The listed investment fund that is 35 per cent owned by property dealers Mr John Ronan and Mr Richard Barrett yesterday announced that it had pre-tax profits of almost £31.5 million sterling (€48 million) last year.
Real Estate Opportunities (REO) said total pre-tax income for 2003 was £31.46 million, compared with a loss of £104.745 million in 2002. The Dublin and London-listed vehicle is 35 per cent-owned by Mr Ronan and Mr Barrett's company, Treasury Holdings, and 10 per cent-owed by property developer Mr Noel Smyth.
REO said that total assets less current liabilities at the year end had risen 15.3 per cent to £575 million from £498.7 million.
The company's assets are mainly made up of commercial property portfolios in Ireland and the UK.
At the year end, its Irish property portfolio was worth €506 million, or £382.85 million at yesterday's exchange rate. REO's preliminary announcement yesterday gave no indication of the exchange rate used to compare the values of its Irish and British interests.
Its UK property portfolio was worth £107.5 million following disposals of £20 million.
It has agreed the sale of several UK properties for £36 million, a 14 per cent premium to their year-end value. The deal will reduce the value of its UK property portfolio to £73.2 million. The company sold most of its bonds during the year.
The net asset value of its London-quoted ordinary shares increased by 33 per cent to 48.3p from 36.3p. Its earnings per share were 11p, as against a loss of 43.8p in 2002.
REO's Irish property company, Castle Market Holdings (CMH), borrowed €229.4 million during the year. It used part of this to repay €154.2 million of CMH's existing debts.
The remaining €75 million will be used for further development and investment.
Another €34.5 million, secured on Dublin property let to Bank of Ireland, was also drawn down during the year. CMH had bank debts of €351.8 million on December 31st.
REO intends to sue former partner Aberdeen Asset Managers Jersey Ltd for losses sustained on an investment portfolio.
Lord Browne-Wilkinson, an arbitrator and former judge of the House of Lords, has agreed to chair an independent board committee established to work on that case.
