Orco Property Group (ORC) SA, a developer with most of its assets in eastern Europe, fell the most in about a week after reporting a higher-than-expected loss because of property impairments.
Orco fell 3 cents, or 1 percent, to 2.76 euros as of 10:50 a.m. in Paris trading, the lowest level since Nov. 21 based on closing prices.
The impairments in the third quarter increased by 12.8 million euros ($16 million) from a year earlier, mainly due to those recognized on the Sky Office building for 13.2 million euros, the company said in the statement.
The results are “below” estimates mainly due to an “unexpected” loss from property reevaluation and impairments at 14 million euros, Ceska Sporitelna AS analyst Josef Novotny wrote in a note to clients. Overall, we see the results as “negative” mainly due to negative reevaluation of property and Ebit below estimates, Novotny wrote.
Orco sold the Sky Office building to Allianz for 117 million euros on Oct. 17 and expects to close the sale on Nov. 30, it said in the statement. The failed attempt to sell the building already in September generated a supplementary impairment of 13.2 million euros, Orco said.
Orco’s third-quarter loss narrowed to 23.9 million euros from 32.1 million euros a year earlier, the Luxembourg- registered company said in a statement late yesterday.
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