Eurocastle Announces 2016 AGM Results and First Quarter 2016 Financial Results
(Thomson Reuters ONE) -
Guernsey, 19 May 2016 - Eurocastle Investment Limited (Euronext Amsterdam: ECT)
today announces the results of its 2016 Annual General Meeting held yesterday,
18 May 2016. All ordinary and extraordinary business tabled before the meeting
in accordance with the Notice of Annual General Meeting circulated to
shareholders on 28 April 2016 was approved. This includes the approval of the
standing share buyback authority. Under this program, the Company may repurchase
a maximum of 18,100,374 shares at the minimum price of ?0.01 per share and the
maximum price equal to 97.5% of the Company's most recently published net asset
value per share as at the date of the acquisition. The definition of net asset
value for these purposes was clarified by an amendment to resolution 5 to refer
to 'adjusted net asset value' as reported by the Company. A copy of the Notice
of Meeting is available on Eurocastle's website at www.eurocastleinv.com.
In addition, the Company today released its financial results for the first
quarter ended 31 March 2016.
FINANCIAL HIGHLIGHTS
* Normalised FFO(1)
* ?10.5 million, or ?0.15 per share, for the first quarter of 2016
reflecting the first full quarter ownership of doBank and including
?0.02 per share one-off impacts from the Legacy Business(2,6) (Q4 2015:
?8.1 million, or ?0.11 per share).
* Before costs, Italian Investments(3) alone generated ?12.0 million, or
?0.17 per share of Normalised FFO, resulting in a return on average net
invested capital(4) of 15% (Q4 2015: ?9.7 million, or ?0.13 per share).
* Adjusted Net Asset Value(5)
* ?532.2 million, or ?7.35 per share, in line with previous quarter after
paying ?9.1 million of quarterly dividend (Q4 2015: ?532.5 million, or
?7.35 per share).
* First Quarter 2016 Dividend
* ?9.1 million or ?0.125 per share paid in April.
Q1 2016 Q4 2015
? million ? per ? million ? per
share share
---------------------------------- --------------------- --------------------
Normalised FFO(1) 10.5 0.15 8.1 0.11
Legacy Business(6) Cash Flow 4.7 0.06 17.3 0.24
Received
Adjusted NAV[1] 532.2 7.35 532.5 7.35
---------------------------------- --------------------- --------------------
BUSINESS HIGHLIGHTS
Italian Investments - On 8 March 2016, Eurocastle entered into a structured
transaction ("Fund Investment IV") investing ?1.0 million out of an anticipated
?7.0 million to acquire substantially all of the units of a newly established
unlisted Italian real estate fund set up to restructure and monetise real estate
properties owned by an over-levered real estate fund. The portfolio owned by the
fund consists of a retail portfolio in Northern Italy and 3 office assets with a
combined value of ?132 million.
Italian Investment Performance - During the first quarter, these investments in
aggregate generated ?10.9 million, or ?0.15 per share, of cash flow. This
includes ?2.0 million from the NPLs within doBank and ?5.5 million from doBank's
servicing business.
Legacy Business - The Company continued making progress towards its goal of
fully disposing of these assets, collecting ?4.7 million over the period
including ?3.6 million from the sale of the Zama portfolio. As at 31 March
2016, the Legacy Business has a remaining NAV of ?13.0 million, or ?0.18 per
share, representing only 2% of the Group's Adjusted NAV.Since January 2015 the
gacy Business has generated ?82.5 million of cash flow.
HIGHLIGHTS SUBSEQUENT TO 31 MARCH 2016
* At its Annual General Meeting, amongst other items, the Company received
approval to buy back up to 25% of outstanding shares at a price not
exceeding 97.5% of its most recently published Adjusted Net Asset Value per
share.
* On 10 May 2016, Eurocastle invested an additional ?6.0 million into the Fund
Investment IV transaction bringing the Company's total equity investment to
?7.0 million. On completion, Eurocastle's share of the implied net asset
value of this fund was ?14.2 million indicating an acquisition at
approximately a 50% discount to the implied NAV.
* In May 2016, Eurocastle received ?6.8 million, or 63% of its original
investment in Fund Investment III. The distribution followed the sale of an
asset which represented 26% of the fund's total assets, with the sale price
representing a 5% premium to reported market value. The units in this fund
were acquired by the Company at a 56% discount to the fund's reported NAV at
acquisition.
