RomReal hereby announces the third quarter 2018 results highlights:
Net Asset Value (NAV)
- Net Asset value was EUR 0.49 (NOK 4.86) per share, remaining at the same level as the end of second quarter 2018. There were no changes made to the value of the investment properties during the quarter.
Operational highlights
- A conditional sale of Balada Market (No.6 on the list) and 1.5 hectares of the Industrial Park (No.4 on the list) has been agreed. On the Lakeside plot (No.1 on the list) the Planning Permission was approved during August 2018 and construction of roads started during November 2018.
- Un-zoned land, 864,534 m2: In 26 January 2018, the Company entered in a pre-sale agreement for a total price of EUR 625,060 (vs EUR 389,000 as per independent valuation). The transaction is closed and the last instalment of EUR 495,000 was collected during July 2018.
- During July 2018, RomReal received a tax claim in excess of EUR 1.7m. E&Y has been retained and the Company will pursue all legal means in order to dismiss the claim. On 18th July 2018, the Constanta Court of Appeal ordered that no attachments to the bank accounts and/or lands belonging to Westhouse Group should take place. There is on-going communication with the Central Tax Authorities, but no conclusion at the time being.
Financial Results
- Net Result for the quarter was EUR 18,000 loss compared to a EUR 361,000 loss in 3Q 2017. Operating cash flow for the quarter was a negative EUR 284,000 compared to minus EUR 195,000 in the same period last year.
- At the end of the quarter, the Company had a cash position of EUR 3.7 million plus a total of EUR 1,050,000 in unsettled receivables related to binding sales agreements, totalling at about EUR 4.7 million or about EUR 0.1 per share.
Macro and real estate market highlights
- Romania has registered the fastest growth rate of its economy among the 28 European Union member states in the third quarter of this year of 1.9 percent, according to Eurostat. Compared with the third quarter of 2017, the Romanian economy grew by 4.3 percent, the fastest pace this year.
- The third quarter of 2018 witnessed a slowdown in terms of residential price growth, however, there still was an increase of circa 5.6% compared to the same period of 2017. Equally, in Bucharest apartment prices stand about 35% below the prices they commanded in the same quarter of 2008. According to the real estate platform immobiliare.ro, asking prices in Romania registered a marginal increase during the third quarter reaching EUR 1,220 /sqm. Prices in Constanta have reached in September 2018 EUR 1,148 /sqm, a 4.8% increase since the beginning of the current year.
A recorded investor presentation webinar will be made available by 10:00am Friday 30 November at www.romreal.com
For further information please contact:
Harris Palaondas
IR
investors@romreal.com
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.