Contact:
Oak Fund Services (Guernsey) Limited
Company Administrator
Attn: Hannah Crocker
Tel: +44 1481 723450
Eurocastle Releases First Quarter 2024 Interim Management Statement and
Announces Annual General Meeting to be held on 12 June 2024
Guernsey, 13 May 2024 - Eurocastle Investment Limited (Euronext Amsterdam: ECT)
("Eurocastle" or the "Company") today (http://today) has released its interim
management statement for the quarter ended 31 March 2024.
* ADJUSTED NET ASSET VALUE ("NAV")(1) of EUR11.09 million, or EUR11.11 per
share(2) (EUR11.10 million, or EUR11.12 per share as at Q4 2023).
* IFRS NAV of EUR21.6 million, or EUR21.66 per share (EUR21.7 million, or EUR21.77 per
share as at Q4 2023).
+---------------+ +---------------+
| | | |
| | | |
| | Q1 FV | |
| Q4 2023 NAV | Movement | Q1 2024 NAV |
+---------------+ --------------- +---------------+
| EUR'm EUR p.s. | EUR'm EUR p.s. | EUR'm EUR p.s. |
| | | |
New Investment Strategy - | | | |
Greece | 0.10 0.10 | - - | 0.10 0.10 |
| | | |
| | | |
| | | |
Legacy Italian Real Estate | | | |
Funds | 0.08 0.08 | (0.01) (0.01) | 0.07 0.07 |
| | | |
Net Corporate Cash(3) | 17.83 17.86 | (0.10) (0.10) | 17.73 17.76 |
| | | |
Legacy German Tax Asset | 3.73 3.73 | - - | 3.73 3.73 |
---------------------------- +---------------+ --------------- +---------------+
IFRS NAV | 21.74 21.77 | (0.11) (0.11) | 21.63 21.66 |
---------------------------- +---------------+ --------------- +---------------+
| | | |
| | | |
Additional Reserves(4) |(10.64) (10.65)| 0.10 0.10 |(10.54) (10.55)|
| | | |
| | | |
---------------------------- +---------------+ --------------- +---------------+
Adjusted NAV | 11.10 11.12 | (0.01) (0.01) | 11.09 11.11 |
---------------------------- +---------------+ --------------- +---------------+
Ordinary shares | | | |
outstanding | 998,555 | | 998,555 |
| | | |
| | | |
+---------------+ +---------------+
As at 31 March 2024, the Company's assets comprise:
1. EUR17.7 million, or EUR17.76 per share, of net corporate cash(3) which is
primarily available to fund new investments under the New Investment
Strategy.
2. A deposit of EUR0.1 million, or EUR0.10 per share, paid in connection with the
Company's first investment under the New Investment Strategy.
3. A tax asset of EUR3.7 million, or EUR3.73 per share, representing amounts paid
in relation to additional tax assessed against a German property subsidiary.
The Company is currently appealing the assessment through the German fiscal
court and expects the matter will eventually be resolved in the Company's
favour.
4. Residual interests in two legacy Italian Real Estate Fund Investments with
an NAV of EUR0.07 million, or EUR0.07 per share, where the underlying apartments
are now all sold with both funds currently in liquidation.
BUSINESS UPDATES
* New Investment Strategy - Eurocastle remains on track to close its first
acquisition under the New Investment Strategy in Q2 2024, subject to certain
conditions precedent. As previously announced, Eurocastle has agreed to
acquire part of a boutique retail complex in an affluent part of Athens,
Greece. The total expected investment is approximately EUR6.3 million, of
which Eurocastle's share is approximately EUR5.0 million. In parallel with
executing this first investment, the Company has been underwriting a number
of additional opportunities.
* In addition, Eurocastle has made significant progress on establishing an
investment structure through which it expects to invest alongside selected
external co-investors. The Company has recently commenced the pre-marketing
phase of launching a Luxembourg regulated fund with a first close targeted
by the end of Q2 2024. In addition to generating attractive risk adjusted
returns on its share of any investments made through the fund, Eurocastle
anticipates also receiving market standard management and incentive fees
from the external investors.
* Additional Reserves - The Company reduced these reserves from EUR10.6 million
to EUR10.5 million, or EUR10.55 per share, during the quarter, with the
reduction of EUR0.1 million reflecting reserves being utilised in line with
anticipated costs. As at 31 March 2024, of the total Additional Reserves of
EUR10.5 million, EUR5.4 million related to the legacy German tax matter with the
balance of approximately EUR5.1 million in place to allow for future costs and
potential liabilities while the Company establishes in parallel the New
Investment Strategy.
