RomReal :Second Quarter (Q2) 2018 Financial Results and Investor Presentation
RomReal hereby announces the second quarter 2018 results highlights:
Net Asset Value (NAV)
- Net Asset value was EUR 0.49 (NOK 4.86) per share, 3.2 per cent higher compared to Q1 2018. There were no changes made to the value of the investment properties during the quarter.
Operational highlights
- Hospital plot (No. 9 on the list): sale agreement signed 29 June 2018 for a total amount of EUR 1.85m of which EUR 0.5m received and the difference of EUR 1.2m to be paid over the next 12 months, plus 3% interest per year and the remaining EUR 0.15m to be paid no later than 30/07/2021.
- Un-zoned land, 864,534 m2 (No. 10 on the list): 26 January 2018, Pre-sale agreement entered for a total price of EUR 625,060 (vs EUR 389,000 as per independent valuation). The transaction has been closed in tranches and the last instalment of EUR 495,000 was collected during July 2018.
- As announced to the market, on 19 July 2018, RomReal has received a tax claim in excess of EUR 1.7m. E&Y has been retained and the Company will pursue all legal means in order to dismiss the claim. On 18th July 2018, Constanta Court of Appeal ordered that no attachments to the bank accounts and/or lands belonging to Westhouse Group should take place pending the resolution of the case in front of the Court of Appeal.
Financial Results
- Net Result for the quarter was EUR 605,000 profit compared to a EUR 801,000 loss in 2Q 2017. Operating cash flow for the quarter was a negative EUR 1,085,000 compared to minus EUR 2,182,000 in the same period last year.
- By the end of the quarter, the Company had a cash position of EUR 3.1 million plus a total of EUR 1,350,000 in outstanding payments related to binding sales agreements, totalling about EUR 4.4 million or about EUR 0.1 per share.
Macro and real estate market highlights
- Romania's economic growth slowed to 4.1% year-on-year in the second quarter of 2018, compared to 6.1% annual growth in the like quarter of 2017, non-adjusted provisional data of the country's statistical board.
- According to the online real estate platform immobiliare.ro, asking prices in Romania remained flat during the second quarter at 1,221 /sqm at the end of July 2018. Prices in Constanta have reached in July 2018 EUR 1,139 /sqm, a 9.1 percent increase compared with the same period last year.
A recorded investor presentation webinar will be made available by 10:00am Friday 31 August at www.romreal.com
For further information please contact: Harris Palaondas IR 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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