EPH First Quarter 2015 Trading Update
(Thomson Reuters ONE) -
Eastern Property Holdings Limited (EPH) /
EPH First Quarter 2015 Trading Update
. Processed and transmitted by NASDAQ OMX Corporate Solutions.
The issuer is solely responsible for the content of this announcement.
26 May 2015, Road Town, Tortola, BVI
FINANCIAL HIGHLIGHTS
· Good performance of rental assets which overlaps moderate FX losses and
increased finance costs.
· As a result, NAV is higher than at 31 December 2014 (based on the real
estate valuations done as of 31 December 2014).
SIGNIFICANT FINANCIAL CHANGES FOR Q1 2015
Income
· Net Rental Income
During the first three months of 2015 our wholly-owned rental properties
generated Net Rental Income of $17.89 million. The contribution of each property
to Net Rental Income is presented in the table below.
The Net Rental Income increased almost nine times from $2.02 million in Q1 2014
to $17.89 million in Q1 2015. This substantial increase is caused by the
acquisition of new income-generating properties in 2014.
· Interest Income
Interest Income decreased from $ 1.95 million in Q1 2014 to $ 1.40 million in Q1
2015. The decrease is caused by the fact that part of the interest income in Q1
2014 was from EPH loans to Berlin House and Geneva House which were treated as
investments in associate and were not consolidated for that period.
Expenses
· Net Foreign Exchange Loss
The functional currency of the Company's subsidiaries is RUB. If the
subsidiaries have assets and liabilities which are denominated or valued in US$
the fluctuations of the US$ / RUB exchange rate create foreign exchange gain or
loss.
All our properties are valued in US$. Therefore the strengthening of RUB against
US$ during Q1 2015 is the main reason for Net Foreign Exchange Loss in the
amount of $ 5.90 million.
· Finance Costs
The Company recognized $8.05 million of Finance Costs in the first three months
of 2015 in comparison with $0.54 million for the same period in 2014. The main
reasons for the increase are: the interest expense on bonds issued in August and
September 2014, as well as the interest expense on third party loans granted to
Berlin House, Geneva House and Hermitage Plaza which were acquired by EPH
together with these properties.
Assets
· Investment Properties
As of 31 March 2015 Investment Properties amount to $ 749.77 million. All
properties are valued twice a year, in the end of June and December; therefore
the current figures are based on the appraiser's reports as of 31 December 2014.
· Loans and Receivables
EPH's Loans and Receivables increased due to both additional lending to Arbat
projects and accrual of additional interest on existing project loans. To the
extent that a borrower is partially owned by EPH, loans are eliminated in
consolidation. This means that 60% of project financing for the Arbat Projects
is classified as investment in the projects, and 40% as lending.
Loans and Receivables increased from $75.42 million as of 31 December 2014 to
$77.43 million as of 31 March 2015.
· Cash and Cash Equivalents
The Company's cash position decreased from $26.46 million as of 31 December
2014 to $21.09 million as of 31 March 2015. A net reduction of $5.37 million in
the Company's cash position in the first three months of 2015 has been primarily
caused by the bonds interest payment and the use of cash to fund Arbat
construction.
· Assets Under Development (at cost)
Assets Under Development have increased from $66.90 million at 31 December 2014
to $69.17 million at 31 March 2015. The $2.28 million net increase is the result
of increased construction spending and slight strengthening of the RUB against
the US$. Assets Under Development are carried at cost which is nominated in RUB.
Thus, the strengthening of RUB against USD in 1Q 2015 leads to an increase in
Assets Under Development presented in US$.
Liabilities
· Borrowings (LT & ST)
EPH's debt consists of:
* 9 year bonds listed on Swiss Stock Exchange issued in August and September
2014;
* loan from Jilford Ltd. signed in September 2013 for the purpose of financing
Arbat construction;
* third party loans to EPH Real Estate, to Connecta KG and to Capital Estate
Group.
The nominal value of the listed bonds at reporting date did not change since the
end of 2014 and is $270 million.
The loan from Jilford is received through Vakhtangov Place Limited, the
Company's 60% joint operation company, therefore only 60% of the loan received
is reflected on EPH's balance sheet. During the first three months of 2015 the
outstanding balance of the loan did not change and is $15.09 million.
EPH Real Estate and Connecta KG have RUB nominated loans from a third party on
their balance sheets. The outstanding balance of the loans amounted to $65.52
million as of 31 March 2015.
Capital Estate Group has a USD nominated loan from a third party on its balance
sheet. The outstanding balance of the loan did not change during 1Q 2015 and is
$51.20 million.
· Accounts Payable and Accrued Expenses (LT & ST)
The amount of Accounts Payable decreased from $223.38 million as of 31 December
2014 to $216.52 million at 31 March 2015 mostly due to the decrease of trade
payables in the rental properties.
The most part of the remaining accounts payable represents the deferred parts of
the purchase prices with respect to the acquisitions of Berlin House, Geneva
House, Polar Lights and Hermitage Plaza.
Significant Q1 2015 Income and Expense Items
Net Rental Income 31.03.2015 31.03.2014 Change YoY
----------------------------------------------------------------
Berlin House 3,945,745 - 3,945,745
Geneva House 3,978,744 - 3,978,744
Polar lights 3,771,171 - 3,771,171
Hermitage Plaza 6,050,247 - 6,050,247
Magistral'naya 139,449 250,787 (111,338)
Petrovsky Fort - 1,765,571 (1,765,571)
------------------------------------------
Total 17,885,356 2,016,358 15,868,998
------------------------------------------
Material YoY changes in Income/Expense 31.03.2015 31.03.2014 Change YoY
Items
-------------------------------------------------------------------------------
Interest income 1,404,839 1,950,392 (545,553)
Net foreign exchange loss (5,901,067) (5,347,630) (553,437)
Net loss from fair value adjustment on (349,615) (949,028) 599,413
investment properties
Finance costs (8,051,124) (536,954) (7,514,170)
Significant Q1 2015 items in Financial Position
Assets 31.03.2015 31.12.2014 Change
-----------------------------------------------------------------------------
Investment properties 749,769,610 749,707,046 62,564
Goodwill 45,621,368 45,621,368 -
Investment property held for sale 4,300,000 4,300,000 -
Loans and receivables (LT & ST) 77,428,685 75,423,997 2,004,688
Cash & cash equivalents 21,086,523 26,460,024 (5,373,501)
Assets under development 69,174,620 66,896,144 2,278,476
Liabilities
-------------------------------------------------------------------------------
Borrowings (LT & ST) 407,083,611 408,871,502 (1,787,891)
Accounts payable and accrued 216,520,331 223,376,505 (6,856,174)
expenses (LT & ST)
Deferred tax liabilities 126,606,547 126,364,886 241,661
Eastern Property Holdings Ltd. is an investment company listed on SIX Swiss
Exchange which holds interest in office, residential and retail properties. EPH
is managed by Valartis International Ltd., a wholly-owned subsidiary of Valartis
Group AG.
Additional information on Eastern Property Holdings is available by contacting
Anna Bernhart Tel: +41 44 503 5400.
EPH_First Quarter 2015 Trading Update:
http://hugin.info/139905/R/1923766/689914.pdf
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Source: Eastern Property Holdings Limited (EPH) via GlobeNewswire
[HUG#1923766]
Unternehmensinformation / Kurzprofil:
Datum: 26.05.2015 - 00:30 Uhr
Sprache: Deutsch
News-ID 395577
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contact information:
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