BUSINESS

Property investment companies see revenues rise thanks to rents

NIKOS ROUSSANOGLOU

The operating revenues of Pasal Development, owner of the Athens Heart shopping center (pictured), rose from 1.55 million euros in January-June last year to 1.62 million in the same period this year.

TAGS: Property, Business

Real estate investment companies (REICs) have posted a significant increase this year both in revenues and operating profits as a result of strengthening their portfolios with new assets and the increased value of their properties.

On Friday Trastor, which is controlled by US investment firm Varde Partners and Piraeus Bank, announced a yearly rise in its first-half operating profits by 33 percent to 2.57 million euros, from 1.9 million last year. This was thanks to the rents from new properties acquired and from leasing out assets that had until recently been empty.

The Athens-listed company is implementing an ambitious investment program aimed at doubling its spending to 40 million euros, from 20 million in 2017. Trastor acquired properties worth 16.7 million euros in January-June, taking its portfolio to 96.3 million.

Another REIC, Intercontinental International, which is owned by the Halikias family, has also recorded an improvement in its first-half financial results: The company reported a 23.8 percent year-on-year increase in revenues to 3.4 million euros, thanks to the new investments implemented. In the year to end-June, the listed enterprise acquired seven new properties for 12 million euros, while last year it had added 10 new assets to its portfolio, worth over 15 million euros. Its operating profits jumped 109.1 percent in H1 to 5.5 million euros, and its net profits soared 585.5 percent to 4.9 million.

Pasal Development, the owner of the Athens Heart mall, also reported a rise in operating revenues: They amounted to 1.62 million euros, against 1.55 percent in the first half of last year. Its losses were considerably smaller this year, at 1.5 million euros, against 5.9 million in January-June 2017.

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