Madison Pacific reports Q3 loss, sets dividend

VANCOUVER – Madison Pacific Properties Inc. (TSX: MPC and MPC.C), a real estate company based in Vancouver, has reported a net loss of $57.8 million for the quarter ending November 30, 2023. This figure contrasts with the net income of $6.6 million reported for the same period in the previous year. The loss per share for the quarter was $0.97, a significant decrease from the income per share of $0.11 in 2022.

The reported net loss includes a substantial provision of $51.2 million for uncertain tax positions, which reflects a liability for unpaid taxes and estimated interest, alongside provisions against the carrying value of the company’s tax deposits and deferred tax assets related to unused carryforward amounts. This provision follows a Tax Court of Canada decision on December 27, 2023, which sided with the Canada Revenue Agency (CRA), confirming the CRA’s reassessments and denying the usage of certain carryforward losses.

Additionally, the company noted a net loss on the fair value adjustment on investment properties of approximately $8.0 million, compared to a net gain of $0.3 million in the previous year. Despite the reported losses, cash flows generated from operating activities before changes in non-cash operating balances remained relatively stable at $1.6 million, down slightly from $1.8 million in 2022.

Madison Pacific Properties owns approximately $687 million in investment properties, which includes a 50% interest in three multi-family rental properties and a 50% interest in the Silverdale Hills Limited Partnership, holding around 1,400 acres of residential development lands in Mission, British Columbia. The company’s portfolio comprises 56 properties with about 1.9 million rentable square feet of industrial and commercial space, with a 98.75% occupancy rate.

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