Aalborg, Denmark, 2011-06-28 08:54 CEST (GLOBE NEWSWIRE) --
SUMMARY
- TK Development’s financial results for Q1 2011/12 amounted to DKK -5.1 million after tax, compared to DKK 19.5 million in the same period the year before.
- Consolidated equity totalled DKK 1,866.4 million at 30 April 2011, corresponding to a solvency ratio of 41.1 %.
- In the first quarter of 2011/12, the Group entered into an agreement for the sale of its retail park in Kristianstad, Sweden, to a Swedish investor. The total project comprises about 6,300 m², including the existing building of about 4,500 m², which was handed over to the investor in April 2011.
- In June 2011, the Group sold its stake in Euro Mall Centre Management to the US Group CB Richard Ellis. This sale, which will be recognized in Q2 2011/12, helps underpin the profit estimate for 2011/12.
- Construction started on a 10,000 m² extension to the Group’s Czech investment property, the Futurum Hradec Králové Shopping Centre, in January 2011 and is progressing as planned. The opening is scheduled for spring 2012. The extension has an occupancy rate of currently 86 %.
- The Group’s letting situation remains satisfactory, and its completed shopping centres continue to perform well with a satisfactory influx of customers.
- The Group’s total project portfolio amounted to DKK 3,402 million at 30 April 2011, of which DKK 2,067 million is attributable to projects that have been completed and
- thus generate cash flow. The annual net rent from the current leases amounts to DKK 144 million, equal to a return on cost of about 7 %. Negotiations for the sale of several of these projects are ongoing.
- At 30 April 2011, the Group’s project portfolio comprised 968,000 m² (31 January 2011: 933,000 m²).
- The Group is experiencing good demand from tenants and investors for attractively located projects. Generally, the rental and sales prices obtainable from tenants and investors are stable.
- For the 2011/12 financial year, the Group still expects to generate a profit after tax of about DKK 100 million.
- The Group has a strong project portfolio that underpins expectations for another and higher earnings level in the following years.
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 2010/11 Annual Report.
