GENESIS

GENESIS LAND DEVELOPMENT CORP.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the three months ended March 31, 2025 and 2024
(Unaudited)

FIRST QUARTER

GENESIS LAND DEVELOPMENT CORP.
CONDENSED CONSOLIDATED INTERIM BALANCE SHEETS
(Unaudited)
(In thousands of Canadian dollars)

	Notes	March 31, 2025	December 31, 2024
Assets
Real estate held for development and sale	3	445,085	440,792
Amounts receivable	11a	66,795	66,363
Vendor-take-back mortgage receivable		653	641
Investments in land development entities	13	25,107	26,551
Investment in other real estate entity	14	4,029	4,029
Other operating assets	9	10,328	9,614
Right-of-use assets		882	705
Deferred tax assets		7,186	7,609
Income tax recoverable		829	-
Cash and cash equivalents		24,119	21,414
Total assets		585,013	577,718
Liabilities
Loan and credit facilities	4	140,973	133,494
Customer deposits	10	25,247	19,577
Accounts payable and accrued liabilities		31,523	26,795
Accounts payable related to residential lot purchases		57,147	63,374
Lease liabilities		1,115	953
Income tax payable		-	10,091
Provision for future development costs	5	36,275	36,236
Total liabilities		292,280	290,520
Commitments and contingencies	8
Subsequent events	7a, 17
Equity
Share capital	6	82,193	82,263
Contributed surplus		1,063	1,063
Retained earnings		189,097	183,154
Shareholders' equity		272,353	266,480
Non-controlling interest		20,380	20,718
Total equity		292,733	287,198

Total liabilities and equity		585,013	577,718

See accompanying notes to the condensed consolidated interim financial statements.

GENESIS LAND DEVELOPMENT CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
For the three months ended March 31, 2025 and 2024
(In thousands of Canadian dollars except per share amounts)

Three months ended March 31,

	Notes	2025	2024
Revenues
Sales revenue		58,149	68,263
Other revenue		60	42
	12	58,209	68,305
Direct cost of sales		(40,255)	(49,864)
Gross margin		17,954	18,441
Gain in fair value on investments in land development entities	13	530	-
General and administrative		(6,515)	(5,588)
Selling and marketing		(2,417)	(2,918)
		(8,402)	(8,506)
Earnings from operations		9,552	9,935
Finance income		175	533
Finance expense		(2,096)	(1,455)
Earnings before income taxes		7,631	9,013
Income tax expense		(1,939)	(2,261)
Net earnings being comprehensive earnings		5,692	6,752
Attributable to non-controlling interest		(338)	(198)
Attributable to equity shareholders		6,030	6,950
Net earnings per share - basic and diluted	6b	0.11	0.12

See accompanying notes to the condensed consolidated interim financial statements.

GENESIS LAND DEVELOPMENT CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
For the three months ended March 31, 2025 and 2024
(In thousands of Canadian dollars except number of shares)

		Equity attributable to Corporation's shareholders
	Notes	Common shares - Issued		Contributed Surplus	Retained Earnings	Total Shareholders' Equity	Non-Controlling Interest	Total Equity
		Number of Shares	Amount
At December 31, 2023		56,802,308	82,293	1,063	147,786	231,142	9,999	241,141
Normal course issuer bid	6c	(16,800)	(25)	-	(15)	(40)	-	(40)
Net earnings (loss) being comprehensive earnings (loss)		-	-	-	6,950	6,950	(198)	6,752
At March 31, 2024		56,785,508	82,268	1,063	154,721	238,052	9,801	247,853
At December 31, 2024		56,782,026	82,263	1,063	183,154	266,480	20,718	287,198
---	---	---	---	---	---	---	---	---
Normal course issuer bid	6c	(48,194)	(70)	-	(87)	(157)	-	(157)
Net earnings (loss) being comprehensive earnings (loss)		-	-	-	6,030	6,030	(338)	5,692
At March 31, 2025		56,733,832	82,193	1,063	189,097	272,353	20,380	292,733

See accompanying notes to the condensed consolidated interim financial statements.

