28 July 2016 – Expansión
Realia generated net profit attributable to the parent company amounting to €130 million during the first half of the year, which represents an increase of almost 9x with respect to the €14.9 million registered in the same period last year.
This strong increase in earnings comes even though gross operating profits (EBITDA) rose to a lesser extent, by 3%, to €19.7 million, and operating income fell by 1% to €49.6 million.
In a statement to Spain’s National Securities and Exchange Commission (CNMV), the company explained that the net result reflects a positive impact of €113 million thanks to discounts associated with the refinancing process.
Specifically, €72 million came from the refinancing of residential debt, and a further €41 million was financed by a shareholder loan acquired by Inversora Carso from Sareb.
Without these items, to which a positive impact of €9.3 million can also be added, arising from the variation in the value of real estate investments, the net attributable profit would be €11.1 million, compared with €6 million in the same period in 2015.
Realia’s real estate assest have a combined surface area of 404,807 sqm, whilst the occupancy rate of its assets amounts to 91.8%, up from 90.6% in the first half of 2015.
The slight decline in half yearly income was due to a 6% decrease in contributions from the real estate business, which fell by €2.6 million, due to the empty Los Cubos building.
The company also recognised net financial debt amounting to €890 million at the end of H1 2016, down by 18% compared with the end of H1 2015.
Realia reduced its gross financial bank debt by €762 million to €927 million as at 30 June 2016, down by 45% compared with the same period last year.
The net financial result amounted to €109.1 million, after applying the discounts amounting to €113 million, explained the company in information sent to the market supervisor.
Original story: Expansión
Translation: Carmel Drake