Annual report 2010 - plazacenters

More documents

Recommendations

Info

Financial statements Notes to the consolidated financial statements continued Note 39 – Operating segment continued Year ended December 31, 2009 Central Eastern Europe India Total Revenues 16,045 – 16,045 Operating loss by segment (39,954) (2,012) (41,966) Share in losses of associates, net (780) Less – unallocated general and administrative expenses (7,906) Financial expenses, net (18,120) Other income, net 241 Loss before income taxes (68,531) Income taxes 3,819 Profit for the year (64,712) Purchase cost of segment (tangible and intangible) assets 91,248 18,718 109,966 Depreciation and amortization of segment assets 34,927 381 35,308 December 31, 2009 Total segment assets 629,297 151,648 780,945 Investment on the equity basis – – – Unallocated assets 278,676 1,059,621 Segment liabilities 41,858 6,156 48,014 Unallocated liabilities 436,898 484,912 Note 40 – Events after the reporting period Off-market takeover bid for EDT In March 2011, the Company announced that EPN has made an off-market takeover bid to acquire all of the outstanding units of EDT. EPN’s unconditional offer is to buy all outstanding units of EDT that EPN’s affiliate does not already own (approximately 52%), for AUD 0.078 cash per EDT unit. The total consideration, which will be paid by EPN, assuming full take up of EDT units, is approximately USD 190 million (EUR 142 million). EPN is required to send its offers to EDT unit holders within two months after the date of the announcement. EPN has not yet determined the date on which its offers will be sent. Foreign currency hedge using call options In January 2011, the Company decided to use calls options strategy (through major Israeli banks) in order to hedge its foreign currency risk (EUR-NIS) inherent in its long-term debentures Series A and Series B issued in NIS which are not hedged by other derivative instruments (e.g. cross currency IRS, forwards). As of the financial statements approval, the Company wrote EUR 150 million call options with strike prices (EUR/NIS exchange rate) between 4.74 and 5 and expiration date of March 31, 2011 and EUR 25 million call option with strike price of 5 expiring on June 30, 2011. Premium received totaled EUR 3.4 million. The Company has secured deposit in amount of EUR 10.4 million in respect of the above mentioned call options. The Company will monitor and adjust the hedging strategy, if needed by ongoing basis. The hedge is not qualified for special hedge accounting. The premium received on sale of the options is treated as finance income. Cross-currency IRS transaction in Poland Refer to note 16. 126 Plaza Centers N.V. Annual report 2010
O Br Mg Fs Ai Note 41 – Critical accounting judgments and key sources of estimation uncertainty The preparation of financial statements and application of accounting standards often involve management’s judgment and the use of estimates and assumptions deemed to be reasonable at the time they are made. However, other results may be derived with different judgments or using different assumptions or estimates, and events may occur that could require a material adjustment to the carrying amount of the asset or liability affected. Following are the accounting policies subject to such judgments and the key sources of estimation uncertainty that the Company believes could have the most significant impact on the reported results and financial position. a. Impairment of Trading Properties analysis Trading Properties are measured at the lower of cost and net realizable value. In situations where excess Trading Property balances are identified, estimates of net realizable values for the excess amounts are made. Management is responsible for determining the net realizable value of the Group’s Trading Properties. In determining net realizable value of the vast majority of Trading Properties, management utilizes the services of an independent third party recognized as a specialist in valuation of properties. The independent valuation service utilizes market prices of same or similar properties whenever such prices are available. Where necessary, the independent third party valuation service uses models employing techniques such as discounted cash flow analyses. The assumptions used in these models typically include assumptions for rental levels, residential units sale prices, cost to complete the project, developers profit on costs, financing costs and capitalization yields, utilizing observable market data, where available. On an annual basis, the Company reviews the valuation methodologies utilized by the independent third-party valuation service for each property. At