GENESIS LAND DEVELOPMENT CORP.
CONDENSED CONSOLIDATED INTERIM STATEMENTS OF CASH FLOWS
(Unaudited)
For the three months ended March 31, 2025 and 2024
(In thousands of Canadian dollars)

Three months ended March 31,

	Notes	2025	2024
Operating activities - inflows (outflows)
Residential home sales		50,120	56,182
Residential lot sales		13,338	9,056
Development land sales		-	4,064
Interest		209	533
Residential home construction		(31,752)	(24,562)
Land development		(6,678)	(9,490)
Lots and land acquisitions		(6,569)	(15,967)
Suppliers and employees		(10,031)	(7,660)
Income tax		(12,437)	(2,586)
Other		60	72
Cash flows (used in) from operating activities		(3,740)	9,642
Investing activities
Investment in joint venture	14	-	(455)
Acquisition of equipment		(453)	(68)
Change in restricted cash		-	37
Distributions received from land development entities	13	1,974	400
Cash flows from (used in) investing activities		1,521	(86)
Financing activities
Advances from loans and credit facilities	4	18,221	3,890
Repayments of loans and credit facilities	4	(12,291)	(9,972)
Interest and fees paid on loans and credit facilities		(849)	(1,750)
Repurchase of shares under NCIB	6c	(157)	(40)
Cash flows from (used in) financing activities		4,924	(7,872)
Change in cash and cash equivalents		2,705	1,684
Cash and cash equivalents, beginning of period		21,414	37,546
Cash and cash equivalents, end of period		24,119	39,230

See accompanying notes to the condensed consolidated interim financial statements.

GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)
For the three months ended March 31, 2025 and 2024
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)

DESCRIPTION OF BUSINESS

Genesis Land Development Corp. (the "Corporation" or "Genesis") was incorporated under the Business Corporations Act (Alberta) on December 2, 1997.

The Corporation is engaged in the acquisition, development and sale of land, residential lots and homes in the greater Calgary area. The Corporation reports its activities as two business segments: land development and home building.

The Corporation is listed for trading on the Toronto Stock Exchange under the symbol "GDC". Genesis' head office and registered office are located at 6240, 333 - 96 Ave. NE, Calgary, AB T3K 0S3.

The unaudited condensed consolidated interim financial statements (the "Statements") of Genesis were approved for issuance by the Board of Directors on May 6, 2025.

MATERIAL ACCOUNTING POLICIES AND BASIS OF PRESENTATION

The significant accounting policies, basis of measurement and use of judgments and estimates of the Corporation are the same as those applied in the Corporation's annual audited consolidated financial statements for the year ended December 31, 2024. These policies have been consistently applied to each of the periods presented, unless otherwise indicated.

The Statements have been prepared in accordance with IFRS® Accounting Standards as issued by the International Accounting Standards Board ("IASB") and interpretations of the IFRS Interpretations Committee. These Statements are unaudited and have been prepared in accordance with IAS 34 "Interim Financial Reporting".

The Statements have been prepared under the historical cost convention except for the financial assets classified as fair value through profit or loss and deferred share units that have been measured at fair value. The Statements are presented in Canadian dollars, which is the Corporation's functional currency, and all values are rounded to the nearest thousand, except per share values and where otherwise indicated.

These Statements do not include all of the information required for annual audited consolidated financial statements and should be read in conjunction with the annual audited consolidated financial statements for the year ended December 31, 2024.

REAL ESTATE HELD FOR DEVELOPMENT AND SALE

Net book value	Lots, Multi-family & Commercial	Land Held for Development	Home Building	Total
As at December 31, 2023	37,428	217,049	88,314	342,791
Development and construction activities	4,909	52,246	101,471	158,626
Transfer	74,627	(74,627)	-	-
Acquisitions	-	75,470	88,070	163,540
Sold	(79,254)	(853)	(144,058)	(224,165)
As at December 31, 2024	37,710	269,285	133,797	440,792
Development and construction activities	717	5,718	30,006	36,441
Sold	(5,115)	-	(27,033)	(32,148)
As at March 31, 2025	33,312	275,003	136,770	445,085

During the three months ended March 31, 2025, interest of $317 (2024 - $627) was capitalized as a component of development activities.

