Eurobank Properties REIC announced that its Q1 2006 profits are increased by 176.6% compared to those of Q1 2005. Specifically, net profits for the period 1/1-31/3/2006 amounted to 2.9m Euro as opposed to 1m Euro for the first quarter of 2005.
Rental income increased by 4.5% while the Company benefited from its re-organisation into a REIC since, as a result of the re-organisation, finance costs were reduced by 55.5% and income and property related taxes were decreased by 80.3%.
The management of the Company anticipates a further increase in its profits as, starting from April 1st 2006, rental inflow has begun from the significant investment in the office complex of Nea Ionia. Furthermore, additional income is expected to flow in gradually during the remaining months of 2006, as works will be completed in the recently acquired office building in Moschato, Southern Athens; the gross leasable area of this property is 11,545.59 sqm and its market value is 10.2m Euro.
At the same time, negotiations for various projects related to the use of the remaining IPO proceeds continue. It is noted that the company's investment strategy for future growth focuses on the acquisition of office, retail, logistics and industrial spaces in prime locations, taking into consideration the prevailing market conditions.