Immofinanz AG (IIA), eastern Europe’s biggest real-estate company, said third-quarter profit plummeted because the euro’s strength led to valuation losses on loans and derivatives.
Net income fell to 6.3 million euros ($8.3 million) in the three months to Jan. 31 from 123 million euros a year earlier, the Vienna-based company said in a report today. Rental income climbed 5 percent to 153.6 million euros.
“In spite of the volatility on financial and capital markets, we continue to expect stable development” in the rest of fiscal 2012, which ends April 30, the company said in a statement. Immofinanz was hurt by the euro’s gain against the currencies of countries including Russia and Poland.
The Austrian company with projects including the GoodZone mall in Moscow and the Gerling Quarter in Cologne, Germany, reinstated dividends last year after a four-year hiatus in which it came close to collapse. Chief Executive Officer Eduard Zehetner, who led Immofinanz’s rescue, is now focusing on fewer countries.
Earnings excluding currency changes fell to 54 million euros from 151 million euros, Immofinanz said.
The company today reiterated a plan to pay a dividend of 15 cents a share for the year. Immofinanz climbed 0.5 percent to 2.74 euros at 10:42 a.m. in Vienna, while the Bloomberg Europe Real Estate Index was little changed. The shares have risen 18 percent this year, while the index has advanced 11 percent.
To contact the reporter on this story: Boris Groendahl in Vienna at firstname.lastname@example.org.
To contact the editor responsible for this story: Frank Connelly at email@example.com.