ABL15 Nov 2012 22:17
For the period from 1 July 2012 to 15 November 2012
ABLON Group Limited ("ABLON" or "the Company" and, together with its subsidiaries, the "Group"), a leading real estate owner and developer in Central Europe, today announces its Interim Management Statement for the period from 1 July 2012 to 15 November 2012.
Alex Borrelli, Chairman of ABLON, commented:
"The Company remains focused on generating positive cash flow, while development activities are limited to availability of financing and remain subject to our expectation of market demand.
The depressed market conditions influenced income generation moderately, with annualised gross rental income edging lower from €17.8 million as at the end of last year, to €16.5 million currently. This 7% drop is a consequence of lower rent levels, while total occupancy levels did not change materially (73% at 31 December 2011, 71% now).
Easing interest rates resulted in improved cash flow for a number of projects, the benchmark 3-M-Euribor rate fell from 1.4% as at the end of the last year to 0.2% as of today.
The Company is currently negotiating a mid-term loan prolongation with Deutsche Pfandbriefbank that aims to build upon a respected relationship and also to turn our associated three projects from cash flow negative to being slightly cash flow positive to the Group.