Italian listed property firm Prelios swung to a net loss of EUR 24 mln in the first quarter of the year, from a profit of EUR 10 mln in the same period a year before.
Italian listed property firm Prelios swung to a net loss of EUR 24 mln in the first quarter of the year, from a profit of EUR 10 mln in the same period a year before.
The negative result was partly due to financial expenses and higher property writedowns, the Milan-based real estate company said.
Prelios' management platform revenues shrank to less than EUR 31 mln compared to nearly EUR 42 mln a year before, mainly as a result of a reduction in the turnover of agency services, which is linked to the performance of the property market. Earnings before interest and taxes from the management platform amounted to EUR 4.6 mln in Q1 2012, versus EUR 6.1 mln in Q1 2011.
'The first quarter was adversely affected by an economic situation that was again negative in Italy and, in particular, by the ongoing weakness of the real estate market which caused a significant reduction in the number and amounts of transactions, as well as longer times to sell, with an inevitable impact on asset values,' Prelios noted, adding that a 'significant turnaround' in not yet in sight.
Talks are ongoing with potential investors for the sale of the group's German services platform, Prelios reiterated. 'This process also involves an important multinational group, which has also shown interest in purchasing shares in some Italian service companies and a minority stake in Prelios SGR.'
Prelios confirmed at end-April that it is in negotiations to sell its German property services arm, with potential buyers including Bilfinger & Berger.
