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
· 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|
|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|
Significant Q3 2016 changes in Financial Position
|Cash & cash equivalents||114,990,054||127,772,076||-12,782,022|
|Assets under development||69,214,866||57,656,429||11,558,437|
|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|
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
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;