Austrian property group CA Immo's profit drops as Germany slows
VIENNA Nov 20 (Reuters) - CA Immobilien Anlagen's net profit fell 22 percent in the third quarter as economic momentum slowed in Germany, its most important market, the Austrian property group said on Tuesday.
The prolonged euro zone crisis meant that German transaction volumes and the office rental market were subdued, said CA Immobilien, whose other main markets are eastern Europe and Austria.
"Germany is maintaining its status as a stable investment market," the company said. "Despite this, however, the third-quarter transaction volume for commercial real estate on the German investment market was down 10 percent."
The Austrian market picked up, with real estate prices rising, especially in Vienna, but eastern Europe suffered a downturn because of limited property supply in Poland and the Czech Republic and weak economies and political instability elsewhere.
Consolidated net income was 12.6 million euros ($16.1 million) in the June-September quarter, as sales of trading properties fell 84 percent and sales of long-term properties fell 86 percent.
Rental income rose 9 percent to 71.4 million euros.
CA Immo said raising its profitability and equity ratio would remain its top priority, with the focus on its existing core regions and office property. ($1 = 0.7811 euros) (Reporting by Georgina Prodhan; Editing by David Goodman)