SOURCE: PARQUESOL

February 26, 2007 03:45 ET

PARQUESOL MEETS FORECASTS AND CONTINUES WITH EXPANSION PLANS

MADRID, SPAIN -- (MARKET WIRE) -- February 26, 2007 -- Presentation of Company results for 2006

PARQUESOL MEETS FORECASTS AND CONTINUES WITH EXPANSION PLANS

Madrid, 26 February 2007.- Parquesol -- a real estate company of which the business has been expanding for more than three decades in the residential and non-residential segments -- met its forecasts for 2006, achieving EUR 254.2 million in revenue and EUR 85.0 million gross profit for the period before tax.

REVENUES AND MARGINS

Parquesol's total revenue in 2006 reached EUR 254.2 million, some 14% less than 2005 but in line with the Company's forecasts. It is noteworthy the 10% growth in rental income, this activity's revenues came to EUR 18.6 million, and reflects the company commitment to increase this business unit. There was an anticipated and expected slowdown in residential development sales compared with 2005 -- an exceptionally favourable year -- to EUR 163.1 million. Meanwhile, land sales contributed with EUR 60.1 million. Lastly, asset sales totalled EUR 10.0 million and other revenues EUR 2.4 million.

Despite smaller revenues, there was a noteworthy expansion in gross profit from 2005's EUR 111.5 million to EUR 119.7 million in 2006, or a 47% gross margin, with an increase of over 9 percentage points above 2005.

The Company delivered a total of 652 housing units in the year. It currently manages 15 office buildings and owns four hotels, leisure centres and a building let in full to retirement home operator Ballesol.

INVESTMENTS

Investments in 2006 totalled EUR 193 million, of which EUR 77 million was spent on the Company's property management, EUR 9 million to property project developments, and the remainder on land purchases and other projects. With such an investment, Parquesol is continuing with the business plan envisaged in its May 2006 IPO. The San José Group's clear position on the real estate segment via its public tender offer for Parquesol should support this expansion strategy in the years ahead.

EARNINGS

Profit for the period before tax edged up by 1%, to EUR 85.0 million. At EUR 56.0 million, meanwhile, profit for the period was in line with 2005's figure. Accordingly, earnings per share (EPS) for 2006 equalled EUR 1.41.

For further information on this press release, contact:

Pilar Fernández. Communication Manager, Parquesol.

Tel: +34 917 994 990. Fax: +34 917 994 997.

E-mail: pilarfernandez@parquesol.es

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