27 September 2024, Limassol, Cyprus / Ad hoc announcement pursuant to Art. 53 LR
BUSINESS HIGHLIGHTS FIRST HALF YEAR OF 2024
- In the first six months of 2024, EPH European Property Holdings PLC ("EPH" or the "Company") maintained a stable operating performance despite numerous challenges in the global market environment. This success can be attributed to the Company's high-quality properties in prime locations in Europe, which are leased to tenants with strong credit ratings, combined with EPH's professional asset management.
- EPH has maintained nearly full occupancy of the rental properties in its portfolio and increased rental income.
- As of 30 June 2024, EPH's real estate portfolio comprised ten prime assets in prestigious locations in Germany, Austria and Switzerland with a total value of EUR 815 million.
- EPH has expanded its portfolio with the acquisition of a historic 5-star hotel in Vevey, on the shores of Lake Geneva. This landmark property, originally built in 1842, offers 16,000 square metres of space, 71 luxury rooms, two renowned restaurants and a spa. Operations are carried out by approximately 70 employees. EPH plans to redevelop the hotel over the coming years. The acquisition of both the value-add property and its operations demonstrates EPH's confidence in the Swiss hotel market and in the potential of the historic property. EPH now owns three hotels. In addition to the recently acquired hotel in Switzerland, the portfolio also includes two hotels in Germany, located in Dresden and Berlin which are let to international hotel chains. EPH is thus taking advantage of the opportunities offered by this asset class to diversify its property portfolio. At the same time, EPH's primary investment focus remains on prestigious office properties in major European cities.
- Yet, the overall development of the real estate markets in Europe led to a downward adjustment of fair values of the properties that overlapped earnings in the period.
FINANCIAL HIGHLIGHTS FIRST HALF YEAR OF 2024
- As of 30 June 2024, the balance sheet total (total assets) amounted to EUR 970.00 million, compared to EUR 973.22 million as of 31 December 2023.
- Net assets (calculated as total equity) amounted to EUR 488.61 million, compared to EUR 500.94 million at the end of 2023.
- The main factors influencing the financial result are:
Increase in rental income from EUR 15.63 million for the first six months of 2023 to EUR 17.39 million for the first six months of 2024. This is primarily attributable to the property Lass 1 (Vienna) (89% of the total growth), where rental income substantially increased after the end of the grace periods that were provided to the tenants for most of 2023. Regular indexation of rental rates in other properties also contributed to the growth.
Loss on revaluation of investment properties of EUR 20.16 million in the first half of 2024 compared to a loss of EUR 45.77 million in the first half of 2023 mainly reflecting macroeconomic developments in Europe. The values were adjusted by EUR 19.1 million for the Austrian office properties and EUR 2.12 million for the German office properties. The hotel properties in Germany were appreciated by EUR 1.06 million.
As a result of the increase in interest rates on bonds extended in October 2023 and June 2024 for five years, finance cost increased from EUR 6.04 million in HY 2023 to EUR 8.05 million in HY 2024.
- For the six months ended 30 June 2024, the company reports a total net loss of EUR 13.89 million, compared to a loss of EUR 132.14 million for the first half of 2023. Last year's result was mainly driven by the negative CTA balance of EUR 163 million reclassified to the profit or loss statement upon disposal of the Russian portfolio and revaluation losses of the properties in Austria and Germany amounting to EUR 45.77 million.
- On 1 June 2024, the bonds for the total amount of EUR 122.18 million with initial maturity in May 2024, were extended for a further 5 years and the interest rate on the instrument increased from 2.25% to 3.5%. The extension resulted in reclassification of the liability from current to non-current and an advantageous shift in the maturity composition of the balance sheet.
OUTLOOK
- Despite the challenging market environment, EPH is optimistic about the future development of the company and continues to see potential in its European target markets.
- EPH continues to focus on major European cities and core properties in prime locations, particularly in the office sector but also in the hotel segment. Demand for modern space in these segments remains strong and these asset classes have proven stable despite market environment challenges.
- The high-quality properties in the EPH portfolio meet high sustainability standards, as evidenced by the relevant certifications. ESG-compliant properties and spaces are playing an increasingly important role for both investors and users.
- EPH will carefully examine market opportunities and continue to position its real estate portfolio for long-term stability in income and value growth.
The full Semi-Annual Results 2024, including the Interim Condensed Consolidated Financial Information (unaudited) for EPH, are available on the company's website:
EPH SEMI-ANNUAL REPORT 2024
CONFERENCE CALL WITH THE MANAGEMENT
Please join management for a conference call to discuss EPH's results for the six months to 30 June 2024 on
Friday, 4th October 2024 at 10:00 a.m. (CET)
Dial in: +41 43 216 12 79
Phone Conference ID: 26391867#
Click here to join the meeting
Find a local number
https://dialin.teams.microsoft.com/ca5adb02-80f1-4920-a5e9-f70787fbb27b?id=26391867
A presentation for the call will be posted on the company's website shortly before the call: https://europeanpropertyholdings.com/
EPH European Property Holdings PLC is an investment company listed on SIX Swiss Exchange. Additional information on EPH European Property Holdings PLC is available by contacting Anna Bernhart Tel: +41 44 503 5400 or at contact@europeanpropertyholdings.com
Attachments
- 240927 EPH_Press Release_HY 2024 (https://ml-eu.globenewswire.com/Resource/Download/56908b12-2f0f-4571-b299-ad8ec4e73af8)
- EPH Semi Annual Report 2024 (https://ml-eu.globenewswire.com/Resource/Download/7de82410-5247-4a16-82b9-96648cdb08d6)
