Bli medlem
Bli medlem

Du är här

2015-05-21

Eurocastle Investment Limited: Eurocastle Releases First Quarter 2015 Financial Results

EUROCASTLE INVESTMENT LIMITED

FOR IMMEDIATE RELEASE

Contact:

International Administration Group (Guernsey) Limited
Company Administrator
Attn: Mark Woodall

Eurocastle Releases First Quarter 2015 Financial Results
Guernsey. 21 May 2015 - Eurocastle Investment Limited (Euronext Amsterdam:
ECT) today has released the financial results for the first quarter ended 31
March 2015.

FIRST QUARTER 2015 FINANCIAL HIGHLIGHTS

* Normalised FFO - €4.3 million, or €0.13 per share.

* New Investments alone generated €3.7 million of Normalised FFO for the
period, resulting in a return on average net invested capital[1]of 25%.

* Adjusted Net Asset Value [2] * Pro forma for April 2015 Capital Raise3:
€554.8 million, or €7.66 per share reflecting net proceeds of €304.5
million or €7.66 per share.
* First Quarter Dividend - €4.1 million or €0.125 per share paid in April
2015.

-------------------------------------------------------------------------------------------------
| Q1 2015 Q1 2015 Pro Forma Q4 2014 |
| [3] |
| € million € per share € million € per share € million € per share |
| Normalised FFO 4.3 0.13 4.3 0.06 4.4 0.13 |
| Legacy Cashflow 29.3 0.90 29.3 0.40 2.9 0.09 |
| Adjusted NAV2 250.3 7.67 554.8 7.66 258.4 7.92 |
-------------------------------------------------------------------------------------------------
FIRST QUARTER 2015 BUSINESS HIGHLIGHTS

* New Investments - In the first quarter of 2015, Eurocastle invested or
committed €255 million, of which €250 million represents the approximate
commitment to acquire from UniCredit a portfolio of Italian NPLs with a
gross book value ("GBV") of €2.4 billion along with UniCredit Credit
Management Bank S.p.A. ("UCCMB"). The opportunity also includes:

* A servicing contract on €34.1 billion GBV of existing NPLs.
* A contract to service all UniCredit's future NPLs with balances below €1
million generated in the next 10 years.

In addition, the Company invested a further €4.5 million in a distressed bond
at a 10% discount to its face value.

* New Investment Performance - Realised €10.6 million of cash flow, including
the first cash flow of €8.9 million from its real estate fund investment,
UIU, following the sale in March 2015 of two assets at a slight premium to
NAV.
* Legacy Business Realisations - Realised €29.3 million primarily from the
sale of three German retail portfolios and a loan position.

HIGHLIGHTS SUBSEQUENT TO 31 MARCH 2015

* On 29 April 2015, the Company successfully completed its recent equity
offering raising gross proceeds of €312.1 million through the issuance of
39.8 million shares at a price of €7.85 per share. Net proceeds of the
offer are approximately €304.5 million or €7.66 per share and will be used
by the Company to pursue new investment opportunities in the Italian debt
and real estate markets in line with the Company's investment focus.
* In March 2015, Eurocastle reached an agreement with its Manager, effective
1 January 2015, to reduce its annual management fee by an estimated initial
€3 million and restructure how incentive compensation is calculated by
focusing on the returns generated from its New Investments[4]. The
agreement was subsequently signed in April 2015.
* On 24 April 2015, the Company agreed to sell all the assets in the Wave
portfolio. The sale is expected to generate approximately €30 million of
net proceeds to the Company before expected historic taxes in the range of
€6 million to €8 million. The transaction, which is subject to customary
closing conditions, is expected to close before the end of September 2015.

ADDITIONAL INFORMATION

For additional information that management believes to be useful for
investors, please refer to the latest presentation posted on the Investor
Relations section of the Company's website, www.eurocastleinv.com. For
consolidated investment portfolio information, please refer to the Company's
most recent Financial Report, which is available on the Company's website
(www.eurocastleinv.com).

EARNINGS CALL INFORMATION

Eurocastle's management will host an earnings conference call on Thursday, 21
May 2015 at 2:00 P.M. London time (9:00 A.M. New York time). All interested
parties are welcome to participate on the live call. You can access the
conference call by dialing first +1-800-215-5243 (from within the U.S.) or
+1-330-863-8154 (from outside of the U.S.) ten minutes prior to the scheduled
start of the call; please reference "Eurocastle First Quarter 2015 Earnings
Call or conference ID number 48032760."

