ProLogis European Properties (PEPR) recorded an IFRS loss of EUR 6.4 mln for Q2 2012 due to higher valuation declines, lower rental income and a EUR 1.3 mln provision for costs associated with the wind-up of the company. As a result, the Amsterdam-listed company booked a first-half IFRS loss of EUR 27.7 mln compared with a EUR 7.6 mln profit in the year-earlier period.
ProLogis European Properties (PEPR) recorded an IFRS loss of EUR 6.4 mln for Q2 2012 due to higher valuation declines, lower rental income and a EUR 1.3 mln provision for costs associated with the wind-up of the company. As a result, the Amsterdam-listed company booked a first-half IFRS loss of EUR 27.7 mln compared with a EUR 7.6 mln profit in the year-earlier period.
The first-half figure also included a EUR 15.3 mln loss on property disposals. Over the first six months, the value of the portfolio fell 2.4% to EUR 2.5 bn.
Rental and other property income fell 8% to EUR 53.6 mln in Q2 and by a similar percentage in H1 to EUR 110.2 mln. However, the reduction in rental income was offset by lower financing and operating costs which caused adjusted EPRA earnings to increase 36% to EUR 22.6 mln in Q2 2012. As a result, adjusted EPRA earnings rose to EUR 0.11 per share in Q2 from EUR 0.09 in the year-earlier period, lifting first-half earnings to EUR 0.22 from EUR 0.19 a year ago.
Commenting on the results, Peter Cassells, chief executive officer of PEPR, said: ‘The overall pan-European market outlook continues to hold relatively firm, with property yields, rents and lease incentives in most markets remaining stable. However, the ongoing economic uncertainty has led to a further decrease in our portfolio value which has contributed to the decline in EPRA NAV over the quarter and half year to EUR 6.43 per ordinary unit.’
Following a vote approving the wind-up of PEPR at the company’s annual meeting on 27 June, the company will be delisted on 27 August 2012.
