Annual Report 2012 - ORCO Germany

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3.3.2. Development Segment
Revenues are mainly related to the sale accomplished on the Sky Office building
The development revenues amounted to EUR 124.7 million in 2012 in comparison to EUR 8.2 million in 2011.
In 2012 the development portfolio revenues primarily included rents and service charge income from the project
Sky Office in Düsseldorf representing revenues of EUR 4.3 million and additional sales revenues of EUR 117.3
million. The Sky Office building was sold on 17 th of October 2012 with a final transfer executed on 30 th of
November 2012. Additional revenues of EUR 1.7 million resulted from transfers executed on plots of land sold on
the Hochwald project. The Company expects that all remaining sales and transfers to be processed to the
purchasers with regard to the Hochwald project will be accomplished until end of Q.1 2013 positively impacting
cash balances since no loan is applicable anymore.
3.4. Other operating income
In 2012 the Company recorded other operating income of EUR 4.2 million (in 2011 EUR 0.7 million) mainly
composed of releases of accruals (+EUR 1.6 million) and a dissolution of property acquisition taxes from previous
years (+EUR 0.2 million) in single entities dealing with guarantee items linked to former development projects.
Furthermore one-off effects like a reimbursement of VAT taxes for previous periods out of the Sky Office sale
(+EUR 1.1 million), cancellations of write-offs accounted for in past periods (+EUR 0.3 million) and a
reimbursement of VAT dedicated to former periods in the Luxembourg based holding company inclined the other
operating income.
3.5. Cost of goods sold
In 2012 costs of goods reflected the counterpart to the development revenues realized. Costs of goods sold
(-EUR 118.5 million) inhabited decreases in inventories linked to the achieved development sales on Sky Office
(-EUR 117.3 million) and processed sales on the Hochwald project (-EUR 1.2 million).
3.6. Net result from Fair value adjustments on Investment properties
In 2012, the Company noted a net result from fair value adjustments on investment properties of +EUR 18.1
million exceeding YoY the pre-year's net result of +EUR 13.1 million.
Fair values gains related to ORCO-GSG properties (EUR 15.2 million) including Wupperstrasse were up primarily
driven by a better performance recognized and under consideration of residential redevelopment potentials.
The main contributors to the recorded total fair value gains (+21.1 million) were Gebauer Höfe (+EUR 2.9 million)
followed by the ORCO-GSG properties Zossener Strasse (+EUR 1.5 million), Helmholtz Strasse (+EUR 1.5
million), Reichenberger Strasse (+EUR 1.4 million), Köpenicker Strasse 154a-157 (+EUR 1.4 million),
Schlesische Strasse (+EUR 1.3 million), Döbelner Strasse (+EUR 1.1 million) and Gneisenau Strasse 66-67
(+EUR 1.0 million).
Successfully contracted sales above respective fair values with final transfers to be processed after the reporting
period like Kurfürstenstrasse 11 (+EUR 0.4 million) and Skalitzerstrasse 127-128 (+EUR 0.4 million) contributed
to this positive result.
Annual Management Report – ORCO GERMANY
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