)
Cash flows (used in) from financing activities
(29,631)
7,409
Change in cash and cash equivalents
(16,132)
948
Cash and cash equivalents, beginning of year
37,546
36,598
Cash and cash equivalents, end of year
21,414
37,546
See accompanying notes to the consolidated financial statements.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
67
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
12
1.
DESCRIPTION OF BUSINESS
Genesis Land Development Corp. (the “Corporation” or “Genesis”) was incorporated under the Business Corporation Act (Alberta)
on December 2, 1997.
The Corporation is engaged in the acquisition, development and sale of land, residential lots and homes in the greater Calgary area.
The Corporation reports its activities as two business segments: land development and home building.
The Corporation is listed for trading on the Toronto Stock Exchange under the symbol “GDC”. Genesis’ head office and registered
office are located at 6240, 333 - 96 Ave. NE, Calgary, AB T3K 0S3.
The consolidated financial statements of Genesis were approved for issuance by the Board of Directors on March 5, 2025.
2.
MATERIAL ACCOUNTING POLICIES AND BASIS OF PRESENTATION
The significant accounting policies of the Corporation are set out below. These policies have been consistently applied to each of the
years presented, unless otherwise indicated.
a)
Statement of compliance
These consolidated financial statements have been prepared in accordance with IFRS® Accounting Standards as issued by
the International Accounting Standards Board (“IASB”) and interpretations of the IFRS Interpretations Committee.
b)
Basis of presentation
The consolidated financial statements have been prepared under the historical cost convention except for the financial assets
classified as fair value through profit or loss and deferred share units that have been measured at fair value. The consolidated
financial statements are presented in Canadian dollars, which is the Corporation’s functional currency, and all values are
rounded to the nearest thousand, except per share values and where otherwise indicated.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
68
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
13
2.
MATERIAL ACCOUNTING POLICIES AND BASIS OF PRESENTATION (continued)
c)
Basis of consolidation
The consolidated financial statements include the accounts of the Corporation and its wholly-owned subsidiaries, as well as
the consolidated revenues, expenses, assets, liabilities and cash flows of limited partnership entities that the Corporation
controls. When the Corporation has less than 50% equity ownership in these limited partnership entities, the Corporation may
still have control over these entities’ activities, projects, financial and operating policies due to contractual arrangements.
Accordingly, the accounts of the limited partnerships have been consolidated in the Corporation’s financial statements.
Controlled entities are fully consolidated from the date of acquisition, being the date on which the Corporation obtains control,
and continues to be consolidated until the date when such control ceases. Control exists when the Corporation has the power,
directly or indirectly, to govern the financial and operating policies of an entity. All intra-group transactions, balances, dividends
and unrealized gains and losses resulting from intra-group transactions are eliminated on consolidation.
Non-controlling interests represent the portion of profit or loss and net assets not owned by the Corporation and are presented
separately from shareholders’ equity in the consolidated statements of comprehensive income and within equity in the
consolidated balance sheets. Losses within a controlled entity are attributed to the non-controlling interest even if that results
in a deficit balance.
d)
Revenue recognition
(i)
Residential lot sales
Lot sales to third parties are recognized when the Corporation’s performance obligations are satisfied, and transfer of
control has passed to the purchaser.
Performance obligations are considered satisfied when the Corporation has the ability to release the lot to the purchaser
after agreed to services pertaining to the property have been substantially performed.
Indicators of transfer of control to a purchaser include a present right to payment at the closing date of the contract, the
purchaser having full access to the lot and the purchaser’s ability to obtain a building permit from the relevant authority,
all indicating that significant risk and rewards of ownership have been transferred to the purchaser who has signed a
contract and has made a minimum 15% non-refundable deposit. In order to mitigate credit risk, the Corporation does
not transfer title to sold residential lots until full payment is received.
Deposits received upon signing of contracts for purchases of lots on which revenue recognition criteria have not been
met are recorded as customer deposits.
(ii)
Development land sales
Development land sales to third parties are recognized when the Corporation’s performance obligations are satisfied,
and transfer of control has passed to the purchaser.
Performance obligations are satisfied after agreed to services pertaining to the property have been substantially
performed.
Indications of transfer of control to a purchaser include registering the subdivision plan with the land titles office and
transferring title of the land to the purchaser on receipt of full payment, all indicating significant risk and rewards of
ownership are transferred to the purchaser. In situations where extended payment terms are provided to a purchaser,
an appropriate rate of interest is included, and the Corporation secures appropriate security for the remaining unpaid
portion before title to the land is transferred to the purchaser.
Deposits received upon signing of contracts for purchases of land on which revenue recognition criteria have not been
met are recorded as customer deposits.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
69
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
14
2.
MATERIAL ACCOUNTING POLICIES AND BASIS OF PRESENTATION (continued)
(iii) Residential home sales
Home sales to third parties are recognized when the Corporation’s performance obligations are satisfied, and transfer
of control has passed to the purchaser.
Performance obligations are considered satisfied when title to the completed home is conveyed to the purchaser, at
which time all proceeds are received or collection is reasonably assured.
Deposits received from customers upon signing of contracts for purchases of completed homes for which revenue
recognition criteria have not been met are recorded as customer deposits.
(iv) Finance income
Finance income is recognized as it accrues using the effective interest rate method.
(v)
Other revenue
Rental income is recognized on a straight-line basis over the term of the rental agreement. Rental income is incidental
to ownership of real estate and does not result in classification of real estate as investment property. All real estate is
classified as inventory. Deposits forfeited are recognized as income.
e)
Real estate held for development and sale
Land under development, land held for future development and housing projects under construction are inventory and are
measured at the lower of cost and estimated net realizable value (“NRV”). NRV is the estimated selling price in the ordinary
course of the business at the balance sheet date, less costs to complete and estimated selling costs.
Cost includes land acquisition costs, other direct costs of development and construction, borrowing costs, property taxes and
legal costs. These costs are allocated to each phase of the project in proportion to saleable acreage.
f)
Borrowing costs
Borrowing costs consist of interest and other costs incurred in connection with the borrowing of the funds. The acquisition or
construction of real estate assets takes a substantial period of time, often multi-year to develop it for its intended use or sale.
Borrowing costs attributable to real estate held for development and sale are recorded as part of the respective inventory
carrying cost from the date of commencement of development work until the date of completion. All other borrowing costs are
expensed in the period in which they are incurred. The recording of interest to inventory is suspended if the project’s
development is suspended for a prolonged period.
g)
Property and equipment
Property and equipment is stated at cost, net of any accumulated depreciation and accumulated impairment losses.
Depreciation is provided on all operating property and equipment based on the straight-line method over the estimated useful
lives of the property and equipment. The useful lives of the properties are as follows:
Vehicles and other equipment
5 years
Office equipment and furniture
7 years
Computer hardware and software
3 years
Showhome furniture
3 years
Leasehold improvements
Lesser of useful life of the improvement or the lease term
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
70
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
15
2.
MATERIAL ACCOUNTING POLICIES AND BASIS OF PRESENTATION (continued)
h)
Income taxes
Income tax is recognized in the consolidated statements of comprehensive income except to the extent that it related to items
recognized directly in equity, in which case it is recognized in equity.
Income taxes comprise the following:
(i)
Current income tax
Current income tax assets and liabilities are measured at the amount expected to be paid to tax authorities, net of
recoveries, using tax rates and laws that are enacted or substantively enacted as at the balance sheet date.
