28th Jun 2019 16:24
(Alliance News) - Secure Property Development & Investment PLC on Friday said its loss for 2018 was narrowed significantly after a EUR37.4 million foreign exchange loss the year prior.
The south eastern European focused property firm's 2018 pretax loss was EUR1.7 million, a small fraction of its EUR37.9 million loss the year before.
Rental, utilities, management and sale of electricity income from continuing operations declined to EUR769,463 from EUR2.2 million.
The company's earnings before interest, depreciation, taxation, and amortisation for 2018 came to EUR1.8 million, down from EUR3.7 million in 2017 after the sale of fully let BigBlueBox in Romania.
As well as continuing income, Ebitda includes EUR2.4 million of income from discontinued operations versus EUR2.4 million in 2017. The figure also includes a GBP1.1 million gain on disposal from continued and discontinued operations compared to a EUR195,273 gain in 2017.
Ebitda also includes continued and discontinued asset operating expenses of EUR724,388, down from EUR753,103, and EUR2.0 million of administration expenses versus EUR2.3 million in 2017.
The company is working to narrow the discount between its net asset value and its share price. On December 31, its net asset value per share was 25 pence sterling, putting its share price at a 62% discount to the NAV on that date.
On Friday, the investor's shares were down 5.6% at 8.50 pence, which would be a 66% NAV discount.
"Representing 15% of our current market capitalisation, our EUR1.8 million Ebitda for the full year validates what we have been saying for a long time, specifically a huge disconnect has opened up between how the industry and how the stock market value our portfolio of south eastern European properties. We continue to focus on closing this valuation gap," said Chief Executive Lambros Anagnostopoulos.
"The December 2018 announcement on the conditional sale of our non-Greek portfolio for EUR29.3 million, a 95% premium to our then market cap, to Amsterdam-listed Arcona Property Fund NV will go some way to achieving this," he continued.
"Not only does the sale value equate to a more realistic valuation of our properties, the all share transaction exposes our shareholders to a dividend-paying fund with a diversified portfolio of income producing properties in central eastern Europe valued after closing at ca EUR161 million. We are working hard to close the transaction in 2019, at which point we would have taken a major step towards delivering on our objective to build a leading property company focused on the fast-growing economies and strategic intercontinental trade routes of south eastern Europe," Anagnostopoulos added.
Related Shares:
Secure Prop