REG - Dolphin Capital Inv - Final Results <Origin Href="QuoteRef">DOLC.L</Origin> - Part 3
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determine whether there
is any indication of impairment. If any such indication exists, the assets' recoverable amount is estimated. The
recoverable amount is the greater of the net selling price and value in use of an asset. In assessing value in use of an
asset, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset.
An impairment loss is recognised whenever the carrying amount of an asset or its cash-generating unit exceeds its
recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of
cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to cash-generating units
and then, to reduce the carrying amount of the other assets in the unit on a pro rata basis.
5.22 Revenue recognition
Revenue comprises the invoiced amount for the sale of goods and services net of value added tax, rebates and discounts.
Revenues earned by the Group are recognised on the following bases:
Income from land and buildings under development
The Group applies IAS 18 'Revenue' for income from land and buildings under development, according to which revenue and the
related costs are recognised in profit or loss when the building has been completed and delivered and all associated risks
have been transferred to the buyer.
Construction contracts
Where the outcome of a construction contract can be estimated reliably, revenue and costs are recognised by reference to
the stage of completion of the contract activity at the statement of financial position date, as measured by the proportion
that contract costs incurred for work performed to date compared to the estimated total contract costs, except where this
would not be representative of the stage of completion. Variations in contract work, claims and incentive payments are
included to the extent that they have been agreed with the customer.
Where the outcome of a construction contract cannot be estimated reliably, contract revenue is recognised to the extent of
contract costs incurred that it is probable they will be recoverable. Contract costs are recognised as expenses in the
period in which they are incurred. When it is probable that total contract costs will exceed total contract revenue, the
expected loss is recognised as an expense immediately.
5.23 Finance income and costs
Finance income comprises interest income on funds invested, dividend income and gains on the disposal of and increase in
the fair value of financial assets at fair value through profit or loss. Interest income is recognised as it accrues in
profit or loss, using the effective interest method.
Finance costs comprise interest expense on borrowings, unwinding of the discount on provisions and losses on the disposal
of and reduction in the fair value of financial assets at fair value through profit or loss.
The interest expense component of finance lease payments is recognised in profit or loss using the effective interest
method.
5.24 Foreign currency translation
Transactions in foreign currencies are translated to the respective functional currencies of Group entities at exchange
rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign currencies at the reporting
date are retranslated to the functional currency at the exchange rate at that date. The foreign currency gain or loss on
monetary items is the difference between amortised cost in the functional currency at the beginning of the period, adjusted
for effective interest and payments during the period, and the amortised cost in foreign currency translated at the
exchange rate at the end of the period. Non-monetary assets and liabilities denominated in foreign currencies that are
measured at fair value are retranslated to the functional currency at the exchange rate at the date that the fair value was
determined. Foreign currency differences arising on retranslation are recognised in profit or loss.
5.25 Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on acquisition, are
translated to euro at exchange rates at the reporting date. The income and expenses of foreign operations, excluding
foreign operations in hyperinflationary economies, are translated to euro at exchange rates at the dates of the
transactions.
The income and expenses of foreign operations in hyperinflationary economies are translated to euro at the exchange rate at
the reporting date. Prior to translating the financial statements of foreign operations in hyperinflationary economies,
their financial statements for the current period are restated to account for changes in the general purchasing power of
the local currency. The restatement is based on relevant price indices at the reporting date.
Foreign currency differences are recognised directly in equity in the foreign currency translation reserve. When a foreign
operation is disposed of, in part or in full, the relevant amount in the foreign currency translation reserve is
transferred to profit or loss.
5.26 Segment reporting
A segment is a distinguishable component of the Group that is engaged either in providing products or services (business
segment), or in providing products or services within a particular economic environment (geographical segment), which is
subject to risks and rewards that are different from those of other segments. Segment results that are reported to Group's
chief operating decision maker include items directly attributable to a segment as well as those that can be allocated on a
reasonable basis.
