The following exhibit presents an excerpt from the annual report for the year ended 31 March 2009 of Daejan Holdings PLC (London: DJAN), a property company headquartered in the United Kingdom.
EXHIBIT 10-11 Excerpt from the Consolidated Income Statements at 31 March (Currency in £ thousands)
|
2009 |
2008 |
|
|
Gross rental income |
83,918 |
73,590 |
|
Service charge income |
12,055 |
13,362 |
|
Total Rental and Related Income from Investment Properties |
95,973 |
86,952 |
|
Property operating expenses |
(53,470) |
(46,464) |
|
Net Rental and Related Income from Investment Properties |
42,503 |
40,488 |
|
Profit on Disposal of Investment Properties |
6,758 |
6,578 |
|
Valuation gains on investment properties |
6,646 |
46,646 |
|
Valuation losses on investment properties |
(268,249) |
(25,982) |
|
Net Valuation (Losses)/Gains on Investment Properties |
(261,603) |
20,664 |
|
Administrative expenses |
(12,039) |
(8,629) |
|
Net Operating (Loss)/Profit before Net Financing Costs |
(224,381) |
59,101 |
1. What was the primary cause of the company’s £224,381 thousand net operating loss before net financing costs for the year ended 31 March 2009?
2. What was the primary cause of the company’s £59,101 thousand net operating profit before financing costs for the year ended 31 March 2008?
3. What was the primary cause of the change from a £59,101 thousand net operating profit in 2008 to a £224,381 thousand net operating loss in 2009?
4. Do the valuation gains and losses on investment properties indicate that the properties have been sold?