4. LOAN AND CREDIT FACILITIES

	March 31, 2025	December 31, 2024
Secured by specific dedicated lands and a general corporate charge on all assets of the Corporation
a) Corporate revolving credit facility up to $50,000 with a major Canadian financial institution at an interest rate per annum of prime +1.65%. The facility matures on February 1, 2027.	20,029	13,885
Secured by agreements receivable and real estate held for development and sale
b) Demand land project servicing facility up to $3,592 from a major Canadian chartered bank, payable on collection of agreements receivable, bearing interest at prime +0.50% per annum, secured by real estate held for development and sale with a carrying value of $4,970 and a corporate guarantee. The loan amount is due on November 28, 2025.	1,132	3,813
Secured by real estate held for development and sale
c) Vendor-take-back loan ("VTB") at 0% per annum is measured at amortized cost and whose fair value is based on discounted future cash flows, using an 8% discount rate. The $18,088 VTB was entered into on November 30, 2023 in partial payment for the purchase of 460 acres of development land in southeast Calgary and is secured by these lands which have a carrying value of $22,762. The VTB is to be paid in four annual installments of $4,522 each, commencing November 20, 2024 and ending November 20, 2027. The first installment of $4,522 was paid in November 2024.
Remaining face value owed on this VTB	13,566	13,566
Unamortized portion of the discount on this VTB	(1,583)	(1,819)
d) VTB at 0% per annum is measured at amortized cost and whose fair value is based on discounted future cash flows, using an 8% discount rate. The $42,080 VTB was entered into on June 7, 2024, in partial payment for the purchase of 734 acres of development land in southeast Calgary and is secured by these lands which have a carrying value of $46,149. The VTB is to be paid in four annual installments of $7,000, $8,000, $13,680 and $13,400 respectively, commencing June 19, 2025 and ending June 19, 2028.
Remaining face value owed on this VTB	42,080	42,080
Unamortized portion of the discount on this VTB	(5,964)	(6,676)
e) VTB at 0% per annum is measured at amortized cost and whose fair value is based on discounted future cash flows, using an 7% discount rate. The $5,780 VTB was entered into on November 15, 2024, in partial payment for the investment in land development joint venture. The VTB is to be paid in two annual installments of $2,890 each, on November 15, 2025 and November 15, 2026.
Remaining face value owed on this VTB	5,780	5,780
Unamortized portion of the discount on this VTB	(434)	(525)
Secured by real estate held for development and sale and a Genesis corporate guarantee - held by Limited Partnerships
f) Demand land project servicing facilities (Lewiston Lands Limited Partnership ("LLLP")) up to $22,654 from a major Canadian chartered bank, payable on collection of agreements receivable, bearing interest at prime +0.50% per annum, secured by real estate held for development and sale with a carrying value of $36,328. The loan amounts are due between July 31, 2026 and November 26, 2027.	4,157	4,318
g) Demand operating credit facility (LLLP) up to $24,500 from a major Canadian chartered bank, bearing interest at prime +0.50% per annum, secured by real estate held for development and sale with a carrying value of $36,328. The loan amount is due on October 27, 2025.	23,711	23,256
h) Demand land project servicing facility (Huxley Lands Limited Partnership ("HLLP")) up to $52,135 from a major Canadian chartered bank, payable on collection of agreements receivable, bearing per annum interest at the prime rate, secured by real estate held for development and sale with a carrying value of $57,789. The loan amount is due on September 3, 2027.	14,077	12,317
i) Demand operating credit facility (HLLP) up to $17,000 from a major Canadian chartered bank, bearing interest at prime +0.25% per annum, secured by real estate held for development and sale with a carrying value of $57,789. The loan amount is due on November 30, 2026.	16,411	16,191

GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)

For the three months ended March 31, 2025 and 2024
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)

