COMPAGNIA IMMOBILIARE AZIONARIA S.P.A. Milan, 15 May 2017
The Board of Directors of Compagnia Immobiliare Azionaria SpA (CIA) met in Milan today, to examine the activities and consolidated results for the first three months of the year.
Conditions in the principal markets and group performance- Property market
During the first quarter, we saw positive indications that the growth shown during 2016 is continuing, albeit slowly.
In the residential property sector, sales increased 3.7% compared with the corresponding period last year, whereas prices remained low due to multiple factors: in the key market of Milan they fell by 2.4%. During the last five years the average contraction for residential properties has been over 21%. The time needed to complete sales has fallen by 6% to around seven months.
During the first three months of this year, around 1.95 billion euro have been invested in the non-residential property market (source: BNP Paribas Real Estate), an increase on the corresponding period last year. The Office segment accounted for 48% of this, 12% up on the first quarter of 2016, followed by Retail, Logistics and Hotels.
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Group property activities
In a market exposed to increasing volatility and despite a further temporary revision of rental charges, granted as a result of strong pressure by lessees for a revision, the investments in office property for income generation in Milan generate essentially stable yields, given the binding, long-term contracts signed and the associated operational activities. However, the growth in the office property market, where the most attractive prime locations continue to be Milan and Rome, could offer the opportunity to assess possible special transactions to realise significant capital gains on book values and provide considerable support to the financial commitments taken on.
- Italian wine market
With growth of 8% compared with the first quarter of 2016, the international market is the main source of growth for Italian wine sales. The USA, Canada, Japan, China, Switzerland and Brazil continue to be the most dynamic markets although the general trend is positive.
Sales on the domestic market are also up, especially in large supermarkets: +3.6% and +2.3% for value and volume respectively (source: WineMonitor - Nomisma).
- Feudi del Pisciotto Srl achieved significant wine sales growth (+53.2%, compared with the first quarter of 2016). In particular, the growth in sales was generated by the Export channel, due to the long-term contracts signed with Chinese importers and the continued improvement in brand awareness.
Consolidated results Overall revenues for the Group in the period to 31 March 2017 amounted to 1.19 million euro, compared withmillion euro in the first quarter of the previous year. This is mainly due to the combination of the following factors:
The temporary reduction in rental charges for 2017 allowed by CIA and Diana Bis to the tenant of properties situated in central Milan, whose request was prompted by continuation of the adverse economic situation and the general market contraction, and, above all, to the sale, in December 2016 of the office building in Manhattan, New York, which was income-generating.
The increase, as a positive factor, of Feudi del Pisciotto's wine sales and changes in stocks of finished and semi- finished products, which were down 0.145 million euros (0.069 million euro on 31 March 2016), recorded by Feudi del Pisciotto as a result of the increased wine sales and the 2016 harvest, which was poorer than previous years' harvests (as throughout Sicily) and which made it unable to maintain stock levels unchanged.
Consolidated operating costs amounted to 0.62 million euro compared to 0.55 million euro in 2016. EBITDA was 0.57 million euro (it was 0.70 million euro last year).
The loss attributable to the Group on 31 March 2017 was 0.43 million euro, compared with 0.27 million the previous year.
The net financial position reflects a decrease in net borrowing from third parties, from 46.3 million euro at 31 March 2016 to 44.6 million euro at 31 March 2016.
Future prospects
The macroeconomic situation is still very uncertain with regard to the growth prospects and stability of the economy in general, and the Italian system in particular. The principal markets in which the Group operates are, however, showing some timid signs of recovery that, based on the projections, might lessen the current economic-financial imbalance with respect to the commitments made. On the basis of the first quarter results and market trends observable to date, the expectations for the Group's performance in 2017 on the basis of continuing operations are positive overall, with the possible opportunities for special transactions that might be carried out and continued expansion of Feudi del Pisciotto's commercial operations.
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For further information, please contact: Compagnia Immobiliare Azionaria Gian Marco Giura
Tel: +39 02-58219395
Email: ir@c-i-a.it
Declaration pursuant to Article 154-bis(2) of Legislative Decree no. 58 of 24 February 1998 The undersigned Walter Villa, as the Executive responsible for preparing the corporate accounting documents of Compagnia Immobiliare Azionaria SpA, hereby confirms that the accounting information included in this document
agrees with the documentary records, books and accounting entries.
Consolidated income statement for the period ended 31 March 2017(thousands of euro) | 31 March 2016 | 31 March 2017 | |
Revenues from sales | 1,232 | 1,239 | |
Other operating income | 93 | 97 | |
Change in inventories of semi-finished and finished products | (69) | (145) |
Total Revenues | 1,256 | 1,191 |
Operating costs | (555) | (621) |
Gross operating result - EBITDA | 701 | 570 |
Net non-core income/(charges) | (68) | (149) |
Depreciation, amortisation and write-downs | (373) | (373) |
Operating result - EBIT | 260 | 48 |
Net financial income (charges) | (528) | (479) |
Net result | (268) | (431) |
(Profit)/Loss attributable to non-controlling interests | 3 | 1 |
Result attributable to the group | (265) | (430) |
Actuarial income/(charges) not recorded in income statement (IAS 19) | -- | -- |
Total components of comprehensive income, net of tax effect | -- | -- |
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO THE GROUP | (265) | (430) |
€ (thousands) | 31/03/2016 | 31/12/2016 | 31/03/2017 |
Net long-term borrowing | (40,169) | (37,405) | (37,086) |
Net short-term borrowing/liquid funds | (6,104) | (6,734) | (7,474) |
Of which: |
Financial payables | (6,274) | (7,200) | (7,523) |
Cash and cash equivalents and financial receivables | 170 | 466 | 49 |
Net financial position: net borrowing/liquid funds | (46,273) | (44,139) | (44,560) |
CIA - Compagnia Immobiliare Azionaria S.p.A. published this content on 15 May 2017 and is solely responsible for the information contained herein.
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