Finnish property company Sponda has reported first quarter operating profit of EUR 46.5mln, a significant drop on the EUR 103.4mln result in the same period in 2007 - but still ahead of forecasts. The higher than expected results were due to improved occupancy rates and higher average rents. Analyst forecasts of the company's operating profits ranged from EUR 32mln to EUR 33.7mln.
Finnish property company Sponda has reported first quarter operating profit of EUR 46.5mln, a significant drop on the EUR 103.4mln result in the same period in 2007 - but still ahead of forecasts. The higher than expected results were due to improved occupancy rates and higher average rents. Analyst forecasts of the company's operating profits ranged from EUR 32mln to EUR 33.7mln.
Total revenues of EUR 51.9mln came in below analysts forecasts of EUR 53-54.7mln and represented a decrease of over 8% on 2007 first quarter revenues of EUR 59.1 mln. With an estimated EUR 2 bn of investment in the first quarter of 2008 the Finnish property market prices appear to be stable. The company is looking to add to its EUR 143mln portfolio of Russian and Baltic properties. In March 2008 Sponda acquired two fully leased Moscow shopping centres for $ 109mln (EUR 70.2mln). The company expects a higher net operating income in 2008 as well as a slight improvement in the economic vacancy rate.
Kari Inkinen, Sponda CEO, commented: 'Sponda is aiming to make annual investments in property development of EUR 150mln and in its investments in Russia to achieve a EUR 300-400mln property portfolio by the end of 2009. Despite the uncertainty in the finance market and the decline in the economic situation in the USA, Sponda signed loan agreements during 2008 for EUR 350 mln with similar loan margins as at the end of 2007. The company's long-term goal is to maintain the equity ratio at 33 %, and during 2008 Sponda's goal is to strengthen its solidity.'
