Eurobank Properties REIC announces that the Company''s Board of Directors, during yesterday''s meeting decided to distribute interim dividend of Euro 0.29 per share, which is part of the dividend for the fiscal year 2006, and is based on the Company''s net profits for the period 1.1.2006-30.9.2006. The ex-interim dividend date and the commencement of the interim dividend payment will be announced following Board of Directors'' relevant resolution. The above decision by the Board of Directors reflects the positive trend in the Company''s financial results for the first nine months of 2006.
Specifically, Eurobank Properties REIC announced that its nine month realised profits before tax (profits before tax and investment property revaluation) have increased by 54.6% compared to those of 2005 nine-month period (12.5m Euro for 2006 vs 8.1m Euro for 2005). Income from rentals and cash management increased by 34.9% while the Company benefited from its re-organisation into a REIC since, as a result of the re-organisation, finance costs were reduced by 48.3% and income and property related taxes were decreased by 65.2%.
Profits before tax amounted to 15.44m Euro compared to 15.37m Euro for the relevant period in 2005. Taking into account the applied tax expense / benefit of each period, net profits for the period 1/1-30/9/2006 amounted to 14.6m Euro as opposed to 23.9m Euro for the respective 2005 period. It is stressed that this decrease does not relate to the operating profits of the Company but only to the accounting treatment (non-cash item) of the deferred tax provision in 2005 due to the Company''s transformation into a REIC. Specifically, in 2005 the Company reversed the deferred tax provision resulting in a 10.9m Euro increase of its net profits.
It is also underlined that the market value increase of investment properties resulting from improvements realised in the last quarter will be depicted in the 31/12/2006 financial statements ("net value increase from revaluation of investment properties") following the valuations from the Greek Body of Sworn-In Valuers (SOE) as dictated by the relevant legal framework.
The management of the Company anticipates a further increase in its profits as rental inflow from the significant recent investments in Nea Ionia and Moschato has already partially begun and is expected to be completed in the last quarter of 2006. It is reminded that following the Company''s IPO, the latter has proceeded with a total investment of 37.2m Euro in (a) office building in Moschato, Southern Athens; market value is 10.2m Euro; (b) three independent buildings of office and conference centre use and a number of car park spaces that are situated within a building complex in Nea Ionia, Attica; market value at acquisition time was estimated at 27.35 million Euro. It must be stressed that the Company has managed to absorb approximately half the proceeds from the IPO within three months. At the same time, negotiations for various projects related to the use of the remaining IPO proceeds continue. It is noted that the Company''s investment strategy for future growth focuses on the acquisition of office, retail, logistics and industrial spaces in prime locations, taking into consideration the prevailing market conditions.