MRD Melcor Developments Ltd

Melcor Developments Ltd. (TSX:MRD), an Alberta-based real estate development and
asset management company reported solid results for the fourth quarter and year
ended December 31, 2013. Revenue was a record $303.74 million, an increase of
10.5% over 2012 and total assets grew 19.4% to $1.73 billion. Fair value gains
of $47.57 million were recorded in 2013, a decrease of 19.5% compared to 2012.
Net income decreased by 6.1% to $98.62 million or $3.24 per share as a result of
lower fair value gains in 2013 and one time adjustments related to the formation
of Melcor REIT. Adjusted earnings, which reflect our proportionate interest in
the earnings for the REIT, were $110.44 million or $3.63 per share, also a
company record. This is compared to $105.02 million or $3.49 per share in 2012.
Management considers adjusted earnings and adjusted earnings per share a clearer
measure of operational and relative performance.


Strong revenue and earnings in the fourth quarter contributed to Melcor's
performance in its 90th year of business. Fourth quarter revenue grew 7.2% to
$152.19 million compared to Q4-2012. Basic earnings per share was $1.77 compared
to $1.84 in the prior year while adjusted basic earnings was $1.87 compared to
$1.84 in 2012.


Brian Baker, Melcor's President and Chief Executive Officer commented on the
year: "We are pleased to report record results for 2013. Our results reflect the
efforts of a disciplined team executing on its strategy. Our four principle
operating divisions - combined with Melcor REIT - are integrated in a way that
is unique in our industry. It is a powerful business model that fuels our
continued growth in a controlled and balanced manner.


With a stable financial position, extraordinary assets, inventory for future
development, and the strongest management team in industry, we remain confident
of our future growth and success."


A Record Year

With continued strong market demand, 2013 was the third consecutive year that
Melcor achieved record revenue. Some of the highlights of the year include:




--  Record consolidated revenues of $303.74 million and record revenues in
    each division 
--  Adjusted basic earnings per share of $3.63 
--  Asset growth of 19.4% to $1.73 billion 
--  Successful completion of the REIT IPO realized a long term strategy of
    accessing the capital markets to help support our continued growth 
--  Gross margin improved to 44.4% as a result of efficient execution in all
    divisions



Strategically and operationally, Melcor is well positioned for continued growth
with an effective team and quality assets in markets that are outperforming
national averages.


Building Strategically

Melcor REIT was formed through an IPO, which raised gross proceeds of $91.30
million. This strategic initiative resulted in the conversion of a portion of
the equity held in the 27 assets sold to the REIT to cash. Part of the IPO
proceeds were distributed to shareholders through a special dividend of $0.50
per share.


Melcor also continued to invest in land inventory, developing commercial
properties and improving existing leasable properties in 2013.




--  The Community Development division acquired several parcels of raw land
    for future development, including: 
    --  the remaining 25% interest on 1,032.00 acres of land planned for
        future residential development in Aurora, Colorado 
    --  Canadian land assemblies totaling 576.81 acres in key markets
--  The Property Development division had projects totaling over $142.26
    million under development (at fair value) in 2013, compared to projects
    under development of $61.87 million in 2012. The division completed and
    transferred 13 buildings totaling 103,388 sq. ft. to the Investment
    Properties division in 2013. This compares with 6 buildings and 69,947
    sq. ft. last year. 
--  The Investment Properties and REIT divisions portfolios grew through
    third-party acquisitions and transfers of completed buildings from our
    Property Development division. Highlights of note include: 
    --  three third-party property acquisitions, totaling 345,543 sq. ft.
        (at JV%) at a cost of $49.05 million, two of which were completed by
        the REIT 
    --  29 condo units in the US for $2.59 million 
    --  55,156 sq. ft. (at JV%) with a fair value of $26.14 million from
        Property Development comprised of 13 buildings in Airdrie,
        Chestermere and Red Deer, Alberta



People: Our Key Asset

Brian Baker was appointed President and Chief Executive Officer on July 2, 2013
following the retirement of Ralph Young.


Over the past two years, Melcor has significantly expanded overall resource
capacity with the addition of 38 employment positions. This additional talent
base positions the company well to both manage our increasing asset base and to
effectively execute on growth strategies.


Return to Shareholders

Melcor paid annual dividends of $0.50 per share, plus a special dividend of
$0.50, to shareholders. Melcor has been paying dividends since 1969.