(ii)
Deferred tax
Deferred tax is provided at the balance sheet date using the liability method on all temporary differences between the
tax basis of assets and liabilities and their carrying amounts for financial reporting purposes.
Deferred tax assets are recognized to the extent that it is probable that taxable income will be available, against which
deductible temporary differences, carried forward tax credits or tax losses can be utilized.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply to the year when the asset
is realized or the liability is settled, based on tax rates and tax laws that have been enacted or substantively enacted
at the balance sheet date.
The Corporation’s consolidated financial statements include some entities that are limited partnerships (note 25) and
are not subject to income taxes. The income or loss for Canadian tax purposes is attributable to the taxable income of
the limited partners in accordance with the provisions of the Income Tax Act (Canada). The calculation of income tax
expense reflects the exclusion of taxable income allocated to limited partners that form part of the non-controlling
interest.
i)
Cash and cash equivalents
Cash and cash equivalents consist of cash held with banks and short-term deposits with an original maturity of three months
or less.
j)
Leases
The Corporation recognizes a right-of-use asset and a lease liability at the lease commencement date. The right-of-use asset
is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at
or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the
underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received.
The right-of-use asset is subsequently depreciated using the straight-line method from the commencement date to the earlier
of the end of the useful life of the right-of-use asset or the end of the lease term. The estimated useful lives of right-of-use
assets are determined on the same basis as those of property and equipment.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date.
The lease liability is measured at amortized cost using the effective interest method. It is remeasured when there is a change
in future lease payments arising from a change in an index or rate, if there is a change in the Corporation’s estimate of the
amount expected to be payable under a residual value guarantee, or if the Corporation changes its assessment of whether it
will exercise a purchase, extension or termination option.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
71
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
16
2.
MATERIAL ACCOUNTING POLICIES AND BASIS OF PRESENTATION (continued)
k)
Financial assets
Financial assets are classified and measured based on the business model in which they are held and the characteristics of
their contractual cash flows. The three primary measurement categories for financial assets are: amortized cost, fair value
through profit and loss (“FVTPL”), and fair value through other comprehensive income (“FVOCI”).
Financial assets measured at amortized cost are assets that are held within a business model whose objective is to hold assets
to collect contractual cash flows and its contractual terms give rise on specified dates to cash flows that are solely payments
of principal and interest on the principal amount outstanding. Financial instruments classified as amortized cost are initially
measured at fair value plus directly attributable transaction costs and are subsequently measured at amortized cost using the
effective interest rate method, less impairment. The amortization and losses arising from impairment are recognized in the
consolidated statements of comprehensive income.
Financial assets at FVOCI are assets that are held within a business model whose objective is achieved by both collecting
contractual cash flows and selling financial assets and its contractual terms give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
Financial assets at FVTPL are assets that do not meet the criteria for amortized cost or FVOCI. Financial assets classified as
FVTPL are carried on the balance sheet at fair value with changes in fair value recognized in the consolidated statements of
comprehensive income. Transaction costs are expensed as incurred.
Financial assets are derecognized when the contractual rights to the cash flows from the asset expire, or the Corporation
transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all the
risks and rewards of ownership of the financial assets are transferred. Any interest in transferred financial assets that is created
or retained is recognized as a separate asset or liability.
Loss allowance for trade receivables is calculated using the expected lifetime credit loss model and recorded at the time of
initial recognition. Title to land sold is typically transferred on receipt of full payment from the purchaser. In situations where
extended payment terms are provided to a purchaser, the Corporation secures adequate security for the remaining unpaid
portion before title to the land is transferred to the purchaser. The Corporation experiences no material impact of the loss
allowance for trade receivables due to the above. The expected loss allowance using the lifetime credit loss approach, has no
material impact on the consolidated financial statements.
The Corporation recognizes bad debt expense or recovery relating to amounts receivable on sold lots, net of the value of the
related sold lots, on the termination of the relevant agreement, which are taken back into the Corporation’s lot inventory. Bad
debt expense or recovery is included in the Corporation’s general and administrative expenses.
l)
Financial liabilities
The classification of financial liabilities is determined by the Corporation at initial recognition. The classification categories are:
amortized cost and FVTPL.
Financial liabilities classified as amortized cost are financial liabilities initially measured at fair value less directly attributable
transaction costs and are subsequently measured at amortized cost using the effective interest method. Interest expense is
recognized in the consolidated statements of comprehensive income.
Financial liabilities measured at FVTPL are financial liabilities measured at fair value with changes in fair value and interest
expense recognized in the consolidated statements of comprehensive income.
Financial liabilities are derecognized when the contractual obligations are discharged, cancelled or expire.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
72
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
17
2.
MATERIAL ACCOUNTING POLICIES AND BASIS OF PRESENTATION (continued)
Financial assets and financial liabilities are offset, and the net amount presented on the balance sheet when, and only when,
the Corporation has a legal right to offset the amounts and intends either to settle on a net basis or to realize the asset and
settle the liability simultaneously.
The Corporation’s financial instruments (assets and liabilities) are classified as follows:
Amounts receivable
Amortized cost
Vendor-take-back mortgage receivable
Amortized cost
Investments in land development entities
FVTPL
Restricted cash
FVTPL
Cash
FVTPL
Cash equivalents
Amortized cost
Loan and credit facilities
Amortized cost
Deposits
Amortized cost
Accounts payable and accrued liabilities
Amortized cost
Cash settled deferred share units
FVTPL
m)
Earnings per share
The amount of basic earnings per share is calculated by dividing the comprehensive earnings attributable to equity holders by
the weighted average number of shares outstanding during the period.
n)
Provision for future development costs
The Corporation sells land, lots and homes for which Genesis is responsible to pay for future development costs. For land
development, the provision for future development costs represents the estimated remaining construction costs related to
previously sold land, including all direct and indirect costs expected to be incurred during the remainder of the servicing period,
net of expected recoveries. The provision is reviewed periodically and, when the estimate is known to be different from the
actual costs incurred or expected to be incurred, an adjustment is made to the provision for future development costs and a
corresponding adjustment is made to land under development and/or cost of sales. For home building, the provision for future
development costs represents the costs likely to be incurred on remaining seasonal work and estimated warranty charges over
the one-year warranty period.
o)
Share-based compensation
The Corporation has a long-term incentive plan comprised of a deferred share unit (“DSU”) plan.
Deferred share unit plan
DSUs are notional common shares of the Corporation that do not settle until the recipient leaves the Corporation. The
Corporation’s DSU plan allows for the participants to receive cash-settled DSUs. The fair value of DSUs and the cash
payment, when made, is based on the common share price of the Corporation at the relevant time. Vesting provisions
for DSUs are determined at the time of issuance.
The fair value of the DSUs is recognized as share-based compensation expense, with a corresponding increase in
accrued liabilities over the vesting period. The amount recognized as an expense is based on the estimate of the
number of DSUs expected to vest. DSUs are measured at their fair value at each reporting period end on a mark-to-
market basis. The accrued liability is reduced on the cash payout of any DSU.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
73
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
18
2.
