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Realia’s Profits Fell by 95% Due to the Impact of Covid on the Value of its Properties

The real estate company controlled by Carlos Slim increased its revenues after selling land and raising the prices of its homes; however, the fall in the value of its portfolio had a huge impact on its earnings until September.

vista aera viviendas valdebebas Realia 696x458 1
Aerial view of Valdebebas with Realia’s development in the centre.

The listed real estate company Realia, with its property and housing development business, closed the first nine months of 2020 with a sharp drop in profits, which fell from 39 million euros to 2.02 million euros.

As of 30 September, the firm’s earnings before taxes amounted to 4.65 million euros, down by 92.9% compared to the same period a year earlier. That decrease in profits was due to provisions amounting to -30.8 million euros, of which -11.2 million euros corresponded to the third quarter, compared to 19.64 million euros during the same period a year earlier, as well as variations in value of its real estate investments.

Read the full article in Spanish.

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