GENESIS

GENESIS LAND DEVELOPMENT CORP.

CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

For the three and six months ended June 30, 2025 and 2024
(Unaudited)

SECOND QUARTER

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

	Notes	June 30, 2025	December 31, 2024
Assets
Real estate held for development and sale	3	475,453	440,792
Amounts receivable	11a	46,273	66,363
Vendor-take-back mortgage receivable		666	641
Investments in land development entities	13	25,639	26,551
Investment in other real estate entity	14	4,029	4,029
Other operating assets	9	12,212	9,614
Right-of-use assets		781	705
Deferred tax assets		8,146	7,609
Income tax recoverable		2,931	-
Cash and cash equivalents		20,939	21,414
Total assets		597,069	577,718
Liabilities
Loan and credit facilities	4	138,196	133,494
Customer deposits	10	26,744	19,577
Accounts payable and accrued liabilities		39,695	26,795
Accounts payable related to residential lot purchases		66,831	63,374
Lease liabilities		990	953
Income tax payable		-	10,091
Provision for future development costs	5	33,183	36,236
Total liabilities		305,639	290,520
Commitments and contingencies	8
Subsequent events	7a
Equity
Share capital	6	82,129	82,263
Contributed surplus		1,063	1,063
Retained earnings		189,763	183,154
Shareholders' equity		272,955	266,480
Non-controlling interest	15	18,475	20,718
Total equity		291,430	287,198

Total liabilities and equity		597,069	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 and six months ended June 30, 2025 and 2024
(In thousands of Canadian dollars except per share amounts)

	Notes	Three months ended June 30,		Six months ended June 30,
		2025	2024	2025	2024
Revenues
Sales revenue		71,335	94,922	129,484	163,185
Other revenue		82	56	142	98
	12	71,417	94,978	129,626	163,283
Direct cost of sales		(52,725)	(75,455)	(92,980)	(125,319)
Gross margin		18,692	19,523	36,646	37,964
Unrealized gain - investments in land development entities	13	532	-	1,062	-
General and administrative		(6,199)	(5,766)	(12,714)	(11,354)
Selling and marketing		(4,079)	(3,148)	(6,496)	(6,066)
		(9,746)	(8,914)	(18,148)	(17,420)
Earnings from operations		8,946	10,609	18,498	20,544
Finance income		215	559	390	1,092
Finance expense		(1,974)	(1,778)	(4,070)	(3,233)
Earnings before income taxes		7,187	9,390	14,818	18,403
Income tax expense		(1,155)	(1,281)	(3,094)	(3,542)
Net earnings being comprehensive earnings		6,032	8,109	11,724	14,861
Attributable to non-controlling interest		(662)	82	(1,000)	(116)
Attributable to equity shareholders		6,694	8,027	12,724	14,977
Net earnings per share - basic and diluted	6b	0.11	0.14	0.22	0.26

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 six months ended June 30, 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
Dividends	6d	-	-	-	(5,395)	(5,395)	-	(5,395)
Normal course issuer bid	6c	(16,800)	(25)	-	(15)	(40)	-	(40)
Net earnings (loss) being comprehensive earnings (loss)		-	-	-	14,977	14,977	(116)	14,861
At June 30, 2024		56,785,508	82,268	1,063	157,353	240,684	9,883	250,567
At December 31, 2024		56,782,026	82,263	1,063	183,154	266,480	20,718	287,198
---	---	---	---	---	---	---	---	---
Dividends	6d	-	-	-	(5,956)	(5,956)	-	(5,956)
Normal course issuer bid	6c	(91,155)	(134)	-	(159)	(293)	-	(293)
Distributions		-	-	-	-	-	(6,229)	(6,229)
Acquisition from limited partnership	16	-	-	-	-	-	4,986	4,986
Net earnings (loss) being comprehensive earnings (loss)		-	-	-	12,724	12,724	(1,000)	11,724
At June 30, 2025		56,690,871	82,129	1,063	189,763	272,955	18,475	291,430

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 and six months ended June 30, 2025 and 2024
(In thousands of Canadian dollars)

