Melcor Reports Third Quarter Results & Declares $0.25 Dividend

Melcor Developments Ltd. (TSX:MRD), an Alberta-based real estate development
company, today reported results for the quarter ended September 30, 2013.
Revenue was $59.20 million in Q3-13 compared to $64.67 million in Q3-12. This is
primarily a result of timing differences in sales within the Community
Development division. All other divisions grew revenue compared to the prior
period. Year-to-date revenue increased 14.0% to $151.55 million.


Melcor earned net income of $21.88 million or $0.72 per share (basic) in Q3-13,
a decrease of 11.9% over Q3-12. Year-to-date net income was $44.71 million, a
decrease of 9.8% over the first nine months of 2012. The decline in net income
is primarily the result of one-time costs related to the formation of Melcor
REIT. 


Adjusted earnings, which excludes REIT transaction costs and unitholders'
portion of the REIT's earnings, were $53.60 million year-to-date, an increase of
8.1% over the first nine months of 2012. Management believes that adjusted
earnings provide a clearer measure of operational and relative performance. 


Funds from operations (FFO) was $0.35 per share in Q3-13 compared to $0.53 per
share in Q3-12. Year-to-date FFO was $0.87 per share compared to $0.97 per share
in the first nine months of 2012. FFO per share adjusts for all non-cash
earnings items included in income such as fair value adjustments on investment
properties and stock based compensation expense. 


Brian Baker, Melcor's President and Chief Executive Officer commented on the
quarter: "We continue to see strong performance across the company. We are
pleased with both our Q3 and year-to-date results. We have had an active fall
construction season leading us in to Q4 and year-end. 


"All operating divisions are positioned for continued expansion, and the
economies in the regions in which we operate are strong and growing stronger.
Our development divisions are executing larger projects, both in terms of
quantity and scale. 


"Management remains focused on consistently providing industry-leading products
and services to achieve our overall objective of returning corporate profit to
shareholders and protecting and growing their investment. To that end, we are
happy to report an 11% increase in our regular dividend payments this year." 


Melcor's Board of Directors declared a semi-annual dividend of $0.25 per share,
payable on December 31, 2013 to shareholders of record on December 17, 2013. The
dividend is an eligible dividend for Canadian tax purposes.


Third Quarter Highlights



--  Revenues were higher across all divisions (except Community Development)
    in Q3-13 as a result of increased activity and continued execution of
    Melcor's growth strategy. 
    --  Due to timing differences of sales compared to last year, Community
        Development revenue declined 9.89% in the quarter; however, it is up
        12.74% year-to-date.

     -----------------------------------------------------------------------
     Consolidated Sales Data         Three Months Ended   Nine Months Ended 
     (incl. joint ventures at 100%)  30-Sep-13 30-Sep-12 30-Sep-13 30-Sep-13
     Single-family (lots)                  289       345       682       613
     Multi-family (acres)                 6.56      7.45     16.77     18.29
     Commercial & industrial (acres)     11.85     10.88     33.77     31.23
     -----------------------------------------------------------------------
     -----------------------------------------------------------------------

    --  The Property Development division completed construction on 12
        buildings (106,003 sq. ft.) in Q3-13 and recognized $10.21 million
        in fair value gains. This compares to fair value gains of $3.80
        million in Q3-12. The Property Development division also continued
        construction on 9 projects across all regions. 
    --  Leasing activity in the Investment Properties division was strong
        with portfolio-wide occupancy rates of 91%. Higher rental rates and
        growth in rentable square footage drove higher revenues and net
        operating income for the division. Funds from operations grew 30% to
        $2.98 million in Q3-13. Year-to-date FFO was $8.35 million, up 42%
        from the first nine-months of 2012. 
    --  Leasing activity in the properties owned by Melcor REIT was also
        strong, with rental revenue increasing 7% over Q3-12 as a result of
        increases in base rents and higher average occupancy in the quarter.
--  On July 2, 2013 Brian Baker assumed the role of Chief Executive Officer
    of Melcor Developments Ltd.



Outlook

The majority of Melcor's business operations and assets remain focused on
Alberta. Alberta economic fundamentals remain strong, with low unemployment
rates, net in-migration, higher than the national average weekly earnings,
strong capital investment, stabilizing inflation and relative stability in the
price of oil. These fundamentals create a favorable environment for both
residential and commercial property development. 


The company continues its selective US expansion by increasing its stable of
residential rental properties, serviced lot inventory and raw development land.
These assets now comprise approximately 10% of the company's total assets in a
strengthening real estate market. With Melcor's inventory of raw and developed
land, financial resources and strong management group, the company is well
positioned to take advantage of market opportunities


MD&A and Financial Statements

Melcor's consolidated financial statements and management's discussion and
analysis for the three- and nine-months ended September 30, 2013 can be found on
the company's website at www.Melcor.ca or on SEDAR (www.sedar.com).


About Melcor Developments Ltd.

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


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


Melcor's headquarters are located in Edmonton, Alberta, with regional offices
throughout Alberta and British Columbia. Company developments span western
Canada and the US. Melcor has been a public company since 1968 and trades on the
Toronto Stock Exchange (TSX:MRD).


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 2013 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
[e-mail]


Melcor Developments Ltd. - Investor Relations
Jonathan Chia, CA
Chief Financial Officer
780.423.6931
[e-mail]
www.melcor.ca