The net profit of Finep Holding SE, a leading Czech property developer, fell by half year-on-year to CZK 504 million last year, while revenue fell by 6.5 percent to CZK 1.29 billion. Sales revenue fell by almost three-quarters to CZK 87 million compared to 2021. This is according to the annual report published in the Collection of Deeds. The result mainly reflected projects completed in 2022, proceeds from asset sales and collection of dividend income, the company said.
The company issued a press release earlier this year in which it assessed the past year as a difficult one. Supply chains disrupted by the covid-19 pandemic and the war in Ukraine, as well as expensive financing and energy, are driving up costs and pushing up end prices, it said. At the same time, Finep said high interest rates are reducing the availability of mortgages and, along with inflation, the purchasing power of consumers.
According to company spokesman Tomáš Heček, the results published in the annual report are misleading without further detailed analysis. “Residential construction is project-based, and enters the economic result at other times for owner-occupied, rental and cooperative housing. As the mix of these three forms of ownership has changed significantly in recent years, the time series of statutory results does not make sense,” Hečko told the Czech News Agency.
In 2022, Finep has started selling cooperative flats from the 10th and 11th stages of the Malý Háj project in Prague’s Měcholupy district, flats for personal ownership from the first stage of Nad Krocínkou in Prosek and from the 15th stage of the Britská čtvrt’ project in Stodůlky, as well as investment units in Prosek Park in Střížkov. According to the annual report, the company developed its business activities in collective real estate investment through the Maltese sub-funds Finep Prosek Fund, Finep Harfa Fund and Finep Barrandov Fund. At the beginning of the year, Finep merged its assets with the dissolving company FH Invest SE.
The developer plans to start selling apartments in the Britská čtvrt’ and Malý Háj districts this year. In the newly completed Prague project Kaskády Barrandov, the apartments are completely sold out. Sales are continuing in U Šárky in Prague and Rezidence u Vltavy in Kralupy nad Vltavou.
The roots of the Czech developer Finep date back to 1995, when it started building several thousand flats. In 2007, it was registered under the name Finep Holding SE, and now, together with the Czech Republic, it also operates in Slovakia and Mongolia. Most of the company’s portfolio consists of residential properties, but it also owns office projects with some retail space. The holding includes the interior design company ProBydlení. Previously, the real estate agency Maxima Reality also fell under Finep, but in 2019 it was handed over to the direct ownership of its former sales director Vladimír Zuzák.
Source: Finep Holding SE and CTK