	Three months ended June 30,			Six months ended June 30,
	Notes	2025	2024	2025	2024
Operating activities - inflows (outflows)
Residential home sales		69,294	68,990	119,414	125,172
Residential lot sales		24,449	20,338	37,787	29,394
Development land sales		-	4,858	-	8,922
Proceeds from sale of ownership interest in Limited Partnership	15	-	8,400	-	8,400
Interest		157	559	366	1,092
Residential home construction		(41,845)	(36,005)	(73,597)	(60,567)
Land development		(18,173)	(7,776)	(24,851)	(17,266)
Lots and land acquisitions		(11,707)	(46,048)	(18,276)	(62,015)
Suppliers and employees		(6,572)	(5,280)	(16,603)	(12,940)
Income tax		(4,217)	(1,284)	(16,654)	(3,870)
Other		70	6	130	78
Cash flows from operating activities		11,456	6,758	7,716	16,400
Investing activities
Investment in joint venture	14	-	-	-	(455)
Acquisition of equipment		(663)	(755)	(1,116)	(823)
Change in restricted cash		2	1,056	2	1,093
Investment in land development entities	13	-	(1,300)	-	(1,300)
Distribution received from land development entities	13	-	-	1,974	400
Cash flows (used in) from investing activities		(661)	(999)	860	(1,085)
Financing activities
Advances from loan and credit facilities	4	22,636	35,039	40,857	38,929
Repayments of loan and credit facilities	4	(19,877)	(34,001)	(32,168)	(43,973)
Repayments of vendor-take-back mortgage payable	4c	(7,000)	-	(7,000)	-
Interest and fees paid on loan and credit facilities		(809)	(1,265)	(1,658)	(3,015)
Distributions to unit holders of limited partnerships		(2,833)	-	(2,833)	-
Cancellation of shares under NCIB	6c	(136)	-	(293)	(40)
Dividends paid	6d	(5,956)	(5,395)	(5,956)	(5,395)
Cash flows used in financing activities		(13,975)	(5,622)	(9,051)	(13,494)
Change in cash and cash equivalents		(3,180)	137	(475)	1,821
Cash and cash equivalents, beginning of period		24,119	39,230	21,414	37,546
Cash and cash equivalents, end of period		20,939	39,367	20,939	39,367

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 and six months ended June 30, 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 July 30, 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.

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

For the three and six months ended June 30, 2025 and 2024
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)

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	2,235	19,771	67,006	89,012
Acquisitions	-	5,498	19,664	25,162
Sold	(9,885)	(2,123)	(67,505)	(79,513)
As at June 30, 2025	30,060	292,431	152,962	475,453

Acquisition amounts during the three and six months ended June 30, 2025 in the table above include $19,664 related to the purchase of residential lots and $5,498 related to the purchase of development land (2024 - $12,187 and $75,470 respectively). These amounts include:

a) the acquisition of 71 residential lots in the Calgary Metropolitan Area for $19,664.
b) the acquisition of an additional 27% interest in the OMNI project in North Conrich from Genesis Limited Partnership #4 for $5,498 (see note 16 for additional information).

During the three and six months ended June 30, 2025, interest of $358 and $675 (2024 - $432 and $1,059) was capitalized as a component of development activities.

4. LOAN AND CREDIT FACILITIES

	June 30, 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.	8,428	13,885
Secured by real estate held for development and sale
b) 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	(1,342)	(1,819)
c) 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 $46,178. 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. The first installment of $7,000 was paid in June 2025.
Remaining face value owed on this VTB	35,080	42,080
Unamortized portion of the discount on this VTB	(5,283)	(6,676)
d) VTB at 0% per annum is measured at amortized cost and whose fair value is based on discounted future cash flows, using a 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	(340)	(525)
Secured by real estate held for development and sale and a Genesis corporate guarantee - held by Limited Partnerships
e) Demand land project servicing facilities (Lewiston Lands Limited Partnership ("LLLP")) up to $37,618 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 $38,852. The loan amounts are due between July 31, 2026 and November 26, 2027. In May 2025, another facility was set up. The loan amount matures 36 months from the date of initial drawdown. There have been no drawdowns to date.	1,610	4,318
f) Demand operating credit facility (LLLP) up to $25,500 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 $38,852. The facility was extended in May 2025 and matures on October 27, 2026 with the facility limit increased to $25,500 from $24,500.	24,039	23,256
g) 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 $63,827. The loan amount is due on September 3, 2027.	20,585	12,317
h) 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 $63,827. The loan amount is due on November 30, 2026.	16,625	16,191

GENESIS LAND DEVELOPMENT CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(Unaudited)

