RomReal hereby presents the main highlights of the third quarter 2015:
Net Asset Value (NAV)
- Net Asset value was EUR 0.46 (NOK 4.50) per share at the end of Q3 2015, a 1.2% decrease compared to the end of Q2 2015.
Operational highlights
- The Company completed the sale of two more plots in Tatar Peninsula and the pre-sale of an additional one (for which an advance has been received), with the final sale agreement expected to be concluded in Q2 2016.
- All concluded or pending asset sales are done on or above the carrying IFRS value.
Financial Results
- Net Profit was EUR 283,000 in 3Q 2015 compared to EUR 31,000 in 3Q 2014. The gain is mainly explained by currency effects, with RON strengthening by 1.5% against the EUR during the quarter. Operating cash flow for the quarter was minus EUR 115,000 compared to minus EUR 112,000 in the same period last year. Due to further asset sales from Tatar Peninsula, net cash flow before financing was almost in balance during the quarter.
- After the close of the quarter, the Company has agreed with the bank to extend its loan by one year, and it expects to close the process during November/December.
Tribute to Mr. Kay Thorkildsen
- Previous CEO Mr. Thorkildsen passed away on October 25 and the funeral took place in his home town Kristiansand, Norway on November 6th, 2015. Mr. Thorkildsen has been the CEO for most of the Company's history, and his effort, loyalty and contribution was significant. In a release October 20th, 2015, Mr. Adrian Cristea was appointed Interim CEO. Mr. Cristea has been RomReal's legal advisor since its formation in 2005.
Macro and real estate market highlights
- The overall Romanian economy continues to show strong growth with 3.6 per cent during 3Q 2015 compared to last year. Economists expect further high growth in 2016 with 3.7%.
- The real estate market recovers with strong transaction volume, increased construction spending and higher prices. Construction work increased 10.5% over the first three quarters and building permits for residential dwellings increased 8.3% during the third quarter, the highest quarterly increase since 2009.Commercial transaction volumes follow the strong trend from 2014 with an active market. The transaction volume is expected to close around EUR 800 million, a decrease from last year EUR 950 million (numbers by Colliers Int.), but the 2015 volume still represents a healthy transaction level.
- Apartment prices continue to rise. In Bucharest, prices raised 3% in September compared to last year, while in Constanta the increase was 7.2% during the same period.
RomReal invites investors and press to attend the third quarter 2015 results presentation on Friday 27 November 2015 at 09:00 CET.
Participants are invited to dial:
| Participant Joining Details | |
| UK Freefone: | 0800 389 7473 |
| UK Direct: | 01296 480 180 |
| International direct: | +44 1296 480 180 |
| Global Access Numbers: | http://www.btconferencing.com/globalaccess/?bid=54_automated |
| Global Access Numbers are in-country toll free or local dial-in numbers for this conference. Give this URL to anyone -- both speakers and participants -- joining the conference so they can find the appropriate in-country dial-in number. You can also use these Global Access dial-in numbers if you are travelling. | |
| Passcode: | 748 059# |
For further enquiries please contact:
Harris Palaondas
Investor Relations
+40 731123 037
This information is subject to the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.
