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. Last Updated: 07/27/2016

Immoeast Profits Jump on Rental

Immoeast, the largest Austrian real estate developer, said Friday that fiscal first-quarter earnings more than doubled as rental income and property values increased.

Net income for the three months ended July 31 jumped to 98.1 million euros ($136 million) from 35.8 million euros a year earlier, the Vienna-based company said in a statement. Net asset value rose 2.9 percent in first quarter to 10.50 euros per share.

Immoeast is shifting the focus of its 6 billion euro development program away from Central Europe to the Balkans and countries in the former Soviet Union to get better returns.

The company has "excellent prospects for growth," CEO Karl Petrikovics said in the statement. "Immoeast has been able to deploy a number of measures which will strengthen its further development," he said.

Revenue at Immoeast, Europe's sixth-largest real estate company by market value, advanced 72 percent to 62.3 million euros, while operating profit increased to 93.1 million euros from 67.9 million euros. The value of real estate assets more than tripled to 10.1 billion euros at the end July and the company owned 5.4 million square meters of space available for rent, up from 2.3 million square meters a year earlier.

"The results of the first quarter have fully met all of our expectations," Immoeast general director Karl Petrikovics said in a statement on the company's web site.

Bloomberg, MT