LONDON (ShareCast) - Property owner and developer Ablon said demand for new office, retail and residential developments remains strong in central and eastern Europe, despite the recent economic downturn.

Gross rental income in the first half of 2008 rose 63.8% to €8.44m from €5.15m a year earlier.

The company slipped into the red, however, registering a pre-tax loss of €14.3m versus a profit of €22.7m in the first half of last year, after taking a €23.1m hit on the adjustment in value of its property portfolio; 2007’s figures benefited from a €21.3m uplift in the value of investment property.

Net asset value per share eased to £3.53 (€4.41) from £3.66 (€4.65), primarily due, the company said, to a change in the assumptions that were used in the property appraisals. Independent valuation firm King Sturge reduced their estimate of latent development profits by 16% to €140.4m through rising costs and higher exit yields as well as time discount rates.

The loan to value ratio rose during the six month period to 33% from 31% at the end of 2007.

As previously announced, the board will not be proposing the payment of dividends in 2008, but will reconsider this policy next year.

• News Channel