Stock Exchange Announcement
25 August 2016
RomReal : Second Quarter 2016 Results and Investor Presentation - Oslo Friday 26 August 2016
RomReal hereby presents the main highlights of the second quarter 2016:
Net Asset Value (NAV)
- Net Asset value was EUR 0.43 (NOK 3.96) per share at the end of Q2 2016, 2.8% down compared to the end of Q1 2016.
Operational and Financial highlights
- The Company sees increased interest for its assets, and during the quarter, it sold several smaller assets and one plot after the close of the quarter on or above IFRS value.
- The company has secured additional funding capacity with a new drawing facility of EUR 537,900.
Financial Results
- Net Result for the quarter was a loss of EUR 848,000 in 2Q 2016 compared to EUR 295, 000 profit in 2Q 2015. The loss is explained by currency effects, with RON strengthening by 1.1% against the EUR during the quarter.
- Operating cash flow for the quarter was minus EUR 219,000 compared to minus EUR 109,000 in the same period last year.
Macro and real estate market
- For the second quarter, the Romanian GDP flash update came in at 6% following 4.2% growth for 1Q 2016 and 3.8% for 2015. Romania is the fastest growing economy in the entire EU. The European Commission estimates that Romania's economy will grow 4.2 percent in 2016, backed by robust domestic demand, and grow 3.7 percent in 2017.
- The overall real estate market grew further during the quarter. Prices are heading up, transaction volume increases and construction indicators are positive. In addition to a low interest rate and a growing economy, the government stimulates the housing market by increasing the Prima Casa program and introducing a social housing construction program.
In collaboration with DNB Markets, RomReal invites investors, analysts and media in a presentation on the second quarter 2016 results, to be held on Friday the 26 August 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.