Spanish property company Realia swung to a net loss of EUR 43 mln in the first nine months of the year on the back of devaluations in its property portfolio. The company posted a profit of EUR 39 mln in the corresponding period a year before. Its turnover dropped by 32.2% year-on-year to some EUR 240 mln in the first three quarters of 2009.
Spanish property company Realia swung to a net loss of EUR 43 mln in the first nine months of the year on the back of devaluations in its property portfolio. The company posted a profit of EUR 39 mln in the corresponding period a year before. Its turnover dropped by 32.2% year-on-year to some EUR 240 mln in the first three quarters of 2009.
Earnings before interest, taxes, depreciation and amortization decreased by 45.8% to EUR 94.6 mln.
Realia, which is controlled by construction company FCC and lender Caja Madrid, said that its residential sales doubled in the first nine months of 2009 as a result of a policy of price discounts. The company sold 520 homes so far in 2009.
The struggling group said it is going ahead with its strategy to switch its focus away from residential to commercial property. In October Realia reached a final agreement with its creditor banks regarding the refinancing of nearly EUR 1 bn of debt. The company has a total debt pile of 2.5 bn of debt.
