Madison Pacific Properties Inc. announces the results for the six months ended February 29, 2024

VANCOUVER, British Columbia, April 12, 2024 (GLOBE NEWSWIRE) -- Madison Pacific Properties Inc. (the Company) (TSX: MPC and MPC.C), a Vancouver-based real estate company announces the results of operations for the six months ended February 29, 2024.

The results reported are pursuant to International Financial Reporting Standards (IFRS) for public companies.

For the six months ended February 29, 2024, the Company is reporting net loss of $43.4 million (2023: net income of $23.0 million); cash flows generated from operating activities before changes in non-cash operating balances of $4.3 million (2023: $4.6 million); and loss per share of $0.73 (2023: income per share of $0.38). Included in net loss is a provision of $50.2 million (2023: $nil) for uncertain tax positions recognizing a tax liability for unpaid taxes, estimated interest and awarded legal costs and provisions against the carrying value of the Company’s tax deposits and deferred tax assets related to unused carryforward amounts. Also included in net loss is a net gain on the fair value adjustment on investment properties of approximately $4.3 million (2023: $14.0 million).

As previously reported in the Company’s Consolidated Financial Statements, the Company and certain subsidiaries had received from the Canada Revenue Agency (“CRA”) and Alberta Tax and Revenue Administration (“ATRA”) tax notices of reassessment for various taxation years. The reassessments deny the application and usage of certain non-capital losses, capital losses, deductions and investment tax credits arising from prior years. The Company and its subsidiaries had filed notices of objection and notices of appeal to the reassessments with the CRA and ATRA.

The appeal with the Tax Court of Canada (“TCC”) for one of the reassessed companies, Madison Pacific Properties Inc., was heard in 2020, 2022 and in 2023 (the “MPP Appeal”). The TCC released its judgement on the MPP Appeal on December 27, 2023 in favour of the CRA’s position, confirming the CRA’s reassessments. The decision denied Madison Pacific Properties Inc.’s ability to use certain carryforward losses for certain taxation years within its 2009 to 2017 taxation years. On January 26, 2024, the Company filed a notice of objection to the Federal Court of Appeal to appeal the decision issued by the TCC.