Creating homes in a
smart way

...directly tapping the market’s pulse

2011

 

 


Based on the detailed plan approved by the Tallinn City Council, Arco Vara will build a four-storied house in the Kassisaba district of cultural and environmental value (address Tehnika 53).
According to the design prepared by the architects of JVR, the ground floors are reserved for businesses, on the second, third and fourth floor, there are 2-4-room apartments with balconies.
There are 21 parking places in the cellar; the two parking places on the street are for the customers of business areas.
Established in 1992, Arco Vara is one of the leading real estate development companies in the Baltic countries. The main activity of the company is real estate development, supported by appraisal, construction and real estate administration.
The company has offices in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.

Lembit Tampere

Member of the Management Board

Arco Vara As

Phone: +372 6144630

This email address is being protected from spambots. You need JavaScript enabled to view it.

http://www.arcorealestate.com

 

 

 

 

 

11.02.2011: Notice on change in major holding

Arco Vara AS notifies of a change in the structure of persons having a major holding in Arco Vara AS.
The Management Board of Baltplast OÜ informed Arco Vara AS that starting from 11.02.2011, Baltplast OÜ owns 18.9805% of Arco Vara AS shares. Thus, the number of Arco Vara AS shares in the ownership of Baltplast OÜ has reduced to less than 20% of issuer’s share capital.
Established in 1992, Arco Vara is one of the leading real estate development companies in the Baltic countries. The main activity of the company is real estate development, supported by appraisal, construction and real estate administration.
The company has offices in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.
Lembit Tampere
Member of the Management Board
Arco Vara AS
Tel: +372 614 4630             
This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.arcorealestate.com

 

 

 

 

 

Stock exchange announcement

Arco Vara AS notifies of a change in the structure of persons having a major holding in Arco Vara AS.

On 14 February 2011, Firebird Republics Fund Ltd and Firebird Avrora Fund Ltd  informed Arco Vara AS of acquisition of 106,897 Arco Vara AS shares by Firebird Avrora Fund Ltd on 11 February 2011. Together with the 156,064 shares belonging to Firebird Republics Fund Ltd, they now own 5.4% (262,961) Arco Vara AS shares.
The management company of Firebird Avrora Fund Ltd is Firebird Avrora Advisors LLC and the management company of Firebird Republics Fund Ltd is Firebird Management LLC. Both management companies are managed by Eastern Star Consulting Inc.
Established in 1992, Arco Vara is one of the leading real estate development companies in the Baltic countries. The main activity of the company is real estate development, supported by appraisal, construction and real estate administration.
The company has offices in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.

Lembit Tampere
Member of the Management Board
Arco Vara AS
Tel: +372 614 4630             
This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.arcorealestate.com

 

 


Group Chief Executive’s review

In 2010, a total of 129 apartments and plots were sold in the projects of Arco Vara - 73 in Estonia, 45 in Latvia and 11 in Bulgaria. Our largest ever completely self-developed project Boulevard Residence Madrid in Sofia was granted a use permit at the end of June. Most of the commercial rental premises that were covered with preliminary contracts have already been transferred to customers and tenants have moved in. We have also signed the first real right contracts on the apartments and have transferred the apartments to customers. Our Development division continues completing apartments in the Bishumuiza-1 project in Riga and developing the Manastirski project in Sofia.

The increasing sales of the past quarters have reduced the inventory balance significantly and construction prices continue to be favourable. Therefore, we have launched new developments in order to be ready to satisfy the emerging market demand. The Group’s subsidiary AS Kolde joined forces with AS Merko Ehitus for building and financing the next phase of the Kodukolde development project. The new housing complex will consist of four apartment buildings with 100 apartment units and 40 underground garage spaces with a gross enclosed area of 8,760 square metres. The first two buildings will be completed in spring 2011. We are pleased to report that construction is on schedule and pre-completion sales exceed all expectations. We are also holding negotiations with potential business partners and banks with a view to starting and financing the construction of the Tivoli project. Subsequent to the reporting date, we have held an architectural competition and have launched preparatory site work. Construction should commence in spring 2011. In addition, at the beginning of 2011 we have announced a plan to build a four-floor apartment building in Tehnika street in Tallinn.