5.27 Earnings per share
The Group presents basic and diluted (if applicable) earnings per share ('EPS') data for its shares. Basic EPS is
calculated by dividing the profit or loss attributable to shareholders of the Company by the weighted average number of
shares outstanding during the period. Diluted EPS is determined by adjusting the profit or loss attributable to
shareholders and the weighted average number of shares outstanding for the effects of all dilutive potential shares.
5.28 NAV per share
The Group presents NAV per share by dividing the total equity attributable to owners of the Company by the number of shares
outstanding as at the statement of financial position date.
5.29 Income tax
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss, except to the
extent that it relates to items recognised directly in equity, in which case it is recognised in equity.
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially
enacted at the statement of financial position date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the statement of financial position method, providing for temporary differences between
the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for the following temporary differences: the initial recognition of assets or liabilities in
a transaction that is not a business combination and that affects neither accounting nor taxable profit, and differences
relating to investments in subsidiaries and jointly controlled entities to the extent that it is probable that they will
not reverse in the foreseeable future. In addition, deferred tax is not recognised for taxable temporary differences
arising on the initial recognition of goodwill. Deferred tax is measured at the tax rates that are expected to be applied
to the temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the
reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current
tax liabilities and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or
on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets
and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences to the extent
that it is probable that future taxable profits will be available against which the temporary difference can be utilised.
Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that
the related tax benefit will be realised.
In determining the amount of current and deferred tax, the Group takes into account the impact of uncertain tax positions
and whether additional taxes and interest may be due. This assessment relies on estimates and assumptions and may involve
a series of judgements about future events. New information may become available that causes the Group to change its
judgement regarding the adequacy of existing tax liabilities; such changes to the tax liabilities will impact tax expense
in the period that such a determination is made.
5.30 Government grants
Government grants are recognised when there is reasonable assurance that the Group will comply with the conditions
attaching to them and that the grants will be received. Government grants related to non-current assets are recognised as
deferred income that is recognised in profit or loss on a systematic basis over the useful life of the asset. Government
grants that relate to expenses are recognised in profit or loss as revenue.
5.31 Comparatives
Where necessary, comparative figures have been adjusted to conform to changes in presentation in the current year.
6. Segment reporting
The Group has one operation, investing in real estate, and three reportable segments as shown below, which represent the
geographical regions in which the Group operates.
Americas1 E'000 South-East Europe2 Other3E'000 Reportable segment totals E'000 Adjustments4 Consolidatedtotals E'000
E'000 E'000
31 December 2014
Investment property 120,285 331,595 - 451,880 - 451,880
Property, plant and equipment 75,996 100,769 - 176,765 - 176,765
Trading properties 1,837 50,486 - 52,323 - 52,323
Equity accounted investees - 231,996 2,227 234,223 - 234,223
Available-for-sale financial assets 2,201 - - 2,201 - 2,201
Cash and cash equivalents 20,514 7,662 2,802 30,978 - 30,978
Intra-group debit balances 13,274 285,185 507,763 806,222 (806,222) -
