DGAP-News: ORCO Germany S.A. / Key word(s): Preliminary Results
ORCO Germany S.A.: Improving profitability and value creation
24.03.2011 / 19:56
---------------------------------------------------------------------
Unaudited results for the fiscal year 2010
* Revenues increased by 109.5% to EUR150.9 million
* Adjusted EBITDA up 75% in 2010 to EUR 33 million
* Operating profit at EUR62.4 million (+ EUR132.1 million vs 2009)
* Major creation of value with NAV rising from EUR1.79 to EUR1.98 per share
* Positive net profit of EUR5.6 million or EUR 0.11 per share (+ EUR111.0
million vs 2009)
* Further operational integration with GSG and corporate integration with
ORCO Property Group
* Priority to deleverage / refinance the spring 2012 maturities
Jean-Francois Ott, CEO of ORCO Germany S.A.: 'The Leipziger Platz
transaction and the continuing performance improvement on our strategic
ORCO-GSG assets in Berlin clearly show that we are on track again after
challenging years.'
Non-strategic assets sold above book values
The plan to dispose EUR230 million non strategic, mainly non cash producing
assets, is progressing. Over 2010, the Group managed to sell and transfer
15 properties and two remaining residential units worth EUR151 million
above book values. Those sales included the Healthcare portfolio, H2
Office, Cumberland and Ministergärten. Despite the sale of some income
producing assets, the increase in occupancy and average rent per square
meter of ORCO GSG Berlin portfolio compensated losses in rental income. In
total, the Asset Management revenues increased from EUR56.2 million to
EUR56.7 million. The improved performance of ORCO-GSG demonstrates the
Group focus on asset management of its Berlin properties.
As another substantial contribution to the results 2010, ORCO Germany was
able to recognize revaluation gains of EUR25.6 million supported by the
independent evaluator report as of 31 Dezember 2010, including EUR20.7
million of fair value profits realized on the net present value of the
agreed sales price for Leipziger Platz.
Liabilities reduced, equity base strengthened
In line with ORCO Germany's announcement to reduce debts and to strengthen
its equity basis, the total amount of liabilities decreased by EUR108
million from EUR927 million as of 31 December 2009 to EUR819 million as of
31 December 2010. As of 31 December 2010, the current financial debts
amounted to EUR134.6 million, mostly on Sky office, compared to EUR252
million end of 2009, showing a clear easing of short term liquidity
pressure. However, the Company is facing the challenging refinancing of
both GSG in April 2012 and the bond issue in May 2012.
The NAV, as at 31 December 2010, amounted to EUR 96.8 million versus EUR
87.3 million as at 31 December 2009. The NAV per share amounted to EUR 1.98
(versus EUR 1.79 in 2009).
Costs cutting process and vertical integration of functions with OPG and
GSG progressed
Staff reduction and the vertical integration of ORCO Germany into both ORCO
Property Group for corporate and management functions and GSG for
operational ones led to the reduction of staff costs of EUR0.7 million. It
generated one off restructuring charges compensating savings but will
translate into effective savings of EUR 3.4 million in 2011.
Outlook 2011
Going forward the group will emerge into a Berlin focused asset manager, we
are now ready to seize development options in- and outside the existing
portfolio while continuing to dispose non strategic assets.
The financial priorities for 2011 remain the refinancing of the GSG loan
and the bond which are both due in Q2 2012.
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
F +49 40 60 91 86 60
sebastian.bucher@kirchhoff.de
End of Corporate News
---------------------------------------------------------------------
24.03.2011 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
GroÃherzogtum Luxemburg
Phone: +49 (0)30 390 93 116
Fax: +49 (0)30 390 93 199
E-mail: patricia.jaenisch@orco-gsg.de
Internet: www.orcogermany.de
ISIN: LU0251710041
WKN: A0JL4D
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Düsseldorf, Stuttgart
End of News DGAP News-Service
---------------------------------------------------------------------
116966 24.03.2011
DGAP-News: ORCO Germany S.A.: Improving profitability and value creation
| Source: EQS Group AG