Delek Global Real Estate (DGRE) said on Monday that its third-quarter results for the three months ending on 30 September were 'in line with management's expectations'. Net asset value rose 5% to £642.2 mln or 242 pence per share from £610.9 mln or 230 pence per share at 30 June, 2007. Barring unforeseen circumstances, the board expects to distribute maiden final dividends in April next year - in addition to the 4 pence per share distributed in October 2007.
Delek Global Real Estate (DGRE) said on Monday that its third-quarter results for the three months ending on 30 September were 'in line with management's expectations'. Net asset value rose 5% to £642.2 mln or 242 pence per share from £610.9 mln or 230 pence per share at 30 June, 2007. Barring unforeseen circumstances, the board expects to distribute maiden final dividends in April next year - in addition to the 4 pence per share distributed in October 2007.
DGRE president and chief executive, Ilik Rozanski commented, 'Our aim for the short term is to continue to maximise the returns from the existing portfolio, focusing on its inherent development potential. In the medium term, we believe the limited credit liquidity will provide acquisition opportunities that would fit DGRE's strategy at much more reasonable prices than were previously available.' Rozanski also reiterated his commitment to move DGRE to the full list as soon as practicable: 'Our advisors have been instructed to seek to affect such a move.'
Despite the recent collapse of the proposed EUR 2 bn acquisition of investment properties from Swiss retailer Jelmoli, DGRE stressed it has a high-quality property portfolio, with high residual values, let to tenants with strong credit ratings on a long-term basis, and with high rates of occupancy over a wide geographical spread. 'This means that DGRE is well positioned to withstand the current uncertainties in the global property and credit markets,' the company said in a statement.
In the last three months, DGRE has acquired property assets worth over £130 mln and with a gross area of over 165,000 m2. The company also been involved in the selling of several assets, including the City Plaza office block in the English city of Sheffield for about £24 mln. DGRE's share in City Plaza office was 45%.
DGRE said five non-core Marriott hotels in Derby, Sheffield, Solihull, Grantham and Inverness, are to be sold for £69 mln, well above their apportioned purchase value of £36 million. DGRE's share in the Marriott portfolio, acquired in April 2007, is 17%.