Orco’s handed in a €233.4m profit for 2010, which is a whole lot better than its 2009 loss of €250m. It says that selling off commercial development projects brought in €121m and an additional by selling real estate assets (rental buildings and land plots) produced €185m. Rental revenues declined 3% over the year, but showed an upward trend in the final quarter of the year. Those with a nose for detail may be interested to know that the Bubny site was transferred from the land bank into inventory back in July, after the local municipality announced its support for the project.
Full statement on the unaudited results available here. Or for some highlights, continue reading below…
· Loan To Value (LTV) before bonds stands at 54% compared to 58% in December 2009. Global LTV dropped to 68% compared to 84% at the end of 2009, mainly through bonds revaluation. The OPG bond liability will however increase each year by the non cash 23.1% interest expenses in P&L minus actual cash repayments.
· Q4 revenues reached EUR 86 Million, up by 33% year on year mainly as a result of higher commercial assets sales. Asset Management revenues increased by 15% to reach EUR 31 Million and Development revenues by 62% to reach EUR 55 Million.
· Operating loss for Q4 2010 amounted to EUR 0.9 Million compared to a loss of EUR 5.7 Million for Q4 2009 mainly as a result of revaluation gains and lower impairments partially compensated by negative margins on residential development sales.