Speymill Deutsche Immobilien Sees EUR5.5M FY10 FFO Loss

LONDON (Dow Jones)--Speymill Deutsche Immobilien Co PLC (SDIC.LN), the pan-German residential property investment company listed on AIM, said Thursday that given the expected loss on property sales, swap breakage costs, a temporary pause in its disposal program as well as the costs associated with restructuring, there is now likely to be an loss funds from operations loss of EUR5.5 million for the year ended June 30. MAIN FACTS: -Company continues to be engaged in constructive communication with its lending banks in relation to an ongoing asset sales program to reposition the portfolio satisfactorily. -Company has seen an improvement in operating performance as occupancy levels across all packages have gradually increased and net new lettings continue to show an upward bias. -Reduction of overall vacancies will continue to be a core focus of the Company as further units are brought under the direct management of GOAL service GmbH, the Company's investment adviser. -As a result of recent interest rate drops, the accounting value of the swaps as at June 30, is expected to be negative, the exact amount dependent on the rates in place on June. 30, 2010. -Company's portfolio was valued at EUR1.438 billion as at Dec. 31, 2009; Pending a full valuation at June 30, discussions with GOAL indicate that property values remain relatively stable. -Given the costs associated with the unwinding of any interest rate swaps relating to the disposal of properties it is now unlikely that further disposals will be processed in the near term, even in cases where sales prices above valuation could be achieved. -Any disposal would necessitate the crystallization of interest rate swap breakage costs which would offset any gains made on the sales price. -Company continues to implement measures to increase recovery levels for rent and service charge collection and to focus on the continued improvement in its overall occupancy levels. -Shares at 1315 GMT down 0.02 pence, or 0.4%, at 4.05 pence valuing the company at GBP16.45 million. -By Ian Walker, Dow Jones Newswires; 44-20-7842-9296; ian.walker@dowjones.com (END) Dow Jones Newswires June 17, 2010 09:20 ET (13:20 GMT)