Immoeast Assets Suffer Q3 Losses

Austrian real estate developer Immoeast, which has half of its assets in Romania, Bulgaria, Russia and Ukraine, made a fiscal third-quarter loss as it cut the value of its properties, the company said in a statement Friday.

Rental income rose to 75.7 million euros from 52.1 million euros a year earlier. The value of the company's properties and developments fell 90.5 million euros in the quarter to 10.2 billion euros, compared with a gain of 24.8 million euros a year earlier.

Rents in Budapest, Prague and Warsaw "will substantially gain in the coming months and years, more than compensating for rising yields," chief executive Karl Petrikovics said in an interview.

Immoeast is shifting its 6 billion-euro development program away from central Europe toward growing economies in the Balkans and former Soviet Union.

The company raised 200 million euros from sales in the first nine months of its fiscal year at prices as high as 22 percent above book value. Petrikovics said it is in "advanced" negotiations to sell assets valued at 300 million euros.