Meinl European Land Limited

euro adhoc: Meinl European Land Ltd.
Financial Figures/Balance Sheet
Meinl European Land: record results for 2006 Financial figures well in excess of analysts’ expectations Portfolio reaches EUR 5 billion

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Company Information


Jersey, 28 March 2007. Meinl European Land improved on its outstanding results for 2005 to make 2006 the best financial year in its history. Vienna-listed Meinl European Land is one of Europe’s largest property companies, with a market capitalisation of over EUR 6bn. In 2006 the Company extended the scope of its operations to include 11 countries (Bulgaria, the Czech Republic, Estonia, Hungary, Latvia, Poland, Romania, Russia, Slovakia, Turkey and Ukraine), and once again posted significant increases in all key financial indicators.

Property portfolio increases to ca. EUR 5 billion

At 31 December 2006 the value of standing investments and properties under development was EUR 1.8bn, up more than 60% on the previous year. Together with the contractually agreed development projects with a total investment value of EUR 3.2bn, Meinl European Land’s total portfolio stands at approx. EUR 5bn. This portfolio is expected to generate rental income of ca. EUR 500m by the end of 2009, once all projects are complete.

In achieving this portfolio size, Meinl European Land has far exceeded its targets for 2006, announced in its investment plans at the beginning of the year.

Significant improvements in all key figures; post-tax earnings up 135%

Rental income in 2006 was up some 60%, from EUR 60m to EUR 96m. Even more impressive was the increase in operating profit, which more than doubled from EUR 114m to EUR 252m.

Profit after tax was up from EUR 114m to EUR 267m, an increase of more than 135% on the year. Meinl European Land’s earnings have thus significantly exceeded analysts’ expectations, demonstrating once again its ability to combine fast-paced growth with a strong earnings performance.

Earnings per share rise to EUR 1.31

At 31 December 2006, earnings per share of EUR 1.31 represent a slight year-on-year increase (2005: EUR 1,29) despite the capital increases made to finance the expansion of the property portfolio - an impressive achievement for a company going through a period of such rapid growth. Meinl European Land’s total net equity of ca. EUR 3.5bn at 31 December 2006 was up about 113% on the previous year (2005: EUR 1.6bn). This increase was the result of two successful capital increases that together generated net proceeds of more than EUR 1.5bn for the Company.

Core investment markets Russia, Poland and Turkey

In 2006 the focus of Meinl European Land’s investment activities centred on Russia, Poland and Turkey. These countries will also play a major role in the future development of the Company. Among the most recent acquisitions concluded in the past weeks were 2 development projects in Turkey, located in Istanbul and in the Black Sea town of Samsun.

EUR 2bn project pipeline for further growth

The high number of committed development projects - all scheduled for completion until the end of 2009 - by no means signifies the peak of Meinl European Land’s expansion activities. A project pipeline currently estimated at about EUR 2bn provides the basis for the Company’s future growth. A number of these projects are currently at an advanced stage of the due diligence process. Hence, the Company expects to be in a position to finalise agreements in the next few months.

Valuation upside on developments of approx. EUR 400-500m

Due to the lack of standing investments that meet its high quality standards in many of the CEE markets, Meinl European Land increasingly concentrates on development projects. The yields achievable on such developments are well above those on retail properties completed and in operation. This results in a considerable potential for appreciation of property value, which Meinl European Land can realise once the projects have been completed. Based on current market yields, the Company expects that the market value of its developments once completed exceeds the capital investment by EUR 400-500m. Assuming further yield compression throughout the CEE Region, an appreciation in property values could increase even further by the time projects are finished.

Increase in net asset value per share

The net asset value per share (NAV) at 31 December 2006 was EUR 15.56. Including the potential valuation upside on the committed development projects displayed above, NAV totals EUR 17.56 per share. The share price on 31 December 2006 stood at EUR 19.46, reflecting a premium of roughly 11%. A significant part of the Company’s value lies in its project pipeline, and the continuing ability of its management to identify new projects, which has clearly been demonstrated in 2006.

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ots Originaltext: Meinl European Land Limited
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Further inquiry note:
Pleon Publico Public Relations & Lobbying
Mag. Claudia M√ľller-Stralz
Tel.: ++43 (0) 1/717 86 107

Branche: Real Estate
ISIN:      AT0000660659
WKN:        066065
Index:    Standard Market Continous
B√∂rsen:  Wiener B√∂rse AG / official market

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