PRO KAPITAL

ANNOUNCEMENT

 

NET PROFIT FORECAST FOR YEAR 2000

 

On 02.02.1999 AS Pro Kapital Management Board approved the 

company's net profit forecast for the current year at EEK 40 

million. 

 

The forecast is based on Pro Kapital's real estate portfolio, 

amount of marketable objects, and current standing of the company's 

projects on Latvian and Lithuanian markets. 

 

The following macroeconomic assumptions were made:

1. Inflation rate forecast for year 2000 is 4%.

2. Increased demand due to increased income and more favorable 

terms for housing loans by commercial banks.

3. Real estate sales prices (new buildings/condominiums) will 

increase by 5-10%, thus increasing the profit margins of real 

estate development companies.

4. Retailers will continue to concentrate in large shopping 

centers, thus increasing the rental rates.

5. Group's operating expenses are on the same level as in 1999, 

increasing only by level of inflation.

 

 

Andrus Laurits

Chief Executive

Pro Kapital

+372 61 44 920