Writedowns drag Pirelli RE to EUR 21m net loss

Pirelli Real Estate booked a net loss of just under EUR 21 mln for the first six months of this year larger due to property writedowns. The Italian firm said the writedowns came to EUR 18 mln.

However, Pirelli Real Estate said its financial performance was continuing to improve. The net loss for the period was down by more than half on the EUR 42.3 mln loss for the first half of 2009.

Earnings before interest and tax (EBIT) improved strongly to just under EUR 18 mln in H1 2010, compared with a loss of EUR 9.2 mln in the same period last year.

Pirelli Real Estate is in the process of being renamed Prelios as part of its separation from tyre-making group Pirelli & C. Prelios will focus on developing its fund management business.

In its earnings release this week, Pirelli real Estate said it had realised fixed cost savings of EUR 25.4 mln in the first six months of this year, achieving its full-year target of EUR 25-30 mln.

The company reported first-half sales of EUR 562 mln during the first half of the year, reaching EUR 771 mln following the imminent launch of its new Anastasia office fund. The aim for the full year is real estate sales of EUR 1.3 bn to EUR 1.5 bn.

Pirelli Real Estate had EUR 15.6 bn of assets under management at the end of the review period compared with EUR 16 bn at end-December 2009.