Prelios sees losses widen to EUR 290m in 2011

Italian listed property firm Prelios posted a net loss of EUR 290 mln in 2011, mostly reflecting EUR 195 mln in writedowns related to the Baubecon portfolio and EUR 49 mln in restructuring costs.

The negative result, which was in line with the company's revised guidance for 2011, compares to a loss of EUR 95 mln for the same period a year before.

'The results for 2011 have been heavily influenced by market conditions brought about by the deepening of the financial crisis in August. In the second half of the year, sovereign debt tensions resulted in marked difficulty in accessing credit, which caused a slowdown in real estate transactions with an inevitable impact on asset values,' Prelios said in a statement.

Consolidated revenues amounted to EUR 178 mln in 2011, versus EUR 254 mln in the year-earlier period. Revenues from the management platform - Prelios' core business - came in at EUR 149 mln, compared to EUR 162 mln in 2010. The Milan-listed company sold off EUR 841 mln of assets in Italy, against EUR 1.4 bn in 2010, while in Germany property divestments accounted for a total of EUR 906 mln.

The company reduced its assets under management from EUR 14.6 bn to EUR 12.4 bn at end-2011, comprising EUR 11.2 bn of property and EUR 1.2 bn of non-performing loans. In line with the company's new strategy as a property service provider, the share of assets managed for third parties grew to around 30% in 2011, from 10% in 2010.