December 31, 2010, the majority of the properties were valued by the independent third-party valuation service. Management made adjustments to the valued received to reflect the net realizable value by neutralizing the developers profit on costs from the valuations. Determining net realizable value is inherently subjective as it requires estimates of future events, many of which are difficult to predict. Actual results could be significantly different than our estimates and could have a material effect on our financial results. This evaluation becomes increasingly difficult as it relates to estimates and assumptions for projects in the preliminary stage of development in addition to current economic uncertainty and the lack of transactions in the real estate market in the CEE and India for same or similar properties. Trading Properties accumulated write-downs from cost as of December 31, 2010, amounted to EUR 40.6 million or 5% of gross Trading Properties balance. Plaza Centers N.V. Annual report 2010127
Page 1 and 2:
Plaza Centers Annual report 2010 Su
Page 3 and 4:
Overview Who we are O Br Mg Fs Ai W
Page 5 and 6:
O Br Mg Fs Ai Operational highlight
Page 7 and 8:
Overview Our s trategy O Br Mg Fs A
Page 9 and 10:
O Br Mg Fs Ai Koregaon Park Plaza (
Page 11 and 12:
O Br Mg Fs Ai • As a result of th
Page 13 and 14:
O Br Mg Fs Ai Plaza expects to comp
Page 15 and 16:
Overview Our portfolio at a glance
Page 17 and 18:
O Br Mg Fs Ai Suwałki Plaza: opera
Page 19 and 20:
O Br Mg Fs Ai Belgrade Plaza Serbia
Page 21 and 22:
O Br Mg Fs Ai Koregaon Park Plaza:
Page 23 and 24:
Overview Current devel opments cont
Page 25 and 26:
O Br Mg Fs Ai Timisoara Plaza Roman
Page 27 and 28:
Overview Current de velopments cont
Page 29 and 30:
O Br Mg Fs Ai Liberec Plaza Czech R
Page 31 and 32:
O Br Mg Fs Ai Bulgaria Sofia Plaza
Page 33 and 34:
O Br Mg Fs Ai I am pleased to repor
Page 35 and 36:
O Br Mg Fs Ai The combination of Pl
Page 37 and 38:
O Br Mg Fs Ai Over the course of th
Page 39 and 40:
O Br Mg Fs Ai Plaza’s effective o
Page 41 and 42:
O Br Mg Fs Ai In addition, Plaza ha
Page 43 and 44:
O Br Mg Fs Ai Among our first actio
Page 45 and 46:
O Br Mg Fs Ai increased rental reve
Page 47 and 48:
Management and governance Managemen
Page 49 and 50:
O Br Mg Fs Ai Uzi Eli (35), LLB, At
Page 51 and 52:
O Br Mg Fs Ai Substantial sharehold
Page 53 and 54:
Management and governance Corporate
Page 55 and 56:
O Br Mg Fs Ai • Best Practice Pro
Page 57 and 58:
O Br Mg Fs Ai Among other matters,
Page 59 and 60:
Management and governance Risk mana
Page 61 and 62:
O Br Mg Fs Ai • Real estate valua
Page 63 and 64:
O Br Mg Fs Ai II) Four components o
Page 65 and 66:
O Br Mg Fs Ai c) The Audit Committe
Page 67 and 68:
O Br Mg Fs Ai Service arrangements
Page 69 and 70:
Financial statements Independent au
Page 71 and 72:
Financial statements Consolidated i
Page 73 and 74:
Financial statements Consolidated s
Page 75 and 76:
O Br Mg Fs Ai For the For the year
Page 77 and 78: O Br Mg Fs Ai Estimates and underly
Page 79 and 80: O Br Mg Fs Ai Note 3 - Summary of s
Page 81 and 82: O Br Mg Fs Ai Financial assets and
Page 83 and 84: O Br Mg Fs Ai f. Normal operating c
Page 85 and 86: O Br Mg Fs Ai i) Rental income The
Page 87 and 88: O Br Mg Fs Ai 2. Share-based paymen
Page 89 and 90: O Br Mg Fs Ai The current lack of c
Page 91 and 92: O Br Mg Fs Ai Note 7 - Available-fo
Page 93 and 94: O Br Mg Fs Ai Below is a summary ta
Page 95 and 96: O Br Mg Fs Ai Major additions/dispo
Page 97 and 98: O Br Mg Fs Ai Note 16 - Derivatives
Page 99 and 100: O Br Mg Fs Ai December 31, December
Page 101 and 102: O Br Mg Fs Ai Note 21 - Other liabi
Page 103 and 104: O Br Mg Fs Ai As of December 31, 20
Page 105 and 106: O Br Mg Fs Ai Contractual life Gran
Page 107 and 108: O Br Mg Fs Ai Note 28 - Revenues Fo
Page 109 and 110: O Br Mg Fs Ai Note 32 - Net finance
Page 111 and 112: O Br Mg Fs Ai b. Under the particip
Page 113 and 114: O Br Mg Fs Ai The Group limits its
Page 115 and 116: O Br Mg Fs Ai Liquidity risk The fo
Page 117 and 118: O Br Mg Fs Ai Interest rate risk Pr
Page 119 and 120: O Br Mg Fs Ai Note 36 - Contingent
Page 121 and 122: O Br Mg Fs Ai Certain loan agreeme
Page 123 and 124: O Br Mg Fs Ai The net proceeds of t
Page 125 and 126: O Br Mg Fs Ai Additional transactio
Page 127: O Br Mg Fs Ai Note 39 - Operating s
Page 131 and 132: O Br Mg Fs Ai therefore fail to imp
Page 133 and 134: O Br Mg Fs Ai Cyprus - Russia Activ
Page 135 and 136: O Br Mg Fs Ai The Dutch Antilles Ac
Page 137 and 138: O Br Mg Fs Ai United States Activit
Page 139 and 140: Additional information Advisors O B
show all

Annual report 2010 - plazacenters

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?