Eurocastle Releases First Quarter 2017 Financial Results, Announces Supplemental Dividend of ?0.14 per share and Annual General Meeting on 21 June 2017
(Thomson Reuters ONE) -
Guernsey, 18 May 2017 - Eurocastle Investment Limited (Euronext Amsterdam: ECT)
today has released its financial results for the first quarter ended 31 March
2017.
* Normalised FFO[1]of ?26.0 million, or ?0.43 per share[2], for the first
quarter of 2017 including one-off impacts from sales and the remaining
realisations from the Legacy Business.
* Adjusted Net Asset Value[3] of ?548.9 million, or ?9.13 per share2, after
the declaration of the regular quarterly dividend of ?0.15 per share2.
* First Quarter 2017 Dividend
* ?9.0 million, or ?0.15 per share2, of regular quarterly dividend
declared in March 2017 and to be paid on 31 May 2017.
* In addition, and in line with the new distribution policy announced in
March 2017, the Board of Directors has declared a supplemental dividend
for the period of ?8.4 million, or ?0.14 per share2, also payable on 31
May 2017 to shareholders of record at close of business on 23 May 2017,
with an ex-dividend date of 22 May 2017[4].
* In aggregate, this has resulted in a total dividend of ?17.4 million, or
?0.29 per share, for the first quarter of 2017.
Q1 2017 Q4 2016
------------------------ ------------------------
? million ? per share2 ? million ? per share2
---------------- ------------------------ ------------------------
Normalised FFO1 26.0 0.43 12.5 0.21
Dividends[5] 17.4 0.29 9.0 0.15
Adjusted NAV3 548.9 9.13 550.6 9.16
---------------- ------------------------ ------------------------
* Annual General Meeting
* The Company further announces that it will hold its Annual General
Meeting on Wednesday, 21 June 2017, at the Company's registered office
at 2:00 pm London time (3:00 pm CET).
BUSINESS HIGHLIGHTS
* Investment Realisations - During the first quarter of 2017, Eurocastle sold
its interest in the units of Real Estate Fund Investment III. The sale
resulted in total proceeds of ?20.9 million, or ?0.35 per share, realising a
total lifetime gross profit of ?18.0 million, an IRR of 137% and 2.7x
multiple on equity invested. The sale was achieved two years ahead of
business plan. In addition, the Company realised a gross profit of ?7.2
million from the resolution of a debt claim it had acquired in the period.
* doBank - In March 2017, the board of doBank approved a dividend of ?52.3
million (of which Eurocastle's share is ?26.2 million) for the year ended
31 December 2016 which is expected to be paid by the end of May 2017. For
the first quarter of 2017 the doBank Group reported EBITDA of ?9.9 million;
44% higher than the same period last year on a like-for-like basis[6]; a
period that is typically the lowest in the year given the seasonality of NPL
collections.
* Legacy Business[7]- In the first quarter of 2017, the Group received ?2.4
million of cash flow upon completion of German real estate sales that were
previously under binding contracts. In addition, the Company received ?0.6
million from the resolution of a Legacy debt investment. The Company intends
to unwind its remaining Legacy levered portfolio (CDO V) during the
remainder of 2017.
* BUSINESS HIGHLIGHTS SUBSEQUENT TO 31 MARCH 2017
* Romeo NPL Portfolio Financing - on the 3rd of May 2017, the Company
announced the successful completion of a ?75 million financing on the
secured portion of its Romeo NPL portfolio. As a result, Eurocastle received
approximately ?36 million or 50% of the net proceeds after costs and
reserves. At the same time, Eurocastle received over ?18 million of
previously undistributed cash from the portfolio, resulting in total
proceeds to the Company of approximately ?54 million.
* Italian Real Estate Fund Investment V- In April 2017 the Company closed on
its previously committed investment in Real Estate Fund V, deploying an
additional ?4.0 million. This brings the total equity deployed to date to
?4.4 million with an expected further ?1.4 million to be deployed
predominantly over the next 12 months.
* Italian Real Estate Fund Investment I Realisation - In May 2017, the Company
received a distribution of ?4.8 million primarily from sales made by the
fund in 2016.
NORMALISED FFO
Normalised FFO is a non-IFRS financial measure that, with respect to the
Company's Italian Investments[8], recognises i) income on an expected yield
basis updated periodically, allowing Eurocastle to report the run rate earnings
from these investments in line with their expected annualised returns and ii)
any additional gains or losses not previously recognised through NFFO at the
point investments are fully realised. On Eurocastle's Legacy Business, the
measure excludes realised gains and losses, sales related costs (including
realised swap losses), impairment losses, foreign exchange movements and any
movements on portfolios with a negative NAV other than sales or asset management
fees realised.
Eurocastle believes that focusing on the Normalised FFO of the Company's Italian
Investments will enhance investors' understanding of current and future earnings
given annualised returns achieved and the average net invested capital[9] over
the relevant period.
