Central European property firm Orco Property Group said its revenues slipped 19.5% to EUR 47mln in the first quarter of 2008, resulting in a net loss of EUR 13mln compared to a profit of EUR 400,000 in the year-earlier period. Earnings before interest taxes depreciation and amortisation (EBITDA), at EUR 7.4mln, was in line with the year earlier figure.
Central European property firm Orco Property Group said its revenues slipped 19.5% to EUR 47mln in the first quarter of 2008, resulting in a net loss of EUR 13mln compared to a profit of EUR 400,000 in the year-earlier period. Earnings before interest taxes depreciation and amortisation (EBITDA), at EUR 7.4mln, was in line with the year earlier figure.
Orco said the decline in revenues, which was due to very low levels of deliveries in development activities, was expected and was partially compensated by an increase in leasing revenues. While Orco said it was maintaining its full year 2008 target for residential development to EUR 182mln from a previous EUR 197mln as it had decided not to build one of the remaining phases of its Rudna project in the Czech Republic, noting that expected profitability was insufficient.
The company said it had also reduced its 2008 sales forecast for its asset management division to EUR 20mln from a previous EUR 30mln. In the first quarter of the year, Orco noted that effects of the international subprime crisis had required postponing its launch of funds, meaning that no placement fees were booked in the first quarter of the year.
Despite its muted showing in the first quarter of 2008, Orco said it was confident the group could achieve double-digit growth in net asset value (NAV) over the next five years.
