ORCO Germany S.A. / Key word(s): Quarter Results 25.11.2010 19:11 --------------------------------------------------------------------------- ORCO Germany S.A. today presents its results of the third quarter 2010. In line with the strategic refocusing of ORCO Germany S.A. on the City of Berlin and investment properties, the planned disposition of non-strategic assets worth EUR230 million progressed further. Development and Assets worth EUR138.2 million have been sold in the first nine months 2010 in a non-distressed environment, resulting in a decrease of liabilities by EUR105.9 million to EUR821.0 million. In the third quarter alone, revenues amounted to EUR120.9 million compared to EUR51.2 Mio. in Q3/2009, mainly driven by development revenues of EUR79.1 million, including EUR72.9 million revenues from sales of non-strategic development projects, comprising among others the Health Care Portfolio and H2 Office. The rental revenues increased slightly from EUR41.5 million to EUR41.8 million in Q3/2010, of which GSG contributed EUR37.7 million, thus overcompensating the loss of rental income from the sale of non-strategic assets. During the first nine months, GSG could raise both prices per sqm from EUR4,80 to EUR4,85 and occupancy rate from 76.5 % as of December 2009 to 77.2 % in September 2010. The adjusted EBITDA was up 56 % from EUR16.1 million in September 2009 to today's EUR25.1 million mainly thanks to gains from development and asset sales, the operational restructuring program as well as an improved GSG performance. Marking a turning point, the consolidated profit was EUR6.1 million after a negative result of EUR-108.2 million in Sept. 2009. The results were influenced by decreased amortization, impairments and provisions, but also through fair value profits and cost reductions. Nevertheless the net interest expenses (EUR31.5 million) are still higher than the adjusted EBITDA (EUR25.1 million). It is a management priority to achieve a full coverage of interest expenses by adjusted EBITDA by 2011. Asset values improved by EUR23.8 million thanks to the operational performance by ORCO Germany's core business GSG and a slight improvement of yields. Outlook ORCO will continue the announced disposal program. Most remaining asset disposals processes are well advanced. In November 2010, ORCO and High Gain House Investments GmbH (HGHI) have confirmed signing a LOI aimed at selling and co-developing the plot of Leipziger Platz. Both parties are working on concluding the transaction for a start of the project that could take place as early as year end. You can find the report on the ORCO Germany website: http://www.orcogermany.de/en/Quarterly-Statements.html About ORCO Germany ORCO Germany S.A. is a property company that is listed in the Prime Standard on the Regulated Market at Frankfurt Stock Exchange and has its registered office in Luxembourg. The ORCO Germany Group, which acts consistently under its registered name of ORCO Germany, has been operating in Germany since 2004 and concentrates on commercial property as well as on asset management and project development. ORCO Germany is a subsidiary of ORCO Property Group, which is one of the leading Central European property companies. The company established in 1991 is based in Luxembourg and has Euronext, Prague, Budapest and Warsaw Stock Exchange listings. For further information please contact: Kirchhoff Consult AG Sebastian Bucher T +49 40 60 91 86 18 sebastian.bucher@kirchhoff.de 25.11.2010 Dissemination of a Corporate News, transmitted by DGAP - a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: ORCO Germany S.A. 40, Parc d'Activités Capellen 8308 Capellen Luxemburg Phone: +49 (0)30-440 123 190 Fax: +49 (0)30-440 123 299 E-mail: seilers@orcogroup.com Internet: www.orcogermany.de ISIN: LU0251710041 WKN: A0JL4D Listed: Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Düsseldorf, Stuttgart End of Announcement DGAP News-Service ---------------------------------------------------------------------------
DGAP-News: ORCO Germany S.A.: 9 months results 2010
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