The value of Balmoral International Land's net assets fell by 13 per cent, or €30 million, in 2010, with its Irish assets particularly hard hit.
Balmoral, which in October changed its name from Blackrock International Land following a trademark dispute with a US-based international management and investment company, said the carrying value of its investment property assets fell in value from €237.1 million at the end of 2009 to €208.8 million a year later.
The company said 2010 was a difficult year for the property market, with continuing subdued economic activity, and the 12-month period saw further “disappointing” reductions in valuations.
Irish assets account for a third of the total by value. The rate of decline slowed from 39 per cent in 2009 to 25 per cent last year, while UK assets fell in value by 3 per cent last year, compared with a 25 per cent drop in 2009.
Continental Europe asset values fell by 6 per cent last year, moderating the pace from 9 per cent in 2009.
“The continuing difficult economic conditions resulted in further reductions in property values in 2010, particularly in Ireland, although the rate of decline slowed significantly,” said chairman Carl McCann.
The company said it undertook only “essential” expenditure in 2010, and sold off two assets – an industrial facility in Dundalk and an office building in the UK – for their book value or prices higher than that level.
The sales strengthened the company’s cash position, and it reported a net balance at of €10.7 million on December 31st.
In February last year, the group bought a 50 per cent interest in the Drum Estate, Edinburgh, for a nominal sum.
Balmoral remained optimistic, saying agents had reported some signs of recovery in activity in certain market segments and regions towards the end of the year. .
“With a steadying economy and very little new construction taking place, it may not be unreasonable to anticipate that a turn in market conditions may be approaching,” the company said.
Balmoral's net debt was reduced to €180.5 million for the period, ahead of analysts' forecasts.
"The underlying trends, while still negative, are improving," Davy Stockbrokers wrote in a note. "The main concern is still the value of the Irish property assets, although the decline in the second half appears to show further improvement. Any sign of stabilisation in property values could result in a closing of the discount to net asset value."
