Following on from increased operating profit and reduced net profit figures previously reported for the first half of 2007, Italian real estate company Aedes released its report for the third quarter this week. Gross revenue for the period amounted to EUR 9.9 mln, compared to EUR 89.1 mln for the third quarter of 2006. A loss from equity investments and joint ventures was reported of EUR 1.8 mln, compared to a profit of EUR 6.9 mln for the same period last year. Aedes says that the negative balance for the third quarter of is mainly due to its new REIF3 joint venture, which operates in the housing sector. The operating loss for the third quarter amounts to EUR 10.1 mln, compared to an operating profit of EUR 9.5 mln for the same period of 2006.
Following on from increased operating profit and reduced net profit figures previously reported for the first half of 2007, Italian real estate company Aedes released its report for the third quarter this week. Gross revenue for the period amounted to EUR 9.9 mln, compared to EUR 89.1 mln for the third quarter of 2006. A loss from equity investments and joint ventures was reported of EUR 1.8 mln, compared to a profit of EUR 6.9 mln for the same period last year. Aedes says that the negative balance for the third quarter of is mainly due to its new REIF3 joint venture, which operates in the housing sector. The operating loss for the third quarter amounts to EUR 10.1 mln, compared to an operating profit of EUR 9.5 mln for the same period of 2006.
Aedes points out that the third quarter tends to be structurally weak for the Italian real estate industry, as transactions are slow to pick up again after coming to a standstill in the summer. They explain that in 2007 this weakness was compounded by both the effects of the sub-prime financial crisis in the US and the introduction of new regulations in Italy affecting VAT on the purchase and sale of properties. Their consolidated results were also negatively affected by the unexpected postponement of the sale of two buildings. Had they been sold in September, the loss for the period would have improved by a gain of around EUR 11 mln.
Despite the poor Q3 figures, net revenue for the first nine months of 2007 was EUR 108.7 mln, about 3% up on 2006. Although an operating profit of EUR 45.9 mln was recorded for the period last year, they still managed an operating profit of around EUR 31 mln for the first three quarters of 2007. Further, Aedes’ assets under management totalled roughly EUR 4.8 bn at the end of September, up 17% from the start of the year. Aedes says that it is confident that the positive closing of deals planned for the fourth quarter will enable the year to be closed in line with its 2005 - 2007 business plan.