LOAN AND CREDIT FACILITIES (continued)

	March 31, 2025	December 31, 2024
Secured by housing projects under development and a corporate guarantee
☐ Demand operating credit facility up to $25,000 from a major Canadian chartered bank, bearing interest at prime +0.75% per annum, secured by a general security agreement over assets of the home building division. The facility does not have a specified maturity date.	8,753	8,167
	141,715	134,353
Unamortized deferred fees on loan and credit facilities	(742)	(859)
	140,973	133,494

The weighted average interest rate of loan agreements with financial institutions was 5.61% (December 31, 2024 - 6.05%) based on March 31, 2025 balances.

During the three months ended March 31, 2025, the Corporation received advances of $18,221 (2024 - $3,890) and made repayments of $12,291 (2024 - $9,972) relating to various loan facilities. These loan facilities bear interest ranging from prime to prime +1.65% per annum, with maturity dates ranging from October 27, 2025 to November 26, 2027. During the three months ended March 31, 2025, the Corporation incurred finance costs of $2,281 relating to loans and VTBs (2024 - $2,024).

Based on the contractual terms, the Corporation's loan and credit facilities are to be repaid within the following time periods (excluding deferred fees on loan and credit facilities and unamortized portion of the discount on the VTB):

April 1, 2025 to March 31, 2026	48,008
April 1, 2026 to March 31, 2027	54,106
April 1, 2027 to March 31, 2028	34,182
April 1, 2028 to March 31, 2029	13,400
	149,696

As at March 31, 2025 and at December 31, 2024, the Corporation and its subsidiaries were in compliance with all loan covenants.

PROVISION FOR FUTURE DEVELOPMENT COSTS

The movement in the provision for future development costs is as follows:

	Land Development	Home Building	Total
As at December 31, 2023	15,899	4,670	20,569
Additions	25,250	36,657	61,907
Changes to estimates	(1,933)	221	(1,712)
Development and construction activities	(9,793)	(34,735)	(44,528)
As at December 31, 2024	29,423	6,813	36,236
Additions	2,015	7,615	9,630
Changes to estimates	(145)	(515)	(660)
Development and construction activities	(2,054)	(6,877)	(8,931)
As at March 31, 2025	29,239	7,036	36,275

6. SHARE CAPITAL

a) Authorized

Unlimited number of common shares without par value.
Unlimited number of preferred shares without par value, none issued.

b) Weighted average number of shares

The following table sets forth the weighted average number of common shares outstanding for the three months ended March 31, 2025 and 2024:

	Three months ended March 31,
	2025	2024
Basic and diluted weighted average number of common shares	56,769,992	56,793,271

c) Normal course issuer bid ("NCIB")

The Corporation renewed its NCIB on December 13, 2024. The renewed NCIB commenced on December 18, 2024 and will terminate on the earlier of: (i) December 17, 2025; and (ii) the date on which the maximum number of common shares are purchased pursuant to the bid. The Corporation may purchase for cancellation up to 2,839,275 common shares under the NCIB.

The following table sets forth the number of common shares repurchased and cancelled during the three months ended March 31, 2025 and 2024 under the NCIB.

	Three months ended March 31,
	2025	2024
Number of shares repurchased and cancelled	48,194	16,800
Reduction in share capital	70	25
Change in retained earnings	87	15
Reduction in shareholders' equity	157	40
Average purchase price per share	3.27	2.36

GENESIS LAND DEVELOPMENT CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(Unaudited)

For the three months ended March 31, 2025 and 2024
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)

7. SHARE-BASED COMPENSATION

a) Deferred share unit (“DSU”) plan

The Corporation’s cash settled DSU plan provides for DSUs to be issued to directors and designated employees. DSUs are issued with various vesting terms, ranging from immediate vesting up to four years. Details of the number of outstanding DSUs are as follows:

	Three months ended March 31,
	2025	2024
DSUs outstanding - beginning of period	1,678,381	1,353,444
DSUs granted	4,545	190,351
DSUs redeemed	239,060	-
DSUs outstanding - end of period	1,443,866	1,543,795
DSUs vested - end of period	1,214,609	1,162,113

The March 31, 2025 outstanding liability related to DSUs which are cash settled is $4,183 (December 31, 2024 - $5,053) and is recorded in accounts payable and accrued liabilities. DSUs are measured at fair value at each reporting period on a mark-to-market basis.

