Catalan property company Renta Corporación Real Estate said that its 2007 figures will not meet expectations after the company was hit by the downturn in the credit markets. The company now expects net profit of EUR 33 mln - EUR 35 mln in 2007, almost half its previous estimate of EUR 62 mln earlier last year.
Catalan property company Renta Corporación Real Estate said that its 2007 figures will not meet expectations after the company was hit by the downturn in the credit markets. The company now expects net profit of EUR 33 mln - EUR 35 mln in 2007, almost half its previous estimate of EUR 62 mln earlier last year.
Renta Corporacion also said that chairman Luis Hernandez de Cabanyes plans to raise his stake in the coming days. 'The move confirms Hernandez' confidence in the company and its share price performance,' the company said, adding that it has no knowledge of any board members selling shares so far this year. Hernandez holds around 35.5% of the company.
The company described the results as 'positive considering the current market conditions'. It added that the credit crisis has had an impact particularly in the fourth quarter and said that some of its deals fell through due to lack of financing.
The firm will announce a 2008-2010 strategic plan on January 15 to counter the expected slowdown in the real estate sector. Based in Barcelona, Renta Corporacion has a portfolio of EUR 1.3 bn.
The company's shares dropped 9.9% to EUR 11.37 per share on Monday.
