Back to list Renta Corporación obtains 3.9 million profit in the first nine months of the year
Renta Corporación obtains 3.9 million profit in the first nine months of the year
David Vila appointed as new CEO
. The amount of 3.9 million means to improve in 15.1 million the losses of 11.2 million in the same period last year
. In line with its current strategy focused on residential refurbishment, Renta Corporación has acquired 16 new investments rights in 2011, most of them residential buildings in the domestic market
. The ordinary business portfolio sales almost double the ones made in the same period in 2010
. Net debt stood at 191.9 million at the end of September 2011, compared with 297.5 million achieved at the end of 2010
Renta Corporación has presented the results corresponding to the period from January to September 2011 which generated a profit of 3.9 million euros, compared to losses of 11.2 million recorded in the same period last year. In the third quarter (July to September) the profit has been positive in 0.5 million euros, following the trend of positive results generated in the previous quarter and also taking into account the stationality that characterizes the activity of the company during these months.
These results have been approved by the Board of Director’s which meeting has taken place today in Barcelona. At the same meeting, it was decided to appoint David Vila as new CEO to replace Juan Velayos, after having informed the board members his willingness to start a new career, once he has consolidated the viability of the Group. The appointment will be effective from January 1, 2012. Vila, who is the current Vice Chairman and Chief Operating Officer, has a long and extensive experience in real estate market, with different managing responsibilities during the 11 years he has been in the company, both in the area of acquisitions and sales. His ability to lead teams, tenacity in pursuit business opportunities in the market and knowledge of real estate activity in general will become the appropriate executive for this stage in which Renta Corporación must maintain its focus in increase the ordinary business” said the Chairman of the company, Luis Hernández de Cabanyes. Hernandez de Cabanyes also wanted to highlight “the important role played by Velayos in the last three years, in which the company made a dramatic change to suit it to the current market circumstances. Velayos has had a prominent role in the restructuring process and, more importantly, in building the basis that have consolidated the viability of Renta Corporación in the medium and long term. It has also been reported to the board members that Juan Velayos will continue collaborating on corporate and legal issues as an external advisor.
Referring to the results, it should be noted that the real estate market is still affected by the lengthening of the crisis, a big job destruction and a lack of confidence of investors and consumers. However, the company is fully focused on its business model of buying, transforming and selling, has acquired 16 new investments rights in 2011 (8 in Barcelona and 8 in Madrid) till September, most of them residential buildings.
The accumulated sales of the year, practically all ordinary business, have been 25.7 million euros. That means to double those ones made in the same period of 2010. In the third quarter were recorded sales of 6.1 million for the sale of one building and 40 residential units. It is a remarkable amount given the historically low activity recorded in this period. It’s also important to note the investments rights that are at 101 million, with an average amount per acquisition of approximately 3 million. Of the total investment rights, a high percentage corresponds to rights on properties owned by financial entities where the group managed with an strategy of swaping real estate units and exclusive commercialisation. In fact, business activity that has started Renta Corporation with financial entities complements its regular activities. This new business line has allowed the company to carry out several contracts with various financial entities.
The group’s net debt stands at the end of September at 191.9 million euros, decreasing in 105.6 million recorded in the same period last year, mainly due to the sale of assets to finan-cial entities.
Note to the editor: David Vila, graduate in Industrial Engineering from the Barcelona School of Industrial Engineers and PDG from IESE, joined Renta Corporación in 2000. He has a strong track record in the company as chief of acquisitions and then as Chief Operating Officer.Press release