Subsequent to March 31, 2025, the Corporation granted 4,762 DSUs at an average price of $3.15 each.

b) Share-based compensation (recovery) expense

	Three months ended March 31,
	2025	2024
Share-based compensation (recovery) expense	(70)	672

Share-based compensation was recorded and included as a part of general and administrative expense.

COMMITMENTS AND CONTINGENCIES

a) The Corporation has issued letters of credit and surety bonds pursuant to servicing agreements with municipalities to indemnify them in the event that the Corporation does not perform its contractual obligations. As at March 31, 2025, these commitments amounted to $14,313 (December 31, 2024 - $9,446).

b) The Corporation is committed to pay levies and municipal fees relating to signed municipal agreements on commencement of development of certain real estate assets with the following future payments:

April 1, 2025 to March 31, 2026	10,921
April 1, 2026 to March 31, 2027	11,504
April 1, 2027 to March 31, 2028	7,337
	29,762

c) The Corporation has contracted to acquire 222 residential lots in the Calgary Metropolitan Area for $44,082 from third-party land developers and HLLP, a limited partnership in which Genesis owns a 60% interest (refer to note 15). The Corporation has paid deposits totaling $6,679 with the remainder being due as follows:

	Third-party land developers	HLLP	Total
April 1, 2025 to March 31, 2026	2,321	10,117	12,438
April 1, 2026 to March 31, 2027	23,083	-	23,083
April 1, 2027 to March 31, 2028	1,882	-	1,882
	27,286	10,117	37,403

OTHER OPERATING ASSETS

	March 31, 2025	December 31, 2024
Deposits	6,142	6,029
Restricted cash	433	433
Prepayments	1,283	880
Property, equipment and other	2,470	2,272
	10,328	9,614

Deposits include amounts paid by the Corporation towards the purchase of lots and land as well as amounts paid to development authorities as security to guarantee the completion of construction projects under development. Restricted cash includes funds held in trust related to acquisition and sale of development land and lots. The Corporation also provides letters of credit and surety bonds as security to guarantee the completion of certain construction projects (see note 8a for additional information).

CUSTOMER DEPOSITS

	March 31, 2025	December 31, 2024
Customer deposits on residential home sales	14,440	14,142
Customer deposits on residential lot and development land sales	10,807	5,435
	25,247	19,577

Customer deposits are amounts received upon signing of contracts for purchases of residential homes, lots and development land on which revenue recognition criteria have not yet been met.

GENESIS LAND DEVELOPMENT CORP.
NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS
(Unaudited)

For the three months ended March 31, 2025 and 2024
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)

FINANCIAL INSTRUMENTS

The fair values of cash and cash equivalents, restricted cash, accounts payable and accrued liabilities approximate their carrying values as they are typically expected to be settled within 12 months. The fair value of deposits approximates their carrying value as the terms of deposits are comparable to the market terms for similar instruments.

The fair values of the Corporation's loan and credit facilities, amounts receivable and vendor-take-back mortgage receivable were estimated based on current market rates for loans of the same risk and maturities.

The fair value of investments in land development entities are based on the market approach method. This method uses prices and other relevant information that have been generated by market transactions involving identical or comparable assets.

Fair value measurements recognized in the consolidated balance sheets are categorized using a fair value hierarchy that reflects the significance of inputs used in determining the fair values. The three fair value hierarchy levels are as follows:

Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities;

Level 2: Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices); and

Level 3: Inputs for the asset or liability that is not based on observable market data (unobservable inputs).

