Operating revenue decreased 30.1% to $26,510,000 for the three-month period ended March 31, 2023 from $37,932,000 in 2022 due to the revenue from the eight Highland Gate home sales in 2022. Direct operating expenses decreased 35.9% to $21,139,000 for the three-month period ended March 31, 2023 from $32,954,000 in 2022 due to the cost of sales from the eight Highland Gate home sales in 2022. Net operating income for the Canadian golf club operations segment decreased to $2,852,000 for the three-month period ended March 31, 2023 from $3,908,000 in 2022 due to increased operating expenses from both inflation and timing of expenditure. Interest, net and investment income increased to income of $2,080,000 for the three-month period ended March 31, 2023 from $276,000 in 2022 due to a decrease in borrowings and an increase in distributions from the Company’s investment in Automotive Properties REIT.
At March 31, 2023, the Company recorded unrealized losses of $13,558,000 on its investment in marketable securities (March 31, 2022 – $2,819,000). This loss is attributable to the fair market value adjustments of the Company’s investment in Automotive Properties REIT. The exchange rate used for translating US denominated assets has changed from 1.3544 at December 31, 2022 to 1.3533 at March 31, 2023. This has resulted in a foreign exchange gain of $78,000 for the three-month period ended March 31, 2023 on the translation of the Company’s US denominated financial instruments. Net loss in the amount of $8,051,000 for the three-month period ended March 31, 2023 changed from $1,093,000 in 2022 due to an unrealized loss on the Company’s investment in Automotive Properties REIT. Basic and diluted loss per share decreased to $0.33 cents per share in 2023, compared to basic and diluted loss per share of $0.04 cents in 2022
Canadian Membership Fees Full privilege golf members decreased 1.8% to 15,034 on March 31, 2023 from 15,302 on March 31, 2022. This membership level has been maintained due to the strong demand for golf as part of the public reaction to the pandemic.
