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 third quarter of 2012.
Third Quarter Financial Results
During the third quarter of 2012, the Partnership generated total revenues of $13,520, total expenses of $246,234 and a net loss of $232,714. On a year-to-date basis, the Partnership generated total revenues of $46,702, total expenses of $736,902 and a net loss of $690,200.
The total revenues, expenses and net loss generated by the Partnership, both during the third quarter of 2012 and on a year-to-date basis, was comparable to the comparative period in the 2011 year. This was consistent with management’s expectations because the Partnership is not expected to generate significant revenues, except during periods when 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. The net loss incurred by the Partnership was also consistent with management’s expectations because the Partnership is not expected to generate significant revenue, except during periods when property is sold.
Overall, the Partnership is performing as expected by management and consistent with the Partnership’s intention of holding its interest in properties as an investment and to eventually dispose of its interest prior to the physical development of the properties. The announced sale of the Alliston Property and the subsequent closing of the transaction on October 12, 2012, are consistent with the Partnership’s intention to hold its interest in the properties and sell its interest prior to the physical development of the properties.
Highlights For The Third Quarter
The Partnership’s holdings consist of two properties, the Alliston Property, which was subsequently sold in October, near the Toronto area in Alliston, Ontario, and the Ottawa Property in the southwest quadrant Ottawa, Ontario.
During the third quarter, the purchaser completed its due diligence and waived conditions on the previously announced sale of the Alliston Property. Subsequently, on October 12, 2012, the sale was closed and the Partnership announced that unitholders would receive their first distribution of $6.00 per unit. Subsequent to the third quarter, the Partnership paid the distribution on November 15, 2012.
The Ontario Municipal Board (“OMB”) hearing regarding the City of Ottawa’s Official Plan Amendment No. 76 has concluded. The first stage of the OMB hearing, which dealt with how much land was included in Ottawa’s urban area boundary, delivered its decision in June 2011, to expand the urban area boundary from 230 hectares (568 acres) by 850 hectares (2,100 acres). The second stage of the hearing which opened in January 2012 has determined the specific location of the additional 620 hectares (1,532 acres). A revised Urban Policy Plan has been updated in the City of Ottawa’s Official Plan delineating the city’s expanded urban area. The Ottawa Property is not included in the expanded urban area boundary. The Partnership will continue to focus its efforts on participating in the 2014 Official Plan review process to support and position the Ottawa Property in future expansions to Ottawa’s urban boundary. The exclusion of the Ottawa Property from the urban area boundary is not anticipated to impact investment objectives and management assumptions.
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, which prior to its sale consisted of two parcels totaling 154.93 acres near the Toronto area in Alliston, and the Ottawa Property, which consists of 300 acres in the southwest quadrant of the City of Ottawa.
The Partnership is managed by Walton International Group Inc., part of the Walton Group.
The Walton Group is a multinational group of real estate investment and development companies headquartered in Calgary, Alberta, Canada. Walton’s expertise is the research, acquisition, management and development of strategically located land in major North American growth corridors. With more than 70,000 acres of land under management, the Walton Group is one of North America’s premier land asset managers. Walton manages and/or owns land assets in Phoenix, Austin, Dallas, Atlanta, Charlotte, the Washington D.C. region, Ottawa, Toronto, Edmonton and Calgary.
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 at www.sedar.com.
Except as otherwise noted, all amounts are in Canadian dollars, and are based on unaudited financial statements for the period ended September 30, 2012, and related notes, prepared in accordance with International Financial Reporting Standards.