The Corporation's current financial assets are measured at amortized cost or fair value through profit and loss ("FVTPL"). The estimated fair value of financial assets and liabilities measured at FVTPL as at March 31, 2025 and December 31, 2024 are presented in the following table:

			Carrying Value		Fair Value
	Fair Value Hierarchy	Measurement Basis	As at Mar. 31, 2025	As at Dec. 31, 2024	As at Mar. 31, 2025	As at Dec. 31, 2024
Financial Assets
Cash	Level 1	FVTPL	24,119	21,414	24,119	21,414
Investments in land development entities	Level 3	FVTPL	25,107	26,551	25,107	26,551
Restricted cash (1)	Level 1	FVTPL	433	433	433	433
Financial Liabilities
Cash settled DSUs (2)	Level 1	FVTPL	4,183	5,053	4,183	5,053

(1) Included in other operating assets.
(2) Included in accounts payable and accrued liabilities.

During the three months ended March 31, 2025 and 2024, no transfers were made between the levels in the fair value hierarchy.

11. FINANCIAL INSTRUMENTS (continued)

a) Risks associated with financial instruments

(i) Credit risk

The Corporation recognizes bad debt expense (or recovery) relating to amounts receivable on sold lots, net of the value of the related sold lots which are taken back into the Corporation's lot inventory on the termination of the relevant agreement. Termination could occur when the buyer fails to perform or observe terms of covenants of the relevant agreement. Agreements receivable for lot sales have various terms of repayment with purchasers generally having between six and 24 months to pay the balance owing for the purchased lots.

Recovery of bad debt expense is included in the Corporation's general and administrative expenses. In order to mitigate credit risk, the Corporation does not transfer title to sold residential lots until full payment is received. Individual balances due from customers as at March 31, 2025, which comprise greater than 10% of total amounts receivable, totaled $58,620 from four customers (December 31, 2024 - $57,956 from four customers).

Aging of amounts receivable, none of which are past due, was as follows:

	March 31, 2025	December 31, 2024
Due on sold lots	64,744	64,384
Other receivables	2,051	1,979
	66,795	66,363

(ii) Liquidity risk

The contractual maturities of financial liabilities and other commitments as at March 31, 2025 were as follows:

	<1 Year	>1 Year	Total
Financial liabilities
Accounts payable and accrued liabilities	31,523	-	31,523
Accounts payable related to residential lot purchases	45,359	11,788	57,147
Loan and credit facilities (1) (note 4)	48,008	101,688	149,696
	124,890	113,476	238,366
Commitments
Lease obligations (including variable operating costs)	237	8,611	8,848
Lot purchase commitments (note 8c)	12,438	24,965	37,403
Levies and municipal fees (note 8b)	10,921	18,841	29,762
	23,596	52,417	76,013
	148,486	165,893	314,379

(1) Exclude deferred fees on loan and credit facilities and unamortized portions of the discount on the VTBs

As at March 31, 2025, the Corporation had obligations due within the next 12 months of $148,486 (December 31, 2024 - $145,393). Based on the Corporation's operating history, its relationship with its lenders and committed sales contracts, management believes that the Corporation has the ability to continue to renew or repay its financial obligations as they come due.

FINANCIAL INSTRUMENTS (continued)

(iii) Market risk

The Corporation is exposed to interest rate risk to the extent that certain agreements receivable and certain loan and credit facilities are at a floating rate of interest. A 1% change in interest rates would result in a change in interest incurred of approximately $883 annually on floating rate facilities (2024 - $834).

b) Capital management

The Corporation's policy is to maintain a sufficient capital base in order to retain investor, creditor and market confidence and to sustain the future development of the business. The Corporation is in compliance with all externally imposed capital requirements.

The Corporation manages its capital structure and makes adjustments to it in light of changes in regional economic conditions and the risk characteristics of the underlying real estate industry within that region.

