Friday May 16, 09:38 AM
Atlas Estates swings to Q1 pretax loss UPDATE
(Updates with NAV, details on Poland markets, global scenario)
LONDON (Thomson Financial) - Property investment company Atlas Estates Ltd (LSE: ATLS.L - news)
. swung to a pretax loss in the first quarter ended March 31, and saw its net asset value fall to 4.94 euros per share from 4.98 euros at at Dec. 31, 2007.
The company, which is also listed on the Warsaw Stock Exchange, posted a loss of 1.31 million euros compared with a profit of 9.55 million last year and saw revenues increase to 9.74 million euros from 2.02 million.
The value of its investment properties did not increase in the quarter to March, contrasting sharply with a 13.59 million euro increase in the corresponding quarter last year.
The increase in value of investment properties in the first quarter of 2007 represented the uplift in value of the Millennium Plaza, which was acquired for 76 million euros and was valued by Cushman & Wakefield at 90 million euros.
As at March 31 2008, the company held a portfolio of 22 properties, comprising eight income-yielding properties, two hotels and 12 development properties, it said.
Atlas Estates warned the changing financial markets and the global liquidity crisis affecting Central and Eastern Europe 'may potentially lead to short-term delays' in its ability to progress projects as planned, given its long-term development depends on access to capital.
It said lenders have been increasingly risk-averse this year.
The company said it is currently experiencing a reduction in demand for new apartments in its major market of Poland, where it has two projects under construction.
Atlas Estates also said it is currently working to refinance part of its portfolio to maximise growth capability and to secure loans for the construction phase of its development projects.
The company also believes that the current global financial crisis may present attractive opportunities in the short and medium term as more assets come to the market through forced sales, adding it is well positioned to perform strongly in relative terms as markets recover.
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