Other assets 2,673 19,729 3,877 26,279 - 26,279
Total assets 236,780 1,027,422 516,669 1,780,871 (806,222) 974,649
Loans and borrowings 43,128 113,801 83,160 240,089 - 240,089
Finance lease obligations 134 7,961 - 8,095 - 8,095
Deferred tax liabilities 2,139 53,041 - 55,180 - 55,180
Intra-group credit balances 125,522 393,200 287,500 806,222 (806,222) -
Other liabilities 9,045 73,495 933 83,473 - 83,473
Total liabilities 179,968 641,498 371,593 1,193,059 (806,222) 386,837
Valuation gain on investment property 12,311 6,265 - 18,576 - 18,576
Impairment losses - (6,229) - (6,229) - (6,229)
Reversal of impairment losses - 670 - 670 - 670
Share of profits on equity accounted investees, net of tax - 50,040 106 50,146 - 50,146
Gain/(loss) on disposal of investment in subsidiaries - 2,709 (212) 2,497 - 2,497
Profit on dilution in equity accounted investees - - 149 149 - 149
Other operating profits 6,254 12,181 81 18,516 - 18,516
Investment Manager fees - - (13,671) (13,671) - (13,671)
Net finance costs (1,414) (9,409) (4,811) (15,634) - (15,634)
Other expenses (8,176) (20,456) (3,664) (32,296) - (32,296)
Profit/(loss) before taxation 8,975 35,771 (22,022) 22,724 - 22,724
Taxation (172) 1,760 - 1,588 - 1,588
Profit/(loss) for the year 8,803 37,531 (22,022) 24,312 - 24,312
Americas1 E'000 South-East Other3 E'000 Reportable Adjustments4 Consolidatedtotals
Europe2 E'000 segment E'000 E'000
totals E'000
31 December 2013
Investment property 93,120 330,671 - 423,791 - 423,791
Property, plant and equipment 44,728 98,876 - 143,604 - 143,604
Trading properties 1,576 62,948 - 64,524 - 64,524
Equity accounted investees - 180,862 - 180,862 - 180,862
Available-for-sale financial assets 2,265 - - 2,265 - 2,265
Cash and cash equivalents 3,953 1,835 1,312 7,100 - 7,100
Intra-group debit balances 14,205 281,246 510,417 805,868 (805,868) -
Other assets 4,625 22,054 9,965 36,644 - 36,644
Total assets 164,472 978,492 521,694 1,664,658 (805,868) 858,790
Loans and borrowings 10,982 78,629 79,193 168,804 - 168,804
Finance lease obligations 157 8,284 - 8,441 - 8,441
Deferred tax liabilities 1,742 54,868 - 56,610 - 56,610
Intra-group credit balances 103,774 411,823 290,271 805,868 (805,868) -
Other liabilities 8,000 62,911 5,848 76,759 - 76,759
Total liabilities 124,655 616,515 375,312 1,116,482 (805,868) 310,614
Valuation gain on investment property 5,229 17,376 - 22,605 - 22,605
Impairment losses - (1,312) - (1,312) - (1,312)
Reversal of impairment losses - 895 - 895 - 895
Share of losses on equity accounted investees, net of tax - (77,239) - (77,239) - (77,239)
Other operating profits 2,594 10,152 - 12,746 - 12,746
Investment Manager fees - - (13,780) (13,780) - (13,780)
Net finance costs (372) (8,985) (7,895) (17,252) - (17,252)
Other expenses (6,191) (19,475) (2,615) (28,281) - (28,281)
Profit/(loss) before taxation 1,260 (78,588) (24,290) (101,618) - (101,618)
Taxation (147) (11,109) - (11,256) - (11,256)
Profit/(loss) for the year 1,113 (89,697) (24,290) (112,874) - (112,874)
1 Americas comprises the Group's activities in the Dominican Republic and the Republic of Panama. Also, includes the
investment in Itacare Capital Investments Ltd ('Itacare') (see note 15).
2 South-East Europe comprises the Group's activities in Cyprus, Greece, Croatia and Turkey.
3 Other comprises the parent company, Dolphin Capital Investors Limited.
4 Adjustments consist of intra-group eliminations.
Country risk developments
The general economic environment prevailing in the south-east Europe area and internationally may affect the Group's
operations. Concepts such as inflation, unemployment, and development of the gross domestic product are directly linked to
the economic course of every country and variation in these and the economic environment in general might affect the Group
to a certain extent.
The global fundamentals of the sector remained strong during 2014, with both international tourism and wealth continuing to
grow, even though economic activity in two of the Group's primary markets, Greece and Cyprus, continued to face significant
challenges. The business climate is slowly, but steadily improving in Cyprus assisted by the legislative reforms
implemented during the past year by the Cypriot government.