The Corporation considered its capital structure at the following dates to specifically include:

	March 31, 2025	December 31, 2024
Loan and credit facilities (note 4)	140,973	133,494
Shareholders' equity	272,353	266,480
	413,326	399,974

GENESIS LAND DEVELOPMENT CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(Unaudited)

For the three months ended March 31, 2025 and 2024

(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)

12. SEGMENTED INFORMATION

The income producing business units of the Corporation reported the following activities for the three months ended March 31, 2025 and 2024:

Three months ended March 31, 2025	Land Development Segment	Home Building Segment	Intersegment Elimination	Total
Revenues	12,480	49,829	(4,100)	58,209
Direct cost of sales	(6,992)	(37,474)	4,211	(40,255)
Gross margin	5,488	12,355	111	17,954
Gain in investments in land development entities	530	-	-	530
G&A, selling & marketing and net finance expense	(4,722)	(6,131)	-	(10,853)
Earnings before income taxes and NCI	1,296	6,224	111	7,631
Segmented assets as at March 31, 2025	443,963	184,885	(43,835)	585,013
Segmented liabilities as at March 31, 2025 (1), (2)	218,708	113,007	(39,435)	292,280
Segmented net assets as at March 31, 2025 (1), (2)	225,255	71,878	(4,400)	292,733
Three months ended March 31, 2024	Land Development Segment	Home Building Segment	Intersegment Elimination	Total
Revenues	16,625	56,200	(4,520)	68,305
Direct cost of sales	(11,428)	(42,956)	4,520	(49,864)
Gross margin	5,197	13,244	-	18,441
G&A, selling & marketing and net finance expense	(3,357)	(6,071)	-	(9,428)
Earnings before income taxes and NCI	1,840	7,173	-	9,013
Segmented assets as at December 31, 2024	441,488	186,996	(50,766)	577,718
Segmented liabilities as at December 31, 2024 (1), (2)	216,862	119,913	(46,255)	290,520
Segmented net assets as at December 31, 2024 (1), (2)	224,626	67,083	(4,511)	287,198

(1) Segmented liabilities under the Genesis land development segment include $17,226 due to the home building segment (December 31, 2024 - $24,092 due from the land development segment to the home building segment).
(2) Segmented liabilities relating to LLLP, HLLP and other limited partnerships comprise of accounts payable and accrued liabilities and include $2,596 (December 31, 2024 - $2,662) due to Genesis.

INVESTMENTS IN LAND DEVELOPMENT ENTITIES

	December 31, 2024	Distributions received	Gain in fair value	March 31, 2025
Limited Partnership - 5%	2,142	(1,174)	42	1,010
Joint Venture - 8%	6,304	(800)	126	5,630
Limited Partnership - 16.7%	5,000	-	100	5,100
Joint Venture - 12.5%	8,099	-	162	8,261
Joint Venture - 15%	5,006	-	100	5,106
Total	26,551	(1,974)	530	25,107

The fair value of investments in land development entities is based on the market approach method and used third-party appraisals during the fourth quarter of 2024. This method used prices and other relevant information that have been generated by market transactions involving identical or comparable assets. Where applicable, adjustments are also made during interim periods to reflect changes in fair value, incorporating management's estimates and assumptions. During the three months ended March 31, 2025, the Corporation recorded $530 as a gain in fair value of investments held in the year (2024 - $Nil).

INVESTMENT IN OTHER REAL ESTATE ENTITY

The Corporation and a private company entered into a limited partnership agreement in 2021 to form Sage Hill Estates Apartments LP ("SHEA LP"), for the purpose of acquiring, developing and renting certain real estate. The Corporation sold a 3.22-acre multi-family site for $3,589 to SHEA LP and used the gross sale proceeds to purchase 50% of the units in SHEA LP by way of a capital investment of $3,589 in 2022.

	Total
As at December 31, 2023	3,581
Investment	455
(Loss)	(7)
As at December 31, 2024	4,029
As at March 31, 2025	4,029

The investment in SHEA LP is accounted for using the equity method with the Corporation's share of net assets being $4,029 at March 31, 2025 (December 31, 2024 - $4,029).

