Consolidated earnings after taxes at euro 8.9 million for the financial year 2007 43% Increase in Net Asset Value (NAV)
PASAL Development S.A. announces that for the financial year ending December 31 2007, consolidated net earnings from continued operations increased by 20.9% compared to 2006 (8.9 million euro for 2007 compared to euro 7.4 million for 2006).
Earnings before taxes for 2007 amounted to euro 13.5 million compared to euro 9.0 million for 2006, increased by 49.9%, while earnings after taxes and minority interest amounted to euro 8.7 million compared to euro 6.8 million for the previous year. At the same time, operating income (from leases and provision of services) doubled and reached euro 3.1 million in 2007 compared to euro 1.6 million in 2006 . Net earnings from the readjustment of fair value of investment property increased significantly and amounted to euro 16.4 million compared to euro 11.7 million in 2006.
On 31/12/2007, the companys investment property amounted to euro 115 million from euro 79 million on 31/12/2006, posting an increase of 45%. The Net Asset Value (NAV) before deferred taxation amounted to euro 103.8 million on 31 December 2007 thus posting an annualized increase of 43.1%, Net Asset Value per share (NAV based on the weighted average number of shares during 2007) amounts to euro 8.75.
The proposed dividend at the Companys General Meeting for the financial year 2007 amounts to euro 0.20 per share, while the total dividend amounts to euro 2,999,588.
REAL ESTATE DEVELOPMENT UNDERWAY
- One of the most important projects currently under development by Pasal Development is the shopping center on an 11,000 sq.m. land plot at 180 Peiraios Str., Tavros. The total area amounts to 58,000 sq.m. with 800 underground parking spaces. The new shopping center, will be offering Fashion, Technology and Entertainment facilities, accommodating 80 stores and dining areas. The company is at final negotiations with well-known brands to sign leases and within the first semester of this year the total letable area of the center will be leased. The development cost is estimated at euro 35 million (excluding the cost of land). At the current stage, the concreting works of the aforementioned project are being completed. The shopping center is expected to commence operations at the end of 2008 with estimated annual revenue of euro 6 million.
- The development of a land plot at 249 Thivon Str.(Nikaia) commenced the construction of a three-story building for commercial use with a gross lease area of 3,000 sq.m. and 1,700 sq.m. basement area for auxiliary use. The project is expected to be completed within the 2nd semester of 2009.
- The construction works for a logistics center in Eleysina, with a total area of 33,900 sq.m., are underway. The logistics center is expected to operate in October 2008.
- In the context of implementing its investment plan, the Company examines new developments for the next two-year period in Athens and other regions in Greece, amounting to euro 120 million. The Company is under negotiations for the different stages.
STRATEGIC DEVELOPMENT OBJECTIVES
PASAL focuses in the developing Greek Real Estate market. During 2007, the number of employees doubled, reaching today 30 individuals. The reinforcement of the companys human capital is expected to continue, since employing experienced executives constitutes a critical success factor.
The major growth drivers are as follows:
- Development of new property in the overall Greek region, with emphasis in Athens, Thessaloniki and large regional urban centers. Particular emphasis will be given to the developing sectors of shopping centers (malls, big boxes) and retail networks (retail outlets).
- Maximization of profitability of integrated investment property.
- Pursuit of strategic partnerships with specialized and well established foreign and Greek real estate development groups.
- Enter new markets, particularly in the Balkan area. For this purpose, the Company is planning to open an office in Belgrade.
The financial statements for the full financial year 2007 will be published in the newspapers KATHIMERINI and Naftemporiki on 15/2/2008 and will be posted on the Companys website (www.pasal.gr) on the same date.