MATERIAL ACCOUNTING POLICIES AND BASIS OF PRESENTATION (continued)
p)
Investment in other real estate entity
The Corporation has an interest in a joint venture, Sage Hill Estates Apartments LP, (“SHEA LP” or the “JV”) which is a jointly
controlled entity. The Corporation recognizes its interest in the operations of the JV using the equity method of accounting and
it is included as a part of general and administrative expense.
q)
Changes in ownership interests
During the year ended December 31, 2024, the Corporation sold 40% of its ownership stake in Huxley Lands Limited
Partnership (“HLLP”) to two Calgary based third party home builders (note 24). During the year ended December 31, 2023, the
Corporation sold 40% of its ownership stake in Lewiston Lands Limited Partnership (“LLLP”) to two Calgary based third party
home builders (note 24). These transactions resulted in a change in ownership interest while still retaining control and are
accounted for as a transaction with equity holders. As a result, no gain or loss was recognized in profit or loss; instead, gain or
loss was recognized in equity. The interests of the parent and non-controlling interest (“NCI”) in the controlled entity have been
adjusted to reflect the relative change in the interest in the controlled entity’s equity. The amount by which the NCI is adjusted,
and the fair value of the consideration paid or received is recognized directly in retained earnings in shareholders’ equity and
attributed to the owners of the parent.
r)
Significant accounting judgments and estimates
The preparation of consolidated financial statements requires management to make judgments and estimates that affect the
reported amounts of revenues, expenses, assets and liabilities, and the disclosure of contingent liabilities at the reporting date.
On an ongoing basis, management evaluates its judgments and estimates in relation to revenues, expenses, assets and
liabilities. Management uses historical experience and various other factors it believes to be reasonable under the given
circumstances as the basis for its judgments and estimates. Actual outcomes may differ from these estimates under different
assumptions and conditions.
The following are the most significant accounting judgments and estimates made by the Corporation in applying accounting
policies:
Judgments
(i)
Revenue recognition
Revenue recognition for development lands requires judgment to determine when performance obligations are satisfied
and transfer of control has passed to the purchaser. The Corporation reviews each contract and evaluates all the factors
to determine the appropriate date to recognize revenue.
(ii)
Consolidation
The Corporation applies judgment in determining control over certain limited partnerships based on a review of all
contractual agreements to determine if the Corporation has control over the activities, projects, financial and operating
policies of the limited partnerships.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
74
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
19
2.
MATERIAL ACCOUNTING POLICIES AND BASIS OF PRESENTATION (continued)
(iii) Income taxes
The Corporation applies judgment in determining the total provision for current and deferred taxes. There are many
transactions and calculations for which the ultimate tax determination and timing of payment is uncertain due to the
interpretation of complex tax regulations, changes in tax laws, and the amount and timing of future taxable income.
Given the long-term nature and complexity of the business, differences arising between the actual results and the
assumptions made, or future changes to such assumptions, could necessitate future adjustments to the provision for
current and deferred taxes.
(iv) Net realizable value (“NRV”)
NRV for land and housing projects held for development and sale is estimated with reference to market prices and
conditions existing at the balance sheet date. This is determined by the Corporation having considered suitable external
advice including independent real estate appraisers and recent market transactions of similar and adjacent lands and
housing projects in the same geographic area.
(v)
Legal contingencies
The Corporation applies judgment as it relates to the outcome of legal proceedings to determine whether a provision
and disclosure in the consolidated financial statements is required. Among the factors considered in making such
judgments are the nature of litigation, claim or assessment, the legal process and potential level of damages, the
progress of the case, the opinions or views of legal advisers and any decision of the Corporation’s management as to
how it will respond to the litigation, claim or assessment.
Estimates
(i)
Provision for future development costs
Changes in estimated future development costs, which are generally obtained from third party service providers, directly
impact the amount recorded for the future development liability, cost of sales, gross margin and, in some cases, the
value of real estate under development and held for sale. This liability is subject to uncertainty due to the long time
frames involved, specifically in land development.
(ii)
Reversal of write-down / Write-down of real estate held for development and sale
The Corporation estimates the NRV of real estate held for development and sale and investments in land development
entities at least annually for impairment or whenever events or changes in circumstances indicate the carrying value
may exceed NRV. The estimate is based on valuations conducted by independent real estate appraisers and other
third-party advisors and is also based on housing projects and lot sales in the same geographic area.
(iii) Valuation of amounts receivable and vendor-take-back mortgage receivable
Amounts receivable are reviewed on a regular basis to estimate recoverability of balances. Any amounts becoming
overdue and any known issues about the financial condition of debtors are taken into account when estimating
recoverability.
(iv) Share-based compensation
The fair values of equity-settled share-based payments are estimated using the Black-Scholes options pricing model.
These estimates are based on the Corporation’s share price and on several assumptions, including the risk-free interest
rate, the future forfeiture rate, time to expiry, and the expected volatility of the Corporation's share price. Accordingly,
these estimates are subject to measurement uncertainty.
(v)
Investments in land development entities
The fair value of investments in land development entities are based on the market approach method. This method
uses prices and other relevant information that have been generated by market transactions involving identical or
comparable assets or from external third-party appraisals.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
75
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
20
3.
STANDARDS AND AMENDMENTS TO EXISTING STANDARDS DURING 2024
The Corporation adopted no new IFRSs and interpretations during 2024.
4.
NEW ACCOUNTING PRONOUNCEMENTS
There were no new accounting pronouncements or amendments to existing standards that impacted or are expected to impact the
Corporation in 2024 and 2025.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
76
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
21
5.
REAL ESTATE HELD FOR DEVELOPMENT AND SALE
Net book value
Lots, Multi-family &
Commercial
Land Held for
Development
Home Building
Total
As at December 31, 2022
42,808
174,369
48,506
265,683
Development and construction activities
6,847
49,216
81,437
137,500
Transfer
29,831
(29,831)
-
-
Acquisitions
-
23,295
40,679
63,974
Sold
(42,758)
-
(82,308)
(125,066)
Reversal of write-down of real estate held for
development and sale
700
-
-
700
As at December 31, 2023
37,428
217,049
88,314
342,791
Development and construction activities
4,909
52,246
101,471
158,626
Transfer
74,627
(74,627)
-
-
Acquisitions
-
75,470
88,070
163,540
Sold
(79,254)
(853)
(144,058)
(224,165)
As at December 31, 2024
37,710
269,285
133,797
440,792
Acquisition amounts during the year ended December 31, 2024 in the table above include $88,070 related to the purchase of
residential lots and $75,470 related to the purchase of development land (2023 - $40,679 and $23,295 respectively). These amounts
include:
a) the acquisition of 467 residential lots in the Calgary Metropolitan Area for $88,070.
b) the acquisition of 734 acres of long-term development land located in southeast Calgary for $53,850 (with an unamortized
portion of the associated Vendor-take-back (“VTB”) (note 13d) of $8,285 at the time of acquisition). The Corporation also
secured an option to purchase an additional 106 acres immediately south of these lands by paying $400. The option may
be exercised between January 1, 2029 and December 31, 2037.
c)
the acquisition of 160 acres of development land located in southeast Calgary for $29,505.
During the year ended December 31, 2024, the Corporation closed the sales of four parcels of land for $17,531 (2023 - four parcels
for $16,200).
During the year ended December 31, 2024, interest of $1,498 (2023 - $1,124) was capitalized as a component of development
activities.