Income Statement for the Quarter ended 31 March 2024 and Quarter ended 31 March
2023 (unaudited)
Income Income
Statement Statement
Q1 2024 Q1 2023
EUR Thousands EUR Thousands
--------------------------------------------------------------------------------
Portfolio Returns
Legacy Italian NPLs & Other Loans
realised gain - 2
Legacy Real Estate Funds unrealised fair
value movement (10) 13
--------------------------------------------------------------------------------
Fair value movement on Italian
investments (10) 15
Other income 4 2
Interest income 146 70
+------------------------------------------------------------------------------+
|Total income 141 87|
+------------------------------------------------------------------------------+
Operating Expenses
Manager base and incentive fees 20 30
Remaining operating expenses 227 257
--------------------------------------------------------------------------------
Other operating expenses 247 287
+------------------------------------------------------------------------------+
|Total expenses 247 287|
+------------------------------------------------------------------------------+
+------------------------------------------------------------------------------+
|(Loss) for the period (106) (200)|
| |
|EUR per share (0.11) (0.20)|
+------------------------------------------------------------------------------+
Balance Sheet and Adjusted NAV Reconciliation as at 31 March 2024 and as at 31
December 2024
31 March 2024 31 December 2024
Total Total
EUR Thousands EUR Thousands
--------------------------------------------------------------------------------
Assets
Other assets 171 210
Legacy German tax asset 3,727 3,727
Investments - Legacy Real Estate Funds 72 82
Cash, cash equivalents and treasury
investments:
Cash and cash equivalents 18,023 13,951
Treasury Investments - 4,236
--------------------------------------------------------------------------------
Total assets 21,993 22,206
Liabilities
Trade and other payables 339 425
Manager base and incentive fees 20 41
--------------------------------------------------------------------------------
Total liabilities 359 466
--------------------------------------------------------------------------------
IFRS Net Asset Value 21,634 21,740
--------------------------------------------------------------------------------
Liquidation cash reserve (5,100) (5,185)
Legacy German tax cash reserve (1,713) (1,728)
Legacy German tax asset reserve (3,727) (3,727)
+------------------------------------------------------------------------------+
|Adjusted NAV 11,094 11,100|
| |
|Adjusted NAV (EUR per Share) 11,11 11,12|
+------------------------------------------------------------------------------+
NOTICE: This announcement contains inside information for the purposes of the
Market Abuse Regulation 596/2014.
ANNUAL GENERAL MEETING
The Company will hold its Annual General Meeting on Wednesday, 12 June 2024, at
the Company's registered office at 2:00 pm
Guernsey time (3:00 pm CET). Notices and proxy statements will be posted on 28
May 2024 to shareholders of record at close of business on 26 May 2024.
ADDITIONAL INFORMATION
For investment portfolio information, please refer to the Company's most recent
Financial Report, which is available on the Company's website
(www.eurocastleinv.com (http://www.eurocastleinv.com)).
Terms not otherwise defined in this announcement shall have the meaning given to
them in the Circular.
ABOUT EUROCASTLE
Eurocastle Investment Limited ("Eurocastle" or the "Company") is a publicly
traded closed-ended investment company. On 8 July 2022, the Company announced
the relaunch of its investment activity and is currently in the early stages of
pursuing its new strategy by initially focusing on opportunistic real estate in
Greece with a plan to expand across Southern Europe. For more information
regarding Eurocastle Investment Limited and to be added to our email
distribution list, please visit www.eurocastleinv.com
(http://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 Company's ability to predict results or the
actual effect of future plans or strategies is limited. Although the Company
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 Company'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 or achieve its targets
regarding asset disposals or asset performance.
--------------------------------------------------------------------------------
(1) In light of the Realisation Plan announced in 2019, the Adjusted NAV as at
31 March 2024 reflects additional reserves for future costs and potential
liabilities, which have not been accounted for under the IFRS NAV. No
commitments for these future costs and potential liabilities existed as at 31
March 2024.
(2) Per share calculations for Eurocastle throughout this document are based on
998,555 shares, unless otherwise stated.
(3) Reflects corporate cash net of accrued liabilities and other assets.
(4) Reserves that were put in place when the Company realised the majority of
its investment assets in 2019 in order for the Company to continue in operation
and fund its future costs and potential liabilities. These reserves are not
accounted for under IFRS.
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