euro adhoc: Meinl European Land Limited
quarterly or semiannual financial
statement
Meinl European Land: Substantial growth in first 3 quarters of 2006
Revenues again doubled
After tax profit increased to EUR 93m
Property Portfolio reaches EUR 3.7b
Disclosure rectification announcement transmitted by euro adhoc. The issuer is responsible for the content of this announcement.
19.12.2006
Jersey, December 19, 2006. Meinl European Land showed once again a strong performance in the first nine months of 2006. Revenues doubled compared to the same period in 2005 and reached EUR 94.2m. Operating profit (EBIT) also showed vigorous growth in the period from January until September 2006 and reached EUR 88.2 m after EUR 62.9m in 2005. After tax profits grew from EUR 57.1m to EUR 93m. This represents an increase of approximately 63%.
Portfolio including development projects of EUR 3.7bn
The acceleration of results is mostly driven by the newly acquired properties and is also reflected in the increasing size of the portfolio. At current, Meinl European Lands property portfolio consists of 183 properties, which represent a total value of approximately EUR 3.7bn. This amount includes operating property investments of EUR 1.2bn as of September 20, 2006 and committed projects with a total investment value of EUR 2.5bn, which will be completed during the following years. As of September 30, 2005 the portfolio including commitments amounted to EUR 1.6bn.
Annual rental income for the whole portfolio after completion of the development projects, is estimated at EUR 370m to EUR 390m. For the whole of financial 2006, Meinl European Land is expecting to post total rental income amounting to approximately EUR 95m.
Shopping centre in Kazan successfully opened
On December 14, 2006 Meinl European Land successfully opened a shopping centre in Kazan, Russia. The shopping centre has been embraced by the population of the city of a million inhabitants from the first day. Anchor tenant is Metro Group with a "Real" hypermarket. A further 80 tenants in the gallery complete the tenant mix of the 50,000 sqm large shopping centre. Comparing the investment costs with todays market yield for a comparable shopping centre in the region has let to an increase in value of more than 30% for this project.
First project in Bulgaria - Meinl European Land now active in 11 countries
Meinl European Land has just acquired its first project in Bulgaria. Following this new strategic regional extension, Meinl European Land now operates in 11 markets. The investment is a shopping centre in prime location in Sofia with direct access to the city ring and the highway leading to the south. The opening of the shopping centre with a total investment value of EUR 185m is scheduled for 2009. With a total letable area of 80,000sqm the centre also belongs to the largest currently planned shopping centres in the city.
Meinl European Land also strengthens its activities in neighbouring Romania: The Company owns in central location of Bucharest a land reserve of around 150,000sqm, which has been purchased in the course of an acquisition in 2004. On this land plot, where a DIY-market is already operating, Meinl European Land will now develop a large retail park. As the DIY-market intends to increase its footprint and other companies have expressed their interest in renting space in the centre as well, the first development stage shall be completed by next year.
Furthermore, Meinl European Land has continued its expansion in Russia and acquired in Omsk a plot of land totalling 15 ha. As the permits are in place the Company may start with the development of a 100,000sqm large shopping centre during next year. The investment costs for the centre will amount to approximately EUR 120m and the expected yield is 17%.
Value of development projects rises by EUR 300m
Lately, Meinl European Land has increasingly focused on development projects, as especially in the less mature markets only few completed properties exist, that match the companys high specifications. Furthermore, yields for developments are significantly higher than current market yields on comparable operating properties. This leads to a considerable potential for capital appreciation, which Meinl European Land can realise once the projects are completed. Based on current market yields, the market value of completed developments exceeds the expected investment costs by roughly EUR 300m. Assuming further yield compression in Eastern Europe, there is scope for this upside potential to further increase by the time projects are completed.
Increase in net asset value per share
Net asset value per share (NAV) at September 30, 2006 was EUR 14.54. Including the estimated upside on development projects as mentioned above NAV increases to EUR 16.20 per share. The stock market price at September 30, 2006 was EUR 17.18, only 6% higher than NAV. Significant further value of the company lies in the project pipeline and the managements ability to source new deals.
Project pipeline of around EUR 2.2bn
A project pipeline of approximately EUR 2.2bn means that further growth is assured. More than one third of these projects which are still under evaluation, have been already approved by the board of Meinl European Land. These projects are expected to be signed in the near future.
end of announcement euro adhoc 19.12.2006 10:18:15
original announcement:
keywords: quarterly or semiannual financial statement/9-month report euro adhoc: Meinl European Land Limited / quarterly or semiannual financial
statement / Meinl European Land: Substantial growth in first 3 quarters of 2006 Revenues again doubled After tax profit increased to EUR 93m Property Portfolio reaches EUR 3.7bn 19.12.2006
Jersey, December 19, 2006. Meinl European Land showed once again a strong performance in the first nine months of 2006. Revenues doubled compared to the same period in 2005 and reached EUR 94.2m. Operating profit (EBIT) also showed vigorous growth in the period from January until September 2006 and reached EUR 88.2 m after EUR 62.9m in 2005. After tax profits grew from EUR 57.1m to EUR 93m. This represents an increase of approximately 63%.
