Stock Exchange Announcement
22 February 2018
RomReal :Fourth Quarter (Q4) 2017 Financial Results and Investor Presentation
RomReal hereby announces the fourth quarter 2017 results highlights:
Net Asset Value (NAV)
- Net Asset value was EUR 0.48 (NOK 4.72) per share, 8 per cent increase from 3rd quarter 2017. The year-end 2017 valuation was concluded by Knight Frank 15 February 2018.
Operational highlights
- Carrefour plot (No. 8 on the list): presale agreement signed in July 2017 for a total price of EUR 65,000 of which EUR 26,000 received. The remaining amount EUR 39,000 is due 26 February 2018.
- Hospital plot (No. 9 on the list): The Urbanization Certificates referring to the main building characteristics of the plot as well as that for the demolition of the old buildings, currently on the plot, have been obtained from the City Hall. The prime Bucharest plot is for sale.
- Un-zoned land, 864,534 m2 (No. 10 on the list): On 26 January 2018, a Pre-sale agreement entered for a total price of EUR 625,060 (vs EUR 389,000 as per independent valuation). The transaction is being closed in tranches and as of today EUR 495,000 remain to be collected with last payment on 1 June 2018.
- All five properties sold over the last twelve months have achieved prices at or well above IFRS value.
- In order to simplify and optimize the Romanian sub-holding structure, a number of merger processes of the Romanian subsidiaries is under way.
Financial Results
- Net Result for the quarter was EUR 1,063,000 compared to EUR 14,000 in 4Q 2016. Operating cash flow for Q4 2017 was EUR 105,000 compared to EUR 418,000 in the same quarter last year.
- By year-end, the Company has a cash position of EUR 3.5 million plus a total of EUR 999,000 in outstanding payments related to binding sales agreements, totalling at about EUR 4.4 million or about EUR 0.11 per share. By 17 February 2018, outstanding agreed cash is according to payment schedule reduced to about EUR 826,000.
Macro and real estate market highlights
- The Romanian economy grew by 7 percent of GDP in 2017, marking the biggest growth since 2008, according to flash estimates of the National Institute of Statistics.
- On the 17 January 2018 Mrs Viorica Dancila was appointed as Prime Minister of a new administration, making the 54-year old the country's first female Prime Minister.
- According to the online real estate platform immobiliare.ro, asking prices in Romania were up by 10.2% in in the last twelve months from a national average of EUR 1,064/sqm to EUR 1,172 /sqm. Prices in Constanta have reached in January 2018 EUR 1,091 /sqm, a 10.3% increase year on year.
A recorded investor presentation will be made available on Friday 23 February after 10:00am CET at www.romreal.com
For further information please contact:
Harris Palaondas
IR
Harris Palaondas
IR
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.