RomReal :First Quarter (Q1) 2016 Financial Results and Investor Presentation
RomReal hereby presents the main highlights of the first quarter 2016:
Net Asset Value (NAV)
Net Asset value was EUR 0.44 (NOK 4.17) per share at the end of Q1 2016, unchanged from Q4 2015.
The Company sees increasing interest for its land bank, and it has several on-going discussions. The Company did not sell any plots during the quarter, but after the end of the quarter, RomReal has sold two plots on Tartar Peninsula close to the IFRS value and it has entered into a conditional agreement to sell 100% percent of Balada Market at slightly below IFRS value.
Net Result for the quarter was EUR 425,000 compared to EUR 295, 000 in 1Q 2015. The profit is mainly explained by currency effects, with RON strengthening by 1.1% against the EUR. During the quarter, operating cash flow was almost neutral with minus EUR 87,000 compared to minus EUR 197,000 in the same period last year.
Macro and real estate market highlights
The overall Romanian economy grew 4.2 percent in the first quarter of 2016, up from 3.8% for 2015. Romania is expected to grow around 4% for 2016, a far higher growth rate than for EU as a whole. The real estate market developed positively in the first quarter. Number of transactions increases, building permits increases, and residential prices both on a national level and in RomReal's core Constanta market continues to grow. An increased Prima Casa program funds residential investments and a positive investor sentiment helps private money flow to the residential market. To illustrate the market strength, the former NEPI founders raised easily EUR 260 million for real estate investments in Eastern and Central Europe.
Change in CEO
On May 26, Mr. Adrian Cristea stepped down as the CEO of the holding company RomReal Ltd. while remaining CEO of the operational company in Romania. Mr. Cristea wants his team to commit all their available time on RomReal's Romanian real estate operation, in particular regulation processes and sales activities. To facilitate this sharp management focus, the Board decided on May 26 that the Chairman of the Board; Mr. Kjetil Grønskag, takes up the role as the holding company CEO.
In collaboration with DNB Markets, RomReal invites investors, analysts and media in a presentation on the first quarter 2016 results, to be held on Friday the 27 May 2016 at 11:00 am Norwegian time. Please see attached invitation in Norwegian.
The venue for this presentation is the DNB Markets building at Hovedkontor, Dronning Eufemias Gate 30, Bjørvika, 0191 Oslo, Norway, and the main presenter will be RomReal Director, Arne Reinemo.
Those who would like to attend are kindly asked to contact
or at the telephone number +47 24 16 92 35+47 24 16 92 35++47 24 16 92 3547 24 16 92 3547 24 16 92 35 as availability is limited.