Kapiteeli Plc has today published its Interim Report for January-September 2006. The report is also available on the Internet pages of Kapiteeli at www.kapiteeli.fi.
Sponda Plc
For further information please contact:
Kari Inkinen, President and CEO, tel. +358 9 6805 8202, mobile +358 400 402 653
Eclosures:
Enc 1: Kapteeli Plc's Press Release
Enc 2: Kapiteeli Plc's Balance Sheet and Income Statement for January-September 2006
Sponda Plc is a real estate company specializing in commercial properties in Helsinki metropolitan area. Sponda's business concept is to own and develop office, retail and logistics properties into environments that promote the business success to its clients. The fair value of Sponda's investment properties is 1.37 billion euros and the lettable area is 890 000 m². Sponda is the largest investment company listed on the Helsinki Stock Exchange.
Enc 1
KAPITEELI PLC
Interim report January 1 - September 30, 2006
Sale of hotel portfolio boosts Kapiteeli Group's profit
Kapiteeli's consolidated profit for the period January 1-September 30, 2006 rose to EUR 176.6 million (1.1.-30.9.2005: EUR 63.3 million*). The growth in the profit, EUR 113.4 million, exceeded the targets set for the company by a significant amount. This was in part due to a profit of EUR 82.2 million recorded on the sale of the hotel properties. The better financial performance by the rental and sales operations than in the comparative period and the positive effect of the change to the fair value of financial instruments also contributed to the increase.
The main points from the period under review, January 1-September 30, 2006, including both continuing and discontinued operations:
* The comparative information is for the equivalent period in 2005 unless otherwise stated.
In a sale executed on August 31, 2006 Kapiteeli sold its hotel portfolio to the Norwegian Norgani Hotels ASA at an unencumbered price of EUR 306 million. The fair value of the properties determined on the basis of the present value of the cash flows in Kapiteeli's balance sheet on August 31, 2006 was EUR 221 million. On September 19, 2006, Kapiteeli paid the Finnish government an additional dividend of EUR 200,070,000 from the funds received from the deal.
On October 20, 2006 the Finnish government signed a binding agreement on the sale of Kapiteeli's entire share capital to Sponda Plc at an approximate price of EUR 950 million. The Finnish Competition Authority approved the deal on November 16, 2006 and the deal is scheduled for conclusion by the end of 2006.
Prospects for the rest of the 2006
According to President and CEO Ossi Hynynen, the occupancy rate of office and retail properties owned by Kapiteeli is expected to remain unchanged during the final part of the year. Rents and the net rental income are expected to remain at least at the level of the early part of the year.
No major investments are expected in the final part of the year. Sales of properties incompatible with the investment strategy exceeded targets in the review period, and annual targets are also expected to be exceeded.
Kapiteeli's performance is expected to improve in the final part of the year. In spite of the sale of the hotel properties, net rental income for the entire year is expected to increase on 2005. The downward trend in the vacancy rate of the Office and Retail Properties Unit is expected to continue.
Further information available from President and CEO Ossi Hynynen, tel.+358 (0)20 431 3314, +358 (0)400 701 030, ossi.hynynen@kapiteeli.fi
Enc 2
The interim report has been audited.
CONSOLIDATED BALANCE SHEET |
|
|
|
| |||
|
|
|
|
|
|
|
|
1 000 € |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
ASSETS |
|
30.9.2006 |
|
30.9.2005 |
|
31.12.2005 | |
Non-current assets |
|
|
|
|
|
| |
|
Investment properties |
|
840 073 |
|
980 407 |
|
1 029 762 |
|
Other property, plant and equipment |
|
5 135 |
|
5 057 |
|
4 791 |
|
Finance lease receivables |
|
