Improved Outlook for EPH European Property Holdings PLC
EPH European Property Holdings PLC ('EPH', the 'Company') is excited to share its updated expectations regarding its financial performance for the upcoming year. The company projects a loss between EUR 2 – 5 million for 2024, a significant reduction from the EUR 162 million loss reported for the previous year.
Understanding the Losses
In assessing the previous year’s figures, a substantial part of the loss in 2023 was tied to non-cash accounting adjustments. Notably, a loss of EUR 103 million was linked to discontinued operations, which now holds no relevance for the current ongoing operations of EPH. Additionally, there was a loss arising from continuing operations, amounting to EUR 59 million, primarily driven by the recognition of a loss from the revaluation of the Group's properties. This loss reached EUR 115.73 million due to negative changes influenced by macroeconomic factors.
Revaluation Insights
Looking forward to 2024, EPH indicates that the loss on the revaluation of its investment properties will significantly decrease to around EUR 25 million. While some stabilization has occurred within the European real estate markets, the overall property value continues to be affected by rising capitalization and discount rates.
Positive Trends in Operational Performance
Despite previous setbacks, the operational results across EPH's portfolio show signs of improvement. The net rental income from the company’s properties has experienced stable growth, approximately 8% compared to 2023 levels. These positive performance indicators, paired with other favorable factors, contribute to the substantial reduction in anticipated losses for 2024.
Financial Finalization and Audits
It’s important to note that the figures shared regarding 2024 are preliminary and subject to the completion of the Company's financial reports. The finalized audited results will be made available by the end of April. Until that time, detailed information regarding the Group’s business performance will remain unavailable.
Contact for More Information
For further inquiries, you can reach out to Anna Bernhart at EPH European Property Holdings PLC. The contact number is +41 44 503 5400, or you can email contact@europeanpropertyholdings.com.
Frequently Asked Questions
What is the expected loss for EPH in 2024?
EPH projects a loss between EUR 2 – 5 million for 2024.
How does this compare to 2023?
This represents a significant reduction from the EUR 162 million loss reported in 2023.
What factors influenced the previous year's losses?
A large part of the loss in 2023 was due to non-cash accounting adjustments and discontinued operations.
What improvements have been noted for EPH?
Clear signs of operational improvement are evident, with rental income showing an increase of approximately 8% relative to 2023.
When will the audited results for 2024 be available?
The audited results are expected to be published by the end of April 2025.
