euro adhoc: Meinl European Land Ltd.
quarterly or semiannual financial
statement
Meinl European Land:
Significant increase of financial results for the 9 months ended September 2007
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
9-month report
27.11.2007
Jersey, 27 November 2007. Irrespective of the situation in public and on the financial markets Meinl European Land has continued its expansion during the first nine months of 2007 and underlined its position as one of the leading investors and developers of retail sites in Central and Eastern Europe including Russia and Turkey. The operational business of the company shows increased earnings and a solid financing structure.
Profit before taxation rising to EUR 195 million - increase of 107%
Operating profit (EBIT) increased by 63% from EUR 88 million in 9M 2006 to EUR 144 million in 9M 2007, including revaluation gains of investments of EUR 124 million (9M 2006: EUR 63 million). Profits before taxation is up from EUR 94 million to EUR 195 million, this represents a plus of approximately 107%.
Earnings per share/certificate rise to EUR 0.67
Meinl European Land´s earnings per share/certificate outstanding rose from EUR 0.50 per share/certificate in the first 9 months 2006 to EUR 0.67 in the first 9 months 2007. This represents an increase of 34%.
Rental income increased to EUR 90 million - "like-for-like" rental income was up by 3.9%
Rental income in the first 9 months 2007 is up 28% to EUR 90 million after EUR 70 million in the same period in 2006.
Rental income increased as a result of a larger area of lettable space, the acquisition of new tenants and overall higher income per sqm. This positive trend is recognisable for the rental income of properties which were already part of the portfolio in the previous year. Overall "like for like" rental income grew 3.9%. In Poland, Slovakia and Romania it grew by more than 6%.
Rental contracts with Meinl European Land´s anchor tenants normally have a duration between 10 and 15 years, for smaller units often between 5 and 10 years. Approximately 50% of the tenants are international retailers, such as Metro, Ahold, Rewe, Spar, Obi, Zara, Carrefour, Marks & Spencer, Douglas, H&M, Praktiker or Deichmann.
Investment properties up 47% and full project pipeline
As of 30 September 2007 Meinl European Land owned a total of 160 investment properties. Fair market value of these properties amounts to approximately EUR 1.8 billion based on the latest valuation by the international property appraisers Cushman & Wakefield. Accordingly, Meinl European Land´s investment portfolio has grown by EUR 585 million or 47% since 30 September 2006.
In addition to investment properties, the Company owns a significant portfolio of development projects with a total investment volume of some EUR 3.4 billion, of which EUR 0.6 billion have already been spent by 30 September 2007. Furthermore the Company secured a strategic landbank in Russia, Turkey and Poland of over 1,500,000 sqm for further developments, either alone or with strong development partners.
Before the Christmas season, Meinl European Land will open its shopping centre in St. Petersburg, Russia, with a lettable area of 27,000 sqm and its shopping centre in Bialystok, Poland, with a lettable area of 37,000 sqm. Both centres will have a Metro-owned "real"-hypermarket as anchor tenant.
Net asset value of EUR 15.15 per share/certificate based on investment properties Additional NAV upside potential from development projects and landbank
As of 30 September 2007 the conservative capital structure showed a net equity of EUR 3.1 billion and EUR 1.1 billion of longterm debt. The company has a net cash balance of EUR 1.5 billion to finance its investment programme.
Net asset value per share/certificate based on the Company´s on-balance sheet property assets amounted to EUR 15.15 per share/certificate.
The Company made an estimation of the value of its development pipeline and landbank based on initial valuations provided by Cushman & Wakefield, Jones Lang Lasalle and Colliers. Based on these initial valuations, the expected surplus in value of this development pipeline and landbank amounts to approximately EUR 1.3 billion or EUR 5.95 per share/certificate. Including this upside potential, the total NAV amounts to EUR 21.10 per share/certificate.
Note: Values and quotes given in respect of shares shall also be applicable to certificates representing shares of the Company. The full interim report as of 30 September 2007 will be published on the webpage of the Company on 27 November 2007. This report also includes the full description of the calculation of the above mentioned figures.
end of announcement euro adhoc 27.11.2007 12:10:26
Further inquiry note:
Dr. Herbert Langsner
+43 676 840 531 250
Branche: Real Estate
ISIN: AT0000660659
WKN: 066065
Index: Prime.market
Börsen: Wiener Börse AG / official market