For the three and six months ended June 30, 2025 and 2024

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

4. LOAN AND CREDIT FACILITIES (continued)

	June 30, 2025	December 31, 2024
Secured by real estate held for development and sale and a Genesis corporate guarantee - held by Limited Partnerships (continued)
i) Demand land project servicing facility (Hazel Lands Limited Partnership (“HZLP”)) up to $6,112 from a major Canadian chartered bank, payable on collection of agreements receivable, bearing interest at prime +0.25% per annum, secured by real estate held for development and sale with a carrying value of $30,933. The loan amount matures 36 months from the date of initial drawdown. There have been no drawdowns to date.	-	-
j) Demand operating credit facility (HZLP) up to $15,000 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 $30,933. The loan amount is due on April 30, 2028.	13,525	-
Secured by housing projects under development and a corporate guarantee
k) 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.	6,674	8,167
Secured by agreements receivable and real estate held for development and sale
l) Demand land project servicing facilities 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 and a corporate guarantee. The loan facilities were closed in 2025.	-	3,813
	138,947	134,353
Unamortized deferred fees on loan and credit facilities	(751)	(859)
	138,196	133,494

The weighted average interest rate of loan agreements with financial institutions was 5.38% (December 31, 2024 - 6.05%) based on June 30, 2025 balances.

During the three and six months ended June 30, 2025, the Corporation received advances of $22,636 and $40,857 (2024 - $35,039 and $38,929) and made repayments of $19,877 and $32,168 (2024 - $34,001 and $43,973) relating to various loan facilities. These loan facilities bear interest ranging from prime to prime +1.65% per annum, with maturity dates ranging from July 31, 2026 to April 30, 2028. During the three and six months ended June 30, 2025, the Corporation incurred finance costs of $2,185 and $4,466 relating to loans and VTBs (2024 - $2,086 and $4,110).

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):

July 1, 2025 to June 30, 2026	22,086
July 1, 2026 to June 30, 2027	70,769
July 1, 2027 to June 30, 2028	53,057
	145,912

As at June 30, 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	3,272	16,616	19,888
Changes to estimates	(344)	(842)	(1,186)
Development and construction activities	(7,882)	(13,873)	(21,755)
As at June 30, 2025	24,469	8,714	33,183

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 and six months ended June 30, 2025 and 2024:

	Three months ended June 30,		Six months ended June 30,
	2025	2024	2025	2024
Basic and diluted weighted average number of common shares	56,720,313	56,785,508	56,745,015	56,789,389

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 and six months ended June 30, 2025 and 2024 under the NCIB.

	Three months ended June 30,		Six months ended June 30,
	2025	2024	2025	2024
Number of shares repurchased and cancelled	42,961	-	91,155	16,800
Reduction in share capital	64	-	134	25
Change in retained earnings	72	-	159	15
Reduction in shareholders' equity	136	-	293	40
Average purchase price per share	3.14	-	3.21	2.36

d) Dividends paid

Cash dividends of $5,956 ($0.105 per common share) were declared and paid during the three and six months ended June 30, 2025. Cash dividends of $5,395 ($0.095 per common share) were declared and paid during the three and six months ended June 30, 2024.

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

For the three and six months ended June 30, 2025 and 2024
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)

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:

	Six months ended June 30,
	2025	2024
DSUs outstanding - beginning of period	1,678,381	1,353,444
DSUs granted	58,538	238,467
DSUs redeemed	(239,060)	-
DSUs outstanding - end of period	1,497,859	1,591,911
DSUs vested - end of period	1,271,392	1,213,019

The June 30, 2025 outstanding liability related to DSUs which are cash settled is $4,471 (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 June 30, 2025, the Corporation granted 9,434 DSUs at an average price of $3.18 each.

b) Share-based compensation expense

	Three months ended June 30,		Six months ended June 30,
	2025	2024	2025	2024
Share-based compensation expense	288	1,046	218	1,718

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

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

For the three and six months ended June 30, 2025 and 2024
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)

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 June 30, 2025, these commitments amounted to $14,677 (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:

July 1, 2025 to June 30, 2026	12,808
July 1, 2026 to June 30, 2027	11,477
July 1, 2027 to June 30, 2028	4,685
	28,970

c) The Corporation has contracted to acquire 341 residential lots in the Calgary Metropolitan Area for $76,004 from third-party land developers and two limited partnerships, LLLP and HLLP, in which Genesis owns a 60% interest (refer to note 15). The Corporation has paid deposits totaling $9,564 with the remainder being due as follows:

	Third-party land developers	LLLP	HLLP	Total
July 1, 2025 to June 30, 2026	8,305	1,157	10,117	19,579
July 1, 2026 to June 30, 2027	20,035	9,255	-	29,290
July 1, 2027 to June 30, 2028	17,571	-	-	17,571
	45,911	10,412	10,117	66,440

