Mapeley in the red as property values slide
Further falls in property values sent Mapeley into the red during the first quarter, as expected, although funds from operations (FFO) more than tripled during the period.
The group reported pre-tax loss of £27.4m for the three months ended 31 March 2008 versus a profit of £11.4m a year earlier due to revaluation losses of £39.2m.
But FFO, a key measure of underlying operating performance of real estate businesses, rose 226% to £45m thanks to above average asset management receipts for the quarter.
Excluding the impact of those receipts, FFO remained stable at 48p per share against 47p in a year ago. Net asset value fell to £17.32 per share from £18.62 at the end of 2007.
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"Results for the first quarter were in line with our expectations and again our financial performance was reinforced by the resilience of our income stream," said chief executive Jamie Hopkins.
"Over 90% of our income is derived from government and investment grade corporates, with low vacancy rates and a 10 year average lease length across the portfolio."
Mapeley also announced plans for a share buyback.
