Prodea says investment prospects promising as it shakes off profit drop

Greece’s largest real estate investment company (REIC) Prodea said that investment prospects are promising as the country’s economy enters a revival phase.

In presenting the company’s first half earnings, CEO Aris Karytinos highlighted that the company is pushing ahead with green investments despite the drop off in profits.

“After a long economic and an unprecedented epidemiological crisis, due to Covid-19, the Greek economy has entered a phase of revival and the prospects for new investments are promising. Prodea continues its investment plan which mainly focuses on bioclimatic office buildings that adopt the principles of Environmental and Social Governance and on logistics with energy efficient characteristics in excess of the minimum regulatory requirements,” he said in a statement

“Following the successful issuance of the first green bond in real estate in Greece in July, Prodea has the necessary liquidity to investment in sustainable real estate,” he added,

Earnings before interest, taxes, depreciation, amortization, fair value adjustment of property and nonrecurring items (adjusted EBITDA) amounted to 47.4 million euros, versus 50.5 million euros in the same period a year earlier. Funds from Operations (FFO) reached 30.4 million euros in the six months, down from 35.6 million euros last year.

The difference in profit is mainly a result of the sale of investment properties in 2020, the company said.

Management continuously evaluates the optimization of the performance of the group’s real estate portfolio, including a possible sale if the market conditions are appropriate, as the company’s strategy is to churn the composition of its investment portfolio towards new sectors, such as logistics, and more sustainable real estate, it added.