Sponda Plc has presented its interim report January - June 2008. Sponda Group's total revenue at the end of June 2008 was €109.2 million (30 June 2007: €107.5 million). Net operating income after property maintenance costs and direct costs for funds was €80.5 million (€76.8 mln.).
Operating profit, including an upward revaluation of the funds' properties of €9.4 (€56.4) million made in Q1, was €81.4 (€146.5) million. The change in value of Sponda's property portfolio in the second quarter was €-3.2 million. The change in fair value was due to the rise in the yield requirements for properties, the rise in market rents, and expenditure on upgrading property. The logistics property in Vantaa completed during the second quarter also made a positive impact on the change in the fair value of the properties. The economic occupancy rate of Sponda's properties was 91.1% (89.8 %) at the end of June.
Result of operations and financial position January - June 2008 (compared with same period in 2007)
Total revenue was €109.2 (€107.5) million.
Net operating income was €80.5 (€76.8) million.
Operating profit was €81.4 (€146.5) million.
Profit after tax was €30.5 (€79.7) million.
Earnings per share were €0.28 (€0.76).
Cash flow from operations per share was €0.29 (€0.45).
The fair value of investment properties amounted to €2,751.8 (€2,305.4) million.
Net assets per share totalled €8.29 (€7.94).
EPRA net assets per share were €9.95 (€9.43).
The economic occupancy rate was 91.1 (89.8) %.
Like-for-like rental growth during the past two years for the property portfolio that Sponda has owned for two years was 6.73 % for office and retail property and 9.48 % for logistics property.
Result of operations and financial position April - June 2008 (compared with same period in 2007):
Total revenue was €57.3 (€48.4) million.
Net operating income was €42.3 (€36.4) million.
Operating profit was €34.9 (€43.1) million.
Profit after tax was €11.7 (€22.0) million.
Earnings per share were €0.11 (€0.20).
Cash flow from operations per share was €0.15 (€0.17).
President and CEO Kari Inkinen commented: "The financial performance of Sponda's leasing operations developed extremely positively during the second quarter, with net operating income increasing 16% from the corresponding figure in 2007. The company's economic occupancy rate declined slightly from the first quarter of the year because the lease ended on one property in the Logistics Property unit. The occupancy rate for the Office and Retail Property unit continued to improve, however. Sponda's property development projects are running on schedule and most of the projects currently in progress will be completed according to plan by the end of this year.
Investments in property development projects that will be completed by the end of 2008 are estimated at €220 million. The company will meet its target of a profit margin of at least 15 % for the projects as planned.
The property market has slowed down in Finland, and only a few transactions took place during the second quarter. So far property prices in Helsinki's central business district have not shown a decline, even though the mar