Berlin IV, the investment company focusing on the Berlin real estate market which is listed in Denmark, today reported its financial results for the period July 1st 2014 until March 31st 2015.
During the period, Berlin IV achieved a turnover of EUR 11.4 million, corresponding to a growth of 4% compared to the same period of 2013/2014. Profit before tax excl. fair value changes and realized losses / gains on interest rate swaps, etc. amounted to EUR 3.38 million, corresponding to an increase of EUR 424 or about 14.4% compared with the same period of 2013/2014.
According to management, refinancing of loans is implemented as expected and there only remains the land registration-related expeditions.
- The positive development in profit before fair value adjustments and taxes is due to a combination of increased revenues and interest savings as a result of the refinancing.
- The activities surrounding the division of property into condominiums and sale of the initiated projects are progressing as planned.
- Condo division continues, and 80% of the company’s pipeline of 80,000 sqm is now divided.
- The vacancy rate calculated by square meter is unchanged at 3.5% compared to the same time last year.
In its outlook comment, management states that it expects the positive developments in the rental market as well as in the market for owner-occupied flats in Berlin to continue and says that it expects revenue in the region of EUR 15 million to EUR 15.2 million.
As a consequence of an accounting one-off effect resulting from the completed refinancing, management adjusts its expectations for profit before tax excl. fair value changes and realized losses / gains on interest rate swaps from about EUR 4.9 million to about EUR 5.5 million.