During the year ended December 31, 2024, the Corporation recorded $Nil related to reversal of write-downs on real estate held for
development and sale (2023 - $700). The reversal of the write-down was taken to reflect the estimated returns realizable on
completion of development and sale of these lands.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
77
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
22
6.
AMOUNTS RECEIVABLE
2024
2023
Agreements receivable
64,384
26,623
Other receivables
1,979
1,533
66,363
28,156
Agreements receivable for lot sales have various terms of repayment with purchasers generally having between 6 and 24 months to
pay the balance owing for the purchased lots. On receipt of a minimum 15% non-refundable deposit and after agreed to services
pertaining to the property have been substantially performed, the purchaser is deemed to have control over the lot and is permitted
to start construction. In order to mitigate credit risk, the Corporation does not transfer title to sold residential lots until full payment is
received (see note 22a). Certain agreements receivable and mortgages receivable, if any, are interest bearing.
7.
VTB MORTGAGE RECEIVABLE
2024
2023
Vendor-take-back mortgage receivable
641
1,976
During 2024, the Corporation closed the sale of a 144-acre parcel of non-core development land for $850, which comprised cash
consideration of $80 and the remainder being a $770 four-year VTB mortgage receivable at 0% interest per annum. The VTB
mortgage receivable is payable in four equal annual installments of approximately $193, commencing December 1, 2025 and ending
December 1, 2028.
During 2023, the Corporation closed the sale of a 2.91-acre parcel of development land for $3,929, comprised of cash consideration
and a VTB mortgage receivable bearing annual interest at the prime rate. The principal and interest on the VTB mortgage receivable
totaling $2,006 was received in March 2024.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
78
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
23
8.
INVESTMENTS IN LAND DEVELOPMENT ENTITIES
Limited
Partnership -
5% interest
Joint Venture -
8% interest
Limited
Partnership -
16.7% interest
Joint Venture -
12.5% interest
Joint Venture -
15% interest
Total
As at December 31, 2022
2,230
4,500
-
-
-
6,730
Distribution received
(676)
-
-
-
-
(676)
Gain in fair value
396
710
-
-
-
1,106
As at December 31, 2023
1,950
5,210
-
-
-
7,160
Investments
-
-
5,000
8,099
7,556
20,655
Distributions received
-
(1,040)
-
-
(2,550)
(3,590)
Gain in fair value
192
2,134
-
-
-
2,326
As at December 31, 2024
2,142
6,304
5,000
8,099
5,006
26,551
The fair value of investments in land development entities is based on the market approach method. This method uses prices and
other relevant information that have been generated by market transactions involving comparable assets. During the year ended
December 31, 2024, the Corporation recorded $2,326 as a gain in fair value of investments held in the year (2023 - $1,106).
During the year ended December 31, 2024, the Corporation acquired a 16.7% interest in a limited partnership for $5,000 which is
expected to commence development on 243 acres of land in southeast Calgary in 2029.
During the year ended December 31, 2024, the Corporation acquired 12.5% interest in a joint venture for $8,670 (with an unamortized
portion of the associated VTB of $571 at the time of investment) which commenced development on 782 acres of land in east Airdrie
in 2024. Total cash payments of $2,890 were made by the closing date with the remaining balance of $5,780, being the form of a
VTB mortgage payable (note 13e).
During the year ended December 31, 2024, the Corporation acquired a 15% interest in a joint venture for $7,556 which is expected
to commence development on 151 acres of land in east Calgary in 2025. The Corporation has also contributed $300 towards working
capital.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
79
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
24
9.
INVESTMENT IN OTHER REAL ESTATE ENTITY
The Corporation and a private company entered into a limited partnership agreement in 2021 to form Sage Hill Estates Apartments
LP (“SHEA LP”), for the purpose of acquiring, developing and renting certain real estate. The Corporation sold a 3.22-acre multi-
family site for $3,589 to SHEA LP and used the gross sale proceeds to purchase 50% of the units in SHEA LP by way of a capital
investment of $3,589 in 2022.
Total
As at December 31, 2022
3,588
(Loss)
(7)
As at December 31, 2023
3,581
Investment
455
(Loss)
(7)
As at December 31, 2024
4,029
The investment in SHEA LP is accounted for using the equity method with the Corporation’s share of net assets being $4,029 at
December 31, 2024 (December 31, 2023 - $3,581). During the year ended December 31, 2024, the Corporation made additional
investment of $455 (2023 - $Nil).
10.
OTHER OPERATING ASSETS
2024
2023
Deposits
6,029
6,728
Restricted cash
433
1,551
Prepayments
880
1,046
Property, equipment and other
2,272
1,582
9,614
10,907
Deposits include amounts paid by the Corporation towards the purchase of lots and land as well as amounts paid to development
authorities as security to guarantee the completion of construction projects under development. Restricted cash includes funds held
in trust related to acquisition and sale of development land and lots. The Corporation also provides letters of credit and surety bonds
as security to guarantee the completion of certain construction projects (see note 21a for additional information).
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
80
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
25
11.
LEASES
Right-of-Use Assets
Office Building
Other (1)
Total
As at January 1, 2024
324
158
482
Additions
-
703
703
Depreciation charge for the year (2)
(103)
(377)
(480)
As at December 31, 2024
221
484
705
As at December 31, 2023
324
158
482
Lease Liabilities
Office Building
Other (1)
Total
As at January 1, 2024
521
191
712
Additions
-
828
828
Lease payments
(178)
(470)
(648)
Interest for the year (2)
22
39
61
As at December 31, 2024
365
588
953
As at December 31, 2023
521
191
712
Lease Liabilities - undiscounted cash flows
Office Building
Other (1)
Total
January 1, 2025 to December 31, 2025
178
339
517
January 1, 2026 to October 31, 2029
208
302
510
As at December 31, 2024
386
641
1,027
As at December 31, 2023
563
201
764
Amounts recognized in statements of comprehensive income
Office Building
Other (1)
Total
Interest on lease liabilities
22
39
61
Total for the year ended December 31, 2024
22
39
61
Total for the year ended December 31, 2023
29
11
40
Amounts recognized in the statement of cash flows (3)
Office Building
Other (1)
Total
Interest paid
22
39
61
Payment of lease liabilities
156
431
587
Total for the year ended December 31, 2024
178
470
648
Total for the year ended December 31, 2023
178
195
373
(1) Includes showhome leasebacks, trucks and photocopiers.
(2) Discount rate used ranged between 4.04% and 8.22%.
(3) These amounts are included in the line item “paid to suppliers and employees” in the consolidated statements of cash flows.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
81
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
12.
INCOME TAXES
a)
Income tax was recognized in the consolidated statements of comprehensive income as follows:
2024
2023
Current income tax expense
12,179
3,732
Deferred income tax (recovery) expense
(126)
430
Income tax expense
12,053
4,162
b)
Income tax expense differed from that which would be expected from applying the combined statutory Canadian federal and
provincial income tax rates of 23.00% (2023 - 23.00%) to earnings before income taxes. The difference resulted from the
following:
2024
2023
Earnings before income taxes
55,846
18,225
Statutory tax rate
23.00%
23.00%
Expected income tax expense
12,845
4,192
Utilization of previously unrecognized tax losses
(658)
(241)
Share-based compensation
-
248
Other
(170)
(112)
Non-controlling interest
36
75
Tax expense for the year
12,053
4,162
c)
The deferred tax assets of the Corporation were as follows:
2024
2023
Deferred tax assets
13,571
8,613
Deferred tax liabilities
(5,962)
(1,129)
Net deferred tax assets
7,609
7,484
d)
The components of the net deferred tax assets were as follows:
2024
2023
Real estate held for development and sale
9,379
5,308
Reserves from land sales
(5,601)
(804)
Unamortized financing costs
2,890
2,632
Other temporary differences
941
348
Net deferred tax assets
7,609
7,484
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
82
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
27
13.
