GTC shares nosedived on the Warsaw Stock Exchange this morning, following the developer’s release of worse-than-expected results for the second quarter of 2014. GTC’s net loss fell to €62.7m in Q2, far worse than market estimates of just €15.4m. The company also reported an operational loss of €47.8m, though analysts feared no worse than €7.6m.
“The company’s reports continue to show serious write-downs on its projects in Romania, Croatia and Hungary and, recently, losses in its land and residential portfolio,” said Małgorzata Klok of the UniCredit CAIB brokerage house.
Despite the losses, GTC claims it will stick to its acquisition plan it unveiled at the beginning of the year. Erez Boniel, a company board member, said that due dilligence is already underway to expand the portfolio with new assets located in Belgrade, Budapest and Bucharest. “When we look at the number of products available on the Polish market, we see a significant disproportion compared with what’s available abroad,” said Boniel, adding that the company is targeting projects with stable income as well as opportunistic projects.
