Orco’s vice-president Ales Vobruba confirmed in the interview for Thomson Financial that company will increase its FY2007 revenue guidance from EUR 223m by 10%. In addition he confirmed that company will revalue approx. 20% of its properties at the mid-year, however complete revaluation will be conducted only at the end of the year and does not expect Orco will have to write off losses related to its recent acquisitions. The gross asset value should reach some EUR 2bn, increase of approx. 50% from EUR 1.3 at the year end.
The interview didn’t bring too much of new info as most of them has been reiteration of previous statements that Arnaud Bricout, another Orco’s vice-president mentioned during June press conference at the event of Orco’s quadruple listing in Warsaw. Revaluation of the properties will be related to properties in Russia, Slovakia, Germany that company acquired during 1H2007. Note that Orco report’s its 1H2007 results on 30 August. We expect this news to have neutral trading impact. Although the sentiment for the real estate got worse in past weeks, we believe that yesterday’s correction was exaggerated.