Orco's revenues soar 270% as development activities boom

Orco Property Group said its revenues soared 270% to EUR 213 mln in the nine months to end-September, as net profit jumped to EUR 68.4 mln from EUR 22.9 mln. Operating profit rose to EUR 109.3 mln from EUR 33.3 mln.

The company, which is active in Central and Eastern Europe, said it would reach its full-year revenue target of EUR 250 mln. Revenue growth in the first nine months of the year was spread across its business sectors, but the development activities performed particularly well. Development revenues rose to EUR 140.2 mln in the first nine months of 2007 from EUR 41.7 mln in the year-earlier period.

In the nine-month period, Orco said it had significantly increased the volume of development activities, with 1636 units delivered in the period. In the Czech Republic, 1,276 units were delivered and 700 future purchase contracts were signed, while in Poland 223 units were delivered and 143 future purchase contracts signed. In Germany, 137 units were delivered and 37 future purchase contracts signed.

Orco said the high level of future purchase contracts gave its management good confidence that its full year target of EUR 164 mln in development revenues would be reached, while it should also post improved sales figures in 2008.

'Although the financial markets are challenging today, we reiterate our confidence in our expansion strategy based on qualitative products in offices, residential, logistics and retail with qualitative clients,' Orco Property Group chairman and chief executive officer Jean-Francois Ott said.

'There is no sign today of any negative effect that could affect the growth of the Central European markets in which Orco is active: yields stand stable and rents are still increasing.'