Orco Property Group

CR
Bloomberg : <ORC FP>
Diversified Property  /  Luxemburg  Web Site
Back to business, however still at risk
Pension matters

Pension risk, measured by the pension ratio, is not an issue for OPG, standing at 13% in FY09, up from 3% in FY08 not because of an increase in pension liabilities but because of a meltdown in OPG’s equity after large losses. The one-time gain related to the Safeguard Plan and mark-down of bond debts partially rebuilt equity in FY10 and reduced the pension ratio to c.3%. The FY12 figure remained at around 2.5%. The pension obligations arise entirely and exclusively in Germany (Orco Projektentwicklung GmbH and Viterra Baupartner GmbH acquired in FY06). At end-2012, OPG employed 968 people from 15 different nationalities across Europe, down from a peak of 2,870 in FY07 following its debt problem, non-core asset disposals (e.g. the Molcom Logistics activities in Russia in 2011) and ensuing restructuring plan with employee layoffs and the closure of c. 10 offices across Central Eastern Europe and Germany.

Target
Upside: 329%
Price (€) 0.57
Market Cap (€M) 65.3
Changes to Forecasts : 27/01/2014.