TIDMECT
EUROCASTLE INVESTMENT LIMITED
Contact:
Oak Fund Services (Guernsey) Limited
Company Administrator
Attn: Hannah Crocker
Tel: +44 1481 723450
Eurocastle Releases Fourth Quarter and Year End 2022 Financial
Results
Guernsey, 2 March 2023 -- Eurocastle Investment Limited
(Euronext Amsterdam: ECT) today
https://www.globenewswire.com/Tracker?data=RzS7OsGwnxginhGRcS7yNtjqYwi9qKMWBGXHduo6v1Ko9tYrrs-2yk3pM9GLG7hc
will release its annual report for the year ended 31 December
2022.
-- Adjusted Net Asset Value ("NAV") of EUR10.3 million1, or EUR10.33 per
share2, up EUR0.07 per share vs. Q3 2022 (up EUR0.54 per share vs. YE
2021) due to:
1. Valuation movements:
-- EUR0.05 per share, or 6%, increase in Q4 2022 (EUR0.28 per share
increase for FY 2022) on the real estate fund investments
following the sale of the final apartment units.
-- No movement in Q4 2022 (EUR0.12 per share increase for FY 2022) on
the NPL and other loan interests which were fully disposed of in
the year.
2. Reserve and other movements: EUR0.02 per share increase in Q4 2022
(EUR0.13 per share increase for FY 2022).
-- IFRS NAV of EUR22.4 million, or EUR22.45 per share (EUR32.9 million, or
EUR17.73 per share3, as at YE 2021).
The tables below summarise the Adjusted NAV by segment:
YE 2022 NAV Q3 2022 NAV YE 2021 NAV
---------------- ---------------- ----------------
EUR'm EUR p.s. EUR'm EUR p.s. EUR'm EUR p.s.
Real Estate
Funds 0.6 0.63 0.8 0.76 2.8 1.49
Italian NPLs &
Other Loans - - 1.0 1.01 1.3 0.72
Net Corporate
Cash(4) 17.1 17.15 16.2 16.27 28.8 15.52
Legacy German
Tax Asset 4.6 4.67 4.6 4.67 - -
---------------- ------ -------- ------ -------- ------ --------
IFRS NAV 22.4 22.45 22.6 22.72 32.9 17.73
================ ====== ======== ====== ======== ====== ========
Additional
Reserves (12.1) (12.12) (12.4) (12.46) (14.8) (7.94)
Adjusted NAV 10.3 10.33 10.2 10.26 18.2 9.79
================ ====== ======== ====== ======== ====== ========
Ordinary shares
outstanding 995,555 995,555 1,857,535
As at 31 December 2022, the Company's remaining assets mainly
comprise:
1. Two Real Estate Fund Investments with a Q4 2022 NAV of EUR0.6 million, or
EUR0.63 per share, where the underlying apartments are now all sold with
both funds currently in liquidation.
2. EUR17.1 million of net corporate cash.
2022 BUSINESS HIGHLIGHTS
FY 2022 Overview
During 2022, the Company made significant progress on realising
its remaining assets as part of its Realisation Plan, with 96% of
its YE 2021 NAV relating to investments realised in the period. As
at 31 December 2022, the Company had realised 106% of the NAV of
the investments reported at the time of the announcement of the
Realisation Plan in November 2019.
In particular, Eurocastle disposed of the two remaining loan
pools that the Company had an interest in and all remaining
apartment units in its two real estate fund investments were sold.
As a result, Eurocastle's investment interests now comprise the
residual net assets of its two RE Fund Investments with an NAV of
EUR0.6 million, or 6% of the Company's total Adjusted NAV.
In July, the Company announced the conclusion of its strategic
review and the decision to relaunch the Company's investment
activity (the "Relaunch"). It also announced a tender offer to
provide a liquidity opportunity for those shareholders who did not
wish to participate in the Relaunch (the "Tender Offer"). The
Tender Offer closed in August with 67% of eligible shares tendered,
resulting in Eurocastle accepting 864,980 shares in exchange for
EUR10.26 of cash per share, or EUR8.9 million in total.
Investment Realisations & Highlights
-- During 2022, the Company realised EUR4.8 million from its investments, of
which EUR3.4 million came from its RE Fund Investments (91% of their YE
2021 NAV) and EUR1.5 million from its minority NPL and Other Loan
holdings (109% of their YE 2021 NAV).
-- RE Redevelopment Funds - REFI II & REFI V: Both funds are now in
liquidation with all apartment units sold. During 2022, Eurocastle
received EUR3.4 million comprising (i) EUR1.0 million from REFI II (70%
of its YE 2021 NAV) and (ii) EUR2.4 million from REFI V (103% of its YE
2021 NAV).
-- Italian NPLs & Other Loans: The Company disposed of its residual minority
interest in 2 loan pools, realising EUR1.3 million and a further EUR0.2
million in distributions during the year.
