RomReal hereby presents the main highlights of the third quarter 2016:
Net Asset Value (NAV)
- Net Asset value was EUR 0.42 (NOK 3.90) per share at the end of Q3 2016, a 1.4% reduction compared to the end of Q2 2016.
Operational highlights
- RomReal sold several smaller properties (final plot on Peninsula & Corallia) during the quarter. The Company has several sales processes on-going, and it expects to close one or more sales before the close of the year.
- After the close of the quarter, RomReal exercised its option to extend the bank loan one year and it has negotiated more flexible terms for servicing the loan.
Financial Results
- Net Result for the quarter was a profit of EUR 277,000 compared to EUR 283, 000 profit in 3Q 2015. The gain is mainly explained by currency effects, with RON strengthening by 0.5% against the EUR during the quarter. Operating cash flow for the quarter was a negative EUR 68,000 compared to minus EUR 115,000 for the same period last year.
Macro and real estate market highlights
- Romania's economic growth came in at 4.4% for third quarter. Unemployment fell to 5.9% in September, the lowest number since unemployment rose after the financial crisis in 2009. Analysts upgrade their estimates for overall growth for 2016 and 2017, and it is expected that GDP growth for 2016 will end at 4.8%, a very strong number compared to other European countries.
- The real estate market in Romania is in a steady uptrend. The overall real estate transaction market recorded EUR 311m in transactions during the first six months, almost double compared to H1 2015. The largest transactions were in the retail sector with the sale of Sibiu Shopping City and the minority share in Mega Mall Shopping Centre to the South African Fund NEPI, together totalling slightly above 170m.
- In the land market segment, the first half of 2016 maintained the dynamic pace of the previous year, with several key transactions concluded for future mixed developments.
- Prices continue to increase for residential apartments. The cabinet has indicated that the Prima Casa program wouldl be increased for 2017 and it will make certain adjustments to include younger families into the program.
In collaboration with DNB Markets, RomReal invites investors, analysts and media in a presentation on the third quarter 2016 results, to be held on Friday the 25 November 2016 at 11:00 am Norwegian time. The venue for this presentation is the DNB Markets building at Hovedkontor, Dronning Eufemias Gate 30, Bjørvika, 0191 Oslo, Norway, and the main presenter will be RomReal Director, Arne Reinemo.
Those who would like to attend are kindly asked to contact ca@dnb.no
For further information please contact: Harris Palaondas RomReal Ltd - Investor Relations +40 7311 23037
www.romreal.com investors@romreal.com
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
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