We expect GTC to show a 14.1% y/y growth to USD 25.3mn in the 3Q06 driven by commercial revenues, which should increase by 19.5% y/y to USD 21.4mn offsetting a decline in residential revenues of 8.8% y/y to USD 3.9mn. Please note that residential revenues are highly volatile depending on the level of sales in individual quarters and number of completed/initiated projects. In line with the development of both, commercial and residential sales, costs of operations are expected to increase by 6.9% y/y to USD 9.0mn.
GTC’s 3Q06 performance should be significantly effected by annual revaluation of the company’s portfolio, which we estimate at USD59mn, which is 35% up from the same period last year to reflect to falling yields across GTC’s markets and extension of the company’s portfolio. We expect GTC’s net income to increase by 157.2% y/y to USD 96.8mn.