BriQ Properties first half net profits stand at € 1.07 million
The reduction of rental income for 2020 due to the COVID-19 pandemic is estimated to amount to approximately € 626 thousand.
BriQ Properties REIC announced a 34% increase in rental income to € 1,766,000 compared to € 1,317,000 in the respective period last year. The increase is due to the incorporation of income from new investments in real estate.
According to the consolidated statementfor the first half of 2020, the company recorded an increase of all its numbers at Group level, in the first half of the year, compared to the respective period last year.
• On June 30, 2020, the Company's real estate portfolio included 26 investment properties with a total value of € 71,665,000 compared to 22 properties worth € 59,793,000 on 12.31.2019, recording an increase of 20%.
• Within the first half of 2020, it implemented investments totaling € 11,317,000 and specifically three investment properties against a total investment amount of € 7,795,000 and acquired another property through the acquisition of a company for a price of € 3,522,000
• Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased by 33% and amounted to € 1,152,000 compared to € 868,000 in the respective period last year.
• Net profit after tax amounted to € 1,073,000 for the period ending June 30, 2020 compared to € 1,104,000 in the respective period last year, mainly due to a decrease in profits from the revaluation of the fair value of real estate.
• Adjusted net profit after tax amounted to € 578,000 for the period ending June 30, 2020 compared to € 425,000 in the respective period last year, showing an increase of 36%.
Cash on March 31, 2020 amounted to € 11,796,000 compared to € 37,568,000 on December 31, 2019.
Following the decision of 03.30.2020 of the Annual Ordinary General Meeting of Shareholders to repay the Company's debt, on 04.15.2020 and 04.16.2020 bonds with a total value of € 12,572,000 were repaid, with the result that the Company has almost zero debt.
The aim of repaying the bond loans was to reduce the financial expenses of the Company.
The Company on 06.30.2020 owned a total of 122,298 treasury shares with an acquisition value of € 206,000, while until 09.09.2020 the Company holds 171,608 own shares with a total acquisition value of € 281,000, ie an average acquisition price of € 1.64 per share .
The treasury shares held today correspond to 0.48% of the Company's share capital.
Effects of COVID-19 for 2020
The reduction in rental income for 2020 due to the effects of the COVID-19 coronavirus pandemic is estimated to amount to approximately € 626,000, an amount corresponding to approximately 15% of the annual income of the Company's existing properties. The Company is taking steps to mitigate the impact of its rental income loss due to the COVID-19 coronavirus pandemic, such as the reduction in financial costs resulting by the repayment of bond loans.
Ms. Anna Apostolidou, CEO of the Company, stated that "2020 is a difficult year that was deeply affected by the spread of the coronavirusCOVID-19in Greek and global economy. The real estate market has been hit by the pandemic, but real estate values have not fallen sharply. Nevertheless, government measures for rent and the significant impact of the pandemic on tourism have inevitably affected the revenues of real estate companies for 2020.
BriQ Properties invests with a long-term horizon and emphasis on logistics, which is an industry that has not been affected by the pandemic crisis, where the company is developing a high standard Distribution and Storage Facility of 20,764 sq.m. in Aspropyrgos, Attica. At the same time, the Company is looking for investment opportunities in sectors such as office buildings and tourist properties, while it continues to actively manage its existing properties in order to optimize their performance. "