Significant events in Q1 2021/22
Profit before value adjustments and tax on the Group’s business areas, property portfolio and development amounts to DKK -10.9 million. in the first quarter 2021/22. Profit for the period amounts to DKK -9.5 million. against DKK -12.0 million. in the same period the year before.
The total result is negatively affected by DKK 16.5 million. as a consequence of a lost arbitration case concerning Strædet, Køge.
For the first quarter of 2021/22, the result of the property portfolio amounts to DKK 8.8 million, which is DKK 13.5 million. better than in the same period the year before. The development is satisfactory during a period in which a significant part of the shops in the centers have been forcibly closed for most of the period. The property portfolio accounts for more than 80% of the group’s balance sheet, and management wants even more focus on ensuring the best possible operation and optimization of the group’s property portfolio over the coming years.
The Group’s result in development is negative and amounts to DKK -19.7 million. The result is unsatisfactory and can largely be attributed to a lost arbitration case concerning the Køge project built in 2016-18. The Board of Directors wants greater managerial focus on the property portfolio, more simplicity and transparency, less capital tied up and greater financial room for maneuver. This combined with a historical lack of profitability due to losses in major individual projects means that the development of new projects in the future will only be in the form of value-add on existing assets or utilization and development of land that the group already owns. All projects under construction have been pre-sold to external buyers and are expected to be handed over successively until the autumn of 2022. Development amounts to 30 April 2021 14.4% of the Group’s balance sheet.
The balance is per. 30 April 2021 DKK 1,468.6 million, and equity amounts to DKK 444.5 million. corresponding to a solvency ratio of 30.3%.
Expectations for 2021/22 and other statements about the future
Management expects a consolidated result before value adjustments and tax for the financial year 2021/22 of DKK 0-10 million. for the group’s business areas, property portfolio and development. The profit expectation is thus calculated excluding the result of the group’s residual activities.
The profit expectations are distributed as follows:
- A profit before value adjustments and tax on the property portfolio of DKK 15-20 million. and
- A profit before tax of development of DKK -10 million. to -15 million.
The profit expectations include that there will be no further closures of the Group’s shopping and outlet centers for the rest of the year.
The expectations for the Group’s development activities are based on the specific projects that the management expects to be implemented and handed over to investors during 2021/22. Reference is also made to page 5 of the management’s report.
Adm. Director Robert Andersen
Tel. +45 8896 1010