CEE retail specialist Plaza Centers swung into the red in the first half of 2012 with net losses of EUR 7 mln compared to a profit of EUR 24 mln in the same period a year before.
CEE retail specialist Plaza Centers swung into the red in the first half of 2012 with net losses of EUR 7 mln compared to a profit of EUR 24 mln in the same period a year before.
In a statement, the company said the negative performance was largely a result of non-cash net finance costs of EUR 13 mln during the period. Revenues from operations increase by 42% to EUR 34 mln in the first six months of 2012 versus EUR 24 mln in the previous year.
At end-June 2012, Plaza boosted a strong cash position of EUR 191 mln and said it had reduced its loan to value to 53%, from 59% at year-end 2011.
'With no imminent end to the Eurozone crisis, we remain vigilant to the potential risks to our business. However, by de-risking our development programme, maintaining a strong cash balance and working capital reserves alongside reducing our levels of gearing, Plaza is strongly positioned to weather these uncertainties and continue to deliver growth,' commented Ran Shtarkman, the President and CEO of Plaza Centers.
Plaza, which owns roughly EUR 1.1 bn of assets, has recently made its entry into Serbia with the opening of Kragujevac Plaza, a 22,000 m2 scheme with a catchment area of 590,000 inhabitants. The mall is the first to be completed outside Serbia’s capital, Belgrade.