LOAN AND CREDIT FACILITIES
2024
2023
Secured by specific dedicated lands and a general corporate charge on all assets of the Corporation
a) Corporate revolving credit facility up to $50,000 with a major Canadian financial institution at an interest
rate per annum of prime +1.65%. The facility was extended in March 2024 with the interest rate per annum
reduced from prime +1.90% previously and matures on February 1, 2027.
13,885
12,800
Secured by agreements receivable and real estate held for development and sale
b) Demand land project servicing facilities up to $9,121 from a major Canadian chartered bank, payable on
collection of agreements receivable, bearing interest at prime +0.50% per annum, secured by real estate
held for development and sale with a carrying value of $7,926 and a corporate guarantee. The loan amounts
are due between May 12, 2025, and November 28, 2025. Subsequent to December 31, 2024, a loan facility
with the ability to borrow $2,848 and a due date of May 12, 2025 was closed.
3,813
12,729
Secured by real estate held for development and sale
c) VTB at 0% per annum is measured at amortized cost and whose fair value is based on discounted future
cash flows, using an 8% discount rate. The $18,088 VTB was entered into on November 30, 2023 in partial
payment for the purchase of 460 acres of development land in southeast Calgary and is secured by these
lands which have a carrying value of $22,748. The VTB is to be paid in four annual installments of $4,522
each, commencing November 20, 2024 and ending November 20, 2027. The first installment of $4,522
was paid in November 2024.
Remaining face value owed on this VTB
13,566
18,088
Unamortized portion of the discount on this VTB
(1,819)
(3,010)
d) VTB at 0% per annum is measured at amortized cost and whose fair value is based on discounted future
cash flows, using an 8% discount rate. The $42,080 VTB was entered into on June 7, 2024, in partial
payment for the purchase of 734 acres of development land in southeast Calgary and is secured by these
lands which have a carrying value of $46,148. The VTB is to be paid in four annual installments of $7,000,
$8,000, $13,680 and $13,400 respectively, commencing June 19, 2025 and ending June 19, 2028.
Remaining face value owed on this VTB
42,080
-
Unamortized portion of the discount on this VTB
(6,676)
-
e) VTB at 0% per annum is measured at amortized cost and whose fair value is based on discounted future
cash flows, using an 7% discount rate. The $5,780 VTB was entered into on November 15, 2024, in partial
payment for the investment in land development joint venture. The VTB is to be paid in two annual
installments of $2,890 each, commencing November 15, 2025 and ending November 15, 2026.
Remaining face value owed on this VTB
5,780
-
Unamortized portion of the discount on this VTB
(525)
-
Secured by real estate held for development and sale and a Genesis corporate guarantee - held by
Limited Partnerships
f) Demand land project servicing facilities (LLLP) up to $26,497 from a major Canadian chartered bank,
payable on collection of agreements receivable, bearing interest at prime +0.50% per annum, secured by
real estate held for development and sale with a carrying value of $34,840. The loan amounts are due
between July 31, 2026 and November 26, 2027.
4,318
13,455
g) Demand operating credit facility (LLLP) up to $24,500 from a major Canadian chartered bank, bearing
interest at prime +0.50% per annum, secured by real estate held for development and sale with a carrying
value of $34,840. In April 2024, the facility was increased to $24,500 from $21,500. The loan amount is
due on October 27, 2025.
23,256
21,500
h) Demand land project servicing facility (HLLP) up to $52,135 from a major Canadian chartered bank,
payable on collection of agreements receivable, bearing per annum interest at the prime rate, secured by
real estate held for development and sale with a carrying value of $55,076. The loan amount is due on
September 3, 2027.
12,317
-
i) Demand operating credit facility (HLLP) up to $17,000 from a major Canadian chartered bank, bearing
interest at prime +0.25% per annum, secured by real estate held for development and sale with a carrying
value of $55,076. In April 2024, the facility was increased to $17,000 from $16,000. The loan amount is
due on November 30, 2026.
16,191
15,098
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
83
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
28
13.
LOAN AND CREDIT FACILITIES (continued)
2024
2023
Secured by housing projects under development and a corporate guarantee
j) Demand operating credit facility up to $25,000 from a major Canadian chartered bank, bearing interest
at prime +0.75% per annum, secured by a general security agreement over assets of the home building
division. The facility does not have a specified maturity date.
8,167
13,664
134,353
104,324
Unamortized deferred fees on loan and credit facilities
(859)
(737)
133,494
103,587
A lender has a general security agreement on all property of the Corporation, its subsidiaries and its controlled entities, in addition to
specific security mentioned above.
The weighted average interest rate of loan agreements with financial institutions was 6.05% (December 31, 2023 - 7.90%) based on
December 31, 2024 balances.
During the year ended December 31, 2024, the Corporation received advances of $71,269 (2023 - $82,887) and made repayments
of $79,788 (2023 - $59,450) relating to various loan facilities. These loan facilities bear interest ranging from prime to prime +1.65%
per annum, with maturity dates ranging from May 12, 2025 to November 26, 2027. During the year ended December 31, 2024, the
Corporation incurred finance costs of $8,888 relating to loans and VTBs (2023 - $5,004).
The Corporation, its subsidiaries and its controlled entities have various covenants in place with their lenders with respect to credit
facilities including credit usage restrictions; cancellation, prepayment, confidentiality and cross default clauses; sales coverage
requirements; conditions precedent for funding; and other terms such as, but not limited to, maintaining contracted lot prices,
restrictions on encumbrances, liens and charges, material changes to project plans, and material changes in the Corporation’s
ownership structure. As at December 31, 2024 and 2023, the Corporation, its subsidiaries and its controlled entities were in
compliance with all loan covenants.
Based on the contractual terms, the Corporation’s loan and credit facilities are to be repaid within the following time periods (excluding
deferred fees on loan and credit facilities and unamortized portion of the discount on the VTB):
January 1, 2025 to December 31, 2025
49,649
January 1, 2026 to December 31, 2026
35,515
January 1, 2027 to December 31, 2027
44,812
January 1, 2028 to December 31, 2028
13,397
143,373
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
84
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
29
14.
CUSTOMER DEPOSITS
2024
2023
Customer deposits on residential home sales
14,142
13,426
Customer deposits on residential lot and development land sales
5,435
4,044
19,577
17,470
Customer deposits are amounts received upon signing of contracts for purchases of residential homes, lots and development land
on which revenue recognition criteria have not yet been met.
15.
PROVISION FOR FUTURE DEVELOPMENT COSTS
The movement in the provision for future development costs is as follows:
Land Development
Home Building
Total
As at December 31, 2022
20,105
3,929
24,034
Additions
10,774
27,363
38,137
Changes to estimates
(935)
(371)
(1,306)
Development and construction
activities
(14,045)
(26,251)
(40,296)
As at December 31, 2023
15,899
4,670
20,569
Additions
25,250
36,657
61,907
Changes to estimates
(1,933)
221
(1,712)
Development and construction
activities
(9,793)
(34,735)
(44,528)
As at December 31, 2024
29,423
6,813
36,236
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
85
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
30
16.