* In May 2016, the Company invested ?5.0 million to acquire an interest in
mezzanine tranches of a securitisation of senior Italian real estate fund
debt at a significant discount to expected recovery.
ADDITIONAL INFORMATION
For additional information that management believes to be useful for investors,
please refer to the latest presentation posted on the Investor Relations section
of the Company's website, www.eurocastleinv.com. For consolidated investment
portfolio information, please refer to the Company's most recent Financial
Report, which is available on the Company's website (www.eurocastleinv.com).
EARNINGS CALL INFORMATION
Eurocastle's management will host an earnings conference call at 2:00 P.M.
London time (9:00 A.M. New York time) later today. All interested parties are
welcome to participate on the live call. You can access the conference call by
dialing first +1-800-215-5243 (from within the U.S.) or +1-330-863-8154 (from
outside of the U.S.) ten minutes prior to the scheduled start of the call;
please reference "Eurocastle First Quarter 2016 Earnings Call" or "conference ID
number 1385711."
A webcast of the conference call will be available to the public on a listen-
only basis at www.eurocastleinv.com. Please allow extra time prior to the call
to visit the site and download the necessary software required to listen to the
internet broadcast. A replay of the webcast will be available for three months
following the call. For those who are not available to listen to the live call,
a replay will be available until 11:59 P.M. New York time on 19 August 2016 by
dialing +1-855-859-2056 (from within the U.S.) or +1-404-537-3406 (from outside
of the U.S.); please reference access code "1385711"
NORMALISED FFO
Normalised FFO is a non-IFRS financial measure that, with respect to the
Company's Italian Investments, recognises income on an expected yield basis
allowing Eurocastle to report the run rate earnings from these investments in
line with their projected annualised returns. On Eurocastle's Legacy Business
the measure excludes realised gains and losses, sales related costs (including
realised swap losses), impairment losses and foreign exchange movementsand any
movements on portfolios with a negative NAV other than sales or asset management
fees realised.
Eurocastle believes that, given the strategy of seeking to monetise the existing
value of the Legacy Business, focusing on the Normalised FFO of the Company's
Italian Investments will further enable investors to understand current and
future earnings given annualised returns achieved and the average net invested
capital over the relevant period.
Q1 2016 NORMALISED FFO
Italian Average Net
Investments Legacy Total Invested
? Thousands ? Thousands ? Thousands Capital[2] Yield
------------------------------------------------------- -----------------------
Italian 11,959 - 11,959 309,874 15%
Investments
Legacy Portfolios - 3,507 3,507
Operating (3,481) (1,443) (4,924)
expenses
-------------------------------------------------------
Normalised FFO 8,478 2,064 10,542
Per Share 0.12 0.03 0.15
-------------------------------------------------------
In the first quarter of 2016, Eurocastle generated Normalised FFO of ?10.5
million, or ?0.15 per share compared to a dividend of ?9.1 million, or ?0.125
per share. Before corporate costs, Italian Investments generated ?12.0 million,
or ?0.17 per share. Given the average net invested capital in the period was
approximately ?310 million, this equates to a yield of 15%.