The Service division continues to benefit from administrative cost savings yielded by effective restructuring. Although sales have contracted too, this has happened at a slower pace. As a result, in the third quarter the division was able to post its first post-crisis quarterly operating profit of 1.3 million kroons (0.08 million euros). In 2010 the number of brokerage transactions grew by 11% year-over-year and the number of valuation reports issued increased by 25% although the number of brokers and appraisers decreased by 4%.

The division’s Bulgarian team moved to new first-class office premises in the Madrid Boulevard Residence. The division is planning to increase the number of brokers in order to be ready for the recovery of the real estate market.

During the year, the Construction division secured new contracts of 347 million kroons (22.2 million euros). At the reporting date, the order backlog amounted to 262 million kroons (16.8 million euros) compared with 80.0 million kroons (5.1 million euros) at the end of 2009. The main customers continue to be the public sector and local governments. In addition to environmental and infrastructure projects, funds are being allocated to the education sector. It should be noted that in 2010 practically all of the Group’s construction revenue was external – the proportion of internally generated sales was negligible.

The reporting period brought significant improvement to most of the Group’s financial performance indicators - both revenue and gross profit grew on a quarterly basis. Over several years, all divisions ended the third quarter with an operating profit. The reduction of fixed costs that began in 2009 has had a positive impact also on the results for 2010. Management will continue monitoring fixed costs. Compared with the previous year administrative expenses have shrunk by 26%.

To improve liquidity, the Group has disposed of a number of smaller investment properties that were not under its complete control or otherwise did not fit the corporate strategy.

In addition, the Group extended the loans taken from Piraeus Bank Bulgaria for the development of the Madrid project in Sofia and SEB Pank for the Navigator and Tivoli projects in Tallinn of 360.7 million kroons (23.1 million euros) in aggregate. As a result, the maturity date of the loan taken for the Madrid project was deferred by three years from 2012 to 2015 and the term of the Navigator and Tivoli projects was extended until 31 January 2011.

In December 2009 the shareholders of Arco Vara AS decided to reduce the company’s share capital. A corresponding Commercial Registry entry took effect on 16 March 2010. The reduction of share capital has curbed the volatility of the share price, has allowed more effective pricing of the share on the stock exchange (through a decrease in the difference between the bid and ask prices) and has created new opportunities for further strengthening the capital structure.

In 2010 Arco Vara AS’ wholly-held subsidiary Arco Investeeringute AS transferred its claim against Celia Crowd AS (formerly Ühendatud Kapital AS) to AS EMF Invest for 52 million kroons (3.3 million euros). The transaction improved the Group’s fourth quarter results by an exceptional sales gain of 18.9 million kroons (1.2 million euros).

Change in accounting for jointly controlled entities

The Group’s management has revised the policy for accounting for interests in jointly controlled entities. Previously, interests in jointly controlled entities were accounted for using proportionate consolidation. As from 1 January 2010, interests in jointly controlled entities are accounted for using the equity method. Management believes that the equity method provides a more faithful representation of the Group’s assets, liabilities and equity.

KEY PERFORMANCE INDICATORS

· In 2010 the Group generated revenue and other income of 358.4 million kroons (22.9 million euros), a 27% decrease year-over-year

· Operating loss for 2010 amounted to 2.0 million kroons (0.1 million euros), a 98% improvement on 2009

· Net loss was 4.6 million kroons (0.3 million euros), a 99% improvement on 2009

· Equity to assets ratio at period-end was 39.4% (end of 2009: 36.7%). Return on equity was negative (2009: negative). Return on invested capital was 1.8% (2009: negative)

· At the end of 2010, our order backlog (in the construction business) stood at 262.2 million kroons (16.8 million euros), compared with 79.6 million kroons (5.1 million euros) at the end of 2009

· In the twelve months of 2010 we sold a total of 129 apartments and plots (2009: 82).

