Pirelli RE is targeting real estate sales in the range of EUR 1.3 -1.5 bn in 2010, the Italian company said in a press release announcing its 2009 earnings. The figure is slightly above last year's achieved target of EUR 1 bn, which was realised in Italy, Germany and Poland at an overall sales margin of around 14% (19% in 2008).

Pirelli RE is targeting real estate sales in the range of EUR 1.3 -1.5 bn in 2010, the Italian company said in a press release announcing its 2009 earnings. The figure is slightly above last year's achieved target of EUR 1 bn, which was realised in Italy, Germany and Poland at an overall sales margin of around 14% (19% in 2008).

Pirelli RE reported its net loss narrowed to EUR 104.3 mln over 2009 from EUR 195 mln in 2008 after accounting for restructuring costs of EUR 55.3 mln and net property writedowns of EUR 31.4 mln.

The net balance of revaluations and writedowns was a negative EUR 31.4 mln at end-December, down from a negative EUR 135.8 mln the previous year. Although a total of EUR 98.8 mln in writedowns have been booked, a total of EUR 67.4 mln in revaluations have also been recognised for residential properties in Germany and prime assets in Italy, for which the company has now adopted a medium-term 'hold' strategy. Based on valuations by independent experts, the market value of like-for-like investee assets has been written down by a total of 2.8%.

The services activities showed a strong improvement in 2009, turning in a positive result of EUR 7.8 mln compared with a negative result of EUR 30.3 mln in 2008. The improvement was due mainly to cost cuts. Pirelli RE said it generated around EUR 68 mln in savings in 2009, well above the original target of EUR 50 mln.

Consolidated revenues amounted to EUR 271.7 mln at end-December, down from EUR 365.1 mln in 2008, mainly reflecting lower sales of property held by companies consolidated in 2009. The real estate assets managed by Pirelli RE were valued at around EUR 14.4 bn at end-2009, down from EUR 15.4 bn a year earlier as a result of the EUR 1 bn in asset sales. The company reduced its net debt position to EUR 41.3 mln at end-December from EUR 289.5 mln a year earlier.