mystic15 Nov 2009 13:20
Done some digging and the tax rate is typically 3.5% of the estate value, or approximately 63m euros in this instance. Wont drag the company under but will wipe out the planned 10c per share redistribution.
So taking the all too important fundamentals in to consideration (hehe) I think we're ok. Revenue exceeds costs, and although there's a book loss of 179m for the year, this is purely a readjustment of asset values, and a recovery in the German property market will see this reversed. Biggest issue the company is challenged with is the 'cash trap' clauses that part of their lenders have over them. Any further fall in property values could trigger these clauses causing some cash to be held and thus temporarily unavailable to the company.
* Treveria's portfolio is focused on Munich, Hamberg and Frankfurt which are traditionally strong economic areas, Frankfurt being the country's main financial centre. Negative equity is creeping in to the portfolio, are the lenders prepared to tear the group apart or will they show a bit of patience here? I think that's the key, and as long as the company returns a profit on it's property portfolio and increases cash balances then the lenders should use common sense.
http://www.propertyworld.com/Property-News/German-property-market-not-so-bonne-1205