EEK

EUR

12M 2010

12M 2009

Q4 2010

Q4 2009

12M 2010

12M 2009

Q4 2010

Q4 2009

In millions

Revenue and other income

358.4

493.1

129.2

131.7

22.9

31.5

8.3

8.4

Operating profit / loss

-2.0

-91.7

8.5

36.9

-0.1

-5.9

0.5

2.4

Incl. net loss from the revaluation of investment properties and inventories

-8.2

-40.6

-2.6

-40.6

-0.5

-2.6

-0.2

-2.6

Profit / loss before tax

-4.2

-363.9

15.2

3.5

-0.3

-23.3

1.0

0.2

Incl. net gain/loss from the disposal of financial assets

-2.4

-4.5

0.0

0.0

-0.2

-0.3

0.0

0.0

Net profit / loss

-4.6

-363.1

15.3

5.6

-0.3

-23.2

1.0

0.4

EPS (in kroons and euros)

-0.92

-76.26

3.26

1.46

-0.06

-4.87

0.21

0.09

Total assets at period end

1,104.4

1,224.4

70.6

78.3

Invested capital at period end

931.5

1,015.3

59.5

64.9

Net loans at period end

430.2

500.8

27.5

32.0

Equity at period end

435.4

449.8

27.8

28.7

Average loan term (in years)

0.8

1.2

0.8

1.2

Average interest rate of loans (per year)

6.4%

5.9%

6.4%

5.9%

ROIC (rolling, 4 quarters)

1.8%

neg

1.8%

neg

ROE (rolling, 4 quarters)

neg

neg

neg

neg

Number of staff at period end

153

171

153

171

REVENUE AND PROFIT

EEK

EUR

12M 2010

12M 2009

Q4 2010

Q4 2009

12M 2010

12M 2009

Q4 2010

Q4 2009

In millions

Revenue and other income

Service

30.0

38.0

8.3

9.3

1.9

2.4

0.5

0.6

Development

196.7

218.1

82.8

49.8

12.6

13.9

5.3

3.2

Construction

139.6

277.2

39.7

75.7

8.9

17.7

2.5

4.8

Eliminations

-7.9

-40.2

-1.6

-3.1

-0.5

-2.6

-0.1

-0.2

Total revenue and other income

358.4

493.1

129.2

131.7

22.9

31.5

8.3

8.4

Operating profit / loss

Service

-2.7

-16.6

-1.4

-7.5

-0.2

-1.1

-0.1

-0.5

Development

27.1

-36.8

21.8

56.7

1.8

-2.4

1.3

3.6

Construction

-3.6

-8.1

-4.7

-5.3

-0.2

-0.5

-0.3

-0.3

Eliminations

0.0

0.0

-0.6

-0.2

0.0

0.0

0.0

0.0

Unallocated expenses

-22.8

-30.2

-6.6

-6.8

-1.5

-1.9

-0.4

-0.4

Total operating profit / loss

-2.0

-91.7

8.5

36.9

-0.1

-5.9

0.5

2.4

Interest income and expense

-18.2

-22.6

-10.6

-10.7

-1.2

-1.4

-0.7

-0.7

Other finance income and expense

15.9

-249.7

17.3

-22.7

1.0

-16.0

1.2

-1.4

Income tax expense

-0.3

0.9

0.1

2.1

0.0

0.1

0.0

0.1

Net profit / loss

-4.6

-363.1

15.3

5.6

-0.3

-23.2

1.0

0.4

The Construction division’s fourth quarter results were adversely affected by a write-down of receivables by 4.6 million kroons (0.3 million euros), conducted due to the bankruptcies of a major customer and a consortium partner.
The main cost cuts have been made and managing and reducing expenses has become a daily routine at all units. For the time being, the Group’s main focus is on increasing sales, completing projects in progress and launching new ones, and improving liquidity by selling new projects and inventories.

