Orco Property, a real estate developer mainly in central and eastern Europe, said profit rose 27% after buying Viterra Development in Germany.
Net income for the nine months ended September 30 increased to €22.92 million ($29.6 million), or €2.73 per share, from €17.98 million, or €2.63, a year ago, Orco Property Group SA said in a statement on its Web site. Profit was expected to more than double, according to the median estimate of five analysts. Orco revised down its sales forecast for 2006 to €180 million from €200 million because of unsold units, it said. The sales backlog more than doubled during the third quarter, to €203 million, the company said.
Orco bought Viterra in June to move into Germany after focusing on central and eastern Europe since it entered the region in 1991 to benefit from rising property prices after the fall of communism. Projects at the company include the construction of the new headquarters for Radio Free Europe in Prague and a skyscraper in Warsaw designed by Daniel Libeskind.
Sales more than doubled to €79.6 million, the company, based in Luxembourg, said on its Web site. The earnings are according to International Financial Reporting Standards. Shares of Orco have gained 52% in Prague this year. They fell 1.5% to 2,755 koruna yesterday. (Bloomberg)