SHARE CAPITAL
a)
Authorized
Unlimited number of common shares without par value.
Unlimited number of preferred shares without par value, none issued.
b)
Weighted average number of shares
The following table sets forth the weighted average number of common shares outstanding for the year ended December 31, 2024
and 2023:
2024
2023
Basic and diluted weighted average number of common shares
56,793,271
56,849,817
c)
Normal course issuer bid (“NCIB”)
The Corporation renewed its NCIB on December 13, 2024. The renewed NCIB commenced on December 18, 2024 and will terminate
on the earlier of: (i) December 17, 2025; and (ii) the date on which the maximum number of common shares are purchased pursuant
to the bid. The Corporation may purchase for cancellation up to 2,839,275 common shares under the NCIB.
The prior NCIB, which expired on December 17, 2024, allowed the Corporation to purchase for cancellation up to 2,840,528 common
shares.
The following table sets forth the number of common shares repurchased and cancelled during the year ended December 31, 2024
and 2023 under the NCIB.
2024
2023
Number of shares repurchased and cancelled
20,282
61,027
Reduction in share capital
30
90
Change in retained earnings
21
45
Reduction in shareholders’ equity
51
135
Average purchase price per share
2.55
2.20
d)
Dividends paid
Cash dividends of $11,074 ($0.195 per share) were declared and paid during the year ended December 31, 2024. Cash dividends
of $9,663 ($0.17 per share) were declared and paid during the year ended December 31, 2023.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
86
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
31
17.
SHARE-BASED COMPENSATION
a)
Deferred share unit (“DSU”) plan
The Corporation’s cash settled DSU plan provides for DSUs to be issued to directors and designated employees. DSUs are issued
with various vesting terms, ranging from immediate vesting up to four years. Details of the number of outstanding DSUs are as
follows:
2024
2023
DSUs outstanding - beginning of year
1,353,444
1,065,060
DSUs granted
324,937
374,918
DSUs redeemed / cancelled
-
(86,534)
DSUs outstanding - end of year
1,678,381
1,353,444
DSUs vested - end of year
1,266,793
912,258
The December 31, 2024 outstanding liability related to DSUs which are cash settled is $5,053 (December 31, 2023 - $2,863) and is
recorded in accounts payable and accrued liabilities. DSUs are measured at fair value at each reporting period on a mark-to-market
basis.
Subsequent to December 31, 2024, the Corporation granted 4,545 DSUs at an average price of $3.30 each and redeemed 239,060
DSUs at an average price of $3.35 each.
b)
Share-based compensation expense
2024
2023
Share-based compensation expense
2,191
1,077
Share-based compensation was recorded and included as a part of general and administrative expense.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
87
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
32
18.
GENERAL AND ADMINISTRATIVE
The general and administrative expense of the Corporation consisted of the following:
2024
2023
Compensation and benefits
15,963
12,286
Share-based compensation
2,191
1,077
Corporate administration
3,988
3,247
Professional services
1,218
1,488
23,360
18,098
Compensation and benefits of the directors and key management personnel, included in the general and administrative expenses
above, were as follows:
2024
2023
Salaries, wages and benefits
3,551
2,672
Share-based compensation
2,191
1,077
5,742
3,749
19.
SELLING AND MARKETING
Selling and marketing expenses of the Corporation consisted of the following:
2024
2023
Advertising and marketing
4,457
3,632
Sales commissions
9,053
4,852
13,510
8,484
20.
FINANCE EXPENSE
Finance expense of the Corporation consisted of the following:
2024
2023
Interest incurred
6,113
4,912
Interest relating to VTBs
2,846
199
Financing fees amortized
447
386
Interest and financing fees capitalized (note 5)
(1,498)
(1,124)
7,908
4,373
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
88
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
33
21. COMMITMENTS AND CONTINGENCIES
a)
The Corporation has issued letters of credit and surety bonds pursuant to servicing agreements with municipalities to indemnify
them in the event that the Corporation does not perform its contractual obligations. As at December 31, 2024, these
commitments amounted to $9,446 (December 31, 2023 - $7,103).
b)
The Corporation is committed to pay levies and municipal fees relating to signed municipal agreements on commencement of
development of certain real estate assets with the following future payments:
January 1, 2025 to December 31, 2025
12,769
January 1, 2026 to December 31, 2026
11,504
January 1, 2027 to December 31, 2027
7,337
31,610
c)
The Corporation has contracted to acquire 222 residential lots in the Calgary Metropolitan Area for $44,082 from third-party
land developers and HLLP, a limited partnership in which Genesis owns a 60% interest (refer to note 24). The Corporation has
paid deposits totaling $6,338 with the remainder being payable as follows:
Third-party land
developers
HLLP
Total
January 1, 2025 to December 31, 2025
2,662
5,392
8,054
January 1, 2026 to December 31, 2026
22,230
4,725
26,955
January 1, 2027 to December 31, 2027
2,735
-
2,735
27,627
10,117
37,744
d)
In October 2024, the Corporation signed a 10-year lease for its new head office location. The current sublease expires in
February 2027. The newly signed lease commences in March 2027 and expires in December 2037 with payments relating to
variable operating costs, base rent and parking over the term of the lease, amounting to $8,394.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
89
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
34
22.
FINANCIAL INSTRUMENTS
The fair values of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities approximate their carrying
values as they are typically expected to be settled within twelve months. The fair value of deposits approximates their carrying value
as the terms of deposits are comparable to the market terms for similar instruments.
The fair values of the Corporation’s loan and credit facilities, amounts receivable and vendor-take-back mortgage receivable were
estimated based on current market rates for loans of the same risk and maturities.
The fair value of investments in land development entities are based on the market approach method. This method uses prices and
other relevant information that have been generated by market transactions involving identical or comparable assets.
Fair value measurements recognized in the consolidated balance sheets are categorized using a fair value hierarchy that reflects the
significance of inputs used in determining the fair values. The three fair value hierarchy levels are as follows:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices)
or indirectly (i.e. derived from prices); and
Level 3: Inputs for the asset or liability that is not based on observable market data (unobservable inputs).
The Corporation’s current financial assets are measured at amortized cost or fair value through profit and loss (“FVTPL”). The
estimated fair value of financial assets and liabilities measured at FVTPL as at December 31, 2024 and December 31, 2023 are
presented in the following table:
Carrying Value
Fair Value
Fair Value
Hierarchy
Measurement
Basis
As at
Dec. 31, 2024
As at
Dec. 31, 2023
As at
Dec. 31, 2024
As at
Dec. 31, 2023
Financial Assets
Cash
Level 1
FVTPL
21,414
37,546
21,414
37,546
Investments in land development
entities
Level 3
FVTPL
26,551
7,160
26,551
7,160
Restricted cash (1)
Level 1
FVTPL
433
1,551
433
1,551
Financial Liabilities
Cash settled DSUs (2)
Level 1
FVTPL
5,053
2,863
5,053
2,863
(1)
Included in other operating assets.
(2)
Included in accounts payable and accrued liabilities.