A webcast of the conference call will be available to the public on a
listen-only basis at www.eurocastleinv.com. Please allow extra time prior to
the call to visit the site and download the necessary software required to
listen to the internet broadcast. A replay of the webcast will be available
for three months following the call.

For those who are not available to listen to the live call, a replay will be
available until 11:59 P.M. New York time on Sunday, 21 June 2015 by dialing
+1-855-859-2056 (from within the U.S.) or +1-404-537-3406 (from outside of
the U.S.); please reference access code "48032760"

NORMALISED FFO

Normalised FFO is a non-IFRS financial measure that, with respect to
Eurocastle's Legacy Business, provides investors with additional information
regarding the underlying performance of its Legacy Assets and their ability
to service debt and make capital expenditure. The measure excludes realised
gains and losses, sales related costs (including realised swap losses),
impairment losses and foreign exchange movements. On the Company's New
Investments, income is recognised on an expected yield basis allowing
Eurocastle to report the run rate earnings from these investments in line
with their projected annualised returns.

Eurocastle believes that, given the strategy of seeking to monetise the
existing value of the Legacy Business, focusing on the Normalised FFO of the
Company's New Investments will further enable the investor to understand
current and future earnings given annualised returns achieved and the average
net invested capital over the relevant period.

In the first quarter of 2015, Eurocastle generated Normalised FFO of €4.3
million, or €0.13 per share, of which €3.7 million (€0.11 per share) related
to New Investments before corporate costs. Given the average net invested
capital in the first quarter of 2015 was approximately €58 million, this
equates to a yield of 25%.
A reconciliation of Normalised FFO to the IFRS based net profit or loss after
tax for the quarter ended 31 March 2015 can be found below after taking into
account the impact of the revised Management Agreement (€0.2 million) and
reallocations to the IFRS disclosure:

INCOME STATEMENT RECONCILIATION

-----------------------------------------------------------------------------------------------
| New Corporate Legacy Total |
| [5] |
| Investments € million € million |
| € million |
| € million |
| Net gain / (loss) after taxation 3.4 (4.1) 2.2 1.5 |
| |
|attributable to ordinary equity holders |
| Net Income / (loss) (€ per Share) 0.10 (0.13) 0.07 0.04 |
| |
| Mars Floating Portfolio Losses - - 0.3 0.3 |
| Fair Value to Effective Yield Adjustments 0.3 - - 0.3 |
| Legacy Real Estate Revaluations - - 8.7 8.7 |
| Legacy Portfolio Deconsolidation Loss - - (4.7) (4.7) |
| Legacy Debt Impairments - - (0.3) (0.3) |
| Impact from Revised Management Agreement - 0.2 - 0.2 |
| Transaction Costs, G/L on FX&Other Adjustments - 0.8 (2.5) (1.7) |
| Normalised FFO 3.7 (3.1) 3.7 4.3 |
| Normalised FFO (€ per Share) 0.11 (0.09) 0.11 0.13 |
| Proforma for April 2015 Capital Raise 0.05 (0.04) 0.05 0.06 |
-----------------------------------------------------------------------------------------------
ADJUSTED NAV RECONCILIATION

------------------------------------------------------------------------------------------
| New Corporate1 Legacy Total |
| |
| Investments € million € million € million |
| |
| € million |
| Assets 61.4 123.6 992.3 1,177.3 |
| Liabilities 2.5 7.7 961.2 971.4 |
| Total Equity 58.9 115.9 31.1 205.9 |
| Non-controlling interest (2.5) - - (2.5) |
| Total Shareholders' Equity (NAV) 56.4 115.9 31.1 203.4 |
| |
| New Investments Commitment Reallocations 13.2 (13.2) - - |
| Legacy Debt Business Reallocation 9.0 - (9.0) - |
| Mars Floating Negative NAV Add-back - - 46.9 46.9 |
| Wave Portfolio Sale CAD Reallocation - 24.4 (24.4) - |
| Adjusted NAV 78.6 127.1 ...

Författare Hugin

Tala om vad ni tycker

Tala om vad ni tycker

Ni är just nu inne på en betaversion av nya aktiespararna. Lämna gärna feedback på vad ni tycker i formuläret nedan.