Reitir II ehf. posted a ISK 3,001 million loss in the first half of 2012 compared with a loss of ISK 572 million in the same period in 2011. The Company‘s net operating income rose moderatly and amounted to ISK 576 million compared with ISK 530 in the year before.
The largest part of the first-half loss can be attributed to revaluation of the Company‘s investment properties which was negative by ISK 2,381 million in the first six months of 2012. Revaluation of the investment properties is primarily affected by the listing of another real estate company, Reginn, on the NASDAQ OMX Iceland this summer. The listing has set a benchmark for the valuation fo real estate assets but previously the market has been shallow and limited information available.
Continued improvement in operating results is expected but continued losses are expected due to financial expenses. Reitir II‘s parent, Reitir fasteignafélag hf., intends to list it shares on a stock exchange. To prepare for the listing a debt reorganisation for the group is planned, including the debt of Reitir II.
At the end of June 2012 the equity of Reitir II was negative by ISK 1,099 million. Management and board expects to restore the Company‘s equity following the refinancing and sale of shares in the parent related to the stock exchange listing.
Key figures:
- Total assets amounted to ISK 18,470 million on 30 June 2012.
- Total equity amounted to ISK -1,099 million at the same time.
- Revenues for the six month period amounted to ISK 826 million compared with revenues of ISK 777 million during the same period in the previous year.
Reitir II owns and operates 18 properties in Iceland. It is one of 7 companies wholly owned by Reitir fasteignafélag. Further information on the annual results of the parent company, Reitir fasteignafélag, are available on www.reitir.is.
Further information:
Einar Þorsteinsson, CFO
Telefone +354 575 9000
einar@reitir.is
