and a profit estimate of about DKK 100 million after tax for 2011/12

Aalborg, Denmark, 2011-02-01 08:50 CET (GLOBE NEWSWIRE) -- 



Revision of profit estimate to about DKK 70 million after tax for 2010/11 and a
profit estimate of about DKK 100 million after tax for 2011/12 

Summary:

  -- A time lag in closing sales has caused TK Development to revise its profit
     estimate for 2010/11 to about DKK 70 million after tax against the
     previously announced estimate of about DKK 100 million.
  -- For 2011/12 the Group expects to generate a profit of about DKK 100 million
     after tax.
  -- The Group's project portfolio underpins the expectation of another, higher
     earnings level in the following years.

2010/11: Time lag leads to revision of profit estimate to about DKK 70 million
after tax 

TK Development has revised its profit estimate for the year because ongoing
negotiations about the sale of completed projects cannot be concluded before
the end of the 2010/11 financial year.The Group now expects to generate a
profit of about DKK 70 million after tax in 2010/11 against the previously
announced estimate of about DKK 100 million. 

2011/12: The Group anticipates a profit of about DKK 100 million after tax

TK Development expects to generate a profit after tax of about DKK 100 million
for 2011/12. 

During the past period, price level changes have put profits on initiated
projects under pressure, causing the Group to focus on completing shopping
centres and to hold off on launching new projects.These developments are
reflected in the Group's expectations for 2011/12. 

The forecast for 2011/12 is based on the Group's existing projects and the
expectation that the time-lagged sales negotiations will be completed in
2011/12. 

Project portfolio underpins expectation for another, higher earnings level in
the following years 

Today, TK Development has a strong project portfolio that underpins
expectations for a higher earnings level in the following years. 

Since the beginning of 2010, the market situation has developed favourably.The
present investment climate is marked by cautious optimism and a higher
propensity to invest, and prices have settled at a new level sustaining the
profitability of future property development. 

A large share of the project portfolio that is to contribute to the Group's
earnings in future years has been built up after prices re-stabilized. Against
this background, the Group anticipates another, higher earnings level in the
following years. 



Contact information:

TK Development A/S

Frede Clausen, President and CEO

Tel.+45 8896 1010