Magna Spin-off MID Issues First Quarterly Report
Updated: Wednesday, November 5, 2003 1:21 PM
Posted: Wednesday, November 5, 2003 11:48 AM
MI Developments, a real-estate spin-off of Magna International and majority shareholder of Magna Entertainment Corp., offered its first quarterly earnings report Wednesday on a pro forma basis.
Revenues during the third quarter for the MID real estate business, which includes excess land at Magna-owned racetracks, were $29.5 million, a pro forma increase of 30.9%. Operating income for the company was $18.6 million, a 40.2% increase, and pro forma funds from operations were $22 million, or 46 cents per share.
"I am pleased with the continued growth in our financial performance," said William Biggar, chief operating officer of MID. "Shareholder interest and support for MID has been overwhelming since our spin-off from Magna on Aug. 29."
Biggar also announced Andrew Blair has been hired as MID's chief operating officer.
Magna International spun-off MID as a publicly-traded real estate business to boost the share price of Magna International and provide funding for Magna Entertainment. Based on the $4.11 closing price for Magna stock Sept. 30, MID's market value shareholding in Magna Entertainment was $258.2 million.
Magna Entertainment last week reported third quarter operating losses of $25.5 million.
Biggar also said plans are moving forward on the development of land surrounding Gulfstream Park. He described the potential facility as a "lifestyle center," which would include high-end residential, retail, and entertainment offerings.
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