Developer of Greenfield compound in Bucharest's Pipera area posts EUR 8.7 mln loss in 2012

Romanian construction company and developer Impact Developer&Contractor, which is listed on the Bucharest Stock Exchange (BVB) posted a loss of around EUR 8.7 million in 2012, which was mainly caused by financial costs, provisions and the re-evaluation of its properties portfolio. The re-evaluation itself caused a loss of EUR 2.5 million, and was made based on market value of properties, as the evaluation reports issued by specialized companies were not available at the date, according to Impact. The company has a portfolio of 25,000 sqm of offices and retail spaces, and has built 15 residential areas in six cities so far. On the financial side, the company posted a loss of some EUR 1.2 million, almost half of which was generated by the exchange rate variation's impact on its loans in EUR, and the rest was made up of interest expenses. The developer managed to make revenues of some EUR 8.2 million, but the cost of the sold goods – mostly villas – was of EUR 6.1 million, resulting in exploitation revenues of only EUR 2.1 million. Impact sold 45 percent more housing units with full down payments or in installments in 2012, meaning 100 houses. Another 23 houses were rented out. The sale of land plots was down 14 percent on 2011, to some 5,500 sqm. However, the value of the houses and land sold and leased in 2012 was 15 percent higher than in 2011, some EUR 7.1 million, out of a total portfolio of land and constructions of some EUR 83 million. One of its residential projects in Bucharest is the compound Greenfield in the Pipera Tunari area. “In the second half of 2012, we revised the entire strategy for monetizing our portfolio and reorganized […]. We estimate the results of these changes will start to shape up more clearly this year. We target a 360 percent increase in the areas of traded land lots and a 27 percent increase in house sales for 2013,” said Ştefan Gheorghiu, Managing Director Impact Developer & Contractor. Impact's shares on the BVB were selling for some RON 0.13 per share at the closing of the session on February 15, leading to a capitalization of some EUR 6.2 million on the BVB. editor@romania-insider.com (photo source: Impact)