OTHER OPERATING ASSETS
| | June 30, 2025 | December 31, 2024 |
| --- | --- | --- |
| Deposits | 7,985 | 6,029 |
| Restricted cash | 431 | 433 |
| Prepayments | 927 | 880 |
| Property, equipment and other | 2,869 | 2,272 |
| | 12,212 | 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
| | June 30, 2025 | December 31, 2024 |
| --- | --- | --- |
| Customer deposits on residential home sales | 12,391 | 14,142 |
| Customer deposits on residential lot and development land sales | 14,353 | 5,435 |
| | 26,744 | 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 and six months ended June 30, 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 June 30, 2025 and December 31, 2024 are presented in the following table:

			Carrying Value		Fair Value
	Fair Value Hierarchy	Measurement Basis	As at Jun. 30, 2025	As at Dec. 31, 2024	As at Jun. 30, 2025	As at Dec. 31, 2024
Financial Assets
Cash	Level 1	FVTPL	20,939	21,414	20,939	21,414
Investments in land development entities	Level 3	FVTPL	25,639	26,551	25,639	26,551
Restricted cash (1)	Level 1	FVTPL	431	433	431	433
Financial Liabilities
Cash settled DSUs (2)	Level 1	FVTPL	4,471	5,053	4,471	5,053

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

During the three and six months ended June 30, 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 June 30, 2025, which comprise greater than 10% of total amounts receivable, totaled $43,833 from four customers (December 31, 2024 - $57,956 from four customers).

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

	June 30, 2025	December 31, 2024
Due on sold lots	43,833	64,384
Other receivables	2,440	1,979
	46,273	66,363

(ii) Liquidity risk

The contractual maturities of financial liabilities and other commitments as at June 30, 2025 were as follows:

	<1 Year	>1 Year	Total
Financial liabilities
Accounts payable and accrued liabilities	39,695	-	39,695
Accounts payable related to residential lot purchases	41,843	24,988	66,831
Loan and credit facilities (1) (note 4)	22,086	123,826	145,912
	103,624	148,814	252,438
Commitments
Lease obligations (including variable operating costs)	236	8,550	8,786
Lot purchase commitments (note 8c)	19,579	46,861	66,440
Levies and municipal fees (note 8b)	12,808	16,162	28,970
	32,623	71,573	104,196
	136,247	220,387	356,634

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

As at June 30, 2025, the Corporation had obligations due within the next 12 months of $136,247 (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. During the six months ended June 30, 2025, LLLP amended two existing demand land project servicing facilities and put in place another demand land project servicing facility of $20,965 (note 4e). Additionally, LLLP's demand operating credit facility was increased from $24,500 to $25,500 (note 4f). HZLP also put in place a demand land project servicing facility of $6,112 (note 4i) and demand operating credit facility of $15,000 (note 4j).

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

For the three and six months ended June 30, 2025 and 2024
(All tabular amounts and amounts in footnotes to tables are in thousands of Canadian dollars except number of shares)

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 $915 annually on floating rate facilities (2024 - $848).

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:

	June 30, 2025	December 31, 2024
Loan and credit facilities (note 4)	138,196	133,494
Shareholders' equity	272,955	266,480
	411,151	399,974

SEGMENTED INFORMATION

The income producing business units of the Corporation reported the following activities for the three and six months ended June 30, 2025 and 2024:

Three months ended June 30, 2025	Land Development Segment	Home Building Segment	Intersegment Elimination	Total
Revenues	7,684	71,354	(7,621)	71,417
Direct cost of sales	(5,973)	(54,477)	7,725	(52,725)
Gross margin	1,711	16,877	104	18,692
Unrealized gain - investments in land development entities	532	-	-	532
G&A, selling & marketing and net finance expense	(4,627)	(7,410)	-	(12,037)
(Loss) earnings before income taxes and NCI	(2,384)	9,467	104	7,187
Three months ended June 30, 2024	Land Development Segment	Home Building Segment	Intersegment Elimination	Total
---	---	---	---	---
Revenues	39,989	67,193	(17,670)	89,512
Revenues - Development lands	5,466	-	-	5,466
Direct cost of sales	(41,552)	(50,970)	17,067	(75,455)
Gross margin	3,903	16,223	(603)	19,523
G&A, selling & marketing and net finance expense	(3,765)	(6,368)	-	(10,133)
Earnings (loss) before income taxes and NCI	138	9,855	(603)	9,390

GENESIS LAND DEVELOPMENT CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

(Unaudited)

For the three and six months ended June 30, 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 (continued)

