Walton Ontario Land L.P. 1 Reports Fiscal Year-End and Q4 2012 Results
CALGARY, Alberta--(BUSINESS WIRE)-- Walton Ontario Land L.P. 1 (the "Partnership") and its general partner Walton Ontario Land 1 Corporation (the "General Partner") announced today the Partnership's results for the fiscal year ended December 31, 2012 and for the fourth quarter of 2012.
Fiscal Year-End and Fourth Quarter Financial Results
For the year ended December 31, 2012, the Partnership realized a net income of $8,128,816 compared to a net loss of $937,288 for the year ended December 31, 2011. Of the $9,066,104 increase year over year, $9,038,458 was a direct result of the gross margin realized on the sale of the Alliston Property. Excluding the gross profit from the land sale, the net loss of the Partnership was comparable to the year ended December 31, 2011. This was consistent with management's expectations because the Partnership is not expected to generate significant revenues, except during periods when either property is sold. The Partnership's expenses are also expected to remain fairly constant throughout the life of the Partnership because the most significant expenses of the Partnership, being the management fees, servicing fees and director fees, are fixed over the life of their respective contracts.
During the fourth quarter of 2012, the Partnership realized a net income of $8,819,016 compared to a net loss of $235,625 during the fourth quarter of 2011. The transition from net loss in 2011 to net income in 2012 was a result of the sale of the Alliston Property in October 2012, with $9,038,458 of gross margin on the sale contributing to the fourth quarter's income. The nature and amount of the expenses incurred by the Partnership during the fourth quarter were consistent with management's expectations. The overall net income realized by the Partnership for the fourth quarter of 2011 was also consistent with management's expectations because the Partnership is expected to generate significant revenue during periods when property is sold. Overall, the Partnership performed as expected by management during the fourth quarter of 2012.
Highlights for the Fiscal Year Ended December, 31, 2012
The Partnership closed the sale of its Alliston Property and subsequently issued its first distribution of $6.00 per Unit to Unitholders.
The second stage of the Ontario Municipal Board ("OMB") hearing regarding the City of Ottawa's Official Plan Amendment ("OPA") No. 76 to determine the location of 620 hectares (1,532 acres) to be added to the City's urban boundary, delivered its ruling in August 2012.
Under the ruling, the Ottawa Property was not included in the expanded urban area boundary. The Partnership will now focus its efforts on participating in the 2014 Official Plan review process to support and position the Ottawa Property for inclusion in future expansions of Ottawa's urban boundary. The exclusion of the Ottawa Property from the urban area boundary at this time is not anticipated to impact investment objectives and management assumptions.
Overall, the Partnership is performing as expected by management and consistent with the Partnership's intention of holding its interest in the Properties as an investment until time of sale.
Launched in January 2010, the Partnership's objective is to maximize returns to limited partners through the acquisition, management, concept planning, and eventual sale of two properties in Ontario; the Alliston Property, sold in November 2012 and which consisted of two parcels totaling 154.93 acres near the Toronto area in Alliston, and the Ottawa Property, which consists of 300 acres adjacent to the southwest boundary of Ottawa.
The Partnership is managed by Walton International Group Inc., part of the Walton Group.
Walton is a multinational group of real estate investment and development companies headquartered in Calgary, Alberta, Canada. As one of North America's leading land-based real estate investment and development firms, our expertise is in the research, acquisition, management and development of strategically located land in major growth corridors throughout Canada and the U.S. Walton currently manages over 73,000 acres, laying the foundation for communities where people can live, work and play, and creating wealth for our clients around the globe. Since 1979, Walton has returned over $1.3 billion CAD* in client distributions.
This news release, required by Canadian laws, does not constitute an offer of securities, and is not for distribution or dissemination outside Canada. This news release contains forward looking information, and actual future results may differ from what is disclosed in this news release. The risks, uncertainties and other factors that could influence results are described in the prospectus and other documents filed with Canadian securities regulatory authorities and available online atwww.sedar.com.
Except as otherwise noted, all amounts are in Canadian dollars, and are based on audited financial statements for the year ended December 31, 2012, and related notes, prepared in accordance with International Financial Reporting Standards.
*Amount returned is unaudited and consists of:
Exit proceeds on sales of pre-development land
Distributions, interest and principal repayment on development projects
Interest and principal repayment on corporate bonds
Walton Ontario Land L.P. 1
Blair Nixon, 1.403.265.4255 (Office)
KEYWORDS: North America Canada
The article Walton Ontario Land L.P. 1 Reports Fiscal Year-End and Q4 2012 Results originally appeared on Fool.com.
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