Madison Pacific Properties Inc.

August 14, 2009 15:12 ET

Madison Pacific Properties Inc. Announces Six Months Results

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 14, 2009) - Madison Pacific Properties Inc. (TSX:MPC)(TSX:MPC.C), a Vancouver-based real estate company, announces the results of operations for the six months ended June 30, 2009.

The Company is reporting net income from continuing operations of $3,339,000 for the six months ended June 30, 2009 compared to $1,902,000 for the same period in 2008. Cash flow from continuing operations before changes in non-cash working capital for the six months ended June 30, 2009 is $2,721,000 compared to $2,725,000 for the same period in 2008. Earnings per share from continuing operations were $0.06 per share for the six months ended June 30, 2009 compared to $0.03 per share for the same period in 2008.

The Company sold one property in the first six months and has entered into agreements to sell other properties in the 2nd half of the year. Accordingly the Company has reflected the income from the properties sold and to be sold as income from discontinued operations. The income from discontinued operations, including the gain on the sale completed, net of taxes and non-controlling interest, was $2,386,000.

The net income for the six months was $5,725,000 compared to $2,007,000 for the six months ended June 30, 2008. Earnings per share were $.10 per share compared to $.04 for the six months ended June 30, 2008.

The Company had previously announced its intentions to apply for rezoning of 5.7 acres of land it owns at Lougheed Highway and Willingdon Ave. in Burnaby, British Columbia. The Company has decided not to pursue the development of this property but rather has entered into an agreement to sell the property. The closing date for the sale is in the Company's 4th quarter of 2009.

The Company is anticipating recording the sale of property, including the Lougheed and Willingdon property, for approximately $62 million in the second half of the year. The gain on the sale of the property, before tax, will be approximately $29 million. As a condition of the sale of property the Company will provide vendor financing for $27.75 million repayable over the next three years at $9.25 million per year plus interest.

The Company is pleased to announce a 5.25 cents per share dividend will be payable September 4, 2008 to shareholders of record August 21, 2008.

This press release contains forward-looking statements regarding the future success of Madison's business that are subject to risk and uncertainties. Examples of such forward-looking statements include, but are not limited to, statements concerning the anticipated closings of property sales. Forward looking information typically contain statements with words such as "expect", "believe", "plan", "forecast", "intend" or similar words suggesting
future outcomes. These forward-looking statements involve known and unknown risk and uncertainties that may cause Madison's actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied in these forward-looking statements. These risks include risks related to the closing and financing risk and the risks and uncertainties described in the Company's 2008 annual report and second quarter MD&A. Although the forward-looking statements contained herein are based upon what management believes to be current and reasonable assumptions, Madison cannot assure readers that the actual results will be consistent with these forward-looking statements. The forward-looking statements contained herein are made as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. Except as required by law, the Company undertakes no obligation to publicly update or revise any such forward-looking statements to reflect in its expectations or in events, conditions or circumstances on which any such forward-looking statements may be based, or that may affect the likelihood that actual results from those set forth in the forward-looking statements.

Contact Information

  • Madison Pacific Properties Inc.
    Mr. Alan Firth
    (604) 732-6540
    Madison Pacific Properties Inc.
    Mr. Bill Ramsey
    Chief Financial Officer
    (604) 732-6540
    (604) 732-6550 (FAX)