PREMIA Properties continued its organic growth during the first quarter of 2022, while securing significant funds for the financing of its investment program through the successful issuance of a Common Bond Loan (COD) amounting to € 100 million in January 2022, as noted in a relevant announcement. for quarterly results.
More specifically, the company recorded an increase in revenue, operating profit and profit before taxes on a consolidated basis compared to the corresponding period 2021.
The revenues of the Group amounted to € 3.2 million, doubled compared to the corresponding period 2021.
The Group’s operating profit before interest and amortization (EBITDA) amounted to € 2.9 million while Adjusted EBITDA amounted to € 1.6 million, compared to € 0.6 million and € 0.6 million. million in the corresponding period 2021. Consolidated profits before taxes amounted to € 1.8 million, compared to € 0.2 million.
As for the outlook for the whole of 2022, the company estimates that, despite the uncertainty of the macroeconomic environment, its corporate characteristics will allow it to remain on a growth path.
The company announcement states in detail:
“PREMIA Properties announces the financial results for the period from January 1 to March 31, 2022. o Addition of two (2) serviced residential properties (student dormitories) within the first quarter of 2022 in the Group’s portfolio, with the total value of investments amounting to € 202.3 million. – The Group’s portfolio includes a total of twenty nine (29) properties • Nineteen (19) investment properties (15 income properties and 4 properties for future development) with a total value of € 153.0 million against seventeen (17) investment properties real estate with a total value of € 146.8 million on 31.12.2021. • Ten (10) schools managed through a PPP contract, with the total value of the relevant right amounting to € 38.7 million against € 39.2 million on 31.12.2021 – The Company has also signed in 2021 pre-agreements for the acquisition of two (2) more investment properties, having paid advances of € 10.6 million o Significant cash and cash equivalents of € 86.7 million following the issue of KO D and sound financial structure with the Net Position of the Group amounting to € 128.0 million and the net borrowing to € 75.6 million. repayment of existing debt while the rest is intended for investment as well as meeting needs for working capital. – The total borrowing of the Group amounted to € 162.3 million on 31.3.2022, compared to € 103.0 million on 31.12.2021. The Group’s net debt amounted to € 75.6 million compared to € 73.7 million on 31.12.2021 with the net leverage ratio (Net LTV) * remaining stable and reaching 37.4% versus 37.1% .
Increase in revenues, operating profitability and profitability before taxes on a consolidated basis compared to the corresponding period 2021. – The Group’s revenues amounted to € 3.2 million, doubled compared to the corresponding period 2021. – Operating profits before interest taxes and Depreciation (EBITDA) of the Group amounted to € 2.9 million while the Adjusted EBITDA (Adjusted EBITDA) amounted to € 1.6 million, compared to € 0.6 million and € 0.6 million in the corresponding period 2021 Consolidated earnings before taxes amounted to € 1.8 million, compared to € 0.2 million.
Prospects for 2022
The macroeconomic environment remains highly fluid as data on the intensity and duration of the pandemic, the energy crisis and the war in Ukraine are constantly changing, making any quantitative assessments of the impact on the domestic economy, the real estate market and consequently on financial results of the Group, particularly difficult. The Management of the Group carefully monitors the developments and constantly evaluates the data that are formed.
Despite the significant uncertainty due to the conditions that have developed, Premia Properties estimates that it is able to remain on a growth trajectory in the near future, as it has features that will allow it to respond effectively to the challenges: – Gross yield (gross yield) ) 7.7% – Long-term weighted average lease (WALT) contracts with 6.5 years and approximately 92% of the relevant leases subject to at least an inflation adjustment.
In addition, the PPP contract for the ten (10) schools has a duration until 2041 with part of the income also following an inflationary adjustment, – Sound financial structure, with a net leverage ratio (Net LTV) of 37.4%, weighted average loan duration 7 , 1 year and average borrowing costs 2.8% and resilience to future interest rate increases as a result of the CCP (approx. 60% of existing borrowing at a fixed interest rate of 2.8% for the next 5 years), – Strong shareholding and significant available funds for the financing of the investment program, and – Conversion to AEEAP that will allow the Group to operate more efficiently in the real estate market utilizing the relevant tax advantages “.
Source: Capital
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