ORCO PROPERTY Press Release
Luxembourg, 30 November 2017
ORCO PROPERTY GROUP
Q3 2017 Financial ResultsKey recent events
REDEMPTION OF THE NOTES
In November 2017, Orco Property Group S.A. (the "Company" or "OPG") redeemed all of the outstanding notes registered under ISIN code XS0820547742 (the "Notes"). The Notes have been cancelled.
ACQUISITIONS OF STAKES IN REAL ESTATE PROJECTS IN CZECHIA
In November 2017, the Company acquired 20% stakes in two real estate projects located in Czechia. The first project, with land plots of approximately 55.8 thousand square meters, is located in an attractive part of Prague 9. The second project, with land plots of approximately 395 thousand square meters, is located in Řitka, approximately 30 kilometres southwest of Prague. The remaining 80% stakes were acquired by another entity from CPI Property Group structure.
DISPOSAL OF LAND BANK IN CZECHIA
The Company disposed of its land bank project in Pardubice, Czechia. The disposed land of approximately 52,000 square meters was sold to ČSOB Pojišťovna group. The transaction was structured as a share deal. In November 2017, the Company also disposed of 80% stake in an entity holding approximately 107 thousand square meters in Prague to another entity from CPI Property Group structure.
Financial highlights
Performance | 30-Sep-17 | 30-Sep-16 | Change | |
Gross rental income | € thousands | 1,607 | 6,080 | -74% |
Total revenues | € thousands | 1,532 | 8,280 | -81% |
Operating result | € thousands | 77,165 | 15,622 | 394% |
Net profit for the period | € thousands | 63,912 | 10,193 | 527% |
Assets | 30-Sep-17 | 31-Dec-16 | Change | |
Total assets | € thousands | 1,158,999 | 613,666 | 89% |
EPRA NAV | € thousands | 511,833 | 425,624 | 20% |
Property Portfolio | € thousands | 327,027 | 269,140 | 22% |
Gross leasable area | sqm | 28,000 | 36,000 | -22% |
Occupancy in % | % | 77% | 81% | -4.0 pp |
Land bank area | sqm | 13,649,000 | 13,649,000 | 0% |
Total number of properties | No. | 5 | 6 | -17% |
Financing structure | 30-Sep-17 | 31-Dec-16 | Change | |
Total equity | € thousands | 489,159 | 413,273 | 18% |
Equity ratio | % | 42% | 67% | -25.0 pp |
Net debt | € thousands | 18,972 | 32,712 | -42% |
Project LTV | % | 5.8% | 13.3% | -7.5 pp |
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Unaudited Income statement
€ thousands | 30-Sep-17 | |
Gross rental income | 1,607 | 6,080 |
Service revenues | 37 | 26 |
Net service charge income | (326) | 618 |
Property operating expenses | (1,199) | (3,937) |
Net rental income | 119 | 2,787 |
Development sales | 214 | 1,556 |
Cost of goods sold | (161) | (2,754) |
Net development income | 53 | (1,198) |
Total revenues | 1,532 | 8,280 |
Total direct business operating expenses | (1,360) | (6,691) |
Net business income | 172 | 1,589 |
30-Sep-16
Net valuation gain or loss on inv. property | 74,233 | 8,496 |
Net gain or loss on disposal of inv. property | (39) | 238 |
Net gain or loss on disposal of subsidiaries | 1,055 | 2,036 |
Amortization, depreciation and impairments | 3,153 | 4,348 |
Other operating income | 140 | 289 |
Administrative expenses | (1,348) | (1,183) |
Other operating expenses | (201) | (191) |
Operating result | 77,165 | 15,622 |
Interest income | 33,606 | 900 |
Interest expense | (18,567) | (5,446) |
Other net financial result | (12,291) | 507 |
Net finance income / (costs) | 2,748 | (4,039) |
Share of profit of equity-accounted investees (net of tax) | (1,009) | 961 |
Profit / (Loss) before income tax | 78,904 | 12,544 |
Income tax expense | (14,992) | (2,351) |
Net Profit for the period 63,912 10,193
Over the nine months of 2017, the OPG group recorded a net profit in the amount of €63.9 million compared to €10.2 million in Q3 2016.
Total revenues decreased year-on-year to €1.5 million for the nine months of 2017 compared to
€8.3 million over the same period in 2016 mainly due to disposal of properties in 2016 and 2017.
Operating result as of September 2017 is represented by gain of €77.2 million compared to
€15.6 million over the same period in 2016. The improvement of result is mainly due to the positive fair value adjustment on investment property.
Financial result improved from a loss of €4.0 million to a gain of €2.7 million as at 30 September 2017 due to increase in interest income from loans provided to related parties.
ORCO PROPERTY GROUP | Press Release - Q3 2017 Results 3
Unaudited Statement of financial position
€ thousands 30-Sep-17 30-Dec-16
NON-CURRENT ASSETS | 320,447 | 239,790 |
Investment property | ||
Property, plant and equipment | 30 | 26 |
Available-for-sale financial assets | 34,893 | 33,046 |
Loans provided | 593,907 | 149,850 |
Trade and other receivables | 90 | 85 |
Deferred tax assets | 114,025 | 114,025 |
Total non-current assets | 1,063,392 | 536,822 |
CURRENT ASSETS | ||
Inventories | 6,205 | 6,524 |
Current income tax receivables | 282 | -- |
Derivative instruments | 41,903 | 38,732 |
Trade receivables | 3,851 | 3,833 |
Loans provided | 32,643 | 993 |
Cash and cash equivalents | 1,475 | 2,215 |
Other current assets | 8,862 | 1,338 |
Assets held for sale | 386 | 23,209 |
Total current assets | 95,607 | 76,844 |
TOTAL ASSETS | 1,158,999 | 613,666 |
EQUITY Equity attributable to owners of the Company | 488,684 | 412,798 |
Non-controlling interests | 475 | 475 |
Total equity | 489,159 | 413,273 |
NON-CURRENT LIABILITIES | 12,741 | 12,482 |
Bonds issued | ||
Financial debts | 562,845 | 128,348 |
Deferred tax liabilities | 28,743 | 12,911 |
Provisions | 1,452 | 1,712 |
Other non-current liabilities | 5,444 | 3,524 |
Total non-current liabilities | 611,225 | 158,977 |
CURRENT LIABILITIES | 381 | 142 |
Bonds issued | ||
Financial debts | 48,879 | 20,718 |
Trade payables | 2,009 | 1,657 |
Advance payments | 325 | 395 |
Derivative instruments | -- | 7 |
Other current liabilities | 7,021 | 3,629 |
Liabilities linked to assets held for sale | -- | 14,868 |
Total current liabilities | 58,615 | 41,416 |
TOTAL EQUITY AND LIABILITIES | 1,158,999 | 613,666 |
Total assets increased by €545.3 million (89%) to €1,159 million as at 30 September 2017. The increase is a result of valuation of Investment property and increase in long-term loans with entities in CPI Property Group.
4 Press Release - Q3 2017 Results | ORCO PROPERTY GROUP
ORCO Property Group SA published this content on 30 November 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 30 November 2017 17:46:02 UTC.
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