LONDON (Alliance News) - Property company Treveria PLC Thursday said its losses narrowed in 2013, after it completed a major reorganisation of its asset management business and sold three of its other businesses.
Treveria, which invests in German commercial real estate, posted pretax losses of EUR64.5 million for 2013, compared with EUR136.8 million a year earlier. The company said the key components of this result is the write down of investment property valuations by EUR3.5 million and the EUR62.6 million effect of the de-consolidation of the Silo D and Silo F&K companies as subsidiaries.
In 2012 the company made the decision to move to an externally managed portfolio from one managed internally. As a result the company completed the handover of its Silo D property portfolio and the Silo F&K portfolio to Situs Asset Management and Atos Asset Management, respectively.
During the year the company declared and paid two distributions totalling EUR27.2 million. As a result of the de-recognition of Silo D and Silo F&K companies as subsidiaries and the distributions, total net assets fell to EUR48.0 million from EUR135.7 million a year earlier. Treveria said this equates to a fall to EUR0.079 per share from EUR0.224 per share.
Gross rental income fell to EUR27.7 million from EUR97.8 million a year earlier.
Treveria said it also completed a major reorganisation of its asset management function. The company said the activities carried out by its subsidiary in Frankfurt, Treveria Asset Management GmbH have been outsourced to external service providers with the overall objective of optimising operations.
"We believe that this externalisation will not only yield cost optimization, but will also result in a leaner, nimbler, more efficient business," the company said.
Looking ahead, the company said it will seek to return capital to shareholders as and when sufficient liquidity is available, which is largely dependent on the success in completing sales, the implementation of the restructuring agreements.
Treveria shares were untraded Thursday morning, having been last quoted at EUR0.0600 last Friday.
By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews
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