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Polish real estate developer Globe Trade Centre (GTC) swung to a net loss of PNL 138 mln (EUR 34 mln) in the third quarter of 2009 due to revaluations on its property holdings. The figure compares to a net profit of PLN 189 mln a year before.

'The Q3 2009 results were impacted mainly by the revaluation losses on completed commercial assets,' said Erez Boniel, Chief Financial Officer of GTC. 'However most real estate consultants expect a stabilisation or decrease in investment yields, while rental rates should start bottoming out in 2010.' GTC's portfolio shed EUR 44 mln in value in the first three quarters of the year.

Rental income grew by 33% year-on-year to EUR 66 mln in the first nine months of 2009. The company said that the cost-cutting measures implemented last year 'started to show results', with savings of EUR 2.1 mln on administration expenses achieved this year.

Recently the company acquired stakes in City Gate in Bucharest and Galleria Burgas in Burgas, Bulgaria, bringing GTC's share in the properties to 59% and 100% respectively. In Q3 2009 the company also completed the Galeria Jurajska shopping mall in Czstochowa and the City Gate office complex in Bucharest, which is now 95%-let. The 49,000 m² Galeria Jurajska centre opened nearly fully let at the beginning of October.

GTC said it currently has 263,000 m² of commercial properties under construction, scheduled for completion in 2009-2011. 'Long-established relations with leading European banks and GTC's financial strength have allowed it to secure financing for construction of new office and retail developments,' said Boniel. 'In view of a forecasted shortage of supply in 2010 and 2011, delivering completed projects in that period may give GTC a competitive edge.'