Segmental
Normalised FFO
for the Three Average Net
Months Ended Invested Italian
31 March 2017 Capital(3) Investments(2) Legacy Total
? Thousands Yield ? Thousands ? Thousands ? Thousands
------------------------------------- ------------------------------------------
doBank 246,033 15% 8,975 - 8,975
Investment
Italian 24,432 15% 939 - 939
NPLs[10]
Real Estate
Fund 46,002 130% 15,021 - 15,021
Investments
Other[11] n/a n/a 7,247 - 7,247
------------------------------------- ------------------------------------------
Italian
Investments 316,467 41% 32,182 - 32,182
NFFO before
expenses
Legacy
Portfolios NFFO - 2,826 2,826
before expenses
Manager Base & (7,728) - (7,728)
Incentive Fees
Other operating (1,082) (219) (1,301)
expenses
------------------------------------- ------------------------------------------
Normalised FFO 23,372 2,607 25,979
Per Share(6) 0.39 0.04 0.43
------------------------------------- ------------------------------------------
Income Statement for the Three Italian Investments Legacy Total
Months Ended 31 March 2017 ? Thousands ? Thousands ? Thousands
--------------------------------------------------------------------------------
Portfolio Returns
Fair value movements on joint
ventures:
doBank Group[12] (93) - (93)
Romeo NPLs(1) 2,359 - 2,359
Share of post-tax profit from
joint ventures:
NPLs - Pool 6 8 - 8
Real Estate Fund Investment II 495 - 495
Fair value movements on
associates:
Real Estate Fund Investment III 1,444 - 1,444
Real Estate Fund Investment IV 1,414 - 1,414
Share of post-tax profits from
associates:
NPLs - Pools 7-18 340 - 340
Fair value movements on other
investments:
NPLs/PL - Pools 1-5 105 - 105
Real Estate Fund Investment I 155 - 155
Other Income
Other income - 2,351 2,351
Gains on foreign currency 7,255 - 7,255
translations and swaps
--------------------------------------------------------------------------------
Total operating income 13,482 2,351 15,833
Operating expenses
Interest expense 42 - 42
Other operating expenses
Transaction costs 134 - 134
Manager Base Incentive fees 7,728 - 7,728
Remaining operating expenses 892 - 892
--------------------------------------------------------------------------------
Total operating expenses 8,796 - 8,796
--------------------------------------------------------------------------------
Net operating profit before taxation 4,686 2,351 7,037
--------------------------------------------------------------------------------
Total tax expense 14 - 14
--------------------------------------------------------------------------------
Net profit after taxation from 4,672 2,351 7,023
continuing operations
--------------------------------------------------------------------------------
Net Loss after taxation from - (153) (153)
discontinued operations
--------------------------------------------------------------------------------
Profit after taxation for the period 4,672 2,198 6,870
Per Share[13] 0.08 0.03 0.11
--------------------------------------------------------------------------------
Non-controlling interest 20 - 20
--------------------------------------------------------------------------------
Net profit attributable to ordinary 4,652 2,198 6,850
shareholders after taxation
Per Share(2) 0.08 0.03 0.11
--------------------------------------------------------------------------------
Reversal of Loss attributed to - 226 226
negative NAV portfolios[14]
--------------------------------------------------------------------------------
Adjusted net profit 4,652 2,424 7,076
Per Share(2) 0.08 0.04 0.12
--------------------------------------------------------------------------------
Excluding losses from CDO V (the Group's remaining Legacy investment with a
negative NAV) the Group generated a net profit after taxation of ?7.1 million,
or ?0.12 per share. As at 31 March 2017, the Group had an Adjusted NAV of nil
for its remaining Legacy interest (CDO V) and does not expect any further
material cash flows from this investment.
Balance Sheet and
Adjusted NAV Corporate
Reconciliation as at 31 Italian Investments ? Thousands Legacy Total
March 2017 ? Thousands ? Thousands ? Thousands
--------------------------------------------------------------------------------
Assets
Cash and cash 4,958 119,302 5,082 129,342
equivalents
Other assets 22 1,145 510 1,677
Available for sale 5,653 - - 5,653
securities
Investments in joint
ventures
doBank Group[15] 269,953 - - 269,953
Romeo NPLs(1) 103,144 - - 103,144
NPLs - Pool 6 1,629 - - 1,629
Real Estate Fund 10,744 - - 10,744
Investment II
Real Estate Fund 400 - - 400
Investment V
Investments in
associates
NPLs - Pools 7 - 18 23,291 - - 23,291
Real Estate Fund 19,028 - 2,208 21,236
Investment IV
Other fair value
investments
NPLs/PL - Pools 1-5 3,736 - - 3,736
Real Estate Fund 14,434 - - 14,434
Investment I
Loans and receivables - - 5,341 5,341
held for sale
Derivative assets - - 1,190 1,190
--------------------------------------------------------------------------------
Total assets 456,992 120,447 14,331 591,770
Liabilities
Trade and other payables 4,385 21,388 3,044 28,817
Current taxation payable 22 1,975 113 2,110
CDO bonds payable - - 54,471 54,471
--------------------------------------------------------------------------------
Total liabilities 4,407 23,363 57,628 85,398
--------------------------------------------------------------------------------
Net Asset Value 452,585 97,084 (43,297) 506,372
--------------------------------------------------------------------------------
Non-controlling interest (806) - - (806)
--------------------------------------------------------------------------------
Net Asset Value after 451,779 97,084 (43,297) 505,566
Non-controlling interest
--------------------------------------------------------------------------------
Negative NAV Addbacks(2) - - 43,297 43,297
Committed Investments(3) 65,357 (65,357) - -
--------------------------------------------------------------------------------
Adjusted NAV 517,136 31,727 - 548,863
Adjusted NAV (? per 8.60 0.53 - 9.13
Share)(4)
--------------------------------------------------------------------------------
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
dialling 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 2017 Earnings Call" or "conference ID
number 21936653".
