The decrease of interest expenses is a major focus within our long term business plan. As of March 2011 these amount to EUR 20.4 Million instead of EUR 25.0 Million in 2010). These EUR 20.4 Million include interests on bonds account for EUR 8.8 Million (EUR 10.4 Million in 2010) out of which:
EUR 6.8 Million on the Company bonds restructured by the Safeguard plan (EUR 8.4 Million in 2010), including EUR 1.1 million of interests capitalized on projects (EUR 0.3 million in 2010).
EUR 2.0 Million on the Orco Germany bond (EUR 2.0 Million in 2010).
The interest expenses are increasing the nominal of each bond and are payable on the 30 th of April every year until 2020 as per the repayment schedule available in the Safeguard plan.
The net interest expenses over Q1 2011 amount to EUR 19.1 Million to be compared to a total Adjusted EBITDA of EUR 5.6 Million:
Bank loan interests on rental properties amount to EUR 7.6 Million to be compared to an adjusted EBITDA contribution of EUR 6.9 Million.
Bank loan interests on hospitality properties amount to EUR 1.9 Million to be compared to an adjusted EBITDA contribution of EUR 1.0 Million.
On hold and finalized projects Bank loan interests at EUR 0.1 Million
Interest income amounts to EUR 1.3 Million.
The financial result shows a loss of EUR 6.6 Million compared to a loss of EUR 25.7 Million over the first three months of 2010.
Other net financial results essentially relate to the change in the fair value of the interests rate swaps (EUR +7.9 million) and to the change in fair value of the derivative instruments on the OG bonds (EUR -1.2 million).
