Parquesol sees net profit drop in 2007 while rental income rises 11%

Spanish property group Parquesol said its net profit last year fell 26.5% to EUR 41.1 mln, as the company was hit by a sharp slowdown in demand in the country’s real estate sector and delays in the expected delivery of some of its residential developments.

In a statement, Parquesol also said revenues fell 26.2% to EUR 187.5 mln in the period while net asset value after taxes was EUR 1.02 billion, down 15% from 2006. The company’s gross asset value, as appraised by Savills, inched down 4.8% to EUR 2.08 bn. Rental income rose 11% to EUR 20.6 mln on the previous year.

Parquesol said net debt at end-2007 amounted to EUR 558.6 mln. That translates into a Loan to Value (LTV) ratio of 27%, a level the Spanish company noted was significantly below the sector average.