FINANCIAL RESULTS

In 2009 GTC S.A. achieved growth in its operating activity, despite adverse market conditions (deterioration of the real estate market, difficulty in obtaining financing, a decline in market rents and an increase in investment yields). This was possible thanks to the consistent strategy introduced at the beginning of 2008, which included increased financial liquidity, a cautious approach to purchase of new sites, reduced involvement in residential projects, and conversion of some projects from residential to commercial.

Rental income in 2009 rose 33.6% year-on-year, to EUR 96.2 million. Such strong growth in rental income reflected the quality of the commercial properties of the Company, which achieved good results despite unfavourable economic conditions. Gross profit on operating activity rose to EUR 85.2 million (+36% over 2008).

The margin on rental operations rose to 77% (from 74% in 2008), mainly due to higher occupancy in projects completed in 2009.

Revenue from sale of residential units also rose, to EUR 60.1 million (up 42% from EUR 42.5 million the year before). The gross margin on apartment sales held steady at about 20%.

In 2009 GTC focussed on maintaining a high level of financial liquidity and a safe level of debt, which are particularly important during an economic slump. This was achieved through strict cost controls, a prudent approach to incurring new obligations, and implementing only projects for which outside financing and the target level of pre-letting were in place, among other measures. As a result, the Company maintained a high cash position, a safe level of financial leverage, and a favourable debt structure under which 57% of debt matures in 2015 or later.

Unfavourable trends on the rental market for commercial real estate and the expansion of yields in 2009 (by about 100 basis points) resulted in a revaluation of GTC’s property portfolio by EUR 172 million. In effect, a loss was recognised as of the end of the year, attributable to the majority shareholders, in the amount of EUR 128 million. However, the loss has no impact on the Company’s operating activity or its liquidity.

Selected consolidated financial data of GTC (million EUR)