DGAP-News: ORCO Germany S.A.: 9 months results 2010

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
 
---------------------------------------------------------------------------