Realia’s Profits Drop By 91% To €5.2M In Q1
9 May 2017 – Expansión
Realia closed the first quarter of the year with a net profit of €5.2 million, which represents a decrease of 91%, due to a sharp drop in the firm’s extraordinary income.
The real estate company controlled by the businessman Carlos Slim said to the CNMV that, during the first quarter of 2016, its profits were favoured by the positive financial result of €51.2 million, due to discounts on its first three payments of residential debt.
As such, if we exclude the positive impact recorded in 2016, the recurring net profit would have increased during the first quarter of this year by 16.9%.
The company obtained turnover of €23.3 million, down by 8.6%, due to a 20.8% decrease in property sales in the residential segment. The company completed 21 units during the quarter for a total amount of €4 million, compared with 27 for €5 million during the same period last year.
By contrast, rental income from the real estate business increased by 4.5% during the period, to €14.9 million.
In terms of indebtedness, Realia decreased its net financial debt by €187 million during the last year, to reach €738 million as at 31 March 2017.
Moreover, following the end of the quarter, Realia Patrimonio signed a new syndicated loan with the banks amounting to €582 million and cancelled its previous syndicated loan signed in 2007, as Expansión revealed on 27 April.
Original story: Expansión (by R. Arroyo)
Translation: Carmel Drake