13:45 GTC announces strong operating results while assets value affected by eurozone crisis | |
| Globe Trade Centre S.A. (GTC) has released its third quarter 2011
results, which have been prepared in accordance with International
Financial Reporting Standards (IFRS) and are presented in euro. Highlights include: Improved revenues from operations (€42 million; 13 percent y-o-y) in the third quarter, despite the sale of Galeria Mokotów, generated by new assets completed in 2010/2011. New stage of the eurozone crisis, which was unveiled in August adversely impacted real estate and credit markets in the region and in particular in SEE. Non-cash negative revaluations and impairments of €140 million due to continued adverse market conditions mainly in Romania, Bulgaria, Croatia and Hungary. Two new attractive and large retail projects in the strong Warsaw market will increase the portfolio value in the medium term. Attractive upcoming development projects will be funded, amongst others, by €40 million free cash to be generated from the announced disposal of Platinum Business Park in Warsaw, as well as project finance loans. €22 million free cash to be generated in the fourth quarter from successful refinancing of City Gate and Avenue 19A, demonstrating solid relationship with lenders. Recently signed new lease agreements, including 29,000 sqm office lease in Spiral (Budapest), improves overall occupancy and support cash generation. YTD investment of €152 million into selected assets. Completed commercial space of 539,000 sqm valued at €1,444 billion. "The continuation of the European debt crisis and its impact on European financial markets has resulted in a further deterioration of the macroeconomic situation in Balkan countries, especially in Romania and Bulgaria,” commented Eli Alroy, the Chairman of Supervisory Board GTC. "In a conservative and proactive process, the management of GTC reassessed the value of its property portfolio and landbank to reflect the current macroeconomic environment. GTC Management is taking various measures and actions to resist negative trends.” Source: europaproperty.com | |
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