During the year ended December 31, 2024 and 2023, no transfers were made between the levels in the fair value hierarchy.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
90
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
35
22.
FINANCIAL INSTRUMENTS (continued)
a)
Risks associated with financial instruments
(i)
Credit risk
The Corporation recognizes bad debt expense (or recovery) relating to amounts receivable on sold lots, net of the value of the related
sold lots which are taken back into the Corporation’s lot inventory on the termination of the relevant agreement. Termination could
occur when the buyer fails to perform or observe terms of covenants of the relevant agreement. Agreements receivable for lot sales
have various terms of repayment with purchasers generally having between 6 and 24 months to pay the balance owing for the
purchased lots.
Recovery of bad debt expense is included in the Corporation’s general and administrative expenses. In order to mitigate credit risk,
the Corporation does not transfer title to sold residential lots until full payment is received. Individual balances due from customers
as at December 31, 2024, which comprise greater than 10% of total amounts receivable, totaled $57,956 from four customers
(December 31, 2023 - $26,623 from two customers).
Aging of amounts receivable, none of which are past due, was as follows:
2024
2023
Due on sold lots
64,384
26,623
Other receivables
1,979
1,533
66,363
28,156
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
91
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
36
22.
FINANCIAL INSTRUMENTS (continued)
(ii) Liquidity risk
The contractual maturities of financial liabilities and other commitments as at December 31, 2024 were as follows:
<1 Year
>1 Year
Total
Financial liabilities
Accounts payable and accrued liabilities
26,795
-
26,795
Accounts payable related to residential lot purchases
47,889
15,485
63,374
Loan and credit facilities (1) (note 13)
49,649
93,724
143,373
124,333
109,209
233,542
Commitments
Lease obligations (including variable operating costs)
237
8,670
8,907
Lot purchase contracts (note 21c)
8,054
29,690
37,744
Levies and municipal fees (note 21b)
12,769
18,841
31,610
21,060
57,201
78,261
145,393
166,410
311,803
(1) Exclude deferred fees on loan and credit facilities and unamortized portions of the discount on the VTBs
As at December 31, 2024, the Corporation had obligations due within the next 12 months of $145,393 (December 31, 2023 - $94,885).
Based on the Corporation’s operating history, its relationship with its lenders and committed sales contracts, management believes
that the Corporation has the ability to continue to renew or repay its financial obligations as they come due. During the year ended
December 31, 2024, the corporate revolving line of credit was extended until February 2027 with the interest rate per annum reduced
to prime +1.65% (note 13a) and a demand land project servicing facility was extended (note 13b). Additionally, LLLP put in place a
demand land project servicing facility of $11,002 (note 13f) and its demand operating credit facility was increased from $21,500 to
$24,500 (note 13g). HLLP also put in place a demand land project servicing facility of $52,135 (note 13h) and its demand operating
credit facility was increased from $16,000 to $17,000 (note 13i).
(iii)
Market risk
The Corporation is exposed to interest rate risk to the extent that certain agreements receivable and certain loan and credit facilities
are at a floating rate of interest. A 1% change in interest rates would result in a change in interest incurred of approximately $819
annually on floating rate facilities (2023 - $892).
b)
Capital management
The Corporation’s policy is to maintain a sufficient capital base in order to retain investor, creditor and market confidence and to
sustain the future development of the business. The Corporation is in compliance with all externally imposed capital requirements.
The Corporation manages its capital structure and makes adjustments to it in light of changes in regional economic conditions and
the risk characteristics of the underlying real estate industry within that region.
The Corporation considered its capital structure at the following dates to specifically include:
2024
2023
Loan and credit facilities (note 13)
133,494
103,587
Shareholders’ equity
266,480
231,142
399,974
334,729
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
92
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
37
23.
SEGMENTED INFORMATION
The income producing business units of the Corporation reported the following activities for the year ended December 31, 2024 and
2023:
Land Development Segment
Home
Building
Segment
Intersegment
Elimination
Total
Year ended December 31, 2024
Genesis (1)
Other LP’s
Intrasegment
Elimination
Total
Revenues
127,915
4
-
127,919
258,265
(42,654)
343,530
Revenues - development lands
17,531
-
-
17,531
-
-
17,531
Direct cost of sales
(108,729)
-
-
(108,729)
(193,951)
38,143
(264,537)
Gross margin
36,717
4
-
36,721
64,314
(4,511)
96,524
Gain in investments in land
development entities
2,326
-
-
2,326
-
-
2,326
G&A, selling & marketing and net
finance expense
(17,297)
(71)
-
(17,368)
(25,636)
-
(43,004)
Earnings (loss) before income
taxes and non-controlling interest
21,746
(67)
-
21,679
38,678
(4,511)
55,846
Segmented assets as at
December 31, 2024
444,333
2,329
(5,174)
441,488
186,996
(50,766)
577,718
Segmented liabilities as at
December 31, 2024 (2), (3)
216,753
835
(726)
216,862
119,913
(46,255)
290,520
Segmented net assets as at
December 31, 2024 (2), (3)
227,580
1,494
(4,448)
224,626
67,083
(4,511)
287,198
Land Development Segment
Home
Building
Segment
Intersegment
Elimination
Total
Year ended December 31, 2023
Genesis (1)
Other LP’s
Intrasegment
Elimination
Total
Revenues
45,847
16
-
45,863
167,126
(25,877)
187,112
Revenues - development lands
16,200
1,253
(1,253)
16,200
-
-
16,200
Direct cost of sales
(52,655)
(935)
935
(52,655)
(130,703)
25,877
(157,481)
Reversal of write-down of real
estate held for development and
sale
700
-
-
700
-
-
700
Gross margin
10,092
334
(318)
10,108
36,423
-
46,531
Gain in investments in land
development entities
1,106
-
-
1,106
-
-
1,106
G&A, selling & marketing and net
finance expense
(11,474)
(80)
-
(11,554)
(17,858)
-
(29,412)
(Loss) earnings before income
taxes and non-controlling interest
(276)
254
(318)
(340)
18,565
-
18,225
Segmented assets as at
December 31, 2023
320,723
2,209
(4,987)
317,945
111,979
10,159
440,083
Segmented liabilities as at
December 31, 2023 (2), (3)
114,081
648
(539)
114,190
74,593
10,159
198,942
Segmented net assets as at
December 31, 2023 (2), (3)
206,642
1,561
(4,448)
203,755
37,386
-
241,141
(1) Includes LLLP and HLLP
(2) Segmented liabilities under the Genesis land development segment include $24,092 due to the home building segment (December 31, 2023 - $12,588 due from
the land development segment to the home building segment).
(3) Segmented liabilities under the LP segment is comprised of accounts payable and accrued liabilities and includes $726 (December 31, 2023 - $539) due to
Genesis.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
93
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
38
24.