Finance income and expense for the fourth quarter were influenced the most by the sale of a receivable from Ühendatud Kapital AS. Despite a decrease in revenue and other income across all divisions, thanks to determined cost control the Group’s operating loss has decreased by 98% compared with 2009.

CASH FLOWS

EEK

EUR

12M 2010

12M 2009

12M 2010

12M 2009

In millions

Cash flows from operating activities

27.4

-51.1

1.8

-3.3

Cash flows from investing activities

95.1

104.9

6.1

6.7

Cash flows from financing activities

-121.3

-145.2

-7.8

-9.3

Net cash flow

1.2

-91.4

0.1

-5.8

Cash and cash equivalents at beginning of period

64.7

156.1

4.1

10.0

Effect of movements in exchange rates

0.0

0.0

0.0

0.0

Cash and cash equivalents at end of period

65.9

64.7

4.2

4.1

In May 2010 Arco Vara AS redeemed commercial paper of 18.9 million kroons (1.2 million euros) before maturity.

In December 2010 Arco Vara AS repaid early 4.5 million kroons (0.3 million euros) of the loan received from LHV bank.

There were no other exceptional loan settlements in 2010. Interest payments accounted for 35.1 million kroons (2.2 million euros) of net financing cash flows. Scheduled and inventory sale-related settlements of loan principal totalled 109.3 million kroons (7.0 million euros). The largest proportion of credit limits utilised during the period was related to the completion of the Madrid project and the construction of the last but one phase in the Kodukolde project that accounted for 67.4 million kroons (4.3 million euros) of the total.

The largest current liabilities to be settled in the next 12 months comprise:

· The loan taken for the Boulevard Residence Madrid project in Sofia of 238.1 million kroons (15.2 million euros) in aggregate has been reclassified to current liabilities because due to the write-down of collateral it is temporarily not in full compliance with the covenant for the value of collateral. The loan is to be repaid by 2015. According to the sales forecast and settlement schedule, as at 31 December 2010 the portion to be repaid in the next 12 months would be 72.1 million kroons (4.6 million euros).

· Loans of 102.5 million kroons (6.6 million euros) related to the Tivoli and Laeva2 projects.

· A loan of 25.5 million kroons (1.6 million euros) related to the Bishumuiza project.

· The scheduled current portion of a loan related to the Manastirski project of 31.7 million kroons (2.0 million euros).

During the year the Group made regular repayments of loans taken for the Kodukolde and Merivälja2 projects in Tallinn, the Bishumuiza-1 project in Riga, and the Madrid project in Sofia and also settlements under some cash flow generating projects (including the entire loan of the Enerpoint project). Most of the Group’s liabilities are denominated in euros.

SERVICE DIVISION

We constantly monitor expenses so as to avoid a situation where expenses are growing faster than revenue.

In connection with the revival of the housing market, we are continuing an active marketing campaign in Estonia. In addition, we are continuing partnering negotiations with other major housing and commercial real estate developers. Through effective cooperation, the number of properties brokered has increased.Our goal is to offer the customers both a wide range of services and an extensive selection of properties.

In Sofia, the Service division’s Bulgarian team moved to new first-class office premises in the Madrid Boulevard Residence. We are also planning to increase the number of brokers in order to be ready for the recovery of the real estate market in Bulgaria.

The Service division ended 2010 with an operating loss of 2.7 million kroons (0.17 million euros) compared with an operating loss of 16.6 million kroons (1.06 million euros) in 2009. The most successful quarter was the third one where the division generated an operating profit of 1.3 million kroons (0.08 million euros). Before that, the division last earned an operating profit in the third quarter of 2006. Compared with 2009, the number of brokerage transactions has grown by 11% and the number of valuation reports issued has increased by 25%.

