Plaza Centers 2007 pretax profit soars on asset sales

Following asset disposals in Hungary and Poland, emerging markets property developer Plaza Centers said its pretax profit rose to EUR 227 mln in 2007 from EUR 13.7 mln in the year earlier. The company said funds from asset disposals would also allow it to pay out its first dividend of 14 pence (EUR 0.18) a share in June.

Plaza said its overall net asset value rose to EUR 1.06 bn from EUR 1.02 bn at 30 June 2007 and EUR 809 mln at the time of its initial public offering in October 2006. Net asset value per share rose to £ 2.68 from £ 2.37 in June 2007 and £ 1.90 at the time of its IPO. The company was floated on the London stock exchange in 2006 and also listed on the Warsaw stock exchange in October 2007.

Despite an economic slowdown, Plaza said it had continued to see a strong demand from investors and tenants for its shopping and entertainment centres. With cash balances of about EUR 400 mln, Plaza president and chief executive Ran Shtarkman said in a statement the company sees opportunities to expand its portfolio. ‘We are confident that the company will achieve its goal to complete at least four to five developments each year and, thereby, deliver strong income and capital growth for our shareholders. We look forward to continued progress in 2008.’