ORCO PROPERTY GROUP | Promising first quarter results 2006
Promising first quarter results 2006
Promising first quarter results 2006- Net profit of 7 337 KEUR
Orco Property Group’s Board of Directors approved today the company’s consolidated accounts for first quarter 2006 (IFRS).
Key figures
|
In thousand Euro |
Q1 2006 |
Q1 2005 |
|
|
|
|
|
Sales |
16 148 |
6 814 |
|
Net gain from fair value adjustments |
6 498 |
0 |
|
Operating result |
6 491 |
- 769 |
|
Financial result |
2 343 |
- 2 013 |
|
Profit before tax |
8 834 |
- 2 780 |
|
Net profit attributable to equity holders |
7 337 |
- 3 162 |
Net Profit amounts to 7 337 KEUR in the first quarter 2006, up by 10 499 KEUR compared to the first quarter 2005. On the operations side, this increase is mainly due to the revaluation profits and to the management fees of the Endurance Fund. It is also due to an excellent financial result especially linked to the warrants Orco owns on the Suncani Hvar shares and the derivative instruments embedded in the OBSAR Bond.
Sales are in line with expectations
Contribution by segment
|
March 2006 |
KEUR |
|
|
|
|
Development |
7 077 |
|
Hospitality |
4 211 |
|
Renting |
3 868 |
|
Other services |
2 575 |
|
Inter segment transactions |
(1583) |
|
|
|
|
Total revenues |
16 148 |
Residential and Office portfolios are stable in all the countries.
Development sales, after a weak start, sales improved at the end of the quarter with a trend corresponding to the budget. 73 sales were booked in the first quarter whereas 193 Future Purchase Contracts were signed in the same period insuring the realisation of the ambitious sales target for the year.
Hospitality
During the first quarter, the Orco Hotel Collection portfolio showed an occupancy rate of 44,9 %, an ADR of 92,8 EUR and a Rev par of 41,7 EUR while the MaMaison Residences portfolio showed an occupancy rate of 44,4 %, an ADR of 89,8 EUR and a Rev Par of 39,9 EUR keeping in mind that the first quarter is not representative of the yearly activity. Suncani Hvar is not included in Orco Hotel Collection figures as the season only starts in April, although its contribution in the quarterly sales amounts to 469 KEUR.
Other services
Orco has booked its first recurrent income on the Endurance Fund with the quarterly management fees and also the acquisition fees amounting in total to 1 785 KEUR.
Operating result amounts to 6 491 KEUR, including 6 498 KEUR of revaluation profits. Although the portfolio was not valued by DTZ at the end of the quarter, the Management has taken very conservative assumptions on valuation of buildings for which there has been an important change. This mainly relates to Luxembourg Plaza building and the Belle Vue project in the Czech Republic and Star Light residence, Paris Department Store building and Avenue Gardens development in Hungary.
The operating result includes two significant non cash items; one of 929 KEUR corresponding to the dilutive impact of the sale of 23 % of Orco Germany shares to the Management and the second to the reversal of impairments amounting to 1 923 KEUR.
Financial result amounts to 2 343 KEUR. This result is made of 4 663 KEUR net interest expenses linked to the external financing of the group and a profit of 7 007 KEUR made of FX results and the additional valuation profit on the 1 000 000 warrants Orco owns on the Suncani Hvar shares since January 1st 2006. The second million warrants is not valued yet.
Tax costs amount to 2 215 KEUR. This amount is to be split into 117 KEUR estimated tax for Q1 2006 and 2 098 KEUR deferred taxes. Part of the deferred taxes (1 728 KEUR) is due to revaluation profits of assets.
Acquisition activities During the first quarter 2006, ORCO finalized the acquisition of assets in Berlin (buildings), in the Czech Republic (land bank - Praga), Hungary (building – Paris Department Store) and in Poland (development - Jozeflav). ORCO continued to work on other main acquisitions which will be booked during the second quarter out of which Viterra Development Gmbh will have a significant impact on the June accounts.
The financing of these acquisitions was mainly backed by the parent company thanks to the proceed of the OBSAR issued in 2005 and the Bond issued in February on the Prague Stock Exchange.
Development and future
Orco has reinforced its portfolio in all countries and is continuing this trend. With the acquisition of Viterra Development Gmbh which should be effective by end of June, major impacts on the portfolio but also on the development sales side are to be expected for the year 2006, the total sales for the group in 2006 will be raising to 140 MEUR at least.
The services rendered to the Endurance Fund which announced its final closing at 140 MEUR equity guaranty to Orco a stable income for the next seven years. Endurance Fund will launch a second compartment dedicated to Residential during the third quarter 2006. Orco may already expect an increase of the incomes coming form its fund management activities.
Orco Germany listing
Orco has been listing its Luxembourg subsidiary dedicated to all German investments on the Frankfurt stock exchange, Orco controls as of today 78 % of this subsidiary.
.
Luxembourg Paris Prague
Luc Leroi Bruno Fritsch Alès Vobruba
Tel : + 352 26 47 67 1 Tél : +33 1 40 67 67 04 Tél +42 02 21 416 311
lleroi@orcogroup.com bfritsch@orcogroup.com av@orco.cz
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