• TK Development recorded a profit of DKK 19.5 million after tax, compared to a
loss of DKK 12.0 million in the same period the year before.
• Consolidated equity totalled DKK 1,626.2 million at 30 April 2010,
corresponding to a solvency ratio of 35.5 %.
• The Group's 10,900 m² retail park in Uppsala, Sweden, was completed and
opened fully let in March 2010. The retail park was sold, based on forward
funding, and handed over to the investor, an institutional fund of German IVG
Funds, in April 2010.
• The Group's Sillebroen shopping centre in Frederikssund, Denmark, has been
completed and opened as planned on 25 March 2010. The shopping centre has a
current occupancy rate of 91 %, and negotiations with tenants for the remaining
premises are ongoing. The centre enjoyed a successful opening and a
satisfactory influx of customers.
• Based on satisfactory pre-construction letting, TK Development began building
the second 7,000 m² phase of the Fashion Arena Outlet Centre, Prague, the Czech
Republic, in April 2010.
• The Group's project portfolio comprised 946,000 m², the same level as at 31
January 2010.
• At the beginning of 2010, the market situation developed favourably relative
to the previous period. This is reflected by cautious optimism on the part of
investors and a higher propensity to invest.
• Management believes that market price adjustments are coming to an end,
meaning that land prices, construction costs, rent levels and property prices
have stabilized at a new level. The new price levels underpin the profitability
of future property development, and new projects in the portfolio are thus
expected to generate a normal profit.
• At the Company's Annual General Meeting on 25 May 2010, the longstanding
Chairman of the Company's Supervisory Board, Poul Lauritsen, resigned from his
position. Jens Erik Christensen was elected to take the vacant seat. The
Supervisory Board subsequently held a board meeting for the purpose of electing
officers and appointed Niels Roth as the new Chairman.
• An Extraordinary General Meeting will be held on 1 July 2010, at which the
Supervisory Board will recommend that a capital increase be implemented in the
form of a rights issue with total gross proceeds of DKK 210.3 million. This
will strengthen the Group's financial platform and allow proactive use of the
earnings potential offered by existing projects and new project opportunities.
The capital increase is expected to be implemented in the course of August
2010.
• The Group's major shareholders and a few major private and institutional
investors have made conditional advance subscription and underwriting
commitments in respect of the whole capital increase.
• For the 2010/11 financial year, the Group still expects to generate a profit
after tax of about DKK 100 million.
Further information is available from Frede Clausen, President and CEO, on tel.
+45 8896 1010.
The expectations for future developments presented in this announcement,
including earnings expectations, are naturally subject to risks and
uncertainties and may be affected by various factors, such as global economic
conditions and other significant issues, including credit-market, interest-rate
and foreign-exchange developments. Reference is also made to the section “Risk
issues” in the Group's 2009/10 Annual Report.
