Yahoo Finance Orco Property Group : PR H1 2017 Financial Results
H1 2017 Financial Results
Key recent events
ANNUAL GENERAL MEETING OF SHAREHOLDERS
The annual general meeting of the shareholders of ORCO PROPERTY GROUP (the "Company" and together with its subsidiaries as the "Group") was held on 24 May 2017 in Luxembourg (the "Annual Meeting"), with approximately 97.35% of the voting rights present or represented.
The Annual Meeting approved the statutory annual accounts and consolidated annual accounts for the financial year ending 31 December 2016, as well as the allocation of financial results for the financial year ending 31 December 2016. The Annual Meeting further granted a discharge to the members of the Company`s Board of Directors as well as to the auditors for the performance of their duties during the financial year ending 31 December 2016. The Annual Meeting also resolved to appoint the following persons as members of the Company`s Board of Directors as of the date of the Annual Meeting and until the annual general meeting of 2018 concerning the approval of the annual accounts for the financial year ending 31 December 2017: Jirí Dedera, Edward Hughes and Erik Morgenstern. Jirí Dedera was also elected Managing Director (administrateur délégué) of the Company. The Annual Meeting finally resolved to appoint KPMG Luxembourg as an auditor (réviseur d`entreprises agréé) of the Company until the annual general meeting of 2018 concerning the approval of the annual accounts for the financial year ending 31 December 2017.
SUSPENSION OF TRADING IN WARSAW:
On 17 February 2017, the Warsaw Stock Exchange informed the Company, that it had suspended trading of the Company shares on the Warsaw Stock Exchange.
DISPOSAL OF CAPELLEN OFFICE BUILDING:
The Company disposed the office building in Capellen, Luxembourg. The building with a leasable area of approximately 7,700 square meters, located in the Capellen business park just outside of the City of Luxembourg, was sold to a private investor. The transaction, structured as a share deal, was completed on 25 January 2017.
INCREASE OF SHARE IN THE JOINT VENTURE:
On 29 June 2017, the Company and Unibail-Rodamco entered into documentation modifying parameters of their joint venture. The agreed modifications include, inter alia, the increase of the Company`s share in the joint venture from 20% to 35%, certain governance rights as well as modifications of timeframe and parameters of the joint venture.
The joint venture, aimed at developing of a prime shopping centre, is comprised of a 3.6 hectare plot located in the Bubny area, in downtown Prague. The parties will continue to focus on implementing of the development of the Anchor shopping centre in the Bubny area.
Financial highlights
Over the first half of 2017, the Group recorded a net profit attributable to owners of the Company in the amount of EUR 62.6 million compared to EUR
8.5 million in H1 2016.
Total revenues decreased year-on-year to EUR 1.4 million for the first half of 2017 compared to EUR 4.7 million over the same period in 2016 mainly due to disposal of properties in 2016 and 2017. Operating result as of June 2017 is represented by gain of EUR 78.2 million compared to EUR 15.0 million over the same period in 2016. The improvement of result is mainly due to the positive fair value adjustment on investment property.
Financial result improved from a loss of EUR 4.8 million to a gain of EUR 94 thousand as at 30 June 2017 due to increase in interest income from loans provided to related parties.
PR H1 2017 Results
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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Orco Property Group via GlobeNewswire
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