Orco is expected to announce its NAV on 23 January before market opening. Valuation is carried out by third party - DTZ as at 31 December 2006 and includes all properties in the portfolio.
DTZ valuation is carried out property by property once a year, taking into account all aspects of each property, i.e. quality of tenants, duration of contracts, location etc. Taking into account that last NAV of EUR 70 per share announced together with 1H06 figures was only management’s estimate reflecting new acquisitions in 1H06 but not revaluation of then existing projects. We see substantial revaluation upside of mainly Bubny plot matched with other new projects as well as further slight yield compression for existing properties througout the year 2006 we expect the figure to come close to EUR 90 per share (increase of almost 30%), which would imply that stock is currently trading at 1.2x P/NAV. Real estate developers usually trades with higher premium at around 1.3x to 1.4x P/NAV.