PASAL Development SA announces that the consolidated profit after tax and minority interests for the fiscal year 2009 totaled 21,8 mio losses compared to profits of 19,9 mio for the fiscal year 2008.
This change is mainly due to impairment losses on assets which for 2009 amounted to € 10,2 mio from fair value adjustments of investment property at fair value, and to € 5,9 mio from the write off of subsidiary goodwill against profits of € 29,2 mio gains from fair value adjustments in 2008. The results after taxes were charged with an additional € 3,6 mio from the imposition of emergency tax.
Operating income of the group, from rents and services, in 2009 amounted to € 10,3 mio compared to € 4,1 mio in 2008, increased due to the operation of the Athens Heart shopping mall.
Net Asset Value before deferred taxation (NAV) at 31/12/2009 stood at € 95,6 mio versus € 121,5 mio on 31/12/2008, while Net Asset Value after deferred taxation (triple net NAV) amounted to € 79,2 mio, or € 5,29 per share, compared with € 6,75 on 31/12/2008.
The value of group investment properties at 31/12/2009 was € 199,7 mio compared to € 210,6 mio at 31/12/2008. The investment properties portfolio of the group includes operating investment and properties under development.
The group's net debt (loans minus cash) at the end of 2009 amounted to € 128,0 mio compared to € 134,6 mio at 31/12/2008, while the Loan To Value ratio after the write offs was 52,3%, compared to 48.8% for 2008. The company continues to implement its business plan, taking into account the financial conditions and addressing business risks. In this context during 2009, PASAL:
- Completed the construction of the building complex for commercial use on Alimou Ave. with a gross lettable area (GLA) of 4.500 sqm, which started operations and has been sold during December 2009.
- In the Athens Heart mall, which is the biggest company asset, PASAL continued investing in the promotion and strengthening of traffic. The company took over the management of the mall hiring skilled personnell and investing in expertise through cooperation with specialized partners. At the same time, PASAL examines the expansion of the mall through the development of adjacent company plots, which will only start when binding lease agreements are concluded. The Athens Heart mall, although started operating in a difficult period for the retail business, is constantly increasing traffic and sales turnover, based on the strong brand-names in clothing and technology it houses, and is firmly established as a shopping and entertainment destination. It should be mentioned that for the period December 2009 to February 2010, where prior year comparables exist, the tenants sales were increased by 15% despite the declining in the retail market. Despite the short operation period, Athens Heart has not presented any operational problem and has no pending legal issues, thus presenting a high level investment product.
- Continues with the planning for a recreational and commercial development on the 80.000 sqm land plot situated in the area of N. Lampsakos, in Halkida.
- The company has a strategic participation in TRASTOR REIC, thus creating synergies and hedging the real estate development risks. PASAL will continue to support TRASTOR, which recently completed its internal staffing, creating the foundation for the implementation of a dynamic investment strategy aiming at the company development, the increase of its profitability and the expansion of the existing portfolio.