LIMITED PARTNERSHIPS
a) In December 2022, the Corporation entered into binding agreements to sell a 20% ownership stake in LLLP to each of two Calgary based third party home builders. LLLP owns 130 acres of residential development land located in the Keystone Area Structure Plan ("ASP") on the north side of the City of Calgary. The transaction closed on January 16, 2023, for consideration for each 20% ownership stake of $5,880 (net of assumption of debt of $4,000 each) resulting in gross proceeds for the sale of a 40% ownership interest of $11,760 (net of assumption of debt of $8,000). As at March 31, 2025, LLLP accounts for $12,472 of the non-controlling interest ("NCI") on the condensed consolidated interim balance sheets (December 31, 2024 - $12,701) and ($229) on the condensed consolidated interim statements of comprehensive income (March 31, 2024 - ($180)).

b) In May 2024, the Corporation entered into binding agreements to sell a 20% ownership stake in HLLP to each of two Calgary based third party home builders. HLLP owns 161 acres of residential development land located in the Belvedere ASP on the east side of the City of Calgary. The transaction closed on December 13, 2024, for consideration for each 20% ownership stake of $7,720 (net of assumption of debt of $3,000 each) resulting in gross proceeds for the sale of a 40% ownership interest of $15,440 (net of assumption of debt of $6,000). As at March 31, 2025, HLLP accounts for $6,431 of the NCI on the condensed consolidated interim balance sheets (December 31, 2024 - $6,523) and ($92) on the condensed consolidated interim statements of comprehensive income (March 31, 2024 - $Nil).

CONSOLIDATED ENTITIES
The condensed consolidated interim financial statements include the accounts of the Corporation and its wholly-owned subsidiaries, as well as the consolidated revenues, expenses, assets, liabilities and cash flows of limited partnership entities that the Corporation controls. The Corporation has majority ownership positions in LLLP and HLLP as well as minority positions in other limited partnership entities. The Corporation has control over these entities' activities, projects, financial and operating policies due to contractual arrangements. As such, the relationship between the Corporation and the limited partnership entities indicates that they are controlled by the Corporation. Accordingly, the accounts of the limited partnerships have been consolidated in the Corporation's financial statements.
SUBSEQUENT EVENTS
Subsequent to March 31, 2025, the following occurred:
a) The Corporation had previously received ASP approval for the OMNI project. In April 2025 the Corporation received approval of a conceptual scheme for this project from Rocky View County.
b) On May 6, 2025, the Corporation declared a dividend of $0.105 per common share for a total of $5,956, payable on May 27, 2025, to shareholders of record on May 16, 2025.

AI assistant

Genesis Land Development Corp. Interim / Quarterly Report 2025

44565_rns_2025-05-06_2f481102-75d2-4475-8f05-0202a33ed96c.pdf

4. LOAN AND CREDIT FACILITIES

6. SHARE CAPITAL

a) Authorized

b) Weighted average number of shares

c) Normal course issuer bid ("NCIB")

GENESIS LAND DEVELOPMENT CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

7. SHARE-BASED COMPENSATION

a) Deferred share unit (“DSU”) plan

b) Share-based compensation (recovery) expense

11. FINANCIAL INSTRUMENTS (continued)

a) Risks associated with financial instruments

(i) Credit risk

(ii) Liquidity risk

GENESIS LAND DEVELOPMENT CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

12. SEGMENTED INFORMATION

AI assistant

Genesis Land Development Corp. — Interim / Quarterly Report 2025

44565_rns_2025-05-06_2f481102-75d2-4475-8f05-0202a33ed96c.pdf

4. LOAN AND CREDIT FACILITIES

6. SHARE CAPITAL

a) Authorized

b) Weighted average number of shares

c) Normal course issuer bid ("NCIB")

GENESIS LAND DEVELOPMENT CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

7. SHARE-BASED COMPENSATION

a) Deferred share unit (“DSU”) plan

b) Share-based compensation (recovery) expense

11. FINANCIAL INSTRUMENTS (continued)

a) Risks associated with financial instruments

(i) Credit risk

(ii) Liquidity risk

GENESIS LAND DEVELOPMENT CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

12. SEGMENTED INFORMATION

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Genesis Land Development Corp. Interim / Quarterly Report 2025