Saint Croix’s Profit Falls to €1.9M in Q1, Down by 54%

The Socimi owned by the Colomer family attributes the reduction in profit to the fact that, during the first quarter of 2019, it recorded revenues of €1.4 million from asset sales (which were not repeated in Q1 2020) and because it recorded short-term losses of €619,000 in Q1 2020 due to Covid-19.

Saint Croix, the Socimi owned by the Colomer family, which also own Pryconsa, closed the first quarter of 2020 with a profit of €1.9 million euros, down by 54% compared to the same period a year earlier, when its profits amounted to €4.2 million, as published by the firm through the National Securities Market Commission (CNMV).

The company has justified the reduction in profit to the fact that, during the first three months of 2019, the company obtained a net profit of more than €1.45 million from the sale of real estate assets; whereas “during the first quarter of 2020, the company’s financial investments were affected by Covid-19, which resulted in a temporary loss of €619,176,” said the Socimi.

Árima Reports Losses of €7.9M in 2019 after Forecasting a Profit of €15.6M in February

The Socimi has announced that it will hold a General Shareholders’ Meeting on Tuesday 28, where it will propose the approval of its accounts, which reflect losses despite the profits forecast in February.

Árima Real Estate -the Socimi created by Luis López de Herrera Oria after Colonial took over his previous listed real estate company, Axiare- has announced that it will hold a General Shareholders’ Meeting this week, specifically, on the 27th on the first call and on the 28th on the second.

At the meeting, the company will address various agenda items, including, the approval of the results for the financial year 2019. At the proposal of the Board of Directors, Árima will ask its shareholders to approve the accounts for the year ending 31 December 2019, which report losses of €7.9 million. That means the Socimi will not distribute any dividends to its shareholders, according to the document sent to the National Securities Market Commission (CNMV).

The Socimi Owned by KKR and Altamar Increased its Losses by 56% in 2019

The Socimi obtained revenues of €1.3 million in 2019 compared to the €571,100 it invoiced the previous year.

Elix VRS closed 2019 with losses of €2.5 million, up by 56% compared to those registered in 2018, as reported by the firm to the Alternative Investment Market (MAB).

The Socimi, which is owned by Altamar and KKR, obtained a turnover of €1.3 million in 2019 compared to the €571,100 it invoiced the previous year. The company explains that this is due to the “expansionary cycle that the group is in and its value creation strategy.”

Hoteliers Warn of Losses of €124 Billion if Closures Continue until December

The progressive opening of the sector by December would result in losses of €124 billion. In that case, the recovery of the industry would not arrive until the first four months of next year.

Spanish hoteliers are warning that keeping their establishments closed until the end of the year is “inconceivable ” and that this would mean a loss of competitiveness for the sector. “In Spain, the progressive opening of the sector by December would result in losses of €124 billion. That would be devastating for the sector,” explained Gabriel Escarrer, CEO of Meliá, according to Expansión.

For Escarrer, this scenario assumes that the recovery of the industry would not come until the first four months of next year, meaning it may “lose out” on Christmas 2020 and Easter 2021, both key dates in the hotel industry.

Aedas Homes Recorded Losses of €3.4M in Q1 2019

30 April 2019 – Eje Prime

Aedas Homes recorded losses of €3.4 million during Q1 2019, up by 47.8% compared to the same period last year (-€2.3 million). Nevertheless, the property developer’s results were in line with the business plan and revenues grew by 55% YoY during the same period to reach €14 million.

This year, the property developer controlled by the investment fund Castlelake plans to launch the construction of 2,580 homes and hand over 1,055 units. The firm has already sold 83% of the homes that it expects to hand over in 2019 and 55% of those forecast for delivery in 2020 (1,986).

Original story: Eje Prime 

Translation: Carmel Drake

Habitat Leaves its Losses Behind after €500M Capital Injection from Bain

2 April 2019 – Expansión

Habitat Inmobiliaria recorded revenues of €89 million in 2018, six times more than during the previous year. It also generated a profit, registering an EBITDA of €1.8 million, compared with losses of €9.86 million in 2017.

According to the company, this change in fortune has come about following its purchase by the US investment firm Bain Capital Credit at the end of 2017. Last year, Bain and Habitat’s new management team, launched a new strategic plan for the next three years, which included the contribution of €500 million for land purchases.

In 2018 alone, the property developer invested €121 million buying up land with a total buildability of 300,000 m2. As such, Habitat now owns a land bank spanning more than 1 million m2, which will allow it to build 10,000 new homes over the next few years. Currently, the property developer is working on the construction of 3,400 homes.

