Property group Real Estate Opportunities (REO) reported a £77.1 million (€84.4 million) loss for the year ending February 28th, the group announced today.
This compares to a loss of £828 million (€928m) for the fourteen months to the end of February.
Loss per share fell to 23.1 pence from 248.2 pence for the same period.
Treasury Holdings-backed REO said the value of its Irish portfolio fell by 21.3 per cent to €585.6 million from €743.8 million in the year to the end of February.
The value of its investment properties in the Republic declined on average by 15.2 per cent from €526 million to €446 million while the value of properties under development decreased by 35.9 per cent to €139.5 million from €217.8 million.
During the same period, the group's UK property portfolio value rose by 16.4 per cent from £433.3 million to £504.6 million. REO attributed the rise in value to the progress made towards securing planning permission for its Battersea Power Station development.
The group plans to build 3,400 homes and 330,000 sq m of commercial space at the £5.5 billion development, which won UK government approval in February.
REO bought Battersea four years ago for €600 million. The first phase of the development is due to start in early 2012 and should be completed by 2016.
Valuation of Battersea Power Station has risen by 17.2 per cent since February 2010, the company said.
The overall value of REO's property portfolio at the end of February 2011 amounted to £1,004 million, down 8.5 per cent compared to the same period a year earlier when the portfolio was valued at $1,097 million.
The group’s borrowings totalled £1.73 billion and in addition there were interest and finance accruals of £67.7 million. At the end of February REO had an investment and development portfolio which it valued at £1 billion, together with cash and cash equivalents of £5.7 million, and restricted cash of £25.8 million.
REO had cash balances of £31 million as against £39 million and the company recorded property income of £34 million in the twelve months under review.
The group said its portfolio and performance continues to be affected by ongoing concerns over Ireland's banking system and sovereign debt and due to uncertainty surrounding the possible introduction of legislation relating to upward only rent provisions in existing leases.
"We have made substantial progress over the last year. The successful completion of the restructuring of the balance sheet in May 2011 and the significant progress made towards securing planning permission for Battersea Power Station represents the first, important step in determining the group’s future," said REO chairman Ray Hornsey.
"However, there remains the significant task, in a difficult trading environment, of realising or refinancing assets in order to repay the liabilities owed to Nama and other creditors," he added.
