DGAP-News: ORCO Germany S.A.: Net profit increases but refinancing remains challenging
(firmenpresse) - DGAP-News: ORCO Germany S.A. / Key word(s): Half Year Results
ORCO Germany S.A.: Net profit increases but refinancing remains
challenging
31.08.2011 / 20:22
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Preliminary unaudited half year results 2011
In the first six months of 2011, ORCO Germany S.A. almost doubled its net
profit on a year-on-year basis. The Company realized a net profit of
EUR15.2 million whereas in the first half of 2010, net profit had amounted
to EUR8.3 million. While net profit increased, revenues decreased by
EUR67.4 million in the first half of 2011 and amounted to EUR31.9 million
due to the fact that no development sales were realized in the period. In
the context of the lower revenues, the adjusted EBITDA ended up at EUR12.9
million for the first half of 2011, decreasing by 35.2% in a year-on-year
comparison. Mainly on account of lower valuation gains, the operating
result (EBIT) in comparison to the first half year 2010 decreased by EUR9.1
million to EUR31.4 million. The diluted earnings per share moved from
EUR0.17 in June 2010 to EUR0.31 in June 2011.
The main drivers for the increased net profit were gains on disposal of
assets resulting from the share-deal on the land plot Leipziger Platz,
lower employee benefits, savings achieved on other operating expenses due
to the ongoing optimization of cost structures and lower interest expenses
reflecting the volume of asset sales conducted in 2010 and 2011. The fact
that no development sales were realized during the first six months of 2011
whereas in 2010 the Healthcare portfolio and H2 Office were disposed of,
leading to total revenues of EUR71.0 million, accounted for the decrease of
revenues by 67.9%.
Refinancing of GSG loan and restructuring the Corporate Bond remain
challenging
'With our strategic disposal plan and ongoing cost cutting programme, we
managed to strengthen ORCO Germany's core business and record net profits.
But despite this positive development, we are still in a very challenging
situation when it comes to the refinancing of the EUR300 million GSG loan
and the refinancing of the EUR100 million Bond. They will be our main
focus for the coming months', said Jean-Francois Ott, CEO of ORCO Germany
S.A.
Between January and June asset sales were closed for a total amount of
EUR119.1 million. The company will continue its selected disposal program
of remaining non-core assets starting with Sky office, to be contracted by
year end, and also Hakeburg, Hüttenstraße and GSG's Kurfürstenstraße.. In
line with the disposals, ORCO Germany's leasing income decreased from
EUR32.0 million in the first half year of 2010 to EUR27.7 million in the
first half year 2011. In contrast to the overall lower leasing income of
the group, ORCO-GSG's Berlin business parks revenues increasing by 0.3% to
EUR25.6 million on a year-on-year basis. Therein the rental income of GSG
increased by 2.0%. According to the strategy to dispose of non
cash-generating assets, GSG now represents 92.2 % of total revenues of ORCO
Germany compared to a share of only 79.7% in 2010.
About ORCO Germany
ORCO Germany S.A. is a property company that is listed in the Prime
Standard on the Regulated Market at Frankfurt Stock Exchange and has its
registered office in Luxembourg. The ORCO Germany Group, which acts
consistently under its registered name of ORCO Germany, has been operating
in Germany since 2004 and concentrates on commercial property and project
development.
ORCO Germany is a subsidiary of ORCO Property Group, which is one of the
leading Central European property companies. The company established in
1991 is based in Luxembourg and has listings on NYSE Euronext Paris,
Prague, Budapest and Warsaw stock exchanges.
For further information please contact:
Contact:
Kirchhoff Consult AG
Sebastian Bucher
Herrengraben 1
D-20459 Hamburg
T +49 40 60 91 86 18
F +49 40 60 91 86 60
sebastian.bucher(at)kirchhoff.de
End of Corporate News
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31.08.2011 Dissemination of a Corporate News, transmitted by DGAP - a
company of EquityStory AG.
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Language: English
Company: ORCO Germany S.A.
40, Parc d'Activités Capellen
8308 Capellen
Grand Duchy of Luxembourg
Phone: +49 (0)30 390 93 116
Fax: +49 (0)30 390 93 199
E-mail: patricia.jaenisch(at)orco-gsg.de
Internet: www.orcogermany.de
ISIN: LU0251710041
WKN: A0JL4D
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Düsseldorf, Stuttgart
End of News DGAP News-Service
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137864 31.08.2011
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Datum: 31.08.2011 - 20:22 Uhr
Sprache: Deutsch
News-ID 61263
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