EDINBURGH - Bloomberg

Immoeast, Austria's largest property developer, said annual profit declined as valuation gains on its properties in eastern and central Europe increased at a slower rate.
Net income for the 12 months ended April 30 fell to 168 million euros ($249 million), or 21 cents a share, from 528 million euros, or 1.02 euros, a year earlier, the Vienna-based company said in a statement Friday. Revenue rose 54 percent to 297 million euros.
“Given the corporation's financing power and its planned expansion strategy, further growth corresponding with the growth rates in the region can be expected,” the company said.
Immoeast and Immofinanz, which owns 53 percent of Immoeast, may merge later this year to create a company with 15 billion euros of assets, Karl Petrikovics, chief executive of both companies, said last month. The two companies bought Constantia Privatbank's real estate unit for 440 million euros last month to enable them to manage their own assets.
Immoeast shares have lost 23 percent in six months, cutting the company's market value to 3.7 billion euros. Net asset value, the measure of performance used in Europe
by analysts and investors, rose 1.4 percent to 10.27 euros a share at April 30 from three months earlier. Revaluation gains slowed to 11 million euros from 493 million euros a year earlier.
Rental income increased to 221 million euros in fiscal 2008 from 146 million euros, while operating profit slumped to 15 million euros from 541 million euros.