Six months ended June 30, 2025	Land Development Segment	Home Building Segment	Intersegment Elimination	Total
Revenues	20,164	121,183	(11,721)	129,626
Direct cost of sales	(12,965)	(91,951)	11,936	(92,980)
Gross margin	7,199	29,232	215	36,646
Unrealized gain - investments in land development entities	1,062	-	-	1,062
G&A, selling & marketing and net finance expense	(9,349)	(13,541)	-	(22,890)
(Loss) earnings before income taxes and NCI	(1,088)	15,691	215	14,818
Segmented assets as at June 30, 2025	435,473	199,034	(37,438)	597,069
Segmented liabilities as at June 30, 2025 (1), (2)	218,901	119,880	(33,142)	305,639
Segmented net assets as at June 30, 2025 (1), (2)	216,572	79,154	(4,296)	291,430
Six months ended June 30, 2024	Land Development Segment	Home Building Segment	Intersegment Elimination	Total
---	---	---	---	---
Revenues	56,614	123,393	(22,190)	157,817
Revenues - Development lands	5,466	-	-	5,466
Direct cost of sales	(52,980)	(93,926)	21,587	(125,319)
Gross margin	9,100	29,467	(603)	37,964
G&A, selling & marketing and net finance expense	(7,122)	(12,439)	-	(19,561)
Earnings (loss) before income taxes and NCI	1,978	17,028	(603)	18,403
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 $11,168 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 includes $267 due to Genesis (December 31, 2024 - $2,662).

INVESTMENTS IN LAND DEVELOPMENT ENTITIES

	December 31, 2024	Distributions received	Unrealized gain in fair value	June 30, 2025
Limited Partnership - 5%	2,142	(1,174)	86	1,054
Joint Venture - 8%	6,304	(800)	252	5,756
Limited Partnership - 16.7%	5,000	-	200	5,200
Joint Venture - 12.5%	8,099	-	324	8,423
Joint Venture - 15%	5,006	-	200	5,206
Total	26,551	(1,974)	1,062	25,639

The fair value of investments in land development entities is based on the market value approach method. This method used prices and other relevant information generated by market transactions involving identical or comparable assets. Where applicable, adjustments are made during interim periods to reflect changes in fair value, incorporating management's estimates and assumptions. During the three and six months ended June 30, 2025, the Corporation recorded $532 and $1,062 as an unrealized gain in investment 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 June 30, 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 June 30, 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 June 30, 2025, LLLP accounts for $12,142 of the non-controlling interest ("NCI") on the condensed consolidated interim balance sheets (December 31, 2024 - $12,701) and ($559) on the condensed consolidated interim statements of comprehensive income (June 30, 2024 - ($84)).

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 June 30, 2025, HLLP accounts for $6,333 of the NCI on the condensed consolidated interim balance sheets (December 31, 2024 - $6,523) and ($190) on the condensed consolidated interim statements of comprehensive income (June 30, 2024 - $Nil).

RELATED PARTY TRANSACTIONS

Transactions occurred with the following related parties:

In 2005, the Corporation sold a 49% undivided interest in approximately 610 acres to Genesis Limited Partnership #4 and GLP5 NE Calgary Development Inc. (collectively, "LP4/5 group") for $7,670. Since 2022, the Corporation has been repurchasing from LP4/5 group their undivided interest in these lands. In June 2025, the Corporation paid $5,498 to acquire the remainder of the undivided interest in these lands resulting in Genesis holding a 100% interest in both the 425-acre North Conrich and 185-acre OMNI projects. NCI portion as a result of this transaction was $4,986.

CONSOLIDATED ENTITIES

The 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.

Genesis Limited Partnership #4 is a limited partnership controlled by the Corporation. This limited partnership no longer has any real estate assets and is in the process of distributing all remaining cash, held in trust, to the limited partners following which it will be wound up.

AI assistant

Genesis Land Development Corp. Interim / Quarterly Report 2025

44565_rns_2025-07-30_5ecb479a-d10b-47ad-9379-9d40dcddb3cd.pdf

4. LOAN AND CREDIT FACILITIES

GENESIS LAND DEVELOPMENT CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

4. LOAN AND CREDIT FACILITIES (continued)

6. SHARE CAPITAL

a) Authorized

b) Weighted average number of shares

c) Normal course issuer bid ("NCIB")

d) Dividends paid

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 (continued)

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Genesis Land Development Corp. — Interim / Quarterly Report 2025

44565_rns_2025-07-30_5ecb479a-d10b-47ad-9379-9d40dcddb3cd.pdf

4. LOAN AND CREDIT FACILITIES

GENESIS LAND DEVELOPMENT CORP.

NOTES TO THE CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS

4. LOAN AND CREDIT FACILITIES (continued)

6. SHARE CAPITAL

a) Authorized

b) Weighted average number of shares

c) Normal course issuer bid ("NCIB")

d) Dividends paid

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 (continued)

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Genesis Land Development Corp. Interim / Quarterly Report 2025