2 732 |
|
2 732 |
|
2 732 |
|
Deferred tax assets |
|
51 339 |
|
56 553 |
|
51 078 |
|
|
|
899 280 |
|
1 044 749 |
|
1 088 363 |
Current assets |
|
|
|
|
|
| |
|
Trading properties (IAS 2 Inventories) |
|
198 749 |
|
272 495 |
|
235 287 |
|
Sales and other receivables |
|
8 850 |
|
30 882 |
|
22 855 |
|
Loan assets |
|
750 |
|
59 500 |
|
9 |
|
Current receivables |
|
12 841 |
|
9 932 |
|
14 389 |
|
Cash and cash equivalents |
|
2 114 |
|
4 286 |
|
6 089 |
|
|
|
223 303 |
|
377 096 |
|
278 628 |
ASSETS, TOTAL |
|
1 122 582 |
|
1 421 845 |
|
1 366 991 | |
|
VARAT |
|
|
|
|
|
|
EQUITY AND LIABILITIES |
|
|
|
|
|
| |
Equity belonging to owners of parent company |
|
|
|
|
|
| |
|
Share capital |
|
190 000 |
|
190 000 |
|
190 000 |
|
Share premium |
|
76 666 |
|
76 666 |
|
76 666 |
|
Retained earnings |
|
399 243 |
|
444 377 |
|
490 129 |
|
|
|
665 909 |
|
711 043 |
|
756 795 |
|
|
|
|
|
|
|
|
Minority interest |
|
1 892 |
|
1 581 |
|
1 603 | |
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
| |
Non-current liabilities |
|
|
|
|
|
| |
|
Capital loan |
|
|
|
56 409 |
|
|
|
Non-current interest-bearing liabilities |
|
305 202 |
|
468 471 |
|
441 443 |
|
Provisions |
|
13 994 |
|
17 050 |
|
16 414 |
|
Deferred tax liabilities |
|
54 997 |
|
38 796 |
|
52 017 |
|
|
|
374 193 |
|
580 726 |
|
509 874 |
|
|
|
|
|
|
|
|
Current liabilities |
|
|
|
|
|
| |
|
Current interest-bearing liabilities |
|
57 728 |
|
102 726 |
|
70 391 |
|
Other liabilities |
|
22 860 |
|
25 770 |
|
28 329 |
|
|
|
80 588 |
|
128 496 |
|
98 720 |
Liabilities, total |
|
454 781 |
|
709 221 |
|
608 593 | |
EQUITY, MINORITY INTEREST |
|
|
|
|
|
| |
AND LIABILITIES, TOTAL |
|
1 122 582 |
|
1 421 845 |
|
1 366 991 |
CONSOLIDATED INCOME STATEMENT |
|
|
|
|
|
|
|
|
|
1 000 € |
|
|
|
|
|
|
|
|
|
CONTINUING OPERATIONS |
Note |
1-9/2006 |
1-9/2005 |
1-12/2005 |
|
|
|
|
|
Turnover |
|
163 469 |
181 900 |
268 648 |
Other income |
|
19 512 |
28 357 |
66 853 |
Total revenues |
|
182 981 |
210 257 |
335 501 |
Total costs excl. finance costs |
|
89 531 |
133 407 |
188 491 |
|
|
|
|
|
Gross rental income and service charge income |
|
91 016 |
89 592 |
119 325 |
Interest received on finance lease assets |
|
248 |
165 |
248 |
Property operating expenses |
|
33 202 |
34 392 |
48 188 |
Other expenses from leasing operations |
|
424 |
344 |
475 |
Net rental income |
|
57 639 |
55 021 |
70 911 |
|
|
|
|
|
Proceeds from sale of trading property |
|
69 380 |
41 923 |
96 726 |
Carrying value of trading properties |
|
25 744 |
33 800 |
59 964 |
Profit/loss on disposal of trading properties |
|
43 636 |
8 123 |
36 762 |
|
|
|
|
|
Administrative expenses |
|
14 247 |
14 229 |
19 972 |
|
|
|
|
|
Depreciation |
|
248 |
344 |
442 |
|
|
|
|
|
Net other income |
|
4 877 |
3 259 |
4 613 |
|
|
|
|
|
Investment property disposal proceeds |
|
2 824 |
50 220 |
52 348 |
Carrying value of investment property disposal |
|
2 162 |
50 151 |
52 052 |
profit/loss on disposal of investment property |
|
662 |
69 |
296 |
|
|
|
|
|
Valuation gains/losses on investment property |
|
14 502 |
24 952 |
62 027 |
Write-downs of trading properties |
|
-13 372 |
-2 |
-7 183 |
Change in valuation |
|
1 130 |
24 951 |
54 843 |
|
|
|
|
|
NET OPERATING PROFIT BEFORE FINANCE COSTS |
|
93 449 |
76 850 |
147 011 |
|
|
|
|
|
Dividend income |
|
7 |
5 |
8 |
Net financing costs |
|
-7 604 |
-11 694 |
-16 256 |
Profit before tax |
|
85 853 |
65 161 |
130 763 |
|
|
|
|
|
Income tax expense |
1 |
-57 |
6 367 |
23 393 |
|
|
|
|
|
PROFIT FOR THE PERIOD FROM CONTINUING OPERATIONS |
|
85 910 |
58 794 |
107 369 |
|
|
|
|
|
DISCONTINUED OPERATIONS |
|
|
|
|
|
|
|
|
|
PROFIT FOR THE PERIOD FROM DISCONTINUED OPERATIONS |
2 |
91 027 |
4 417 |
1 633 |
|
|
|
|
|
PROFIT FOR THE PERIOD |
|
176 936 |
63 211 |
109 002 |
|
|
|
|
|
Attributable to: |
|
|
|
|
Equity holders of the parent |
|
176 936 |
63 211 |
109 002 |
Minority interest |
|
-302 |
73 |
34 |
Profit for the period |
|
176 634 |
63 284 |
109 036 |