30th December 2008

Half-year results for six months to 30th September 2008

Highlights

  • Portfolio income continues to strengthen – generating annualised rents of €70.9m with arrears of only 1% of rent roll
  • Average unexpired lease length is 6.14 years with strong covenants accounting for more than 75% of portfolio with 6.5 years unexpired lease lengths
  • Current outstanding debt is now €844.4m – interest payment covenants met through strong income stream
  • Adjusted operating profit for period was €8.2m up from €6.6m
  • Revaluation write-downs of €83m resulted in pre-tax loss of €59.2m against pre-tax profit of €7.9m
  • Net asset value reduced to 43.8 cents compared to 100.7 cents
  • Outline terms for credit facility amendment agreed with principal lender
  • Fund Manager’s fee to be reduced to 0.395% from 0.475% and in consideration the Manager will receive 24.375m ordinary Develica
    Deutschland shares issued from treasury and a one-off payment of €0.9m of which over half will be used to purchase further shares in the open market
  • Board continues to investigate further significant cost savings.

“The Board continues to review the overall strategy of the Group to help ensure it reacts to the current economic environment. Where appropriate, strategic disposals will be undertaken to enhance shareholder value…. In addition the Manager continues to seek development and lease restructuring opportunities to enhance value.” Derek Butler, Chairman.

Contact:

Derek Butler, Chairman, Develica Deutschland.
Tel: 020 7016 1860

Baron Phillips, Baron Phillips Associates.
Tel: 07767 444193

Philip Secrett, Grant Thornton Corporate Finance.
Tel:  020 7728 2578

Full results

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