12th Sep 2014 08:29
LONDON (Alliance News) - Eastern European Property Fund Ltd Friday said it swung to a loss in the first-half of 2014, due to valuation losses on its investment properties, after last years' results benefited from valuation gains.
The property development investment company posted a pretax loss of GBP1.0 million for the six months to June 30, compared with a GBP1.2 million profit a year earlier.
This was attributed to a GBP626,000 loss on the revaluation of its investment properties, compared with a GBP1.3 million valuation gain in the first-half of 2013.
Total income, which incorporates rental income, fell to GBP291,000, from GBP559,000 last year.
"The reduction in rental income, arising mainly from the sale of properties, continued during the first half of 2014 which, together with the reduction in valuation of properties, contributed to the loss," the company said.
Eastern European Property Fund said its net asset value at June 30 stood at GBP15.8 million or 101.66 pence per share, compared with GBP19.7 million or 112.25 pence for the corresponding period last year.
It said its property held at June 30 was valued at GBP17.1 million, compared with GBP10.0 million a year earlier.
The company sold two properties during the first-half, generating a total of GBP0.9 million in proceeds.
The company's shares were untraded Friday morning, quoted at 68.25 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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