Wall Financial Corp T.WFC

MD&A

[wynner]

On September 1, 2023, the Company received a non-revolving loan of $100,000,000 from a company owned by a significant shareholder of the Company. The loan is secured by charges over property, plant and equipment and bears interest at 4.0%. Interest is payable monthly and the loan is due on demand with 30 days’ notice.

On September 1, 2023, the Company repaid $33,750,000 of bank indebtedness on investment properties.
 

For the three months ended October 31, 2023, the Company earned revenues of $45,511,342 (2022 - $39,828,595) with a gross margin of $23,672,563 (2022 - $18,962,755). 
 

Fair value in excess of carrying value per share $ 36.68
 

Investment Properties

Mortgages payable on investment properties decreased from $351,806,645 as at January 31, 2023 to $346,551,181 at October 31, 2023 due to scheduled principal payments. As at October 31, 2023, these mortgages bear interest at fixed rates ranging from 1.48% to 4.80%
 

During the nine months ended October 31, 2023, the Company purchased and cancelled 88,500 Common Shares at a weighted average price of $19.16 per share for $1,722,138 including transaction costs.

The Company purchased 17,600 Common Shares from November 1, 2023 to December 14, 2023 at a weighted average price of $19.12 and cancelled 17,600 Common Shares.
 

Hotel Operations

Both hotel properties are achieving best-ever results this year, primarily due to higher average daily room rates. We anticipate this trend to continue for the balance of the fiscal year. Our room sales to date for next year indicate additional growth in revenue although at a slower pace.
 

Rental Apartments

Revenue and operating profits continue to improve, primarily attributed to rent increases on tenant turnover, lower vacancy losses, and the management of controllable operating expenses. The provincial government recently announced that rental rates for existing tenants are permitted to increase by a maximum of 3.5% effective January, 2024.

Our growth strategy is focused on two hi-rise development sites in Downtown Vancouver, with a potential yield of 400 units and also adding infill rental units in our West Vancouver and Surrey properties where we have surplus lands. Applications for approval are being processed over the coming 6-12 months.

Development Properties

Trails 1B, consisting of 48 units, is now under construction with completion expected by March 2024, of which the Company owns a 42.86 Trails 1B, consisting of 48 units, is under construction with completion expected by March 2024; the Company owns a 42.86 % interest. The project is proceeding without pre-sales and we will market the units once complete.

The Company continues to make progress with the approval process for various proposed development projects:

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Insiders own 80% of the company and the company don't issue shares. Ever.
WFC buys back 1000 shares a day. Sells nothing. Otherwise no trading at all.

No reason for this to be subject to the whims of shorters and traders on the stock market.
Take private written all over it.
My opinion and for my own enjoyment only. 

[malx1]

wynner, think rationally for 15mins. Why would they spend $97mm on a one-time discretionary dividend rather than reducing that equivalent in mortgage debt currently floating at 7.8%??? Seriously, man, think about it. That dividend was a costly decision, it shows they have no CFO and no common sense.  All this while RE values are teetering on the edge of a double-digit selloff and costs