March 26, 2009 / 8:28 AM / 9 years ago

Spazio Investment swings to FY loss, scraps H2 dividend

* 2008 pretax loss 8.6 mln euros vs profit 44.9 mln euros

* Says outlook for Italian realty sector uncertain

* Sees further fall in asset values in 2009

* In talks to sell 80 mln euros of assets in H1

March 26 (Reuters) - Spazio Investment NV SPNV.L, an Italian property fund managed by Pirelli & C Real Estate PECI.MI, swung to a full-year pretax loss mainly due to a fall in both the asset values and the fair value of financial instruments.

Spazio also scrapped final dividend for the second half.

The company expects a further fall in asset values in 2009 but a reasonable level of interest from local investors in its portfolio is expected to continue to provide some degree of protection, it said in a statement on Thursday.

Though the fall in commercial property values experienced to date in Italy is not as marked as in other European markets, the outlook for the Italian real estate sector and asset values remains uncertain, the company said.

Despite the uncertainty, it is currently in full compliance with all of its banking covenants, Spazio said.

The company’s occupancy levels remain stable at around 96 percent, it said.

Spazio said it was in advanced talks to complete assets sales of about 80 million euros in the first half of 2009.

The company’s asset values for the year fell 11.7 million euros ($15.91 million), while the fair value of financial instruments decreased 12.2 million euros.

Spazio’s adjusted net asset value dropped 13.8 percent to 13.6 euros as of Dec. 31, compared with that of June 30, 2008.

London-listed Spazio posted a pretax loss of 8.6 million euros for the year to Dec. 31, compared with a pretax profit of 44.9 million euros a year earlier.

Rental income remained flat at 42.8 million euros.

Shares of the company closed at 2.4875 pence on Wednesday on the London Stock Exchange.

$1=.7355 Euro Reporting by Srikanth Srinivasa in Bangalore

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