EPH European Property Holdings PLC announces Interim

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30 September 2022, Nicosia, Cyprus | Ad hoc announcement pursuant to Art. 53 LR

EPH European Property Holdings PLC (EPH), an actual property funding firm, at present announces its interim unaudited outcomes for the primary half of 2022.

BUSINESS HIGHLIGHTS FIRST HALF YEAR 2022

  • In February 2022, EPH European Property Holdings PLC (the “Company” or “EPH”) relocated to Cyprus, a member of the European Union and euro zone. Furthermore, EPH has modified its useful foreign money and presentation foreign money of EPH Group’s monetary statements from US$ to EUR as of 1 January 2022. This takes under consideration the numerous growth of EPH’s European actual property portfolio and the technique of the Company to focus its investments on main European cities. In addition, the change will increase transparency and permits the Company to higher replicate the efficiency of the asset portfolio, as a big proportion of the portfolio is situated in Germany and Austria and rental revenue is generated in euros.
  •  EPH’s property portfolio consists of 15 core belongings value EUR 1.47 billion, with a complete lettable space of 250,000 sq. metres. These embrace properties in 4 places in Germany (Berlin, Hamburg, Stuttgart, and Dresden), in addition to in Vienna and Moscow.
  • The Company demonstrated steady efficiency within the first six months 2022 regardless of varied world challenges. Besides Covid-19, the conflict within the Ukraine since February 2022 and the ensuing sanctions towards and by Russia have modified the working surroundings in Russia in addition to business between Russia and European international locations. As EPH owns subsidiaries and actual property belongings in Russia (40% of complete property values), it’s affected by the imposed sanctions and rules. Due to the sturdy portfolio of EPH in Western Europe and the truth that all properties are working independently from one another the business of EPH is till now solely affected to a restricted extent.
  • The properties in Western Europe signify 60% of the entire property values and carried out very positively within the reporting interval. All European belongings are absolutely let, and web rental revenue and market worth had been elevated because of the finish of rent-free durations within the newly acquired QBC 1,2 & 7, sturdy tenants, long-term leases and excellent places.
  • Despite the tough market surroundings, refurbishment of the LASS 1 mission in Vienna has solely been barely delayed and it’s near completion. On 1 July 2022, the primary tenant, Wiener Gesundheitsverbund (“Vienna Healthcare Group”), has moved into the constructing. Wiener ArbeitnehmerInnen Förderungsfonds (“Vienna Employment Promotion Fund”) will comply with in October 2022 in addition to ISS Austria, which will even present the ability administration for the property, in December 2022. The constructing presents its tenants trendy workspaces on 9 flooring with a complete space of just about 45,000 sq. metres.
  • As a long-term oriented actual property investor with concentrate on high-quality actual property belongings in prime European places with sturdy tenants, EPH is properly positioned for various market phases. EPH’s geographical diversification and concentrate on sturdy economies akin to Germany and Austria create a steady foundation for sustainable values, long-term capital preservation and steady risk-adjusted revenues. The extremely skilled asset administration with highly effective native groups performs a decisive function in attaining such steady efficiency.
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FINANCIAL HIGHLIGHTS FIRST HALF YEAR 2022

