The Board of Directors of Beni Stabili SpA, chaired by Mr. Leonardo Del Vecchio, has approved the Company's consolidated interim report for the first half of 2006. Net result for the first half of 2006 amounts to €28,927 thousand, compared with the €50,304 thousand of one year earlier. This essentially reflects a downturn in operating profit, which has declined from €141,870 thousand in the first half of 2005 to €81,634 thousand for the first six months of 2006, resulting from a reduced volume of property sales.
The two halves are not comparable in that during the first half of 2005 Beni Stabili sold the entire trading portfolio held by Milano Zerotre, the proceeds from which accounted for over 46% of operating profit for the first six months of the year.
The decrease in operating profit is partially compensated for by an improvement in net finance costs, which have declined from €53,372 thousand in the first half of 2005 to €29,971 thousand in the first six months of 2006. This was primarily influenced by the restructuring of the securitisation of Imser 60 srl's portfolio, which was completed in June 2006.
Turning to the balance sheet, the overall value of the Group's property portfolio amounts to €3,224,106 thousand, with 90% represented by investment properties and the remaining 10% by trading properties. Net debt has risen to €1,629,054 thousand from the €1,351,349 thousand of 31 December 2005. This reflects a reduction in liquidity over the period. The Group's debt-to-equity ratio has risen from 0.86 at 31 December 2005 to 1.02 at 30 June 2006, whilst financial leverage has increased from 41.9% to 50.5% during the period in question.
The economic and financial results do not take account of the former Comit Fund portfolio acquired on 13 July of this year.
Finally the Board examined the impact on the Group's operating performance and financial position over the year of the introduction of Legislative Decree 223/06, adjudging the overall effect not to be significant. It will be easier to assess any negative impact on the market over the medium term. The Managing Directors, Massimo de Meo and Aldo Mazzocco, and Luca Lucaroni, Chief Financial Officer, will meet the financial community in Milan at 10.30am on 13 September. The meeting will take place in Palazzo Mezzanotte, the head office of Borsa Italiana SpA.
Source: Beni Stabili