Outlook

The majority of our assets are in Alberta, with steadily growing inventory in
the US. We believe the economic indicators in these regions provide a strong
business outlook for the foreseeable future.




--  Alberta fundamentals remain solid, with low unemployment rates, high net
    in-migration, weekly earnings exceeding the national average, strong
    capital investment, moderate inflation and relative stability in the
    price of oil. These fundamentals create a favorable environment for both
    residential and commercial property development. 
--  The US continues its moderate economic recovery with some lingering
    uncertainty, but with an increasing sense of optimism.



Our key differentiators are our financial strength, diversified business model,
proven track record and the experience and integrity of our personnel.


Annual Results

Information included in this press release is a summary of results. This press
release should be read in conjunction with Melcor's 2013 Annual Report to
shareholders. Melcor's consolidated financial statements and management's
discussion and analysis are filed on SEDAR (www.sedar.com) and are available on
Melcor's website at www.Melcor.ca. Melcor's management information circular and
other material will be mailed to shareholders of record on or about March 21,
2014.


Annual General Meeting

We invite shareholders to join us at Melcor's annual meeting on April 24, 2014
at 11:00 am MDT. The meeting will be held in the Empire Ballroom at the Fairmont
Hotel Macdonald, 10065 - 100 Street NW, Edmonton, Alberta. We look forward to
seeing you there.


About Melcor Developments Ltd.

Melcor is a diversified real estate development and asset management company
with a rich heritage of integrity and innovation in real estate since 1923.


Through integrated operating divisions, Melcor manages the full life cycle of
real estate development: acquiring raw land, community planning, construction
and development, and managing revenue- producing office, retail and residential
assets. Melcor develops and manages mixed-use residential communities, business
and industrial parks, office buildings, retail commercial centres and golf
courses.


Melcor is committed to building communities that enrich quality of life -
communities where people live, work, shop and play.


Non-Standard Measures

Adjusted earnings and adjusted basic earnings per share are key metrics used by
management which are not defined by International Financial Reporting Standards
("IFRS"), do not have standard meanings and may not be comparable with other
industries or companies. These non-IFRS measures are more fully defined and
discussed in Melcor's Management Discussion and Analysis for the year ended
December 31, 2013, which is available on SEDAR (www.sedar.com) and Melcor's
website at www.Melcor.ca.


Forward-looking Statements

In order to provide our investors with an understanding of our current results
and future prospects, our public communications often include written or verbal
forward-looking statements.


Forward-looking statements are disclosures regarding possible events,
conditions, or results of operations that are based on assumptions about future
economic conditions, courses of action and include future-oriented financial
information.


This news release and other materials filed with the Canadian securities
regulators contain statements that are forward-looking. These statements
represent Melcor's intentions, plans, expectations, and beliefs and are based on
our experience and our assessment of historical and future trends, and the
application of key assumptions relating to future events and circumstances.


Future-looking statements may involve, but are not limited to, comments with
respect to our strategic initiatives for 2014 and beyond, future development
plans and objectives, targets, expectations of the real estate, financing and
economic environments, our financial condition or the results of or outlook of
our operations.


By their nature, forward-looking statements require assumptions and involve
risks and uncertainties related to the business and general economic
environment, many beyond our control. There is significant risk that the
predictions, forecasts, valuations, conclusions or projections we make will not
prove to be accurate and that our actual results will be materially different
from targets, expectations, estimates or intentions expressed in forward-looking
statements. We caution readers of this document not to place undue reliance on
forward-looking statements. Assumptions about the performance of the Canadian
and US economies and how this performance will affect Melcor's business are
material factors we consider in determining our forward-looking statements. For
additional information regarding material risks and assumptions, please see the
discussion under Business Environment and Risk in our annual MD&A.


Readers should carefully consider these factors, as well as other uncertainties
and potential events, and the inherent uncertainty of forward-looking
statements. Except as may be required by law, we do not undertake to update any
forward-looking statement, whether written or oral, made by the company or on
its behalf.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Melcor Developments Ltd.
Business Contact
Brian Baker
Chief Executive Officer
780.423.6931
info@melcor.ca


Melcor Developments Ltd.
Investor Relations
Jonathan Chia, CA
Chief Financial Officer
780.423.6931
ir@melcor.ca

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