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 Thursday, 01 June 2017 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 "21936653"
ANNUAL GENERAL MEETING
The Company will hold its Annual General Meeting on Wednesday, 21 June 2017, at
the Company's registered office at 2:00 pm London time (3:00 pm CET). Notices
and proxy statements will be mailed out to all holders on record as of Thursday,
18 May 2017. In addition, the Company has posted the Annual General Meeting
notice on its website under Periodic Reports and Shareholder Communications in
the Investor Relations Section.
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. 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 ("NFFO") is a non-IFRS measure used to provide additional
information regarding the underlying performance of the Company, as outlined on
page 13 of the Q1 2017 Interim Report.
[2] Amounts per share are calculated on the following basis for the relevant
period: Q1 2017 and Q4 2016 NFFO - 60.1 million of weighted average shares. Q1
2017 and Q4 2016 dividends and Adjusted Net Asset Value ("Adjusted NAV") - 60.1
million ordinary shares in issue (net of 6.0 million shares held in treasury).
[3] Adjusted Net Asset Value accounts for the ?9.0 million, or ?0.15 per share,
dividend declared in March 2017 but not the ?8.4 million, or ?0.14 per share,
supplemental dividend declared in May 2017. Adjusted Net Asset Value also
excludes the Group's remaining Legacy portfolio with negative NAV (CDO V) whose
debt is non-recourse to Eurocastle.
[4] Please refer to page 15 of the Q1 2017 Interim Report for further detail
with regards to the Company's distribution policy and composition of the total
dividend declared for the period.
[5] Q1 2017 dividend represents both the dividend declared in March 2017 of ?9.0
million, or ?0.15 per share, and a supplemental dividend of ?8.4 million, or
?0.14 per share, declared in May 2017.
[6] Like-for-like Q1 2016 EBITDA is pro forma for doBank, Italfondiario and
their subsidiaries and adjusted to exclude the net impact of the Romeo NPL
portfolio (spun-off by the Group in September 2016).
[7] All investments owned by the Group prior to April 2013.
[8] All investments acquired by the Group since the establishment of its new
strategy in April 2013, previously labelled as "New Investments".
[9] Time weighted average of invested capital (net of any capital returned) over
the relevant period.
[10] Excludes the Romeo NPL pool which is included under the doBank Investment.
[11]Fully realised investment.
(6) Normalised FFO per share based on 60.1 million weighted average ordinary
shares for Q1 2017.
[12] doBank Group fair value movement includes ?0.1 million movement from the
5% interest in the Romeo NPL pool acquired as part of the doBank investment and
spun-off in September 2016. Conversely, the Romeo NPL pool fair value movement
reflects the movement on the remaining 95% interest of the NPL pool.
[13] Earnings per share based on 60.1 million weighted average ordinary shares
for the three months ended 31 March 2017.
[14] Reverses gains and losses arising from portfolios with a negative net asset
value net of any cash distributions or fees received by the Company.
[15] doBank Group value includes ?5.4 million representing the 5% interest in
the Romeo NPL pool acquired as part of the doBank investment and spun-off in
September 2016. Conversely, the Romeo NPL pool value reflects the remaining 95%
interest in the NPL pool acquired as part of the doBank investment and spun-off
in September 2016.
(2) Adjusts to exclude the Group's remaining Legacy portfolio with negative NAV
(CDO V) whose debt is non-recourse to Eurocastle.
(3) Adjusted NAV of Italian Investments includes ?60 million of equity allocated
against the FINO transaction (reflecting the midpoint of the expected equity
requirement of ?50 to ?70 million) and a ?5.4 million estimated remaining
commitment allocated against RE Fund Investment V.
(4) Adjusted NAV per share based on 60.1 million ordinary shares in issue.
This announcement is distributed by Nasdaq Corporate Solutions on behalf of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Eurocastle Investment Limited via GlobeNewswire
Unternehmensinformation / Kurzprofil:
Datum: 18.05.2017 - 08:00 Uhr
Sprache: Deutsch
News-ID 543446
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contact information:
Town:
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