Eurocastle Announces 2009 Year End Earnings
(Thomson Reuters ONE) -
EUROCASTLE INVESTMENT LIMITED
Guernsey. 19 March 2010 - Eurocastle Investment Limited (Euronext Amsterdam:
ECT) today announced its financial results for the year ended 31 December 2009.
For more information regarding Eurocastle, its 2009 Annual Report and to be
added to our email distribution list, please visit www.eurocastleinv.com
Highlights
Financial
· Fully diluted NAV per share of ?0.92 as at 31 December 2009
comprising of (?0.32) for the debt investment business and ?1.24 for the
commercial property portfolio (31 December 2008: ?13.35 comprising (?0.27) for
the debt investment business and ?13.62 for the commercial property portfolio).
· Real estate NAV of ?439 million and NAV per fully diluted share of
?1.12 adjusted for the full impact of the Mars Portfolio refinancing, reflecting
a NOI yield on valuation of 6.4%.
* Net loss after tax was ?605.9 million for the year ended 31 December 2009,
compared with a loss of ?454.1 million for the year ended 31 December 2008.
The losses primarily relate to non-cash valuation adjustments to our
portfolio.
Business Review
* Sold 23 properties during the year, for total sales proceeds of ?138 million
compared to a carrying value of ?140 million, realising cash of ?8.1 million
after repayment of asset level financings. Since the year end, the Group has
sold two properties for ?1 million generating ?0.4 million of cash after
repayment of asset level financings and has entered into binding agreements
to sell a further nine properties for estimated total proceeds of ?179
million.
* During the year the Group has signed 345 commercial leases for approximately
143,000 square metres (sqm). This comprised 233 new leases for approximately
68,000 sqm, and 112 lease renewals for approximately 75,000 sqm. The
renewal rate for 2009 was 82.4%.
* Total lettable space was 2.1 million square metres at 31 December 2009 with
occupancy of 86.2% as compared to occupancy of 85.9% at 31 December 2008 on
a like for like basis.
Financing and Liquidity
· As at 31 December 2009, the Company had a corporate cash balance of
?9.7 million.
* During 2009, the Group raised approximately ?100 million in Perpetual
Subordinated Convertible Securities in three separate issuances. The
proceeds of issuances, together with cash from operating activities and
asset sales, were used to repay a substantial portion of the Group's
corporate loan facility to ?12.75 million as at 31 December 2009, as well as
being used to reduce the Group's ?30 million finance guarantee obligation.
· The Group repurchased ?140.4 million of senior liabilities in CDO V
with restricted cash within the CDO at an average price of 58.9%, realising a
net book gain of ?56.6 million.
Key Financial Information
Income Statement Data Year ended Year ended
( in ?'000, except per share data) 31 December 2009 31 December 2008
--------------------------------------------------------------------------------
Interest income 68,362 155,382
Rental income 251,607 281,118
(Decrease) in fair value of investment
properties (420,313) (499,151)
Impairment losses (232,075) (16,794)
Interest expense (221,150) (285,596)
Property operating expenses (43,354) (34,449)
Other operating expenses (40,022) (47,641)
Net (loss) before taxation (612,103) (467,916)
Net (loss) after taxation (605,916) (454,073)
Funds from operations ("FFO") (195,894) 57,087
Normalised funds from operations 38,610 65,046
Loss per weighted average basic share and
diluted share (9.98) (7.20)
FFO per weighted average basic share (3.23) 0.91
FFO per weighted average diluted share (0.94) 0.91
Normalised FFO per weighted average basic
share 0.64 1.03
Normalised FFO per weighted average diluted
share 0.18 1.03
Normalised FFO per fully diluted share 0.10 1.03
Weighted average number of ordinary shares,
outstanding, basic 60,733,761 63,072,337
Dilutive effect of ordinary share options and
convertible securities* 148,643,836 -
--------------------------------------------------------------------------------
Weighted average number of ordinary shares outstanding,
diluted 209,377,597 63,072,337
--------------------------------------------------------------------------------
Ordinary shares outstanding 60,735,646 60,731,646
Fully diluted ordinary shares outstanding* 393,235,646 60,731,646
* For the year ended 31 December 2009, fully diluted ordinary shares represent
the impact of converting ?99,750,000 of convertible securities at ?0.30 per
share. The weighted average dilutive effect for year ended 31 December 2009
comprises a time weighting of the impact of fully converting the securities
against the relative periods from the date of each convertible securities issue.
