Eastern Property Holdings Limited (EPH): Third Quarter 2017 Financial Update 30 November 2017, Road Town, Tortola, BVI
FINANCIAL HIGHLIGHTS
- The performance of the Company's income-generating properties continues to demonstrate stable profitability. During the first 9 months of 2017 EPH rental properties generated $52.13 million of net rental income (9 months of 2016: $53.68 million). The contribution of each property to net rental income is presented in the table below;
- Cash generated by the rental properties is sufficient to cover the Company's operating expenses, including payment of interest on the bonds issued by the Company;
- Although during 2017 Rouble/US dollar exchange rate is less volatile as compared to the period 2014-2016, the exchange rate fluctuation continues to be one of the main factors affecting the Company's operating results;
- Additional construction costs spent as well as the strengthening of Rouble against US dollar during first 9 months of 2017 led to increase of Arbat development property value which is carried at cost nominated in Roubles;
- The increased amount of borrowings as of 30 September 2017 is caused by the fact that bond interest payments due on 30 September were paid on 2 October 2017 (first business day after the due date - in line with the prospectus);
- $30 million contingent liability in respect to the acquisition of Hermitage Plaza was paid in October 2017.
Significant Q3 2017 Income and Expense Items
| Net Rental Income, US$ | 30.09.2017 | 30.09.2016 | Change YoY |
| | Berlin House | 10,077,517 | 12,149,964 | (2,072,448) |
| | Geneva House | 10,095,125 | 10,521,763 | (426,637) |
| | Polar Lights | 9,024,639 | 10,338,847 | (1,314,207) |
| | Hermitage Plaza | 19,389,554 | 20,289,404 | (899,851) |
| | City Gate | 3,065,250 | - | 3,065,250 |
| | Magistral'naya | 478,386 | 379,400 | 98,986 |
| | Total | 52,130,471 | 53,679,378 | (1,548,906) |
| YoY changes in Income/Expense Items, US$ | 30.09.2017 | 30.09.2016 | Change YoY |
| | Net foreign exchange loss | (5,283,173) | (60,401,218) | 55,118,045 |
| | Finance costs | (22,539,286) | (26,533,483) | 3,994,197 |
| | | | | |
Significant Q3 2017 changes in Financial Position
| Assets, US$ | | 30.09.2017 | 31.12.2016 | Change |
| | Cash & cash equivalents | 55,022,277 | 41,378,278 | 13,643,999 |
| | Assets under development | 81,224,096 | 72,855,882 | 8,368,214 |
| | | | | |
| Liabilities, US$ | | 30.09.2017 | 31.12.2016 | Change |
| | Borrowings (LT & ST) | 489,464,754 | 480,934,738 | 8,530,016 |
| | Accounts payable and accrued expenses | 48,048,763 | 60,122,219 | (12,073,456) |
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