RomReal hereby announces the First Quarter (Q1) 2014 highlights in relation to the attached First Quarter 2014 report and investor presentation:
Statutory Net Asset Value (NAV)
Under IFRS was EUR 0.5 (NOK 4.33) per share at the end of Q1 2014, a decrease of 0.8% compared to the end of Q4 2013.
Valuation
The Company has not made any changes during Q1 2014 to the value of the investment property compared to the independent valuation carried out by Knight Frank Romania at end of Q4 2013.
Financial Results
Pre-tax loss in Q1 2014 of EUR 0.002 million. Total assets at end of Q1 2014 were EUR 33.76 million compared to EUR 33.85 million at end of Q4 2013. Net cash outflow was EUR 145,000 during the quarter (1Q2014) compared to EUR 196,000 during the same quarter last year (1Q2013).
Plot division and sales
The Peninsula plot, part of the Company's land bank, has obtained its Urban Certificate in order to be divided into smaller plots.
New Board members
Following the 2014 AGM two new Board members were appointed: Ms Lacramioara Isarescu and Mr Arne Reinemo. A summary of the new Board member's CV can be found on page 11 of this report. Mr Erik Sture Larre, a Board member since 2010, did not seek re-election to the Board.
Macro news
Foreign direct investments totalled EUR 570 million in the first quarter of the year, up 30.1 percent compared to last year. Romania managed to attract EUR 290 million in March, the highest FDI total since the start of the year (EUR 36 million in February and EUR 240 million in January).
First quarter 2014 preliminary data confirms the strong trend at the end of 2013 with a Q1 2014 GDP growth of 3.8% compared to the same period of last year. It is the second quarter in a row when Romania has had the largest annual economic growth in the EU after in Q4 2013 Romania registered a 5.1 percent GDP increase. Eurostat reports that EU had a 1.4 percent increase in Q1 2014 and the Eurozone, a 0.9 percent growth.
In a very recent report, S&P believes Romania will maintain steady GDP growth, averaging 3% over 2014-2017. While this is slower than before the 2009 financial crisis, it is above any regional peer.
Real Estate news
According to a national real estate agent (imobiliare.ro) the average price per m2 for new apartments appears to have stabilised both in Constanta and on a nationwide basis during 2014.
RomReal invites investors, analysts and media to the conference call, to be held tomorrow, Friday, 23 May 2014, at 9.00 a.m. Oslo time.
Those who would like to attend the conference call are invited to dial:
| Participant Joining Details | |
| UK Freefone: | 0800 389 7473 |
| UK Direct: | 01296 480 180 |
| International direct: | +44 1296 480 180 |
| Global Access Numbers: | http://www.btconferencing.com/globalaccess/?bid=54_automated |
| Global Access Numbers are in-country toll free or local dial-in numbers for this conference. Give this URL to anyone -- both speakers and participants -- joining the conference so they can find the appropriate in-country dial-in number. You can also use these Global Access dial-in numbers if you are travelling. | |
| Passcode: | 922 563# |