DEVELOPMENT DIVISION

In 2010, a total of 129 apartments and plots were sold in Arco Vara projects. In Latvia, 26 apartments were sold in the Bishumuiza project and 19 residential plots in a project near Lake Mazais Baltezers. In Estonia, 41 apartments were sold in the Kodukolde project and 32 residential plots in the Merivälja project. In Bulgaria, the Group sold 11 apartments in the Madrid project in Sofia.

For building and financing the next phase in the Kodukolde project (100 apartments), we have signed a contract with ASMerkoEhitus. Construction work has commenced and is on schedule. Two out of the four buildings will be completed in spring 2011.

The Development division has acquired a property for building a nursery school in Harku rural municipality. There is a rental agreement with the local government, a construction contract with YIT Ehitus AS and a financing agreement with DnB NORD bank. Construction work has commenced and the nursery school will be completed in April 2011.

The Boulevard Residence Madrid commercial and residential building in Sofia was granted a use permit in June. Most of the commercial rental premises that were covered with preliminary contracts have been transferred to customers and tenants have moved in. We have also signed the first real right contracts on the apartments and have transferred the apartments to customers. In addition, we are negotiating with potential partners and banks for starting the construction and financing of the Tivoli project. Preparatory site work is underway and construction should begin in spring 2011.

The real estate market of the Baltic countries has stabilised. The sharpest price increase has occurred in Latvia. In response, we have increased prices also in our own development projects.

At the end of 2010, the Development division employed 26 people (31 December 2009: 23).

For further information on our projects, please refer to: www.arcorealestate.com/development.

CONSTRUCTION DIVISION

The Construction division is typically actively involved in environmental, infrastructure and civil engineering (mostly educational establishments related) projects.

At the year-end, the largest new construction contracts were the Tallinn-Muuga water and sewerage networks and facilities of 103 million kroons (6.6 million euros) and the new building of the Estonian Aviation Academy of 31 million kroons (2.0 million euros).

In 2010, the division secured new contracts of 347 million kroons (22.2 million euros). At the end of 2010, the order backlog of the Construction division stood at 262 million kroons (16.8 million euros) against 80.0 million kroons (5.1 million euros) at the end of 2009.

At the reporting date, the division employed 49 people (31 December 2009: 59 people).

Condensed consolidated statement of comprehensive income

For the period ended 31 December 2010

Note

12M 2010

12M 2009

Q4 2010

Q4 2009

EEK In thousands

Revenue from rendering of services

181,239

293,316

47,734

86,814

Revenue from sale of goods

149,423

92,274

58,586

40,908

Total revenue

2

330,662

385,590

106,320

127,722

Cost of sales

3

-254,049

-414,186

-62,978

-43,642

Gross profit / loss

76,613

-28,596

43,342

84,080

Other income

4

27,776

107,502

22,880

3,991

Distribution expenses

5

-4,734

-4,401

-1,339

-1,086

Administrative expenses

6

-63,225

-85,666

-20,803

-30,065

Other expenses

4

-38,453

-80,496

-35,586

-20,024

Operating profit / loss

-2,023

-91,657

8,494

36,896

Finance income

7

26,448

8,152

16,541

-3,446

Finance expenses

7

-28,616

-280,419

-9,851

-29,971

Profit / loss before tax

-4,191

-363,924

15,184

3,479

Income tax expense

-398

868

67

2,103

Profit / loss for the period

-4,589

-363,056

15,251

5,582

Profit / loss attributable to owners of the parent

8

-4,385

-361,618

15,455

6,910

Loss attributable to non-controlling interests

-204

-1,438

-204

-1,328

Other comprehensive income / expense

Exchange differences on translating foreign operations

0

303

-178

40

Total other comprehensive income / expense

0

303

-178

40

Total comprehensive income / expense for the period

-4,589

-362,753

15,073

5,622

Total comprehensive income / expense

attributable to owners of the parent

-4,385

-361,315

15,277

6,950

Total comprehensive expense attributable to

non-controlling interests

-204

-1,438

-204

-1,328

Earnings per share (in EEK)

