26th Aug 2015 14:11
LONDON (Alliance News) - Property investor Brack Capital Real Estate Investments NV on Wednesday said it swung to a loss in the first half as it continues to contend with the tough conditions in the Russian market, though its US and German businesses are both stable.
Brack Capital said its pretax loss for the six months to the end of June was EUR3.0 million, swung from a EUR22.9 million profit a year earlier as the group booked losses on its associates and joint ventures and took a hit from exchange rate translation.
Rental income revenue for the group in the half was up to EUR37.4 million from EUR32.8 million, while its net asset value at the end of June was broadly flat year-on-year at EUR267.7 million.
While rental income from the group's assets in the US and Germany was solid in the half, it is facing challenges on its Russian assets given the continued macroeconomic problems the country is contending with. Due to the economic situation in Russia, the group had to offer rental discounts to new and existing tenants in order to maintain occupancy levels.
"The group had a solid period of performance despite the challenging situation in Russia. We are confident that the group's broad based business with diversified revenue streams provides a strong foundation for continuing growth," said Chairman Herin Thaker.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
BCRE.L