Rental income and earnings fall at Secure Property Development

22nd Sep 2016 10:47

(ShareCast News) - South east Europe-focused property company, Secure Property Development & Investment, announced its unaudited half year results for the six months to 30 June on Thursday, with rental income of €2.66m.The AIM-traded firm said that rental income compared with €2.73m in the first half of 2015, which the board claimed demonstrated the portfolio's "stable revenue generation" capabilityEBITDA for the period was €0.62m, compared with €0.84m a year ago, continuing the company's positive EBITDA for a third year.Secure's net asset value was €41.3m on the 30 June, down slightly from €42.5m, while NAV per share stood at 46 euro cents compared with 47 cents at the start of the period.The company's loan to value ratio was 52% at period end, down from 53%.Its board reported a 20% reduction in administrative expenses to €1.18m, and an 11% reduction in finance costs to €1.23m."Following a transformational 2015, which saw our portfolio of income producing properties let to blue chip tenants in south eastern Europe more than double to seven, the six months under review has been a period of active portfolio management where the priority has been to extract as much income and value as possible from each asset," said CEO Lambros Anagnostopoulos."We are encouraged by the progress made which has seen the Brovary Terminal in Ukraine fully let, adding $150,000 of net operating income per month ahead of its proposed sale in the second half; the refinancing of a retail property in Bucharest which closed post period end; and the sale of a non-core residential portfolio in Bucharest, all of the above generating cash for the company."Anagnostopoulos said that, in tandem with the company's ongoing focus on generating value from existing assets, the board was continuing to evaluate new properties that match its strategic criteria of expanding into well-located and underpriced income-producing assets."I look forward to providing further updates on our progress as we deliver on our objective to transform SPDI into a leading income generating property play focused on emerging Europe."