Q1 2016 INCOME STATEMENT
Italian Investments Legacy Total
? Thousands ? Thousands ? Thousands
-------------------------------------------------------------------------------
Operating income
Italian Investments
Fair value movements on Italian
Investments
doBank (Servicer & NPL) 7,933 - 7,933
NPLs[3] 781 - 781
Real estate fund units (Fund 632 - 632
Investment I)
Share of post-tax profits from
associate investment in RE fund 4,225 - 4,225
units (Fund Investment III)
Share of post-tax loss from JV
investment in RE fund units (Fund (1,595) - (1,595)
Investment II)
Legacy Debt Investments
Interest income 74 268 342
Losses on foreign currency - (935) (935)
contracts, translation and swaps
Impairment losses - (798) (798)
Gain on pay-downs of loans and - 1,325 1,325
receivables
-------------------------------------------------------------------------------
Total operating income 12,050 (140) 11,910
Operating expenses
Interest expense - 761 761
Other operating expenses - 88 - 88
transaction costs
Other operating expenses - group 3,375 186 3,561
running costs
-------------------------------------------------------------------------------
Total operating expenses 3,463 947 4,410
-------------------------------------------------------------------------------
Net operating profit / (loss) 8,587 (1,087) 7,500
before taxation
-------------------------------------------------------------------------------
Total tax expense 7 1 8
-------------------------------------------------------------------------------
Net profit / (loss) after taxation 8,580 (1,088) 7,492
from continuing operations
-------------------------------------------------------------------------------
Net profit after taxation from - 710 710
discontinued operations
-------------------------------------------------------------------------------
Profit / (loss) after taxation for 8,580 (378) 8,202
the year
Per Share(3) 0.12 (0.01) 0.11
-------------------------------------------------------------------------------
Attributable to:
Ordinary equity holders of the 8,552 (378) 8,174
Company
Non-controlling interest 28 - 28
For the first three months of 2016, the total net gain after taxation and non-
controlling interests as reported under IFRS was ?8.2 million. Within the
Group's Italian Investments, where the majority of these assets are accounted
for at fair value under a discounted cash flow approach, net income after
taxation and non-controlling interest for the first quarter of 2016 was ?8.6
million, or ?0.12 per share.
Italian Investments Legacy Total
? Thousands ? Thousands ? Thousands
-------------------------------------------------------------------------------
Net profit / ( loss) attributable
to ordinary shareholders after 8,552 (378) 8,174
taxation
Reversal of Net loss attributed to - 1,337 1,337
negative NAV portfolios2
-------------------------------------------------------------------------------
Adjusted net profit 8,552 959 9,511
Per Share3 0.12 0.01 0.13
-------------------------------------------------------------------------------
Excluding losses arising within those legacy portfolios that have a negative
NAV, the Group generated a net profit after taxation of ?9.5 million or ?0.13
per share. As at 31 March 2016, the remaining adjusted NAV of the legacy
portfolios was ?13.0 million, or ?0.18 per share which represents just 2.0% of
the Company's Adjusted NAV.
Q1 2016 BALANCE SHEET AND ADJUSTED NAV RECONCILIATION
Italian
Investments Corporate Legacy Total
? Thousands ? Thousands ? Thousands ? Thousands
-------------------------------------------------------------------------------
Assets
Cash and cash equivalents 4,605 200,585 30,833 236,023
Investment properties held for - - 359,758 359,758
sale
Italian investments at Fair
Value
doBank (Servicer) 162,600 - - 162,600
doBank (NPL) 101,052 - - 101,052
NPLs 26,211 - - 26,211
Real estate fund units (Fund 13,480 - - 13,480
Investment I)
Associate investment in real
estate fund units (Fund 19,194 - - 19,194
Investment III)
Joint venture investment in
real estate fund units (Fund 10,565 - - 10,565
Investment II)
Loans and receivables - - 55,498 55,498
Derivative assets - - 4,272 4,272
Other assets 1,447 59 17,386 18,892
Intangible assets - - 2 2
-------------------------------------------------------------------------------
Total assets 339,154 200,644 467,749 1,007,547
Total liabilities
Trade and other payables 3,896 12,693 80,302 96,891
Current taxation payable 10 - 9,527 9,537
CDO bonds payable - - 76,453 76,453
Bank borrowings - - 368,747 368,747
Finance lease payable - - 16,924 16,924
Deferred taxation liability - - 751 751
-------------------------------------------------------------------------------
Total liabilities 3,906 12,693 552,704 569,303
-------------------------------------------------------------------------------
Net Asset Value 335,248 187,951 (84,955) 438,244
-------------------------------------------------------------------------------
Non-controlling interest (970) - - (970)
-------------------------------------------------------------------------------
Net Asset Value after Non- 334,278 187,951 (84,955) 437,274
controlling interest
-------------------------------------------------------------------------------
Negative NAV Addbacks[4] - - 94,955 94,955
NAV Reallocation following 6,032 (6,032) - -
Committed Investments[5]
NAV Reallocation following - (2,990) 2,990 -
Legacy Portfolio Sales[6]
-------------------------------------------------------------------------------
Adjusted NAV 340,310 178,929 12,990 532,229
Adjusted NAV (? per Share)[7] 4.70 2.47 0.18 7.35
-------------------------------------------------------------------------------
ABOUT EUROCASTLE
Eurocastle Investment Limited is a publicly traded closed-ended investment
company that focuses on investing in performing and non-performing loans and
other real estate related assets primarily in Italy, and actively managing its
legacy business-commercial real estate assets in Germany and European real
estate related debt. The Company is Euro denominated and is listed on Euronext
Amsterdam under the symbol "ECT". Eurocastle is managed by an affiliate of
Fortress Investment Group LLC, a leading global investment manager. For more
information regarding Eurocastle Investment Limited and to be added to our email
distribution list, please visit www.eurocastleinv.com.