After the escalation of the sovereign debt crisis in Greece in mid-2012 and the international media speculation involving
scenarios of default and/or Greece's exit from the Eurozone, the country's economic conditions significantly stabilised
until the end of 2014 when a general election was called in Greece for January 2015. Following six years of deep recession,
growth was positive in 2014. In 2014 international tourist arrivals, according to Tourism Research Institute, set a new
historical record by reaching 21.5 million, a 20% increase compared to 2013 and is expected to remain strong in 2015. The
debt crisis has also been a catalyst in adopting a faster entitlement process for development projects in Greece. In
particular, the introduction of the Strategic Investment incentive legislation in Greece, which should be applicable to
most of the Group's local projects due to their quality, size and potential impact on the local economy, speeds up and
improves zoning entitlements and building permits for Group residential resort projects in the country. The current
political and economic climate in Greece remains challenging and unstable, as the new Greek administration is seeking to
reach a compromise accord with its EU partners and the IMF which would both enable it to avoid a sovereign default while
still implementing its basic policies. The banking system stability remains fragile, with the most notable effect on the
Group's businesses being the scarcity of senior bank debt to finance the construction of its development portfolio.
The crisis of sovereign debt affected the Cypriot economy with a time lag, causing negative effects not only on public
finances but also in the banking system. Despite the fact that the Government tried to react promptly and effectively by
preparing a fiscal consolidation programme, the country captured the world' s attention earlier in 2013 as it fought hard
to bounce back from the brink of bankruptcy through intense negotiations with international lenders. The so called 'bail
in' decision of the Eurozone included imposing losses on depositors with amounts exceeding E100,000, a closed banking
system for two weeks and extensive capital controls. Since then Cyprus has been remarkably resilient following the
financial crisis and in implementing tough austerity measures to restructure its economy. Although a challenging time for
one of the smallest EU member states, the economic adjustment programme remains on track, with progress made in all key
objectives set out by the country's international lenders. The banking sector is also on a steady path to stabilisation
with all domestic capital controls lifted in early April 2015. Tourist arrivals during 2014 amounted to 2.4 million and
stayed at the same level when compared to 2013, as reported by the Statistical Service of the Republic of Cyprus.
Nevertheless, it is encouraging to note that, despite the banking crisis that occurred in early 2013, the tourism industry
remained unharmed and expectations for 2015 are positive. The decision by the Ministerial Council to reduce the investment
amount requirements and accelerate Cypriot citizenship awards to buyers of real estate is expected to significantly
increase sales momentum and margins at Aristo Developers Limited ('Aristo') and increase the value and saleability of its
larger projects. Significant value is also estimated to be unlocked through the expected zoning of the Apollo Heights
Resort, following the agreement reached by the Cypriot and UK governments to permit for development such projects falling
within the Sovereign British Areas.
7. NET OPERATING PROFITS
From 1 January 2014 to 31 December 2014 From 1 January 2013 to 31 December 2013
E'000 E'000
Sale of trading and investment properties 3,631 219
Income from hotel operation 8,494 6,571
Income from operation of golf courses 91 112
Income from construction contracts 8,806 6,474
Rental income 389 367
Other profits 6,914 2,382
Cost of sales (9,809) (3,379)
Total 18,516 12,746
8. Personnel EXPENSES
From 1 January 2014 to 31 December 2014 From 1 January 2013 to 31 December 2013
Operating expenses Construction in progress Operating expenses Construction in progress
E'000 E'000 E'000 E'000
Wages and salaries 6,004 267 5,204 99
Compulsory social security contributions 1,598 26 1,292 13
Contributions to defined contribution plans 43 35 1 -
Other personnel costs 660 19 477 13
Total 8,305 347 6,974 125
Personnel expenses in relation to operating expenses are expensed as incurred in profit or loss. Personnel expenses in
relation to construction in progress are capitalised on the specific projects and transferred to profit or loss through
cost of sales when the specific property is disposed of.
The average number of employees employed by the Group during the year was 366 (2013: 339 employees).
