CALGARY, Alberta--(BUSINESS WIRE)--Westphalia Dev. Corp. (the “Corporation”) announced today its results for the first quarter ended March 31, 2021. Launched in March 2012, the Corporation acquired for development the 310-acre Westphalia Property (the “Property or the “Project”) located in Prince George’s County, Maryland, United States.
Review of Operations
The Corporation continues to actively seek purchasers and developers for the lands associated with Phases 2 and 3 as well as other more immediate opportunities associated with the Phase 1 retail and residential lands. The Corporation intends to renegotiate or refinance its senior debt with its lender, WWMN, LLC. The key activities undertaken by the Corporation during the three-months ended March 31, 2021, were as follows:
- Continued construction on the Woodyard Road Interchange project.
- Continued construction on the Presidential Parkway East project.
- Continued to negotiate two purchase and sale agreements.
The single-family market in the Washington, D.C. metropolitan statistical area, and specifically in the Prince George’s County submarket, continues to show strength which has led to increased builders’ interest in purchasing raw land for the development and construction of their own lots.
Management remains focused on strategies to maximize the returns of the Project, which include, but are not limited to:
- The Corporation has engaged a leading Real Estate services and mortgage firm to assist in the refinancing of its senior loan.
- The Corporation continues to have discussions with a regional retail developer to develop the retail portion near the entrance of the project at the Woodyard Road Interchange; however, the impacts of COVID-19 have directly impacted the retail market in general.
- The Corporation is in discussions with a broker to help identify other possible retail partners while continuing to work on agreements with interested regional developers. The Corporation is evaluating a proposal for retail development services from the broker who would serve as a retail development partner.
- The Corporation finalizing agreements with a developer and national publicly traded homebuilder to develop land associated with the residual Phase 1 residential lands, as well as Phase 2 and 3.
- The Corporation continues to work with the local community, County leadership, and internal staff to re-plan additional development within the Westphalia Town Center. The Corporation also continues to work with the various consultants to implement a shift in the project’s scope after having received input from those detailed above by reducing the significant retail and office space that had been previously planned and adding residential and other uses.
First Quarter Financial Results
During the three months ended March 31, 2021, the Corporation recognized revenue on contracts of $nil (March 31, 2020 - $17,133,027). The cost of sales relating to the lot sales was $nil (March 31, 2020 - $17,242,797), including selling costs and commissions.
For the three months ended March 31, 2021, the total comprehensive loss was $219,697. When compared to the three months ended March 31, 2020 total comprehensive loss of $683,953, there is a variance of $464,256 between the respective period ends. The variance is due to the items discussed in detail in the Management Discussion & Analysis.
The Corporation is managed by Walton Global Investments Ltd. and the development of the project is managed by Walton Development & Management (USA), Inc., both of which are members of Walton.
Walton is a privately owned, leading global real estate investment, land asset management and administration group that has focused on strategically located land in major growth corridors for more than 40 years. Walton manages and administers US$3.8 billion of real estate assets in North America, on behalf of its investors and business partners. Walton has more than 106,000 acres of land under ownership, management and administration in the United States and Canada. Key entities in Walton include Walton Global Holdings, Walton International Group and Walton Development and Management. For more information visit Walton.com.
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. Forward-looking information is based on the current expectations, estimates and projections of the Corporation at the time the statements are made. They involve a number of known and unknown risks and uncertainties which would cause actual results or events to differ materially from those presently anticipated. The risks, uncertainties and other factors that could cause the Corporation's actual results and performance in future periods to differ materially from the forward looking information contained in this news release include, among other things, the development of Westphalia Town Center, general economic and market factors, including interest rates, a decline in the real estate market, changes in government policies and regulations or in tax laws, changes in municipal planning strategies and whether certain development approvals are obtained and changes in the Canadian/U.S. dollar exchange rate, in addition to those factors discussed or referenced in 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 condensed interim consolidated financial statements for the three months ended December 31, 2020 and related notes, prepared in accordance with International Financial Reporting Standards.