Eastern Property Holdings Limited: Third Quarter 2016 Trading Update

Mittwoch, 30.11.2016 07:00

Eastern Property Holdings Limited (EPH) / Eastern Property Holdings Limited: Third Quarter 2016 Trading Update . Processed and transmitted by Nasdaq Corporate Solutions. The issuer is solely responsible for the content of this announcement.

30 November 2016, Road Town, Tortola, BVI

FINANCIAL HIGHLIGHTS

      · The performance of the Company's income-generating properties continues to demonstrate good profitability.  During the first 9 months of 2016 EPH rental properties generated $53.68 million of net rental income (9 months of 2015: $52.81).  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.

      · RUB/US$ exchange rate continues to be volatile.   At the year-end gains/losses arising from changed ruble values of US$ -denominated assets are likely again to be one of the main factors affecting the Company's operating results.

      · The Company recognized $26.53 million of finance costs during nine months of 2016 in comparison with $24.20 million for the same period in 2015.  Finance costs mainly represent interest on bonds issued in 2014-2015.

      · The value of the Company's Assets under Development increased up to $69.21 million (31 December 2015: $57.66 million).  Assets under Development represent apartments constructed as a part of Arbat development and are carried at cost nominated in RUB.  The increase in US$ value is caused by additional construction costs spent as well as by strengthening of RUB against US$ during the first nine months of 2016.

      · In the 3rd quarter of 2016 the Company made down payments with respect to the acquisition of two properties in Stuttgart and Hamburg, Germany. This resulted in the increase of Advance payment in the Company's balance sheet up to US$ 40.90 million (31 December 2015: $1.44 million).  The transaction on the acquisition of CityGate located in Stuttgart was closed in November 2016 and the closing for the acquisition of Work Life Center in Hamburg is expected by the end of 2017.

      · The deferred part of the purchase price for Polar Lights was fully paid in August 2016. The second part of the deferred purchase price for Hermitage Plaza was paid in March 2016 and the contingent liability in respect to that acquisition is still payable at the end of the current year. 

      · The Company issued subordinated registered notes to its majority shareholder for the total amount of US$ 170.0 million maturing on 31 December 2016.

      · Assuming unchanged values of investment properties, NAV as of 30 September 2016 would be approximately at the same level as at 30 June 2016.

Significant Income and Expense Items for 9 months of 2016

Net Rental Income 30.09.2016 30.09.2015 Change YoY
  Berlin House 12,149,964   11,989,129 160,835
  Geneva House 10,521,763   11,542,374 (1,020,611)
  Polar Lights 10,338,847   10,405,425 (66,578)
  Hermitage Plaza 20,289,404   18,421,671 1,867,733
  Magistral'naya 379,400 456,382 (76,982)
  Total 53,679,378 52,814,981 864,397

Material YoY changes in Income/Expense Items 30.09.2016 30.09.2015 Change YoY
  Net foreign exchange (loss)/ gain -60,401,218 38,093,135 -98,494,353
  Finance costs -26,533,483 -24,199,902 -2,333,581

Significant Q3 2016 changes in Financial Position

Assets   30.09.2016 31.12.2015 Change
  Cash & cash equivalents 114,990,054 127,772,076 -12,782,022
  Assets under development 69,214,866 57,656,429 11,558,437
  Advance payment 40,903,941 1,442,672 39,461,269
         
Liabilities   30.09.2016 31.12.2015 Change
  Borrowings (LT & ST) 478,541,404 477,556,323 985,081
  Accounts payable and accrued expenses 214,001,872 198,552,400 15,449,472



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Source: Eastern Property Holdings Limited (EPH) via Globenewswire

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Eastern Property Holdings Limited (EPH)
Valartis Asset Management SA Geneva Switzerland

WKN: 250817;ISIN: VGG290991014;