Balance Sheet Data
(in ?'000, except per share data) 31 December 2009 31 December 2008
--------------------------------------------------------------------------------
Cash and cash equivalents 122,545 119,869
Investment property (including properties
held for sale) 3,678,298 4,230,111
Debt investments 1,496,840 1,733,942
Other assets 103,398 164,387
Total assets 5,401,081 6,248,309
Interest bearing debt financing (4,895,334) (5,300,880)
Other liabilities (142,383) (136,377)
Total liabilities (5,037,717) (5,437,257)
Net assets 363,364 811,052
Net assets per fully diluted share** 0.92 13.35
** The debt investment securities portfolio is predominantly financed to
maturity with long-term collateralised debt obligations ("CDOs") that are not
callable as a result of changes in value and are non-recourse to the Group.
While the assets in the CDOs are consolidated in the financial statements for
IFRS purposes, the Group's exposure to losses is limited to its initial
investment in each CDO. The 31 December 2009 IFRS net asset value reflects
approximately ?173 million, or ?0.44 per fully diluted share, of unrealised
losses in assets within the Group's CDOs that exceeds its investment in the CDOs
and, therefore, could not be realised in cash terms by the Group.
Conference Call
Management will conduct a conference call today, 19 March 2010, to review the
Group's financial results for the year and quarter ended 31 December 2009. The
conference call is scheduled for 2:00 P.M. London time (10:00 A.M. New York
time). All interested parties are welcome to participate on the live call. You
can access the conference call by dialling +1-877-717-3044 (from within the
U.S.) or +1-706-679-1521 (from outside of the U.S.) ten minutes prior to the
scheduled start
of the call; please reference "Eurocastle Year End Earnings Call."
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 Friday, 26 March 2010 by dialling
+1-800-642-1687 (from within the U.S.) or +1-706-645-9291 (from outside of the
U.S.); please reference access code "61585331."
The Annual Report for 2009 of Eurocastle is available on www.eurocastleinv.com
Contact:
Mark Woodall
IAG as administrator for Eurocastle Investment Limited
Regency Court
Glategny Esplanade
St Peter Port
Guernsey, GY1 1WW
Telephone: (44) 1481 737 911
Forward-Looking Statements
This release contains statements that constitute forward-looking statements.
Such forward-looking statements relate to, among other things, future
commitments to acquire real estate and achievement of acquisition targets,
availability of attractive investment opportunities, methods of funding
portfolios, timing of completion of acquisitions, 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", "endeavour", "seek", "anticipate",
"estimate", "overestimate", "underestimate", "believe", "could", "project",
"predict", "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. Our ability to predict results or the actual
effect of future plans or strategies is limited. Although we believe that the
expectations reflected in such forward-looking statements are based on
reasonable assumptions, our 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
our actual results in future periods to differ materially from forecasted
results or stated expectations, including the risk that leasing markets will
continue to be strong or that Eurocastle will be able to achieve its targets
regarding the refinancing or repayment of its short and long-term debt
obligations, asset disposals, operational growth particularly any maintenance or
increase in leasing of vacant space on acceptable terms or to take advantage of
reinvestment opportunities into higher yielding assets or repurchase our own
liabilities at a discount.
Disclaimer
NOTHING IN THIS PRESS RELEASE IS INTENDED AS AN OFFER TO SELL OR A SOLICITATION
OF AN OFFER TO BUY ANY SECURITIES IN THE UNITED STATES.
SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITES STATES ABSENT REGISTRATION
UNDER THE US SECURITIES LAWS OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS
OF SUCH LAWS. AN INVESTMENT IN EUROCASTLE INVESTMENT LIMITED (THE "COMPANY")
CARRIES CERTAIN RISKS AND PAST PERFORMANCE CANNOT BE RELIED ON AS A GUIDE TO
FUTURE PERFORMANCE.
[HUG#1395488]
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Datum: 19.03.2010 - 03:01 Uhr
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