Ablon Group has said it remains optimistic about 2008 despite swinging to a first half pre-tax loss of EUR 14 mln from a pre-tax profit of EUR 23 mln the year before. But the Central and Eastern European real estate owner and developer said it would not pay dividend this year given the volatility in global financial markets and the resulting uncertainty. The company said it believed shareholders' interests could be better served by retaining its earnings.
Ablon Group has said it remains optimistic about 2008 despite swinging to a first half pre-tax loss of EUR 14 mln from a pre-tax profit of EUR 23 mln the year before. But the Central and Eastern European real estate owner and developer said it would not pay dividend this year given the volatility in global financial markets and the resulting uncertainty. The company said it believed shareholders' interests could be better served by retaining its earnings.
'The board of directors has decided it would not be prudent to recommend the payment of a dividend for the current year,' the company said in a statement on Wednesday.
Ablon chairman Dennis Twining said: 'In spite of the recent economic downturn and a challenging operating environment, the demand for the newly built, high-quality office, retail and residential developments that Ablon is renowned for continues to be strong in the region'.
He said that the 64% increase in gross rental income seen in the first half of the year and the 6% increase in gross asset value to EUR 654mln were 'further proof of Ablon's strong market position and reflects the strength of the company's business model.' Ablon attributed its first-half loss mainly to the foreign exchange impact of local currency revaluations and the absence of scheduled project completions during the year, as well as a one-off impairment charge.
