Real Estate Opportunities Swings To FY07 Profit

Real Estate Opportunities Ltd (REO.L) reported profit before tax for fiscal 2007 compared to pre-tax loss last year, mainly on higher interest receivable and similar income.

For fiscal 2007, the company reported that it swung to pre-tax profit of £25.59 million from year ago loss of £20.45 million, largely helped a jump in interest receivables and similar income. The property dealer’s earnings per share for the year was 8.1 pence versus a loss per share of 4.6 pence in 2006.

Total interest receivable and similar income for the year increased significantly to £56.89 million from £5.5 million last year, largely due to £52.07 million received in connection with two legal settlements. On March 15 2007, Real Estate Opportunities reached an agreement with Aberdeen Asset Management on a pending lawsuit. On May 16, REO reached a settlement with UBS regarding another claim.

REO’s group turnover from continuing operations for 2007 grew to £19.17 million, from £16.77 million in the preceding year, reflecting increase in revenues from the company’s portfolio of investment and development properties in and around Dublin. Property income from Ireland rose to £18.5 million from £16.61 million last year.

The Jersey based company ‘s net asset value or NAV rose to £559.66 million or 151.9 pence per share from £269.1 million or 104.5 pence per share in the prior year.

REO is also proposing a final dividend for 2007 of 1.5 pence per ordinary share to be paid on July 18.

4 Comments

  1. Posted April 9, 2008 at 4:53 am | Permalink

    For fiscal 2007, the company reported that it swung to pre-tax profit of £25.59 million from year ago loss of £20.45 million, largely helped a jump in interest receivables and similar income. The property dealer’s earnings per share for the year was 8.1 pence versus a loss per share of 4.6 pence in 2006.

  2. Posted April 10, 2008 at 3:03 am | Permalink

    On December 29, 2006, the Company acquired the Battersea Power Station properties through the purchase of 13 companies. In December 2006, the Company completed two acquisitions at Lad Lane and Stilorgan, both in Dublin, Ireland. The block of 40 apartments at Lad Lane is sited on the corner of Cumberland Road .

  3. Posted April 25, 2008 at 4:33 am | Permalink

    company swung to pre-tax profit of £25.59 million from year ago loss of £20.45 million, largely helped a jump in interest receivables and similar income. The property dealer’s earnings per share for the year was 8.1 pence versus a loss per share of 4.6 pence two year back.

  4. Posted April 30, 2008 at 4:06 am | Permalink

    Real estate continues to be the preferred saving option rather than saving in bank deposits, postal savings or buying gold. According to analysts, people are willing to take risks if the returns are higher, especially in a short span of time. The household sector’s saving in real estate increased by 16.12 percent to Rs 5,17,837 crore in 2006-07 compared to Rs 4,45,915 crore in 2005-06, according to a data released by the Reserve Bank of India (RBI). The RBI’s March 2008 bulletin shows that household savings constituted 23.8 percent of the gross domestic product (GDP) between 2003-04 and 2006-07, as against 20.8 percent from 1997-98 to 2002-03. Also, the bank household sector loans went up by 55% to Rs 2,72,316 crore in 2006-07 as against Rs 1,75,010 crore in the previous financial year. Household savings in shares and debentures, including mutual funds, increased by 62.31 percent to Rs 45,228 crore in 2006-07 compared to Rs 29,712 crore in 20005-06.The Indian economy and the real estate sector in particular are high on its ride to prosperity. As India’s economic growth curve rises, real estate India has emerged as one of the most appealing investment areas for domestic as well as foreign investors.Investment scenario has certainly undergone a paradigm shift in India. Gone are the days when potential investors used to sought after investment options like equity bonds and park money in shares where your return ranges between 5.55 to 6%. Data showcased by property surveys show that returns from rental incomes on investment in commercial property in Indian metros, is around 10.5%, the highest in the world.Real estate boom in India is supported by its own flourishing economy on a sustainable basis. Here, growth of the property market is not a result of renovation and overhauling; but rapid development that witness for India riding the high growth wave. In the present day scenario, if there is any powerful investment tool that brings burgeoning financial returns, it is INDIAN REAL ESTATE!!! Investors should consider the parameters minutely and meticulously to find out why investing in Indian real estate now is the best viable option.For more view- realtydigest.blogspot.com

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