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REG-Eurocastle Inv. Ltd Interim Results - Part 1
RNS Number:7149P
Eurocastle Investment Limited
04 August 2005
EUROCASTLE INVESTMENT LIMITED
FINANCIAL REPORT FOR THE HALF YEAR ENDED 30 JUNE 2005
First Half 2005 Highlights
- Share offer completed in June 2005, raising net proceeds of e95 million
- Increased dividend by 6.1% from e0.33 per share in Q1 to e0.35 per share
in Q2
- Completed two further non-recourse term financings for target real
estate debt portfolios of £200 million and e400 million
- Net profit after taxation of e13.2 million for the half year, or e0.69
per diluted share
- FFO return on average invested capital was 12.8%
Second Quarter 2005 Highlights
- Total assets amounted to e1,682.4 million at the quarter end
- Equity book value total of e291.9 million, or e12.06 per share
- Net profit after taxation of e6.8 million for the quarter, or e0.35 per
diluted share.
- Second quarter dividend of e0.35 per share, paid on 15 July 2005
- FFO return on average invested capital during the quarter was 12.6%
------------------------ ----------- ----------- -----------
Selected Financial Data Three Months Half Year Half Year
(amounts in e'000, except share Ended Ended Ended
data and supplemental data) 30 June 2005 30 June 2005 30 June 2004
Operating Data
------------------------ ----------- ----------- -----------
Net profit after taxation 6,760 13,215 3,786
Earnings per diluted share 0.35 0.69 0.32
Funds from operations
("FFO") 6,247 12,702 3,786
FFO per diluted share 0.32 0.66 0.32
Weighted average number of
shares outstanding, diluted 19,332,958 19,253,965 11,955,615
----------------------- ---------- ----------- ------------
Balance Sheet Data As of As of
30 June 2005 31 December 2004
----------------------- ---------- ----------- ------------
Asset backed securities
(includes cash to be
invested and securities
pledged under repurchase
agreements) 1,213,385 1,264,484
Real estate loans (includes
loans pledged under
repurchase agreements) 47,239 21,938
Investment properties 319,451 318,514
Cash and cash equivalents 87,650 10,293
Total assets 1,682,412 1,627,619
Debt obligations 1,337,339 1,154,310
Shareholders' equity 291,864 206,420
------------------------ ----------- ----------- -----------
Reconciliation of Funds from Three Months Half Year Half Year
Operations (FFO) to net profit after Ended Ended Ended
taxation 30 June 2005 30 June 2005 30 June 2004
------------------------ ----------- ----------- -----------
Net profit after taxation 6,760 13,215 3,786
Increase in fair value of
investment properties (513) (513) -
----------- ----------- -----------
Funds from operations (FFO) 6,247 12,702 3,786
------------------------ =========== =========== ===========
FFO is an appropriate measure of the underlying operating performance of real
estate companies because it provides investors with information regarding our
ability to service debt and make capital expenditures. Furthermore, FFO is used
to compute our incentive compensation to our manager. FFO, for our purposes,
represents net profit after taxation (computed in accordance with IFRS),
excluding changes in fair value of investment properties. We consider gains and
losses on resolution of our investments to be a normal part of our recurring
operations and therefore do not exclude such gains and losses when arriving at
FFO. FFO does not represent cash generated from operating activities in
accordance with IFRS and therefore should not be considered an alternative to
cash flow as a measure of liquidity, and is not necessarily indicative of cash
available to fund cash needs. Our calculation of FFO may be different from the
calculation used by other companies and, therefore, comparability may be
limited.
--------------------------------------------- ------------ -------------
Supplemental Total Real Estate and Other ABS As of As of
Securities and Real Estate Loans Data* 30 June 2005 31 December 2004
--------------------------------------------- ------------ -------------
Total debt investments 1,124,806 1,023,218
Weighted average asset yield 4.09% 4.18%
Weighted average liability cost 2.65% 2.73%
Weighted average net spread 1.44% 1.45%
Weighted average credit rating BBB+ BBB+
Weighted average asset credit spread (above
Euribor) 1.90% 1.99%
Percentage investment grade of securities
portfolio 89% 93%
Number of securities and loans 92 87
* excludes short-term investments with a maturity of less than 3 months and
rated A-1+ by Standard & Poor's and P-1 by Moody's
Supplemental Total Credit Leased Real Estate Data
--------------------------------------------- ------------ -------------
As of As of
30 June 2005 31 December 2004
--------------------------------------------- ------------ -------------
Investment properties at fair value 319,451 318,514
Weighted average asset yield 7.13% 7.10%
Weighted average liability cost 4.56% 4.56%
Weighted average net yield 2.57% 2.54%
More to follow, for following part double-click [nRN1D7149P]
small e before a number denotes euros