Stock Exchange Announcement
28 August 2014
RomReal : Second Quarter (Q2) 2014 report and investor presentation.
RomReal hereby announces the Second Quarter (Q2) 2014 highlights in relation to the attached Second Quarter 2014 report and investor presentation:
Statutory Net Asset Value (NAV)
Under IFRS, the NAV was EUR 0.5 (NOK 4.3) per share at the end of Q2 2014, a decrease of 1.4% compared to the end of Q1 2014.
Valuation
The Company has not made any changes to the land bank portfolio valuation since the 2013 year-end independent valuation carried out by Knight Frank.
Financial Results
Pre-tax result in Q2 2014 of EUR 0.04 million. Total assets at end of Q2 2014 were EUR 33.6 million compared to EUR 33.8 million at end of Q1 2014.
Plot division and sales
With a view to increase the saleability of its land bank, the Company has initiated in the last 6 months the division of one of its plots into smaller ones. During Q2 2014 the Company sold 4 such small plots with a total area of almost 2,000 sqm for a total value of EUR 160,000. Following an initial down payment, remaining due amounts shall be received in instalments.
Brasov plot disposal after Q2 2014
After the end of Q2, the Company has entered into a pre-sale agreement for the sale of its only land plot in Brasov for a price of EUR 1,050,000. The price is marginally higher than the one in the latest independent valuation performed by Knight Frank. The transaction is expected to close by 2Q 2015. The proceeds of the sale, including the already received down payment will be used to reduce the Company's bank debt.
Macro news
Romania's GDP growth slowed somewhat in the second quarter of 2014, driven by a setback in industry and export growth. According to the Budget Minister, the slowdown poses no threat to the Government's annual target of 2.8 per cent as Romania has room to boost state spending. There has been considerable fiscal adjustment since the start of the crisis, which brought the budget deficit down to 2.5 per cent of GDP in 2013. Public debt is low by regional standards at around 38 per cent of GDP. On an annual basis Romania still has one of the highest GDP growth rates in Europe.
The Government has announced the intention to adopt the euro as of 01 January 2019. The new target should be achievable provided inflation remains controlled and the Government remains committed to low fiscal deficits and moderate levels of public debt.
RomReal invites investors, analysts and media to the conference call, to be held tomorrow, Friday, 29 August 2014, at 9.00 a.m. Oslo time.
Those who would like to attend the conference call are invited to dial:
| Participant Joining Details | |
| UK Freefone: | 0800 389 7473 |
| UK Direct: | 01296 480 180 |
| International direct: | +44 1296 480 180 |
| Global Access Numbers: | http://www.btconferencing.com/globalaccess/?bid=54_automated |
| Global Access Numbers are in-country toll free or local dial-in numbers for this conference. Give this URL to anyone -- both speakers and participants -- joining the conference so they can find the appropriate in-country dial-in number. You can also use these Global Access dial-in numbers if you are travelling. | |
| Passcode: | 273 246# |
For further information please contact:
Harris Palaondas
Investor Relations
+0040 731 123 037