FORWARD-LOOKING STATEMENTS
This release contains statements that constitute forward-looking statements.
Such forward-looking statements may relate to, among other things, future
commitments to sell real estate and achievement of disposal targets,
availability of investment and divestment opportunities, timing or certainty of
completion of acquisitions and disposals, the operating performance of our
investments and financing needs. Forward-looking statements are generally
identifiable by use of forward-looking terminology such as "may", "will",
"should", "potential", "intend", "expect", "endeavour", "seek", "anticipate",
"estimate", "overestimate", "underestimate", "believe", "could", "project",
"predict", "project", "continue", "plan", "forecast" or other similar words or
expressions. Forward-looking statements are based on certain assumptions,
discuss future expectations, describe future plans and strategies, contain
projections of results of operations or of financial condition or state other
forward-looking information. The Group's ability to predict results or the
actual effect of future plans or strategies is limited. Although the Group
believes that the expectations reflected in such forward-looking statements are
based on reasonable assumptions, its actual results and performance may differ
materially from those set forth in the forward-looking statements. These
forward-looking statements are subject to risks, uncertainties and other factors
that may cause the Group's actual results in future periods to differ materially
from forecasted results or stated expectations including the risks regarding
Eurocastle's ability to declare dividends, amortise the Group's debts,
renegotiate the Group's credit facilities, make new investments, or achieve its
targets regarding asset disposals or asset performance.
--------------------------------------------------------------------------------
1 Normalised FFO is a non-IFRS measure used to provide additional information
regarding the underlying performance of the Company, as outlined in Note 24 of
the Q1'16 Interim Report.
2 Includes a net ?1.4 million provision release from a previously sold
portfolio.
3 All investments acquired by the Group since the establishment of its new
strategy in April 2013, previously labelled as "New Investments".
4 Time weighted average of invested capital (net of any capital returned) over
the relevant period.
5 Adjusted NAV excludes the net asset value of those Legacy portfolios with
negative NAV (Belfry, Drive and CDO V) whose debt is non-recourse to Eurocastle,
as outlined on page 12of the Q1'16 Interim Report.
6 All investments owned by the Group prior to April 2013.
[2] Time weighted average of invested capital (net of any capital returned) over
the relevant period.
[3] The fair value movements on Italian NPL Investments includes ?0.2m from
subsidiaries, ?0.5m from the share of post-tax profits from associates and ?0.1m
from the share of post-tax profits from joint venture investments which are
disclosed separately in the Company's financial statements. These investments
are accounted for under the equity method but the underlying investments are
fair valued.
2 Reverses losses arising from portfolios with a negative net asset value net of
any cash distributions or fees received by the Company.
3 Earnings per share based on 72.4 million weighted average ordinary shares for
the first quarter.
[4] Adjusts to exclude those Legacy portfolios with negative NAV (Belfry, Drive
and CDO V) whose debt is non-recourse to Eurocastle, as outlined on page 12of
the Q1'16 Interim Report.
[5] Refers to the unfunded commitment in new RE Funds investment (Fund
Investment IV).
[6] Adjust for the residual net assets and liabilities of the sold Legacy
portfolios Mars Fixed 2 and Wave.
[7] Adjusted NAV per share based in on 72.4 million ordinary shares in issue.
This announcement is distributed by GlobeNewswire on behalf of
GlobeNewswire clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Eurocastle Investment Limited via GlobeNewswire
[HUG#2013795]
Unternehmensinformation / Kurzprofil:
Datum: 19.05.2016 - 08:00 Uhr
Sprache: Deutsch
News-ID 472244
Anzahl Zeichen: 24965
contact information:
Town:
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Kategorie:
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