Orco has won the tender for CSOB Headquarters building (32,000 sq m) in the prime area in Prague. The contract will be signed at the beginning of December. The Purchase price is CZK 800mn (EUR 27.4mn). We believe the acquisition will have a positive impact, due to unsaturated demand for international Class A offices at good addresses.
Orco will report its 9M05 figures tomorrow. Orco should report its 9M05 figures on 23 November. While we expect the trends set in H1-05, in Orco’s main business lines, i.e., MMR, Hotel and property rental to remain, we expect the development business to show a y/y drop, as most of Orco’s development projects are set for completion towards the end of 2005, and in 2006 and 2007. At the same time, the Q3-05 results should be significantly impacted by revaluation of the Hvar Suncani project acquired earlier this year. Note that y/y comparison is limited to the sales figure only, as Orco did not provide other 9M04 numbers under IFRS.
In 000s EUR, IFRS 9M2005E 9M2004A % Change Consensus
Sales 42,746 57,592 -25.8% n/a
Profit from revaluation 34,558 - - n/a
EBIT 35,699 - - n/a
EBIT margin 83.5% - - n/a
Pre-tax profit 31,690 - - n/a
Net Income 22,817 - - n/a