HB Reavis Group has published its results for the first six months to June 2015 based on its semi-annual financial statements, which reveal it has more than doubled its consolidated net profit to €100 million during this period.
The main reason for its substantial improvement is increased development activity in the markets with higher value added, as well as record-breaking leasing activity. Key highlights from the report are as follows.
Financially, as of 30 June 2014, there was a 139% increase in net profit to €99.8 million from €41.7 million. Operating profit also saw a significant rise by 99%, from €53.2 million to €106.1 million, while year-on-year growth in net asset value went up by 11.6% increase from €917.5 million to €1,024 million.
Business results showed a record in leasing activity, with new lease agreements for over 77,300 sqm of gross lettable area (GLA), confirming strong occupational markets mainly in Warsaw, Bratislava and Budapest.
Furthermore, the completion of two office projects, Postepu 14 in Warsaw, Poland and Metronom BC in Prague, Czech Republic, with aggregate GLA of almost 69,000 sqm is another contributing factor.
There are also nine development projects in four countries currently under construction, that total 198,000 sqm of GLA. Gdanski Business Center C and D, West Station Business Centre 1 in Warsaw; Twin City buildings A, B and C in Bratislava, Slovakia; 33 Central and 20 Farringdon Street in London and Aupark Shopping Centre in Hradec Kralove, Czech Republic.
HB Reavis Group’s CEO, Pavel Trenka, commented: “We continue to focus on our large markets with the higher value added products and have boosted our pan-European presence with UK and Poland comprising two-thirds of total value of projects currently under construction.”
“Development activities outside Slovakia contributed three-fourths of our Group profit before income tax. We have also achieved yet another record in the newly contracted leases across multiple markets, based on a differentiated, trend-setting quality of our products.”
Marian Herman, HB Reavis Group CFO, added: “An ongoing capital structure optimisation and diversification of our funding sources together with the overall performance improvement have driven our shareholder’s return to achieve 10% during the first six months of 2015.”
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