Original story: Expansión (by Rocío Ruiz)

Translation/Summary: Carmel Drake

Galil Capital Revises its Loss Forecast for 2019 Down to -€25M

1 April 2019 – Eje Prime

Galil Capital, the Socimi led by the Israeli businessman Gil Avraham Shwed expects to close the year with losses of €25 million. It has revised its forecasts down from losses of €46 million (-44%) after completing a €6.59 million capital increase, which will allow it to acquire new residential properties. As such, the Socimi expects to increase its rental revenues by 5% to €1.26 billion.

Galil Capital expects to add one small and one medium-sized building to its portfolio this year. At the end of June 2018, its portfolio comprised six assets and was worth €31.36 million.

Original story: Eje Prime

Translation/Summary: Carmel Drake

Sareb’s Losses Plummeted by 55% in 2018 to -€878M

28 March 2019 – Cinco Días

Sareb recorded losses of €878 million in 2018, which were 55% greater than those registered in the previous year. Moreover, the bad bank forecasts a similar result for this year.

Despite the disappointing results, Sareb ended 2018 with own funds of €2.6 billion, which represents a sufficient volume to not have to request any capital increase from its shareholders, which include most of Spain’s major banks and the FROB.

The President of the bad bank, Jaime Echegoyen, observed that his company is committed to the divestment of the problem assets that it acquired from the struggling banks during the crisis, and to maximise its returns. Sareb is competing against many of the banks, which are now selling large portfolios of real estate assets at significant discounts. Nevertheless, it is reluctant to match those discounts given that its cost of managing the assets is lower than the discounts being asked for.

Instead, Sareb has opted to transform the assets it owns by finishing suspended developments and building new homes on the land that it owns. Within the coming days, the company is expected to close an agreement with a property developer, which will build new assets on some of its land.

At the end of 2018, the bad bank recorded total revenues of €3.65 billion, down by 5% YoY. It sold 21,152 units during the year, up by 12% YoY. But, it continued to incur significant expenses – its financial costs alone amounted to €658 million, whilst its operating expenses amounted to €697 million, resulting in the aforementioned losses.

Since its creation in 2012, Sareb has now reduced its global portfolio by one third (€16.5 billion) and repaid 30% of the debt that it issued to pay for the assets in the first place (€15 billion).

Original story: Cinco Días (by Ángeles Gonzalo Alconada)

Translation/Summary: Carmel Drake

WeWork Doubled its Losses in 2018 Due to Global Property Purchases

27 March 2019 – Eje Prime

The US co-working company WeWork doubled its losses in 2018 to USD 1.9 billion (€1.7 billion), due to the huge outlay it made expanding its business around the world. Nevertheless, it did also double its revenues to USD 1.8 billion (€1.6 billion).

The company founded by Adam Neumann in 2010 closed 2018 with shared offices in more than 100 countries as well as rental contracts with several major corporates, such as Microsoft, Adidas and Citigroup, which account for one third of its tenants.

The valuation of the company, which leases space to 401,000 people globally, amounts to USD 47 billion. In Spain, the company has five spaces in Barcelona and four in Madrid, with new openings imminent.

Original story: Eje Prime

Translation/Summary: Carmel Drake

Montebalito’s Turnover Fell by 52% in 2018 & its Losses Amounted to -€2M

28 February 2019 – Eje Prime

Montebalito suffered in 2018. The group recorded losses amounting to €2 million last year, compared with the profit of €948,000 that it obtained in 2017. In parallel, the company’s turnover dropped by 52% to €7 million, according to reports filed by the company with Spain’s National Securities and Market Commission (CNMV).

The decrease in turnover occurred because there were no sales of singular assets in 2018 like there were in 2017, according to Montebalito. “If we strip out the effect of those sales, the group’s turnover rose by 32% YoY, driven primarily by an increase in the sales of developments located in Brazil and Chile”, he said.

Montebalito’s gross asset value (GAV) amounted to €135.7 million at the end of 2018, compared with €144.2 million last year. Similarly, the company has said that the total investment that it has to make for all of its projects in progress amounts to €32 million.

The firm’s investment volume in 2018 was €5.8 million, which represents a 51% increase compared to the previous year. That figure was justified by the acquisition of three plots: one in Madrid, one in Collado Villalba and one in Sevilla, in Isla de la Cartuja, for the construction of a hotel with 92 rooms.

Original story: Eje Prime 

Translation: Carmel Drake