Aalborg, Denmark, 2012-06-25 17:14 CEST (GLOBE NEWSWIRE) --
Summary
- TK Development’s financial results amounted to DKK -6.9 million before tax, compared to DKK -7.5 million in the same period the year before.
- In April 2012, a Bill proposing changes to the rules for tax loss carryforwards was introduced. This Bill was enacted in June 2012. For TK Development, this has considerably lengthened the time horizon for utilizing tax losses, and thus significantly increased the uncertainty relating to utilization of the tax asset. TK Development has calculated that the changed rules entail a need to impair the Group’s tax asset by DKK 150.0 million. This amount has been recognized in the Interim Report for Q1 2012/13.
- The results after tax amounted to DKK -154.9 million, against DKK -5.1 million in the same period the year before.
- Consolidated equity totalled DKK 1,725.7 million at 30 April 2012, corresponding to a solvency ratio of 38.5 %.
- Following its completion, the extension to the Group’s Czech investment property, the Futurum Hradec Králové shopping centre, opened as scheduled on 10 May 2012. The current occupancy rate of the extension is 90 %.
- Construction of the first phase of the Group’s project in Bielany, Poland, is progressing as planned. The total project area comprises about 56,200 m², primarily housing consisting of 900-1,000 units, with 136 being built in the first phase. Sales agreements have been concluded for about 39 % of these units.
- The Group’s total project portfolio amounted to DKK 3,547 million at 30 April 2012, of which DKK 2,024 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 137 million, equal to a return on cost of 6.8 %. Based on full occupancy, the return on cost is expected to reach 7.8 %. Negotiations for the sale of several of these projects are ongoing.
- In total, the Group’s completed, cash-flow-generating projects and its investment properties amount to DKK 2,392 million. The Group’s net interest-bearing debt amounts to DKK 2,278 million.
- At 30 April 2012, the Group’s project portfolio comprised 774,000 m² (31 January 2012: 776,000 m²).
- The continued uncertainty on the international financial markets has led to consistently long decision-making processes among financing sources, tenants and investors alike.
- The Group will make the startup of major new projects contingent on obtaining either full or partial financing for them and on freeing up cash resources from the sale of one or more major completed projects.
- Management still considers it of great importance for the Group to sell a number of major completed projects in the 2012/13 financial year. The sale of major completed projects will generate the cash resources required to underpin future operations and project flow, and thus long-term earnings. In light of the volatility of financial markets, the volume, timing and proceeds of major project sales are subject to uncertainty. Despite this uncertainty, Management expects to sell a number of projects in the near future and to generate positive pre-tax results for the 2012/13 financial year.
Further information is available from Frede Clausen, President and CEO, on tel. +45 8896 1010.
The expectations mentioned in this announcement, including earnings expectations, are naturally subject to risks and uncertainties, which may result in deviations from the expected results. Expectations may be affected by various factors, as mentioned in the section ”Risk issues” in the Group’s 2011/12 Annual Report.