9. finance income and finance costS
From 1 January 2014 to 31 December 2014 From 1 January 2013 to 31 December 2013
E'000 E'000
Recognised in profit or loss
Interest income 325 417
Finance income 325 417
Interest expense (15,228) (12,308)
Bank charges (401) (461)
Exchange difference (330) (4,900)
Finance costs (15,959) (17,669)
Net finance costs recognised in profit or loss (15,634) (17,252)
Recognised in other comprehensive income
Foreign currency translation differences 15,330 (939)
Finance costs recognised in other comprehensive income 15,330 (939)
10. Taxation
From 1 January 2014 to 31 December 2014 From 1 January 2013 to 31 December 2013
E'000 E'000
RECOGNISED IN PROFIT OR LOSS
Income tax 120 290
Net deferred tax (see note 21) (1,708) 10,966
Taxation recognised in profit or loss (1,588) 11,256
RECOGNISED IN OTHER COMPREHENSIVE INCOME
Revaluation of property, plant and equipment (see note 21) 555 (1,118)
Taxation recognised in other comprehensive income 555 (1,118)
Reconciliation of taxation based on taxable profit/(loss) and taxation based on Group's accounting profit/(loss)
From 1 January 2014 to 31 December 2014 From 1 January 2013 to 31 December 2013
E'000 E'000
Profit/(loss) before taxation 22,724 (101,618)
Taxation using domestic tax rates (2,018) (600)
Non-deductible expenses and tax-exempt income 1,861 (442)
Effect of tax losses utilised 313 155
Effect of tax rate changes - 5,592
Other (1,744) 6,551
Total (1,588) 11,256
As a company incorporated under the BVI International Business Companies Act (Cap. 291), the Company is exempt from taxes
on profits, income or dividends. Each company incorporated in BVI is required to pay an annual government fee, which is
determined by reference to the amount of the Company's authorised share capital.
The profits of the Cypriot companies of the Group are subject to a corporation tax rate of 12.50% on their total taxable
profits. Tax losses of Cypriot companies are carried forward to reduce future profits for a period of five years. In
addition, the Cypriot companies of the Group are subject to a 3% special contribution on rental income. Under certain
conditions, interest income may be subject to special contribution at the rate of 30% (15% to 28 April 2013). In such
cases, this interest is exempt from corporation tax.
In Greece, the corporation tax rate applicable to profits is 26%. Tax losses of Greek companies are carried forward to
reduce future profits for a period of five years. In Turkey, the corporation tax rate is 20%. Tax losses of Turkish
companies are carried forward to reduce future profits for a period of five years. In Croatia, the corporation tax rate is
20%. Tax losses of Croatian companies are carried forward to reduce future profits for a period of five years.
The Group's subsidiary in the Dominican Republic has been granted a 100% exemption on local and municipal taxes by the
Dominican Republic's CONFOTUR (Tourism Promotion Council), as at 31 December 2014, for a period of fifteen years, effective
from the finalisation of the construction of the project, whereas as at 31 December 2013, the exemption period was ten
years. In the Republic of Panama, the corporation tax rate is 25% and the capital gains tax rate is 10%. The Panamanian tax
legislation further contemplates a method of taxation which involves a 3% advance on the tax, which is not calculated on
the actual gain, but on the total value of the transfer or on the registered value of the property (whichever may be
higher). In some instances, this 3% may be considered by the taxpayer as the final tax payable. Tax losses of companies in
the Republic of Panama are carried forward to reduce future profits for a period of five years.
11. EARNINGS/(LOSS) per share
Basic earnings/(loss) per share
Basic earnings/(loss) per share is calculated by dividing the profit/(loss) attributable to owners of the Company by the
weighted average number of common shares outstanding during the year.
From 1 January 2014 to 31 December 2014 From 1 January 2013to 31 December 2013
'000 '000
Profit/(loss) attributable to owners of the Company (E) 21,639 (111,910)
Number of weighted average common shares outstanding 642,440 642,440
Basic earnings/(loss) per share (E) 0.03 (0.17)
Weighted average number of common shares outstanding
From 1 January 2014 to 31 December 2014 From 1 January 2013to 31 December 2013
'000 '000
Outstanding common shares at the beginning and end of the year 642,440 642,440
Weighted average number of common shares outstanding 642,440 642,440
Diluted earnings/(loss) per share
Diluted earnings/(loss) per share is calculated by adjusting the profit/(loss) attributable to owners and the number of
common shares outstanding to assume conversion of all dilutive potential shares. During the year, the Company has one
category of dilutive potential common shares: warrants. The number of shares calculated above is compared with the number
of shares that would have been issued assuming the exercise of the warrants.