- Basic

-0.92

-76.26

3.26

1.46

- Diluted

-0.92

-76.26

3.26

1.46

For the period ended 31 December 2010

Note

12M 2010

12M 2009

Q4 2010

Q4 2009

EUR In thousands

Revenue from rendering of services

11,583

18,746

3,051

5,548

Revenue from sale of goods

9,550

5,897

3,744

2,614

Total revenue

2

21,133

24,643

6,795

8,162

Cost of sales

3

-16,237

-26,471

-4,025

-2,789

Gross profit / loss

4,896

-1,828

2,770

5,373

Other income

4

1,775

6,871

1,462

255

Distribution expenses

5

-302

-281

-86

-69

Administrative expenses

6

-4,041

-5,475

-1,330

-1,922

Other expenses

4

-2,458

-5,145

-2,274

-1,280

Operating profit / loss

-130

-5,858

542

2,357

Finance income

7

1,690

521

1,057

-220

Finance expenses

7

-1,829

-17,922

-630

-1,915

Profit / loss before tax

-269

-23,259

969

222

Income tax expense

-25

55

4

134

Profit / loss for the period

-294

-23,204

973

356

Profit / loss attributable to owners of the parent

8

-294

-23,112

973

441

Loss attributable to non-controlling interests

0

-92

0

-85

Other comprehensive income / expense

Exchange differences on translating foreign operations

0

19

-11

3

Total other comprehensive income / expense

0

19

-11

3

Total comprehensive income / expense for the period

-294

-23,185

962

359

Total comprehensive income / expense

attributable to owners of the parent

-281

-23,093

975

444

Total comprehensive expense attributable to

non-controlling interests

-13

-92

-13

-85

Earnings per share (in EUR)

