Tuesday, May 15, 2012

Romania Property Fund Posts First-Quarter Loss, Shares Drop

By Andra Timu - May 15, 2012

Fondul Proprietatea SA (FP), a Romanian property fund, incurred a first-quarter loss of 1.5 million lei ($434,000), compared with a 14 million-lei profit a year earlier, according to a filing with the Bucharest Stock Exchange.

Net asset value declined to 16 billion lei at the end of March, from 16.5 billion a year earlier, and to 15.5 billion at the end of April, Fondul said in a separate bourse filing.

The fund has stakes in Romanian companies such as oil company OMV Petrom SA (SNP) and utilities Transelectrica SA (TEL) and Transgaz SA. (TGN) It was set up to compensate citizens for property confiscated under communism and started trading on the bourse in January last year.

Fondul’s shares dropped 2.9 percent and traded at 0.475 lei per shares at 11:21 a.m. in Bucharest today, valuing the company at 6.5 billion lei.

To contact the reporter on this story: Andra Timu in Bucharest at atimu@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

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