From 1 January 2014 to 31 December 2014'000 From 1 January 2013to 31 December 2013'000
Profit/(loss) attributable to owners of the Company (E) 21,639 (111,910)
Weighted average number of common shares outstanding 642,440 642,440
Effect of potential conversion of warrants 5,585 5,585
Weighted average number of common shares outstanding for diluted earnings/(loss) per share 648,025 648,025
Diluted earnings/(loss) per share (E) 0.03 (0.17)
The convertible bonds issued by the Company, are excluded from the calculation of diluted earnings/(loss) per share for the
years ended 31 December 2014 and 2013 because they were not exercisable.
The average market value of the Company's shares for the purpose of calculating the dilutive effect of warrants and
convertible loans was based on quoted market prices.
12. Investment property
31 December 2014 31 December 2013
E'000 E'000
At beginning of year 423,791 422,204
Direct acquisitions 3,515 351
Transfers toproperty, plant and equipment (see note 13) - (7,232)
Transfers to trading properties (see note 14) (5,568) (9,115)
Direct disposals (2,109) (8)
Exchange difference 13,675 (5,014)
433,304 401,186
Fair value adjustment 18,576 22,605
At end of year 451,880 423,791
As at 31 December 2014 and 31 December 2013, part of the Group's immovable property is held as security for bank loans (see
note 20).
Fair value hierarchy
The fair value of investment property, amounted to E451,880 thousand has been categorised as a Level 3 fair value based on
the inputs to the valuation techniques used.
The following table shows a reconciliation from opening to closing balances of Level 3 fair value.
31 December 2014 31 December 2013
E'000 E'000
At beginning of year 423,791 422,204
Direct acquisitions 3,515 351
Direct disposals (2,109) (8)
Transfers to other assets (5,568) (16,347)
Gains/losses recognised in profit or loss
Unrealised fair value adjustment in 'Valuation gain on investment property' 18,576 22,605
Gains/losses recognised in comprehensive income
Unrealised exchange difference in "Foreign currency translation differences' 13,675 (5,014)
At end of year 451,880 423,791
Valuation techniques and significant unobservable inputs
The following table shows the valuation techniques used in measuring the fair value of investment property, as well as the
significant unobservable inputs used.
Property location Valuation technique (see note 3) Significant unobservable inputs Inter-relationship between key unobservable inputs and fair value measurement
Property in Greece - Commercial Buildings Income approach Expected market rental growth: 2014: 1.5% (2013: 1.5%) The estimated fair value would increase/(decrease) if:
Void period (months): 2014: 3 (2013: 3) 1. Expected market rental growth was higher/(lower);
Occupancy rate: 2014: 95% (2013: 95%) 2. Void period was shorter/(longer);
Risk-adjusted discount rate: 2014: 8% (2013: 8%) 3. Occupancy rate was higher/(lower);
4. Risk-adjusted discount rate was lower/(higher).
Property in Greece Combined approach (Market and Income) Market approach (50%/60% weight) The estimated fair value would increase/(decrease) if:
Premiums/(discounts) on the following: 1. Premiums were higher/(lower);
1. Location: 2014: from -20% to +50% 2. Discounts were lower/(higher);
(2013: from -20% to +30%) 3. Weights on comparables with premiums were higher/(lower);
2. Site size: 2014: from -40% to 0% 4. Weights on comparables with discounts were lower/(higher);
(2013: from -20% to +10%) 5. Room occupancy rate was higher/(lower);
3. Asking vs transaction: 2014: from -25% to 0% 6. Average daily rate per occupied room was higher/(lower);
(2013: from -25% to 0%) 7. Gross operating margin was higher/(lower);
4. Frontage sea view: 2014: from 0% to +40% 8. Terminal capitalisation rate was higher/(lower);
(2013: from -5% to +40%) 9. Quantity of villas was higher/(lower);
5. Maturity/development potential: 2014: from -10% to +90% 10. Selling price per m2 was higher/(lower);
(2013: from -35% to +75%) 11. Expected annual growth in selling price was higher/(lower);
