Wall Financial Corporation Reports Q2 Fiscal 2021 Results

VANCOUVER, BC, Sept. 11, 2020 /CNW/ - Wall Financial Corporation (the "Company") released its operating results and financial statements for the six months ended July 31, 2020.  The Company recorded a net loss attributable to shareholders of the Company for the six months ended July 31, 2020 of $5,382,879 or $0.16 per share compared with net earnings of $107,760,399 or $3.17 per share for the same period of the prior year.    This loss was primarily due to the recognition of mark-to-market losses in respect of interest rate swap contracts of $3,969,665 and the decline in hotel revenues for the six months ended July 31, 2020.

The declaration of the COVID-19 virus as a pandemic by the World Health Organization on March 11, 2020, and the subsequent shut downs globally, domestically and locally have had a significant impact on the Company's hotel operations. The Company enacted cost reduction programs at its two hotels, which include the closure of one of the two towers at its downtown hotel, the furlough of all non-essential staff, and the elimination of all but the most necessary expenses in order to preserve cash flow.  The situation is dynamic and the ultimate duration and magnitude of the impact on the economy and the Company's business are not known at this time. For the six months ended July 31, 2020, the Company's hotel operations have experienced a significant decline in current and future guest bookings and occupancy levels are low, resulting in a decrease of revenues from hotel operations from $45,806,183 for the six months ended July 31, 2019 to $10,685,814 for the six months ended July 31, 2020.

The COVID-19 pandemic did not have a significant impact to the Company's rental and development operations. Revenues from the Company's rental properties for the six months ended July 31, 2020 were $17,371,207 compared with $16,907,327 for the same period in the prior year.  Revenue from development operations for the six months ended July 31, 2020 of $35,271,206 was lower than the prior year of $327,731,451 due to fewer closings of condominium units in the current year.

The above unaudited financial information, including comparative information, is expressed in Canadian dollars and has been prepared in accordance with International Financial Reporting Standards, using the same accounting policies and methods of application as described in notes 2 and 3 of the Company's audited consolidated financial statements for the years ended January 31, 2020 and 2019.   

Wall Financial Corporation is a B.C. based real estate company active in the development and management of residential rental apartments, development and construction of residential housing for resale, and the development and management of hotel properties. 

SOURCE Wall Financial Corporation