During the larger part of 1975 we were in the market with
mortgage bonds, with interest rates varying from 8.25 to 9.50%.
We covered our additional capital needs by contracting private
loans. We availed ourselves of these two sources of finance, viz.
mortgage bonds and private loans, in the proportion of 2.5 to 1 in
1975.
At the end of 1975 we decided, for administrative reasons, to
cancel the possibility of converting mortgage bonds on
redemption. However, it is our constant endeavour, by regular
issues of mortgage bonds, to enable investors to have a permanent
interest in our company.
During the year under review the demand for mortgage loans
remained at the high level of the past years. In 1975 mortgages
effected totalled f 648 million. Redemptions accounted for an
amount of 302 million. Amounts held back on mortgage loans
totalled f 12.1 million against 31.4 million at the end of 1974. In
1975 our mortgage debtors continued to meet their obligations.
The stagnation-which occurred as a result of the economic
situation in 1974in the demand by tenants for completed
business and office premises also persisted during the year under
review.
Nevertheless, a considerable part of the office space in our
portfolio which had not yet found a use at the end of 1974 could
Of the project completed in 1975 the letting of business and office
premises - although still comparing favourable with experiences
on a nation-wide level went slowly.
Seemingly contradictory to the foregoing are the results obtained
during the year under review, which are expressed not only in the
profit figure but also in a considerable growth of the net worth.
We have already accounted for this phenomenon in our annual
report for 1972, in which we pointed out, among other things, that
the results in a given year are not first of all determined by the
actions during such a year, but are rather the result of a policy
pursued in the past.
Within the framework of this policy we have partly availing
ourselves of the favourable market conditions which presented
themselves during the past year for disposing of well-rented
projects in the commercial and office sector— sold a few large
projects in this category.
After the rejuvenation and reduction of the share of houses in our
real estate in operation portfolio had first been realized during the
past years, the sale mentioned above means a great step in the
direction of the rejuvenation of our holdings in the commercial and
the real estate sector
