Events Having Significant Impact on Performance for Q1 2020
Legal basis: Article 17(1) of MAR - inside information
Develia S.A.’s Management Board In conjunction with the consolidated quarterly report for Q1 2020, the publication of which has been scheduled for 14 May 2020, the “the Issuer”, informs that:
The Develia S.A. Group have recognised in financial results for Q1 2020 amounts resulting from a substantial change in the EUR exchange rate and having a significant impact on the gross profit or loss within the period, i.e.:
- An increase in the fair value of investment property, the valuation of which is made in EUR and translated into PLN, in an amount of PLN 74,402,000. This amount will be disclosed in the consolidated statement of comprehensive income under “Profit/(Loss) on Investment Property”;
- An increase in the measurement of loan liabilities resulting from loans taken out in EUR for the construction of investment property in an amount of PLN 24,875,000. This amount will be disclosed in the consolidated statement of comprehensive income under “Financial expenses”.
The impact of the aforementioned change in the EUR exchange rate (as at 31 March 2020, the EUR exchange rate stood at PLN 4.5523, which meant an increase by PLN 0.2938 compared to the EUR exchange rate published on 31 December 2019, which amounted to PLN 4.2585), on the consolidated gross profit or loss of the Group for Q1 2020 totalled PLN 49,527,000 and will result in a increase in the consolidated gross profit by the said amount.
The change in the EUR exchange rate is of a non-monetary nature and has no bearing on the current position and operating activities of Develia companies.
Furthermore, the Develia S.A. Group recognised in its financial results for Q1 2020 amounts resulting from:
- Expenditure incurred on investment property in a total amount of PLN 6,364,000;
- Settlements in respect of linearisation of lease revenue in an amount of PLN 1,965,000.
The aforesaid amounts will be recognised under “Profit/(Loss) on Investment Property” and will result in a reduction in the consolidated gross profit.
The impact of the recognition of the changes referred to hereinabove on the consolidated gross profit or loss of the Group for Q1 2020 (excluding the impact of the change in the EUR exchange rate described in section I above) totalled PLN 8,329,000 and resulted in a reduction in the consolidated gross profit by the said amount.
Following a transaction under which the “Wola Center” real property in Warsaw was disposed of, a loan taken out to finance the construction of the real property was paid off and the IRS interest rate risk hedging instrument for the loan was settled. The cost of the settlement of hedging transaction amounted to PLN 14,845,000 and will be recognised under “Financial expenses”.
Develia S.A. recognised in the financial results for Q1 2020 substantial amounts having a significant impact on the financial gross profit or loss in the period, in respect of:
- Dividends received and share in profit, the total amount of which, as disclosed in the statement of comprehensive income for Q1 2020 was PLN 131,300,000.
The foregoing change has no effect on the consolidated financial statements of the Develia S.A. Group.
This information, according to the Issuer’s Management Board, constitutes inside information within the meaning of Article 17(1) of the European Parliament and of the Council (EU) No. 596/2014 of 16 April 2014 on market abuse.