Eurocastle Releases Third Quarter 2020 Interim Management Statement
12 November 2020 - 6:00PM
UK Regulatory
TIDMECT
Contact:
Oak Fund Services (Guernsey) Limited
Company Administrator
Attn: Mark Woodall
Tel: +44 1481 723450
Eurocastle Releases Third Quarter 2020 Interim Management Statement
Guernsey, 12 November 2020 -- Eurocastle Investment Limited (Euronext
Amsterdam: ECT) today
https://www.globenewswire.com/Tracker?data=O2IG4BpD1mewPb6fMDPQqd9Fkil4HhXjTt9JFBV1LqFGojG-acP-AHiYw2EFM9o6
has released its interim management statement for the quarter ended 30
September 2020.
Q3 2020 BUSINESS HIGHLIGHTS
..Adjusted Net Asset Value ("NAV")(1) of EUR13.8 million, or EUR7.46 per
share(2) , up EUR0.20 per share vs. EUR7.26 per share at 30 June 2020
due to:
1. Valuation increases:
-- EUR0.20 per share increase (4%) in the valuation of the remaining
three real estate fund investments.
-- EUR0.07 per share increase (12%) in the valuation of the remaining
three NPL and other loan interests.
2. Reserve and legacy movements of (EUR0.07) per share.
Q3 CASH
Q2 2020 NAV Movement Q3 FV Movement Q3 2020 NAV
-------------- --------------- ---------------- --------------
EUR EUR EUR EUR
EUR per EUR per EUR per EUR per
million share million share million share million share
Real Estate
Funds 10.3 5.57 (2.2) (1.19) 0.4 0.20 8.5 4.58
Italian
NPLs &
Other
Loans 1.1 0.60 (0.0) (0.00) 0.1 0.07 1.2 0.67
Net
Corporate
Cash(3) 2.0 1.09 2.2 1.19 (0.1) (0.07) 4.1 2.21
Adjusted
NAV 13.4 7.26 - - 0.4 0.20 13.8 7.46
=========== ======= ===== ======= ====== ======== ====== ======= =====
CASH & MARKET OUTLOOK
-- The Company received EUR2.2 million from its investments in the quarter,
with EUR1.2 million from Real Estate Fund Investment I (82% of its Q2'20
NAV) and EUR1.0 million from Real Estate Fund Investment II (24% of its
Q2'20 NAV). With the uncertainty of another COVID related lockdown
looming in Italy, the Directors have elected to retain these cash
proceeds in the Company until there is greater certainty around the
impact this could have on the Italian residential real estate market.
-- The cash received in the quarter, along with the prudent
management of cash reserves, leaves the Company well capitalised
to maximize the value of its remaining assets and to weather the
uncertainty that COVID-19 has created.
-- The Company's current assets comprise:
-- Interests in two real estate redevelopment funds where
construction is fully completed. The units are in the process of
being sold, however the sales pace is impacted by the continued
uncertainty brought about by the coronavirus outbreak. Both
developments offer luxury residential apartments with high
specification furnishings in Rome.
-- Interests in a public fund which, following the sale of its
remaining real estate assets in 2019, is in the process of being
liquidated with its residual assets predominantly comprising cash.
-- Residual minority interests in three predominantly secured NPL &
Other Loan pools.
NOTICE:
This announcement contains inside information for the purposes of the
Market Abuse Regulation 596/2014.
ADDITIONAL INFORMATION
For investment portfolio information, please refer to the Company's most
recent Financial Report, which is available on the Company's website (
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www.eurocastleinv.com).
ABOUT EUROCASTLE
Eurocastle Investment Limited ("Eurocastle" or the "Company") is a
publicly traded closed-ended investment company, focused on Italian
performing and non-performing loans, Italian loan servicing platforms
and other real estate related assets in Italy. On 18 November 2019, the
Company announced a plan to realise the majority of its assets with the
aim of accelerating the return of value to shareholders. The Company
will not currently seek material new investments from the proceeds of
the realisation but will continue to support its existing investments to
the extent required in order to optimise returns and distribute cash to
shareholders when available (the "Realisation Plan"). For more
information regarding Eurocastle Investment Limited and to be added to
our email distribution list, please visit
https://www.globenewswire.com/Tracker?data=-opn_TCDBGF2AnH-2YnBo2mLp2YIKpQ0EJZZy3ibZGMP0xgAFG_VXaX1qv_Zc-gUusaQOacec37zsvceLHeIrHEKuPS3ccjwP9i2V517cQA=
www.eurocastleinv.com.
FORWARD LOOKING STATEMENTS
This release contains statements that constitute forward-looking
statements. Such forward-looking statements may relate to, among other
things, future commitments to sell real estate and achievement of
disposal targets, availability of investment and divestment
opportunities, timing or certainty of completion of acquisitions and
disposals, the operating performance of our investments and financing
needs. Forward-looking statements are generally identifiable by use of
forward-looking terminology such as "may", "will", "should", "potential",
"intend", "expect", "endeavor", "seek", "anticipate", "estimate",
"overestimate", "underestimate", "believe", "could", "project",
"predict", "project", "continue", "plan", "forecast" or other similar
words or expressions. Forward-looking statements are based on certain
assumptions, discuss future expectations, describe future plans and
strategies, contain projections of results of operations or of financial
condition or state other forward-looking information. The Company's
ability to predict results or the actual effect of future plans or
strategies is limited. Although the Company believes that the
expectations reflected in such forward-looking statements are based on
reasonable assumptions, its actual results and performance may differ
materially from those set forth in the forward-looking statements. These
forward-looking statements are subject to risks, uncertainties and other
factors that may cause the Company's actual results in future periods to
differ materially from forecasted results or stated expectations
including the risks regarding Eurocastle's ability to declare dividends
or achieve its targets regarding asset disposals or asset performance.
(1) In light of the Realisation Plan announced on 18 November 2019, the
Adjusted NAV reflects additional reserves for future costs and potential
liabilities, which have not been accounted for under the IFRS NAV. The
IFRS NAV as at 30 September 2020 is EUR30.5 million, or EUR16.46 per
share.
(2) Per share calculations for Eurocastle throughout this document are
based on the weighted average shares of 1,853,328 for the period under
review.
(3) Reflects corporate cash net of liabilities and additional reserves.
(END) Dow Jones Newswires
November 12, 2020 02:00 ET (07:00 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
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