  • As of 30 June 2022, EPH had complete belongings of EUR 1.83 billion, web belongings (calculated as complete fairness) of EUR 598 million and web asset worth per share of EUR 41.07. This represents a major enhance over the identical interval of the final 12 months, with complete belongings of EUR 1.57 billion, web belongings of EUR 474.5 million and web asset per share of EUR 32.46, primarily brought on by RUB strengthening towards EUR that affected the EUR equivalents of RUB-based belongings.
  • At the identical time, the Group reported a loss within the quantity of EUR 37.14 million as in comparison with a revenue of EUR 9.08 million for a similar interval of 2021. The loss incurred is attributable to substantial lower of truthful values of properties in Russia in useful foreign money (RUB), prompted primarily by the RUB strengthening towards US$ (for Berlin House and Geneva House that are valued in US$), but additionally by way of extra conservative valuation assumptions to replicate the adjustments and uncertainties of the market.
  • From the operational perspective the Group demonstrates steady progress. The properties generate adequate money to cowl working prices, together with curiosity funds on bonds and notes issued by EPH. Net rental revenue elevated from EUR 26.6 million to EUR 33.3 million. A big a part of this progress will be attributed to the properties acquired in 2020. The enhance of revenue by the newly acquired and beforehand owned European properties from EUR 8.5 million to EUR 11.5 million for the primary six months of 2022 was largely as a result of the properties QBC 1,2 and seven began to generate full revenue after the expiration of rent-free durations.
  • The total financing prices decreased from EUR 17.25 million to EUR 15.68 million, primarily on account of lower of rates of interest on the bonds issued by the Company efficient from 1 April 2022.  
  • As anticipated, the unstable political and financial state of affairs in Russia has affected the unbiased valuations of our Russian portfolio. The values of the Russian properties decreased considerably by approx. 30% in useful foreign money (RUB). However, the sturdy rouble appreciation towards EUR offsets the losses from the truthful worth adjustment and the Russian properties present a rise in asset worth in EUR by 21 %. The monetary ratios in complete reveal EPH’s sustainable profitability because of the high quality and the diversification of the portfolio, and the energetic asset administration.
  • Based on the operational surroundings and the truth that the vast majority of funding belongings and many of the liabilities of the Company are denominated in euros, the foreign money of EPH’s share capital has been modified. The Company’s shares listed on the SIX Swiss Exchange (ISIN: CY0109992111) have been traded in euros as of 10 June 2022 after approval of the Annual General Meeting.
  • The foreign money of the corporate’s bonds was additionally modified to euros. All bondholders agreed to the change in denomination in addition to the next lower of the rates of interest / adjustment of the curiosity coupon. The amendments to the Bond Prospectus turned efficient on 1 April 2022, and the primary buying and selling day of the adjusted bonds was 4 April 2022.
  • During the reporting interval, EPH has taken measures to create extra monetary leeway. To enhance liquidity, a complete of 103 million euros was raised from two EPH shareholders in March and April 2022 within the type of subordinated notes with a time period of three years and an rate of interest of three.5 %. 
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OUTLOOK 

  • Despite the difficult total market state of affairs, primarily on account of the Ukraine battle, excessive inflation charges, distrupted provide chains and ongoing coronavirus pandemic, EPH is optimistic concerning the future growth of the Company and continues to see good potential within the goal markets, notably Germany and Austria
  •  EPH will rigorously study market alternatives as a way to proceed to place the true property portfolio for long-term stability in revenue and worth progress.
  • The primary strategic focus of EPH for potential extra acquisitions continues to be core European properties in premium places, particularly within the workplace asset class in addition to within the hospitality sector. These markets have proved to be steady regardless of the present cautious market surroundings.

Full Report

The full Semi-Annual Results 2022, together with the Interim Condensed Consolidated Financial Information (unaudited) for EPH is on the market on the corporate’s web site https://europeanpropertyholdings.com

CONFERENCE CALL WITH THE MANAGEMENT

Please be part of administration for a convention name to debate the outcomes for the primary half of 2022 on

Wednesday, 05 October 2022 at 09:00 a.m. (CET)

Dial in: +41 43 216 12 79

Phone Conference ID: 662 142 649#

Click right here to hitch the assembly

Find an area quantity

 

A presentation for the decision shall be posted on the Company’s web site shortly earlier than the decision: https://europeanpropertyholdings.com/

EPH European Property Holdings PLC is an funding firm listed on SIX Swiss Exchange. Additional info on EPH European Property Holdings PLC is on the market by contacting Anna Bernhart Tel: +41 44 503 5400 or at contact@europeanpropertyholdings.com.

  • 220930 EPH_Press Release_HY Financials 2022_FINAL
  • 220930 EPH Semi Annual Report 2022 FINAL
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