NEW YORK, NY, Dec. 06, 2018 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- Metrospaces, Inc. (OTC PINK: MSPC) today issued earnings report for 3rd Quarter 2018 with Net Income of $3,623,218.
THIRD QUARTER 2018 EARNINGS REPORT
Metrospaces’ 3rd Quarter Net Income was the second highest in our history since inception. The continued growth of our operating companies and investments highlight the early success of our business plan. As a Company focused on operating and investing in real estate projects and operating companies with strong real estate components to their business, we are clearly seeing a true consolidation and ratification of our business strategy. Currently, our investment in IQSTel, Inc. (OTC:IQST) has been the main driver in our net income and increase of book value and net assets. We are very pleased at how our operating companies continue to grow and prove our business plan to be successful.
3rd Quarter 2018 Highlights:
· Net Comprehensive Income of $3,623,218
· Net Income on a per share basis $0.0006
· Net Book Value of $9,238,866
· Net Book Value of $.0015 per share
· Redemption of Preferred Stock by $4.5 million, reducing cash dividend obligations
· Revenue growth of operating company of approximately 47% year-over-year
These results mark the success of our turnaround effort started in 2Q of 2017, when the Company divested and wrote off almost all its Latin American investments and started focusing almost solely in the US. As a culmination of this re-focusing of our business plan to the US, the Company finally decided to finalize its investment in Ikal Wine and Lodge by redeeming its Preferred Series C Stock in exchange of giving back 100% of the capital stock of Ikal Wine and Lodge properties. This lowered our obligated dividends by approximately $50,000 a year, and additionally, and more importantly, will allow the Company to continue to focus its manpower and capital resources into the US and other more mature markets and outside of Latin America. Even though we fully supported and expected the Ikal Wine and Lodge deal to be a big part of our growth, we realized that our resources would be better invested in the US. We believe that aside from the Net Income $3,623,218 generated in the 3rd quarter, the most important highlight in this quarterly result is that our Net Book Value on a per share basis was $0.0015 as of September 30, 2018. This, in our opinion, potentially highlights that our company is currently trading at a severely undervalued stock price.
To underpin our balance sheet and earnings, IQSTel, Inc. our main operating company and investment currently, finished their fiscal year as of June 30, 2018 at $9.6 million in revenue and 1st Quarter ended in September 30, 2018 at $3.8 million in revenue, showing a 57% revenue growth based on year-end run rates. In more clear terms, they grew monthly revenue from approximately $800,000 to approximately $1.3 million year-over-year.
As far as other accomplishments, the Company acquired a 15% stake in the development of a 22-unit residential luxury project located at 701 Washington Avenue, Brooklyn, NY. This project was acquired under a no-cash deal where Metrospaces received its equity stake for being the developer, guarantor on the construction loan and additionally bringing in approximately $500,000 in equity financing already paid into the project. The Company is currently in negotiations with several construction lenders and is expecting to begin construction by mid-1st quarter of 2019.
Other investment highlights:
JV Agreement with Proideas (http://proideas.com.ar/): This JV agreement will allow Metrospaces a partnership with a very prominent private equity group in Argentina, just as the country begins a new economic shift to a more pro-market environment. This partnership will bring not just new deal flow to the company, but more importantly will also bring in fresh financing for the company’s current projects.
JV Agreement with Prohotels of Argentina: In its refocusing of the company's business plan to hotel development, Metrospaces has executed a JV Agreement with Prohotels (http://www.prohotels.com/). This partnership gears itself perfectly with the company's development and financing skills. This agreement calls for the development of 4 new hotels in the coming 3 years. It is a testament to our business plan execution.
Again, we want to thank all our new shareholders for taking an interest in our story and have given us the chance to be where we are at! We will continue to work very hard to make your investment in our company a success, and have very high expectations for 2017 and beyond!
About Metrospaces:
Metrospaces www.metrospaces.net is a publicly traded real estate investment and Development Company which acquires land, designs, builds, and develops then resells condominiums and Luxury High-End Hotels, principally in urban areas of Latin America. The company's current projects are located in Buenos Aires, Argentina, and Caracas, Venezuela.
Six years ago Metrospaces shareholders saw a unique opportunity to participate in several exciting property markets around the world. Through their worldwide network of highly recognized real estate entrepreneurs, the company was able to capitalize on unique real estate development opportunities. Since inception the company has leveraged those relationships along with extensive financial expertise and transformed excellence by results.
Metrospaces is a boutique real estate development company, a product of the alliance of Metrospace shareholders, along with an elite group of real estate professionals and entrepreneurs located around the world. Company shareholders have extensive careers in real estate financing worldwide, and have funded projects both in the Americas and across Europe valued in excess of US $550 Million.
Metrospaces' majority shareholders have partnered with Investors on Elite properties including The London BLVGARI 5 Star Hotel, and are currently involved in negotiations for the development of several Elite luxury properties in South America.
Among Metrospaces’ partners are Architects, Real Estate Developers, Agents and Attorneys of the highest standing, with extensive experience in the global property market.
Metrospaces was originally founded by company President Oscar Brito.
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Safe Harbor Statement: Statements in this news release may be "forward-looking statements". Forward-looking statements include, but are not limited to, statements that express our intentions, beliefs, expectations, strategies, predictions or any other statements relating to our future activities or other future events or conditions. These statements are based on current expectations, estimates and projections about our business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may, and are likely to, differ materially from what is expressed or forecasted in forward-looking statements due to numerous factors. Any forward-looking statements speak only as of the date of this news release and Metrospaces Inc. undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this news release.