Key results for the first half of 2008:
• Profit for the year from continuing operations is ISK 5.4 billion
• Profit for the period ISK 435 million
• Total revenue of ISK 16.8 billion
• Total assets ISK 592 billion at the end of June 2008
• Total equity together with deferred tax and subordinated loans amounted to
ISK 117.3 billion, increasing by 30% in the first half of 2008, representing a
ratio to total assets of 20% as at 30 June 2008
Operational highlights for first half of 2008:
• Landic Property acquired stakes in five international property funds in
February. The transaction value is ISK 20.3 billion and is financed with a
five year subordinated convertible loan
• Keops Development was sold in May to Stones Invest but the agreement was
annulled in August
• Opening of Helsinki office in February. Provides a opportunity to increase
growth in Finland and the Baltic region
• Re-branded Keops Investment to Landic Investment
• Landic Funds established, broadening Landic Property´s investment services.
This department is in the process of launching two funds, the Landic Nordic
Fund 1 and Landic Hotel Fund 1
Significant events after the end of reporting period
• On 21 May 2008 Landic Property signed Agreement with Stones Invest for the
sale of Keops Development. On 14 August 2008 Stones Invest annulled the
agreement made with Landic Property without any warning. Having complied with
its obligations according to the sale and purchase agreement Landic Property
strongly refuted Stones Invest right to cancel the agreement and the claims
put forward by Stones Invest. Stones Invest did not release Landic Property
from substantial guarantees nor has it honoured a cash flow plan securing
payments to Keops Development's banks and project partners. In order to
protect its financial interests, the value of Keops Development, its projects
and the interests of Keops Development´s business partners Landic Property
has resumed effective control and entitlement over Keops Development as per
19 August 2008.
Skarphéðinn Berg Steinarsson, CEO:
„The financial statement shows that Landic Property´s core business is
performing well. It is clear that the financial environment is challenging.
Like all companies operating internationally, Landic Property has been affected
by this turmoil. However, we have been able to meet these demanding times and
guard the company´s assets and stay on track. Our balance sheet illustrates
the size and scope of the company, both in Iceland and internationally. The
financial statement shows that the issue of Keops Development has been
challenging and it is unfortunate that the sale of the company did not go
through. We are currently making a detailed overview of Keops Development's
current operations, projects and obligations and will take the necessary action
to protect the value of Keops Development."
For further information on the financial statements, please contact:
Investor Contacts: Guðrún Ögmundsdóttir, Investor Relations, tel: +354 895-6066
Press Contacts: Páll Benediktsson, Director of Corporate Communication, tel. +
354 895 6066
About Landic Property
Landic Property specializes in leasing services of commercial property to
public and corporate customers. Landic Property offers to let prime location
office and retail premises from one of the largest property portfolios in the
Nordic countries. Landic Property is one of the largest property companies in
the Nordic countries. The company has substantial market shares in Sweden,
Denmark and Iceland. Landic Property has six business units:
• Four geographical real estate management units in Sweden, Iceland, Denmark
and Finland
• Landic Investment - Mediation of investment properties in Northern Europe
• Landic Funds - Offering investment opportunities in real-estate for
institutional investors
Landic Property was formed in July 2007 when the property company Stoðir,
founded in 1999 by Baugur Group and Kaupthing Bank, acquired Keops A/S - a
Danish listed property company in operation from 1998 until 2007. Stoðir
already owned the property company Atlas Ejendomme which was acquired in
January 2006.
The company has approx. 200 employees and about 500 properties in Sweden,
Denmark, Iceland and Finland.
The property portfolio totals 2.6 million square metres of rental space, more
than 3,200 tenants and total assets of €4.7 billion.
