euro adhoc: Meinl European Land Ltd.
Financial Figures/Balance Sheet
Meinl
European Land announces preliminary results for 2007
Investment property portfolio including properties under development reaches EUR
2.7 billion
Disclosure announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
Company Information
24.04.2008
Jersey, 24 April 2008. Meinl European Land Limited ("Meinl European
Land" or the "Company") whose certificates representing shares are
listed on the Vienna Stock Exchange announces its preliminary results
for the financial year ended 31 December 2007. The Board expects to
publish its annual report shortly. The timetable to seek approval and
close the transaction announced on March 20, 2008 with CPI/Gazit
remains on track for the end of the second quarter 2008.Property portfolio increases by almost 50% to EUR 2.7 billion
At 31 December 2007, Meinl European Land owned a total of 162 investment properties. The market value of these properties amounted to approximately EUR 1.9 billion based on an appraisal by the international property consultants Cushman & Wakefield at the year-end. Overall, Meinl European Land´s investment property portfolio grew by approximately EUR 200 million or 12% during the twelve month period since 31 December 2006.
In addition to investment properties, the Company owns a significant portfolio of development projects with a total investment requirement of approximately EUR 3.3 billion, of which approximately EUR 800 million had been spent by 31 December 2007. The Company also secured a significant strategic land bank mainly in Russia, Turkey and Poland with a land area ca. 1.8 million sqm for further development.
Due to the increased development activities during 2007, Meinl European Land´s total property portfolio (investment properties and investment properties under development) grew by almost 50% since 2006 to EUR 2.7 billion.
Core Investment markets: Russia, Poland and Turkey
Meinl European Land´s core investment market during the period remained Russia, Poland and Turkey. In Russia, Meinl European Land accelerated several development projects in Ekaterinburg, Ufa, Omsk and other Russian cities and also completed the development of a shopping centre in St. Petersburg which was opened in February 2008. This shopping centre is to be extended significantly during 2008.
In Poland, the Company opened a shopping centre in Bialystok in December 2007, with a lettable space of approximately 36,000 sqm which was fully let from the first day of operations. In addition, during 2007, the Company completed the extension of two other sites in Poland - in Radom and Zamosc.
Another important investment market for the Group is Turkey. The first development project, which the Company is planning to open in Summer 2008, is a shopping centre with a lettable space of approximately 82,000 sqm in Trabzon at the Black Sea coast.
Rental income improved by 24% to EUR 120 million Like-for-like rental growth of almost 4%
Meinl European Land´s gross rental income during 2007 amounted to approximately EUR 120 million, which represents an increase of 24% on the previous year (2006: EUR 96 million). The increase in rental income is based on a larger area of lettable space due to additional investment properties or site extensions, the acquisition of new tenants and overall higher rental income per sqm. This positive trend is also seen in the rental income of properties which were part of the portfolio in the previous year, with like-for-like rental growth in 2007 amounting to almost 4% with significant growth in the Polish and Slovak markets.
Profit before taxation EUR 193 million
Meinl European Land´s preliminary profit before taxation in 2007 amounted to EUR 193 million (2006: EUR 279 million). The decrease was primarily the result of lower revaluation gains in Meinl European Land´s property portfolio of EUR 133 million (2006: EUR 228 million), reflecting the impact of current market conditions on the property sector. In addition, the markets in CEE were dominated, particularly in the last months of 2007, by a reduced yield compression compared to 2006 which also resulted in lower revaluation gains.
Net asset value per share/certificate of EUR 15.25
The Company's net asset value per share/certificate amounted to EUR 15.25 at the year-end 2007. Based on a series of assumptions, if the development pipeline and land bank is fully built out, it will generate a development surplus of approximately EUR 1.3 billion or EUR 5.96 per share/certificate. In this case, the adjusted NAV would amount to EUR 21.21 per share/certificate. The calculation of the expected development surplus is based on future performance and completion of the pipeline, the outcome of which may be uncertain.
end of announcement euro adhoc
Further inquiry note:
Citigate Dewe Rogerson; Michael Berkeley +44 20 7638 9571
Trimedia; Bernhard Hudik +43-1-5244300
Branche: Real Estate
ISIN: AT0000660659
WKN: 066065
Index: Standard Market Continous
Börsen: Wiener Börse AG / official market