FairPlay Properties REIT has sold apartments for BGN 42.3 mln from the beginning of the year

The Company realized BGN 4.6 mln profit for dividend as at the end of the third quarter
Sofia, 21 October2008
   FairPlay Properties REIT realized near BGN 4.6mln profit for distribution through the first 9 month of 2008. These are the results from the published today statements of the Company for the third quarter of the year. From January till present, the Fund has concluded Sales Agreements for 191 apartments, at total value BGN 42.3 mln with 15 160 sq. m. unfolded built-up area. The transactions are with 13 apartments over the same period of 2007, and the total unfolded built-up area grows with 15 %. The sales increase not only from the village “Santa Marina”, but from the holiday village “St. Ivan Rilski”, in the town of Bansko, as well. In the mountain village have been sold twice more apartments, at higher prices than the previous year.
   The net revenues from sales are close to BGN 22.8 mln, and the net profit is over BGN 4.5 mln. In comparison with the same period of 2007, these indicators reports lower values, but this is a result of the specific legislation requirements, that slows the accounting of the revenues, so this is not a result of decrease of the sales rate
   “For a certain period, the accounting results from sales of properties, which are in a process of construction, are not defined from the new transactions, but from the cycle of the construction works. Through the first 9 months of 2008 for an example have been concluded more Sales Agreements, than the same period in 2007, but as a result, through the third quarter of 2007 were offered only completed apartments. The reason that we sell more apartments, in buildings in early stage of construction, are a result of the dimension of Stage III of the Holiday village “Santa Marina” (its dimension exceeds the one of the first two stages altogether). Therefore, this is not a result of slowing down the construction works. I can to say again that the preliminary agreements for sales of apartments will be recorded for an accounting period after the completion of the payments for them and when the construction is fully completed”, explained Mr. Manu Moravenov, CEO of FairPlay Properties REIT.
   These are the reasons why the Fund renewed its forecast for year profit for distribution – the expectations are the profit to reach BGN 7 mln. As at 30 September 2008, FairPlay Properties REIT still has not recorder as revenue 104 already concluded preliminary agreements for sales of apartments, that are in a process of construction or for which the payments are not completed. These agreements guarantee additional future revenues at the amount of BGN 25, 7 mln. Substantial part of this amount will be transferred for 2009.

   FairPlay Properties REIT is the biggest in assets Company for securitization of real estate (without agricultural lands) with 12,3% market share and had fourth place towards this index from all the REITs invested in the real estates, listed on the BSE ( according the statistics of Financial Supervision Commission for the end of June, 2008).
FairPlay Properties has an award from the Investor‘s Association for “The Best Corporate Governance of REITs 2006”.

   FairPlay Properties REIT is listed on the Bulgarian Stock Exchange – Sofia on 17 February 2006. The main shareholder in the Company is FairPlay International JSC with 67 % quota in the capital. The rest of the shareholders are institutional investors (10 Pension funds, 16 Mutual funds, 4 Investment companies) and over 260 legal and physical entities, private investors.

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Snezhana Yotinska
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