LIMITED PARTNERSHIPS
a) In December 2022, the Corporation entered into binding agreements to sell a 20% ownership stake in LLLP to each of two Calgary
based third party home builders. LLLP owns 130 acres of residential development land located in north Calgary in the Keystone Area
Structure Plan. The transaction closed on January 16, 2023, for a consideration for each 20% ownership stake of $5,880 (net of
assumption of debt of $4,000 each) resulting in gross proceeds for the sale of a 40% ownership interest of $11,760 (net of assumption
of debt of $8,000). LLLP accounts for $12,701 of the NCI on the condensed consolidated balance sheets (2023 - $8,438) and $4,263
on the condensed consolidated statements of comprehensive income (2023 - ($703)).
b) In May 2024, the Corporation entered into binding agreements to sell a 20% ownership stake in HLLP to each of two Calgary
based third party home builders. HLLP owns 161 acres of residential development land located in the Belvedere ASP on the east
side of the City of Calgary. The transaction closed on December 13, 2024, for a consideration for each 20% ownership stake of
$7,720 (net of assumption of debt of $3,000 each) resulting in gross proceeds for the sale of a 40% ownership interest of $15,440
(net of assumption of debt of $6,000). HLLP accounts for $6,523 of the NCI on the consolidated balance sheets (2023 - $Nil) and
$Nil on the consolidated statement of comprehensive income (2023 - $Nil).
25.
CONSOLIDATED ENTITIES
The consolidated financial statements include the accounts of the Corporation and its wholly-owned subsidiaries, as well as the
consolidated revenues, expenses, assets, liabilities and cash flows of limited partnership entities that the Corporation controls. The
Corporation has majority ownership positions in LLLP and HLLP as well as minority positions in other limited partnership entities.
The Corporation has control over these entities’ activities, projects, financial and operating policies due to contractual arrangements.
As such, the relationship between the Corporation and the limited partnership entities indicates that they are controlled by the
Corporation. Accordingly, the accounts of the limited partnerships have been consolidated in the Corporation’s financial statements.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
94
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
39
25.
CONSOLIDATED ENTITIES (continued)
All entities are incorporated in Canada and are listed in the following table:
% equity interest as at
Name
December 31, 2024
December 31, 2023
Land Development Segment
Genpol Inc.
100%
100%
Genpol LP
100%
100%
1504431 Alberta Ltd.
0.0002%
0.0002%
Genesis Sage Meadows Partnership
99.9998%
99.9998%
Polar Hedge Enhanced Income Trust
100%
100%
Genesis Land Development (Ricardo Ranch) Corp.
100%
100%
Sage Hill Crest Apartments Corp.
100%
100%
Siseneg Holding Inc.
100%
100%
GLDC Management Inc.
100%
100%
Lewiston Lands Limited Partnership (note 24)
60%
60%
Lewiston Lands GP Inc.
100%
100%
Huxley Lands Limited Partnership (note 24)
60%
100%
Huxley Lands GP Inc.
100%
100%
GP GLP8 Inc.
100%
100%
GP LPLP 2007 Inc.
100%
100%
Sage Hill Estates Apartments LP
49%
49%
Sage Hill Estates Apartments GP Inc.
2%
2%
Kinwood Communities Inc.
50%
50%
Home Building Segment
Genesis Builders Group Inc.
100%
100%
Other Limited Partnerships Segment
LP 4/5 Group
Genesis Limited Partnership #4 (1)
0.001%
0.001%
Genesis Limited Partnership #5, GLP5 GP Inc., GLP5 NE Calgary Development Inc.
0%
0%
Genesis Northeast Calgary Ltd.
100%
100%
(1) The allocation of profit or loss is 0% in accordance with the terms of the limited partnership agreement.
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
95
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
40
25.
CONSOLIDATED ENTITIES (continued)
The following tables summarize the information relating to the Corporation's controlled entities that have non-controlling interests
and may include inter-group balances that are eliminated on consolidation and become a component of the net non-controlling
interest:
BALANCE SHEETS
HLLP
LLLP
LP4/5
Total
Assets
Real estate held for development and sale
55,076
36,359
2,324
93,759
Amounts receivable
27
38,819
-
38,846
Other operating assets including restricted
cash
-
-
5
5
Cash and cash equivalents
785
468
-
1,253
Total assets
55,888
75,646
2,329
133,863
Liabilities
Loan and credit facilities
28,280
27,483
-
55,763
Customer deposits
7,046
-
-
7,046
Accounts payable and accrued liabilities
3,747
1,515
109
5,371
Due to related parties
1,681
255
726
2,662
Provision for future development costs
-
14,827
-
14,827
Total liabilities
40,754
44,080
835
85,669
Net assets as at December 31, 2024
15,134
31,566
1,494
48,194
Non-controlling interest (%) as at
December 31, 2024
40%
40%
100%
Net assets as at December 31, 2023
(115)
20,906
1,561
22,352
Non-controlling interest (%) as at
December 31, 2023
0%
40%
100%
SUMMARIZED STATEMENTS OF COMPREHENSIVE INCOME
Year ended December 31, 2024
HLLP
LLLP
LP4/5
Total
Revenue
-
63,552
4
63,556
Net (loss) income
(1,042)
10,659
(67)
9,550
Non-controlling interest (%) as at
December 31, 2024
40%
40%
100%
Year ended December 31, 2023
HLLP
LLLP
LP4/5
Total
Revenue
-
-
1,269
1,269
Net (loss) income
(115)
(1,758)
254
(1,619)
Non-controlling interest (%) as at
December 31, 2023
0%
40%
100%
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
96
GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the years ended December 31, 2024 and 2023
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)
41
25.
CONSOLIDATED ENTITIES (continued)
SUMMARIZED STATEMENT OF CASH FLOWS
Year ended December 31, 2024
HLLP
LLLP
LP4/5
Total
Cash flows (used in) from operating activities
(11,194)
10,344
-
(850)
Net increase in cash and cash equivalents
785
173
-
958
Year ended December 31, 2023
HLLP
LLLP
LP4/5
Total
Cash flows used in operating activities
-
(12,674)
-
(12,674)
Net increase in cash and cash equivalents
-
295
-
295
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
97
GENESIS
CONTACTS
OFFICERS
IAIN STEWART
Chief Executive Officer
ROB SEKHON
Chief Financial Officer
PARVESHINDERA SIDHU
President & Chief Operating Officer
BRIAN WHITWELL
Chief Investment Officer
BRENDAN McCASHIN
Senior Vice-President,
Land Development
TRAVIS MCARTHUR
Senior Vice-President &
General Counsel
MIKE DEBOER
Vice-President, Homebuilding
VIRAT REDDY
Vice-President,
Finance & Technology
DIRECTORS
STEPHEN J. GRIGGS
Chair
STEVEN GLOVER
Lead Director
MARK W. MITCHELL
Director
IAIN STEWART
Director
CALVIN YOUNGER
Director
TRANSFER AGENT
COMPUTERSHARE TRUST
COMPANY OF CANADA
600, 530 - 8th Avenue SW
Calgary, AB T2P 3S8
STOCK EXCHANGE
TORONTO STOCK
EXCHANGE
Stock Symbol – GDC
AUDITORS
MNP LLP
1500, 640 - 5th Avenue SW
Calgary, AB T2P 3G4
CORPORATE OFFICE
GENESIS LAND
DEVELOPMENT CORP.
6240, 333 - 96 Avenue NE
Calgary, AB T3K 0S3
MAIN 403 265 8079
EMAIL info@genesisland.com
www.genesisland.com
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
98
HUXLEY
E CALGARY
GENESIS LAND DEVELOPMENT CORP. | 2024 ANNUAL REPORT
99
GENESIS LAND DEVELOPMENT CORP.
6240, 333 – 96 Avenue NE
Calgary, AB T3K 0S3
MAIN 403 265 8079
EMAIL info@genesisland.com
www.genesisland.com