Losses widen at Blackrock

Blackrock International said today its property assets declined by 28.4 per cent last year from €340.3 million to €243.8 million.

Announcing its 2009 results this morning, the property group said it has agreed the sale of a industrial facility at the Xerox Technology Park, Dundalk to pharmaceutical firm Galen.

Loss before tax widened to €105.39 million, from €78.86 million in the prior year. Operating loss fell to €70 million for €55.9 million during the 12-month period under review.

The value of Blackrock's Irish property investments declined from €177million to €101.2 million over the year while the value of its British investments fell to €66.6 million from €75.9 million.

Blackrock said the change in value of itsUK property assets included an increase of €5.6 million arising from the strengthening of sterling against the euro during the year. However, this was offset by a net €6.6 million loss arising on the translation of sterling loans and cash and other movements.

Gross rental income for group in fiscal 2009 was €16.9 million as against €17.9 million a year earlier while property outgoings were €3.4 million compared to €4.1 million in 2008.

Net rental income was down slightly from €13.l7 million in 2008 to €13.6 million last year. Operating income rose from €1.7 million to €1.9 million over the 12-month period under review.

Net assets per share at the end of December 2009 were €0.1032 compared to €0.2571 at the previous year end.

Net finance expense was €14 million in 2009 which comprised interest and charges incurred on bank borrowings of €7.7 million and a loss on translation of sterling loans and financial assets of €6.6 million. This was offset by interest received on cash deposits and loans to joint ventures of €0.3 million.

“Despite the difficulties in the property sector and the disappointing outcome for 2009, Blackrock’s substantial portfolio of attractive and well diversified properties has the potential to show significant value uplifts from today’s levels when the benefits of the anticipated economic recovery take effect," said Blackrock International chairman Carl McCann.

In a separate statement, Blackrock confirmed it is to sell its facility at Xerox Technology Park in Dundalk to Galen, a subsidiary of pharmaceutical giant Warner Chilcott, for €2.9 million.