Oak Fund Services (Guernsey) Limited
Attn: Mark Woodall
Tel: +44 1481 723450
Eurocastle Releases First Half 2021 Financial Results
Guernsey, 4 August 2021 – Eurocastle Investment Limited (Euronext Amsterdam: ECT) today has released its financial report for the six months ended 30 June 2021.
The tables below summarise the Adjusted NAV by segment:
|Q1 2021 NAV||Q2 Cash Movement||Q2 FV Movement||Q2 2021 NAV|
|€ million||€ per share||€ million||€ per share||€ million||€ per share||€ million||€ per share|
|Real Estate Funds||5.1||2.77||-||-||1.3||0.71||6.4||3.47|
|Italian NPLs & Other Loans||1.3||0.70||(0.0)||(0.01)||0.4||0.19||1.6||0.88|
|Net Corporate Cash4||9.8||5.30||0.0||0.01||(0.1)||(0.07)||9.7||5.25|
|Adjusted NAV ||16.3 ||8.77 ||- ||- || 1.5 ||0.83 ||17.8 ||9.60 |
As at 30 June 2021, the Company’s remaining assets comprise:
H1 2021 BUSINESS HIGHLIGHTS
H1 2021 Overview
During the first half of 2021, the Company continued to make significant progress on realising its remaining assets as part of its Realisation Plan. Sales of residential units across both of its real estate redevelopment funds have proved resilient despite the ongoing challenges from COVID-19. This positive activity in the RE Funds, where results were achieved above and ahead of what was anticipated, after being adjusted in 2020 for the projected impact of COVID-19, has been the primary driver for a 26% valuation increase in the period for these investments.
In addition, Eurocastle received its last material distribution from its publicly listed fund investment and agreed the sale of all underlying assets in one of the three remaining loan pools the Company has an interest in, comprising 19% of the segment’s Q2 2021 NAV. This activity has left the Company well positioned while it undertakes its strategic review, announced in March 2021. The strategic options are under ongoing review by the Board, with the outcome of the review anticipated to be announced to shareholders before the end of 2021.
Investment Realisations & Highlights
SUBSEQUENT EVENT TO 30 JUNE 2021
REFI V signed an additional 8% of units under contract and fully repaid the financing facility, leaving 10% of units remaining with closings expected by the end of the year.
|Income Statement for the Six and Three Months ended 30 June 2021 (unaudited)||H1 2021||Q2 2021|
|€ Thousands||€ Thousands|
|Italian NPLs & Other Loans||437||354|
|Real Estate Funds||1,809||1,316|
|Fair value movement on Italian investments||2,246||1,670|
|Fair value movements on residual Legacy entities||28||-|
|Gain / (loss) on foreign currency translation||-||(1)|
|Manager base and incentive fees||96||50|
|Remaining operating expenses||867||501|
|Other Operating expenses||963||551|
|Net profit for the period||1,311||1,118|
|€ per share||0.71||0.60|
Balance Sheet and Adjusted NAV Reconciliation as at 30 June 2021 (unaudited)
|Italian Investments |
|Cash and cash equivalents||-||26,324||26,324|
|Italian NPLs & Other Loans||1,630||-||1,630|
|Real Estate Funds||6,444||-||6,444|
|Trade and other payables||-||1,212||1,212|
|Manager base and incentive fees||-||55||55|
|Adjusted NAV (€ per share)6||4.35||5.25||9.60|
1 In light of the Realisation Plan announced in November 2019, the Adjusted NAV as at 30 June 2021 reflects additional reserves for future costs and potential liabilities, which have not been accounted for under the IFRS NAV. No commitments for these future costs and potential liabilities existed as at 30 June 2021.The IFRS NAV, as at 30 June 2021, is €33.2 million, or €17.86 per share.
2 Per share calculations for Eurocastle throughout this document are based on 1.9 million shares.
3 After taking into account payment in Q1 2021 of €0.54 per share of 2020 capital distribution.
4 Reflects corporate cash net of liabilities and additional reserves.
5 In light of the Realisation Plan, the Adjusted NAV as at 30 June 2021 reflects the additional reserves for future costs and potential liabilities of €15.4 million which have not been accounted for under the IFRS NAV.
6 Amounts per share calculated on 1.9 million outstanding ordinary shares.
This announcement contains inside information for the purposes of the Market Abuse Regulation 596/2014.
For investment portfolio information, please refer to the Company’s most recent Financial Report, which is available on the Company’s website (www.eurocastleinv.com).
Eurocastle Investment Limited (“Eurocastle” or the “Company”) is a publicly traded closed-ended investment company, focused on Italian performing and non-performing loans, Italian loan servicing platforms and other real estate related assets in Italy. On 18 November 2019, the Company announced a plan to realise the majority of its assets with the aim of accelerating the return of value to shareholders. The Company will not currently seek material new investments from the proceeds of the realisation but will continue to support its existing investments to the extent required in order to optimise returns and distribute cash to shareholders when available (the “Realisation Plan”). For more information regarding Eurocastle Investment Limited and to be added to our email distribution list, please visit www.eurocastleinv.com.
FORWARD LOOKING STATEMENTS
This release contains statements that constitute forward-looking statements. Such forward-looking statements may relate to, among other things, future commitments to sell real estate and achievement of disposal targets, availability of investment and divestment opportunities, timing or certainty of completion of acquisitions and disposals, the operating performance of our investments and financing needs. Forward-looking statements are generally identifiable by use of forward-looking terminology such as “may”, “will”, “should”, “potential”, “intend”, “expect”, “endeavor”, “seek”, “anticipate”, “estimate”, “overestimate”, “underestimate”, “believe”, “could”, “project”, “predict”, "project", “continue”, “plan”, “forecast” or other similar words or expressions. Forward-looking statements are based on certain assumptions, discuss future expectations, describe future plans and strategies, contain projections of results of operations or of financial condition or state other forward-looking information. The Company’s ability to predict results or the actual effect of future plans or strategies is limited. Although the Company believes that the expectations reflected in such forward-looking statements are based on reasonable assumptions, its actual results and performance may differ materially from those set forth in the forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors that may cause the Company’s actual results in future periods to differ materially from forecasted results or stated expectations including the risks regarding Eurocastle’s ability to declare dividends or achieve its targets regarding asset disposals or asset performance.
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