Develica Deutschland has reported a pre-tax loss of €199.8m after property valuation write downs and marking to market of interest rate swaps and scrapped its dividend.
The AIM-listed German property investor said that the Germany property market continued to remain challenging and would do so for the short to medium term. Its loss this year compares to loss of €69.3m in its previous results.
However, it said of its pre-tax loss that after adjusting for the valuation and write downs and marking to market of the interest a pre-tax operating profit of €3.3m was recorded,
Develica said it has also concluded negotiations to amend it current loan to value covenants with Citibank international. Its current outstanding debt is €841.7m and Develica said ‘amortisation and interest payments are well serviced through a robust income stream’.
It said its investment portfolio has continued to perform strongly. The portfolio generated and annual rental income of more than €70m after rental indexation is implemented and Develica said it had collected more than 97% of all rents through tight credit control.
Develica’s board said continues to focus on the preservation of cash within the group, scrapping dividend payments this year, ‘as well as investigating all potential cost saving opportunities’.