22nd Sep 2016 07:23
LONDON (Alliance News) - Secure Property Development & Investment PLC on Thursday said its focus had been on asset management in its first half, following two years of expansion, as its rental income remained flat.
The South Eastern Europe-focused property company said its rental income for the six months ended June 30 was EUR2.7 million, in line with the prior year, which Secure Property said was indicative of its stable revenue generation capability.
Secure Property reported earnings before interest, tax, depreciation and amortisation for the period of EUR623,729, down from EUR836,721 the prior year. The company noted this result came despite a reduction attributable to small price reductions to accelerate residential unit sales.
Its net asset value dipped to EUR41.3 million at the end of June from EUR42.5 million at the end of December, while its net asset value per share fell to EUR0.46 from EUR0.47 over the same period. This followed the sale of its portfolio of residential units in Bucharest in May for EUR660,000.
The company said this was part of its strategy to generate value from its non-core assets and said it was in talks with unnamed third parties to join forces to realise value in other non-core assets in its portfolio.
"In tandem with our on-going focus on generating value from our existing assets, we continue to evaluate new properties that match our strategic criteria of expanding into well located and underpriced income producing assets," said Chief Executive Lambros Anagnostopoulos.
This "will help the company build a platform of stable cash flows based on long term visible income streams which is exposed to the significant capital uplift offered by the on-going European yield compression play over the short to medium term," Anagnostopoulos said.
Shares in Secure Property were untraded on Thursday, having last traded at 15.00 pence.
By Hannah Boland; [email protected]; @Hannaheboland
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
Secure Prop