Orco Property Group : Orco Property Group : Full Year 2012 Unaudited Financial
ORCO Property Group (OPG)
Full Year 2012 Unaudited Financial Information
Key events: 2012 and post-closing key events
oEUR 678 Million OPG and Orco Germany (OG) debt reduction by issuing 91
Million new OPG shares at an average price of EUR 6.6 p.s. and EUR 73
Million of New OPG Notes nominal value. As a result of the conversion of
OG bonds, the Group now directly or indirectly holds 98% of OG compared to
92% as of December 2011.Berlin GSG refinanced by a new loan of EUR 270
Million with a term of five years and an interest rate that is 2
percentage points lower than the initial loan. As of December 2012, the
LTV of Berlin GSG portfolio stands at 58%.
oSale of Sky Office in Düsseldorf for EUR 117 Million ensuring full
repayment of GSG credit facility.
oSale of Radio Free Europe Building in Prague for USD 94 Million.
oInitiation of Bubny master plan change by the positive vote of Prague City
Assembly. A new valid master plan is expected by mid-2014. The Company now
expects to close its JV transaction with Unibail Rodamco for the retail
development in April of this year.
oSale for EUR 10 Million immediately paid in cash of stakes in two Office
Sub-funds of Endurance Real Estate.
Full year unaudited financial highlights
oGross Asset Value (GAV) at end 2012 stands at EUR 1.33 Billion (EUR 1.6
Billion end 2011). The decrease of EUR 271 Million is mainly driven by EUR
112 Million like-for-like decrease in assets' value notably on commercial
projects (EUR-49 Million) and by EUR 246 Million of sales and disposals
such as Radio Free Europe, Sky Office and residential developments.
Portfolio investments amounted to EUR 46 Million.
oLoan To Value (LTV) decreased from 70% as of December 2011 to 54% as of
December 2012 as a result of the successful restructuring of EUR 678
Million of bond liabilities. Before Bonds, LTV also decreased from 52% to
oAs the major part restructured bond liabilities was exchanged for new
shares, the Net Asset Value per share decreased from EUR22.19 as of
December 2011 down to EUR 4.89 as of December 2012.
oShort term financial loans drastically decreased from EUR 757 Million down
to EUR 234 Million over 2012 while total debt decreased from EUR1,159
Million down to EUR 744 Million as a consequence of the successful bond
restructuring, the GSG partial repayment upon refinancing and the sale of
oRevenue of EUR 260 Million in 2012 increased by 65% Y-o-Y mainly driven by
the sale of Sky Office building (EUR 117 Million) in Dusseldorf partially
compensated by the decrease of revenues from the sale of residential
development. The Property Investments business revenue is increasing by
EUR 1.9 Million despite the loss in revenue from the sales of assets
compensated by the increase of the occupancy in Berlin and the Hospitality
oThe loss in fair value adjustments on investment properties and the
impairments of development assets recognized in the P&L amount to
EUR-54Million over 2012. Impairments of EUR - 44 Million mainly relate
to Sky Office for EUR -24 Million, the hotel values for EUR-10Million
and the residential developments in Prague, Warsaw or Bratislava for EUR
-10 Million. The EUR -9 Million loss in fair value is mainly due to the
buildings on weak markets with low average occupancy which have seen their
valuation go down (EUR -28 Million) and is not fully compensated by the
valuation gains on the Berlin portfolio (EUR 18 Million).
oAs a result, the operating result consists in a loss of EUR 28.8 Million
compared to a profit of EUR 39.9 Million in 2011
oThe adjusted EBITDA amounts to EUR 36.5 Million compared to EUR 30.3
Million in 2011. This continuous increase of Adjusted Ebitda, driven by
ongoing profitability increase of our Investment Properties allows the
Group to cover the interest cash expenses.
oThe interest expenses decrease from EUR 83 Million to EUR 67 Million,
driven by bank interest expenses for EUR -11 Million and by the bonds
expenses for EUR -4 Million. The decrease in interest expenses shall
continue thanks to the EUR 6 Million of annual savings in interest
expenses on GSG Berlin, and the sale of cash flow negative assets. The
bonds interest expenses amounting to EUR 29 Million in 2012, mostly non
cash, and should be limited to a maximum of EUR 12 Million in 2013 out of
which EUR 3.2 should be paid cash.
oFinancial results stand at EUR 4 Million (EUR -90 Million over 2012)
including a one off positive gain of EUR 74 Million on the EUR 678 Million
bond liabilities restructuring and partially compensated by impairments
and valuation changes on financial assets like Endurance Fund and Fillion
oThe Net loss over 2012 amounts to EUR 40 Million compared to EUR 53
Million over 2011. The strong improvement of the adjusted Ebitda has been
more than compensated by the increased loss on real estate value,
impairments and provisions, despite the financial result on the
restructuring of the bond liabilities.
Outlook - Extract from the management message
Jean-François OTT, President and CEO of ORCO declares:
"2012 was a turning point in the recent history of our group. We have
successfully completed the financial restructuring and deleveraging plan
presented in our previous annual report. While the overall values have
decreased, the performance of our assets, particularly the rental ones, has
been improving alongside the global profitability of the Group.
We have a clear real estate strategy to create value through building and
managing investment properties, using our investment and development expertise
in the region. Our asset management performance in Berlin has allowed us to
identify new opportunities, including taking third parties assets under
management, conducting selective arbitrage, opportunistic acquisitions of
properties with upside potential and the development of our large land bank in
We have changed the focus of our Development division from a strategic
independent business into a key value creation tool for our Property
Investments divisions. We have started our investment program to extract the
significant potential upside of our Berlin portfolio.
Our Adjusted EBITDA increased by almost 50% YoY to EUR 34 Million, driven by
the continuous improvement of profitability of our property investment
business line, and now covers paid interests. Improving the yields of our
current investment properties, generating new income from our land bank,
reducing overheads and interest expenses is the path towards our increased
Over 2013, the Group expects to achieve revenues between EUR 155 Million and
EUR 165 Million. No revenues related to pre-sales on Zlota 44 are expected to
be recognized in revenue before 2014."
For a full version of the management message, please refer to the 2012
Management Report, chapter 1.
Unaudited documents will be available tonight on :
oFull Year 2012 unaudited financial report
oFull Year 2012 unaudited management report
Final Audited Financial Information will be made available over the coming
days without any major expected differences.
For more information, please contact Nicolas Tommasini,
OPG: Full year 2012 unaudited financial information
This announcement is distributed by Thomson Reuters on behalf of Thomson
The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and other
applicable laws; and
(ii) they are solely responsible for the content, accuracy and originality of
information contained therein.
Source: Orco Property Group via Thomson Reuters ONE
Press spacebar to pause and continue. Press esc to stop.