6. Uniqueness 2014: +20% (2013: nil) 12. Cash flow velocity was shorter/(longer);
7. Weight allocation: 2014: from +5% to +25% 13. Risk-adjusted discount rate was lower/(higher).
(2013: from +5% to +25%)
8. Buildings value per m2 2014: E903 (2013: E960)
Income approach (50%/40% weight)
Room occupancy rate: 2014: from 46% to 59%(weighted average: 54%)(2013: nil)
Average daily rate per occupied room: 2014: from E880 to E1,720 (weighted average: E1,460)(2013: nil)
Gross operating margin rate: 2014: from 27% to 34% (weighted average: 32%)(2013: nil)
Terminal capitalisation rate: 2014: 10% (2013: nil)
Quantity of villas: 2014: 35-446 (2013: 102-536)
Selling price per m2: 2014: from E2,600 to E6,000
(2013: from E2,600 to E3,000)
Expected annual growth in selling price: 2014: 0% to 5% (2013: 3%)
Cash flow velocity (years): 2014: 6 to 7 (2013: 7)
Risk-adjusted discount rate: 2014:13% to 16%
(2013: 14% to 16%)
Property location Valuation technique (see note 3) Significant unobservable inputs Inter-relationship between key unobservable inputs and fair value measurement
Property in Greece Market approach Premiums/(discounts) on the following: The estimated fair value would increase/(decrease) if:
1. Location: 2014: from -50% to +40% 1. Premiums were higher/(lower);
(2013: from -50% to +50%) 2. Discounts were lower/(higher);
2. Site size: 2014: from -40% to +10% 3. Weights on comparables with premiums were higher/(lower);
(2013: from -40% to +40%) 4. Weights on comparables with discounts were lower/(higher).
3. Asking vs transaction: 2014: from -30% to 0%
(2013: from -30% to 0%)
4. Frontage sea view: 2014: from -20% to +40%
(2013: from -20% to +40%)
5. Maturity/development potential: 2014: from -40% to +50%
(2013: from -40% to +50%)
6. Zoning uniqueness: 2014: from -38% to +40%
(2013: from -50% to +40%)
7. Other: 2014: -10% (2013: -10%)
8. Strategic investment approval: 2014: +15% (2013: +15%)
9. Weight allocation: 2014: from 0% to +60%
(2013: from +5% to +40%)
Property in Cyprus Market approach Premiums/(discounts) on the following: The estimated fair value would increase/(decrease) if:
1. Location: 2014: from -10% to +20% 1. Premiums were higher/(lower);
(2013: from -10% to +20%) 2. Discounts were lower/(higher);
2. Site size: 2014: from -30% to -20% 3. Weights on comparables with premiums were higher/(lower);
(2013: from -30% to 0%) 4. Weights on comparables with discounts were lower/(higher).
3. Asking vs transaction: 2014: from -20% to 0%
(2013: from -25% to 0%)
4. Frontage sea view: 2014: from 0% to +30%
(2013: from -20% to +30%)
5. Maturity/development potential: 2014: from -30% to -20%
(2013: from -30% to -20%)
6. Weight allocation: 2014: from +10% to +25%
(2013: from +5% to +25%)
Property in Croatia Market approach Premiums/(discounts) on the following: The estimated fair value would increase/(decrease) if:
1. Asking vs transaction: 2014: from -5% to 0% 1. Premiums were higher/(lower);
(2013: from -10% to 0%) 2. Discounts were lower/(higher);
2. Development potential: 2014: from -10% to -5% 3. Weights on comparables with premiums were higher/(lower);
(2013: from -10% to +15%) 4. Weights on comparables with discounts were lower/(higher).
3. Location/visibility: 2014: from -25% to 0%
(2013: 0%)
4. Zoning status: 2014: from -20% to +10%
(2013: from 0% to +10%)
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