-- Additional Reserves: The Company reduced these reserves from EUR14.8
million to EUR12.1 million during the year. The reduction of EUR2.7
million reflects EUR1.4 million of reserves being utilised, in line with
anticipated costs, and a release of EUR1.3 million of the existing
reserves in the year. The majority of this release relates to the legacy
German tax matter following a revision to the estimated total liability.
As at 31 December 2022, of the total Additional Reserves of EUR12.1
million, EUR6.5 million related to the legacy German tax matter with the
balance of approximately EUR5.5 million in place to allow for an orderly
liquidation process.
Relaunch Update
-- As at 31 December 2022 the Company has EUR17.1 million of net corporate
cash and approximately EUR9.7 million of net available cash to commence
seeking new investments under the new investment strategy. The Company is
currently working with the Manager to finalise the structure and expects
to commence investing in the coming weeks.
SUBSEQUENT EVENTS TO 31 DECEMBER 2022
As at 2 March 2023, there were no material subsequent events to
disclose.
Income Statement for the Full Year and Fourth Quarter
2022 FY 2022 Q4 2022
EUR
Thousands EUR Thousands
----------------------------------------------------------- --------- -----------------------------
Portfolio Returns
-----------------------------------------------------------
Italian NPLs & Other Loans realised gain 116 -
Real Estate Funds realised fair value movement - -
Real Estate Funds unrealised fair value movement 282 48
----------------------------------------------------------- --------- -----------------------------
Fair value movement on Italian investments 398 48
Fair value movements on residual Legacy entities 9 9
Interest income 68 58
Loss on foreign currency translation (7) (5)
--------- -----------------------------
Total income 468 109
----------------------------------------------------------- --------- -----------------------------
Operating Expenses
-----------------------------------------------------------
Interest expense 12 -
Manager base and incentive fees 92 17
Remaining operating expenses 1,247 243
----------------------------------------------------------- --------- -----------------------------
Other operating expenses 1,339 260
----------------------------------------------------------- --------- -----------------------------
Total expenses 1,351 260
----------------------------------------------------------- --------- -----------------------------
Net loss for the period (883) (152)
EUR per share (0.58) (0.15)
----------------------------------------------------------- --------- -----------------------------
Italian
Balance Sheet and Adjusted NAV Reconciliation as at Investments Corporate Total
31 December 2022 EUR Thousands EUR Thousands EUR Thousands
----------------------------------------------------
Assets
Cash and cash equivalents - 17,721 17,721
Other assets - 109 109
Legacy German tax asset - 4,645 4,645
Investments:
Real Estate Funds 628 - 628
Total assets 628 22,475 23,103
Liabilities
Trade and other payables - 736 736
Manager base and incentive fees - 17 17
---------------------------------------------------- -------------- -------------- --------------
Total liabilities - 753 753
IFRS Net Asset Value 628 21,722 22,350
----------------------------------------------------- -------------- -------------- --------------
Liquidation cash reserve - (5,537) (5,537)
Legacy German tax cash reserve - (1,888) (1,888)
Legacy German tax asset - (4,645) (4,645)
Adjusted NAV 628 9,652 10,280
Adjusted NAV (EUR per Share) 0.63 9.69 10.33
----------------------------------------------------- -------------- -------------- --------------
NOTICE:
This announcement contains inside information for the purposes
of the Market Abuse Regulation 596/2014.
ADDITIONAL INFORMATION
For investment portfolio information, please refer to the
Company's most recent Financial Report, which will be available on
the Company's website (www.eurocastleinv.com).
ABOUT EUROCASTLE
Eurocastle Investment Limited ("Eurocastle" or the "Company") is
a publicly traded closed-ended investment company. On 18 November
2019, the Company announced a plan to realise the majority of its
assets with the aim of accelerating the return of value to
shareholders. 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.
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",
"endeavor", "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 November 2019,
the Adjusted NAV as at 31 December 2022 reflects additional
reserves for future costs and potential liabilities, which have not
been accounted for under the IFRS NAV ("Additional Reserves"). No
commitments for these future costs and potential liabilities
existed as at 31 December 2022.
(2) Per share calculations for Eurocastle throughout this
document are based on 995,555 shares, unless otherwise stated.
(3) Based on 1,857,535 shares outstanding at YE 2021.
(4) Reflects corporate cash net of accrued liabilities and other
assets.
(END) Dow Jones Newswires
March 02, 2023 12:44 ET (17:44 GMT)
Copyright (c) 2023 Dow Jones & Company, Inc.
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