MI Developments, a publicly traded real-estate company that owns 59% of the equity in Magna Entertainment Corp., reported big losses during the fourth quarter of 2003 largely as a result of MEC's poor financial performance.
MID reported losses of $50.4 million, or $1.05 a share, for the final three months of the year. While MID's real estate business returned a positive $10.3 million, the company's interest in MEC resulted in $60.7 million in losses.
Last month, MEC reported 2003 year-end losses that totaled $105 million, largely due to an $81 million write-down on many of its properties during the fourth quarter
For the year, MID lost $32.3 million. Annual revenue was up from $129.4 in 2002 to $165.9 million last year.
MID owns 96% of the voting power in MEC. The company was spun-off from Frank Stronach's auto-parts company Magna International in August 2002.