16th Jan 2009 13:05
16 January 2009
Speymill Deutsche Immobilien Company plc ("the Company")
Results update
Speymill Deutsche Immobilien Company plc (AIM: SDIC), the pan-German residential property investment company listed on AIM, announces an update in relation to its expected results for the 6 months ended 31 December 2008.
The Company has a number of interest rate swaps outstanding and, in accordance with IFRS, is required to mark these swaps to market at each balance sheet date, despite the fact that the Company will be holding all of the outstanding swaps to maturity (the maturity dates for the swaps being between September 2013 and December 2014).
As a result of recent interest rate drops, the accounting value of the swaps as at 31 December 2008 is expected to be negative, with the corresponding loss on the Company's income statement, as a result of the change in value, expected to be approximately EUR100 million. Clearly, any further interest rate movements prior to the maturity of the swaps will result in further changes in value and the corresponding profits or losses will again be recognised in future income statements. The swaps are tied to the Euribor 3 month rate which has fallen from 4.947% as at 30 June 2008 to 2.928% as at 31 December 2008. At no stage will the income statement movements, as a result of the swap revaluations, have any cash effect on the Company.
Further details on the above swaps and their revaluation will be provided in the Company's half year results which will be published in due course.
For more information, please visit www.sdic.co.im or contact:
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Speymill Property Group (UK) |
Tavistock Communications |
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(Adviser) |
(Media & Investor Relations) |
|
Floris van Dijkum, Global Chief Investment Officer |
Jeremy Carey |
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+44 20 7659 0763 |
Simon Hudson |
|
Gemma Bradley |
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Speymill Property Group |
+44 20 7920 3150 |
|
(Manager) |
|
|
Nigel Caine, CFO Funds |
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|
+44 1624 640 860 |
|
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Smith & Williamson Corporate Finance Limited |
Fairfax I.S. PLC |
|
(Nomad) |
(Brokers) |
|
Azhic Basirov |
James King |
|
Joanne du Plessis |
Andrew Cox |
|
+44 20 7131 4000 |
+44 20 7598 5368 |
Notes to Editors:
Speymill Deutsche Immobilien Company plc is a pan-German residential property investment company, which listed on the AIM market of the London Stock Exchange in March 2006, raising £170 million (EPIC: SDIC.L). In May 2007, SDIC raised a further €250 million through a C share placing (EPIC: SDCC.L). The Euro denominated fund aims to provide investors with an attractive level of income together with the prospect for long-term capital growth.
The German residential market is viewed as attractive to investors due to a number of factors including rising German economic activity and productivity, and the availability of assets at below replacement cost. Acquired properties should, through active management, also have the potential for increased rental rates and accordingly improved capital values and increased yield.
Speymill Property Group Limited is the appointed Manager of SDIC and, in conjunction with the Investment Advisor, Goal Service GmbH, it identifies acquisition opportunities for the Company, which fit within its investment criteria.
Related Shares:
Sdic Power.