Portfolio including development projects of EUR 3.7bn
The acceleration of results is mostly driven by the newly acquired properties and is also reflected in the increasing size of the portfolio. At current, Meinl European Lands property portfolio consists of 183 properties, which represent a total value of approximately EUR 3.7bn. This amount includes operating property investments of EUR 1.2bn as of September 20, 2006 and committed projects with a total investment value of EUR 2.5bn, which will be completed during the following years. As of September 30, 2005 the portfolio including commitments amounted to EUR 1.6bn.
Annual rental income for the whole portfolio after completion of the development projects, is estimated at EUR 370m to EUR 390m. For the whole of financial 2006, Meinl European Land is expecting to post total rental income amounting to approximately EUR 95m.
Shopping centre in Kazan successfully opened
On December 14, 2006 Meinl European Land successfully opened a shopping centre in Kazan, Russia. The shopping centre has been embraced by the population of the city of a million inhabitants from the first day. Anchor tenant is Metro Group with a "Real" hypermarket. A further 80 tenants in the gallery complete the tenant mix of the 50,000 sqm large shopping centre. Comparing the investment costs with todays market yield for a comparable shopping centre in the region has let to an increase in value of more than 30% for this project.
First project in Bulgaria - Meinl European Land now active in 11 countries
Meinl European Land has just acquired its first project in Bulgaria. Following this new strategic regional extension, Meinl European Land now operates in 11 markets. The investment is a shopping centre in prime location in Sofia with direct access to the city ring and the highway leading to the south. The opening of the shopping centre with a total investment value of EUR 185m is scheduled for 2009. With a total letable area of 80,000sqm the centre also belongs to the largest currently planned shopping centres in the city.
Meinl European Land also strengthens its activities in neighbouring Romania: The Company owns in central location of Bucharest a land reserve of around 150,000sqm, which has been purchased in the course of an acquisition in 2004. On this land plot, where a DIY-market is already operating, Meinl European Land will now develop a large retail park. As the DIY-market intends to increase its footprint and other companies have expressed their interest in renting space in the centre as well, the first development stage shall be completed by next year.
Furthermore, Meinl European Land has continued its expansion in Russia and acquired in Omsk a plot of land totalling 5 ha. As the permits are in place the Company may start with the development of a 70,000sqm large shopping centre during next year. The investment costs for the centre will amount to approximately EUR 80m and the expected yield is 17%.
Value of development projects rises by EUR 300m
Lately, Meinl European Land has increasingly focused on development projects, as especially in the less mature markets only few completed properties exist, that match the companys high specifications. Furthermore, yields for developments are significantly higher than current market yields on comparable operating properties. This leads to a considerable potential for capital appreciation, which Meinl European Land can realise once the projects are completed. Based on current market yields, the market value of completed developments exceeds the expected investment costs by roughly EUR 300m. Assuming further yield compression in Eastern Europe, there is scope for this upside potential to further increase by the time projects are completed.
Increase in net asset value per share
Net asset value per share (NAV) at September 30, 2006 was EUR 14.54. Including the estimated upside on development projects as mentioned above NAV increases to EUR 16.20 per share. The stock market price at September 30, 2006 was EUR 17.18, only 6% higher than NAV. Significant further value of the company lies in the project pipeline and the managements ability to source new deals.
Project pipeline of around EUR 2.2bn
A project pipeline of approximately EUR 2.2bn means that further growth is assured. More than one third of these projects which are still under evaluation, have been already approved by the board of Meinl European Land. These projects are expected to be signed in the near future.
further inquiry note: Pleon Publico Public Relations & Lobbying Mag. Claudia Müller-Stralz Tel.: ++43 (0) 1/717 86 107 mailto:claudia.mueller@pleon-publico.at
end of announcement euro adhoc 19.12.2006 08:49:33
sector publicity: 2006-12-19 09:27:39 - APA OTS- sent
2006-12-19 09:27:39 - APA OTS- sent
2006-12-19 09:27:40 - Bloomberg- sent
2006-12-19 09:27:40 - Bloomberg- sent
Further inquiry note:
Pleon Publico Public Relations & Lobbying
Mag. Claudia Müller-Stralz
Tel.: ++43 (0) 1/717 86 107
mailto:claudia.mueller@pleon-publico.at
Branche: Real Estate
ISIN: AT0000660659
WKN: 066065
Index: Standard Market Auction
Börsen: Wiener Börse AG / official dealing