- Basic

-0.06

-4.87

0.21

0.09

- Diluted

-0.06

-4.87

0.21

0.09


Condensed consolidated statement of financial position

As at 31 December

Note

2010

2009

2008

In EEK thousands

Cash and cash equivalents

65,858

64,724

156,061

Investments

0

0

40,416

Receivables

9

90,130

150,939

276,541

Prepayments

3,004

2,999

6,077

Inventories

10

559,215

754,805

827,237

Biological assets

0

0

3,680

Total current assets

718,207

973,467

1,310,012

Investments

15,588

17,853

216,025

Receivables

1,189

2,635

921

Investment property

11

358,104

219,129

157,367

Property, plant and equipment

10,994

10,545

41,664

Intangible assets

312

812

12,475

Total non-current assets

386,187

250,974

428,452

TOTAL ASSETS

1,104,394

1,224,441

1,738,464

Loans and borrowings

12

424,433

371,615

223,598

Trade and other payables

13

78,828

83,621

124,190

Deferred income

72,501

81,902

64,172

Provisions

21,555

43,571

37,999

Total current liabilities

597,317

580,709

449,959

Loans and borrowings

12

60,316

186,578

454,048

Other liabilities

11,337

6,278

1,418

Provisions

0

1,100

3,191

Total non-current liabilities

71,653

193,956

458,657

TOTAL LIABILITIES

668,970

774,665

908,616

Share capital

47,417

952,842

952,842

Share premium

0

0

712,514

Statutory capital reserve

31,463

31,463

31,463

Retained earnings / accumulated losses

356,544

-530,537

-862,979

Own shares

0

-3,992

-3,992

Total equity attributable to equity holders of the parent

435,424

449,776

829,848

Non-controlling interests

-1,103

-1,191

3,614

Total equity

436,527

450,967

826,234

TOTAL LIABILITIES AND EQUITY

1,104,394

1,224,441

1,738,464

As at 31 December

Note

2010

2009

2008

In EUR thousands

Cash and cash equivalents

4,209

4,137

9,974

Investments

0

0

2,583

Receivables

9

5,760

9,647

17,674

Prepayments

192

192

388

Inventories

10

35,740

48,241

52,870

Biological assets

0

0

235

Total current assets

45,901

62,217

83,724

Investments

996

1,141

13,806

Receivables

9

76

168

59

Investment property

11

22,887

14,005

10,058

Property, plant and equipment

703

674

2,663

Intangible assets

20

52

798

Total non-current assets

24,682

16,040

27,384

TOTAL ASSETS

70,583

78,257

111,108

Loans and borrowings

12

27,126

23,750

14,290

Trade and other payables

13

5,038

5,344

7,937

Deferred income

4,634

5,234

4,101

Provisions

1,378

2,785

2,429

Total current liabilities

38,176

37,116

28,757

Loans and borrowings

12

3,855

11,925

29,019

Other liabilities

724

400

91

Provisions

0

70

204

Total non-current liabilities

4,579

12,395

29,314

TOTAL LIABILITIES

42,755

49,511

58,071

Share capital

3,030

60,897

60,897

Share premium

0

0

45,538

Statutory capital reserve

2,011

2,011

2,011

Retained earnings / accumulated losses

22,787

-33,907

-55,154

Own shares

0

-255

-255

Total equity attributable to equity holders of the parent

27,828

28,746

53,037

Non-controlling interests

-70

-76

231

Total equity

27,758

28,670

53,268

TOTAL LIABILITIES AND EQUITY

70,583

78,257

111,108


Condensed consolidated statement of cash flows

EEK

EUR

For the period ended 31 December 2010

Note

12M 2010

12M 2009

12M 2010

12M 2009

In thousands

Loss for the period

-4,589

-363,056

-293

-23,204

Interest income and interest expense

7

18,163

22,595

1,161

1,444

Gain/loss on sale of subsidiaries and interests in jointly controlled entities

7

-1,328

4,492

-85

287

Gain/loss on other long-term investments

7

-18,246

-2,001

-1,166

-128

Impairment losses on financial assets

7

1,788

18,888

114

1,207

Share of profits and losses of equity accounted investees

2 841

225,284

182

14,398

Depreciation, amortisation and impairment losses on property, plant and equipment and intangible assets

3, 6

2,115

4,975

135

318

Gain/loss on the sale of property, plant and equipment and intangible assets

4

15

1,550

1

99

Gain/loss on the sale of investment property

4

-2,887

-1,088

-185

-70

Change in the fair value of investment property and biological assets

4, 11

30,021

-24,265

1,919

-1,551

Gain/loss on inventory write-downs and reversals of inventory write-downs

3

-21,868

64,905

-1,398

4,148

Exchange gains and losses

7

-1,050

2,823

-67

180

Income tax expense

398

-868

25

-55

Operating cash flow before working capital changes

5,373

-45,766

343

-2,927

Change in receivables and prepayments

-26,119

30,546

-1,669

1,952

Change in inventories

37,490

7,527

2,396

481

Change in biological assets

0

3,680

0

235

Change in payables and deferred income

10,653

-47,037

681

-3,006

NET CASH FROM / USED IN OPERATING ACTIVITIES

27,397

-51,050

1,751

-3,265

Acquisition of property, plant and equipment and intangible assets

-628

-1,961

-40

-125

Proceeds from sale of property, plant and equipment and intangible assets

25

5,729

2

366

Acquisition of investment property

11

-3,725

-2,776

-238

-177

Proceeds from sale of investment property

24,530

8,581

1,568

548

Acquisition of subsidiaries and interests in jointly controlled entities

-500

-585

-32

-37

Proceeds from sale of investments in subsidiaries and jointly controlled entities

23,105

69,479

1,477

4,441

Proceeds from sale of other investments

0

29,383

0

1,878

Loans granted

-3,613

-12,768

-231

-816

Repayment of loans granted

52,078

5,878

3,328

377

Interest received

3,809

3,929

243

251

NET CASH FROM INVESTING ACTIVITIES

95,081

104,889

6,077

6,706

Proceeds from loans received

65,157

115,005

4,164

7,350

Settlement of loans and finance lease liabilities

-151,386

-226,560

-9,675

-14,480

Interest paid

-35,070

-33,662

-2,241

-2,150

NET CASH USED IN FINANCING ACTIVITIES

-121,299

-145,217

-7,752

-9,280

NET CASH FLOW

1,179

-91,378

76

-5,839

Cash and cash equivalents at beginning of period

64,724

156,061

4,137

9,974

Increase / decrease in cash and cash equivalents

1,179

-91,378

76

-5,839

Effect of exchange rate fluctuations on cash held

-45

41

-4

2

Cash and cash equivalents at end of period

65,858

64,724

4,209

4,137


The whole report you can find here .


Arco Investeeringud AS, a 100% associate of Arco Vara, transferred its Tivoli development project properties to its subsidiary Tivoli Arendus OÜ. This transaction was followed by the transfer of the 50% holding of Tivoli Arendus OÜ to International Invest Project OÜ. As the property and the holding were sold at their balance cost, they will not have a significant influence to the balance sheet and the income statement of the group. As a result of the transactions, Arco Investeeringute AS redeemed to SEB Pank all the loan in the amount of 5,432,490 EUR that was raised for acquisition of the land for the Tivoli project.
80% of shares in International Invest Project OÜ belong to Natalia Levina, citizen of Russian Federation.
By attracting a partner to the Tivoli Arenduse OÜ, the group will receive additional funds in an amount of 6 million EUR for financing the construction, which makes it possible to proceed with development of the Tivoli project and start with a new residential area construction already in autumn 2011.  In an architectural contest held in 2010, Brunow Maunula Architects from Finland became the winner. In the first stage, up to 170 apartments will be built and the first apartments are expected to be finished in Q3 2012.
Established in 1992, Arco Vara is one of the leading real estate development companies in the Baltic countries. The main activity of the company is real estate development, supported by appraisal, construction and real estate administration.
The company has offices in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.
Lembit Tampere
Member of the Management Board
Arco Vara AS
Tel.: +372 614 4630            
This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.arcorealestate.com

 


Information regarding an alienation of Arco Investeeringute AS (100% Arco Vara AS daughter company) daughter company shares in Wilson Kinnisvara OÜ in November 2010 did not qualify as publishable information according to the Company.  Management of the Company has decided to further clarify the transaction as information regarding it circulating in media since 31.03.2011 is misleading.

Total value of the transaction was 23 Million EEK (1,4 Million EUR) consisting of share sale of 3,3 Million EEK (0,2 Million EUR) and alienation of loans of the Company towards Wilson Kinnisvara OÜ to the buyer in amount of 19,7 Million EEK (1,3 Million EUR).  The Company loans were alienated against cash payment.

Economic result of the transaction was a profit of 2,7 Million EEK (0,2 Million EUR).  The Company earned from realisation of 80 Paldiski Rd., main asset of Wilson Kinnisvara OÜ, through alienation of shares and owner loans a total of 23 Million EEK (1,5 MEUR).

Arco Vara is a leading property development company in the Baltic areas, established in 1992.  Main activity of the company is real estate development, supported by brokerage, valuation construction and facility management.  Company is represented in 17 cities in Estonia, Latvia, Ukraine and Bulgaria.

Lembit Tampre
Member of the Management Board
Arco Vara AS
Tel: +372 614 4630            
This email address is being protected from spambots. You need JavaScript enabled to view it.
http://www.arcorealestate.com