jermit schreef:
Eurocastle Investment Limited and Subsidiaries Financial Results for the three months ended 31 March 2009
Released: 28/05/2009
Eurocastle Investment Limited today announced its financial results for the three months ended 31 March 2009. The Company and its subsidiaries ("the Group") has Euro denominated shares which are currently listed on Euronext Amsterdam, under the symbol "ECT" and on the Frankfurt Stock Exchange, under the symbol "EUI1". Eurocastle is managed by an affiliate of Fortress Investment Group LLC. For more information regarding Eurocastle and to be added to our email distribution list, please visit
www.eurocastleinv.com.Further details of Eurocastle's liquidity position are included in its 2008 Annual Report. The Company announced today its intention to raise up to €130 million of additional funds through the issue of unlisted perpetual convertible securities. Certain terms of the offer are set out below.
Highlights
Financial
FFO* was €12.3 million or €0.20 per share for the three months ended 31 March 2009 compared with €8.2 million or €0.13 per share and €22.6 million or €0.35 per share for the three months ended 31 December 2008 and 31 March 2008, respectively.
NAV per share of €10.60 as at 31 March 2009 comprising (€1.07) for the debt investment business and €11.67 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). Adjusted for the refinancing of the Mars portfolio, (which was completed on 27 May 2009) the NAV per share as at 31 March 2009 should be €8.45 per share.
Real estate NAV per share of €9.52 after the Mars Portfolio refinancing, reflecting a NOI yield on valuation of 5.8%.
Net loss after tax was €162.5 million for the three months ended 31 March 2009, compared with a loss of €263.8 million for the three months ended 31 December 2008 and a loss of €84.1 million for the three months ended 31 March 2008. The losses primarily relate to non-cash valuation adjustments to our portfolio.
Business Review
Sold 8 properties during the first quarter 2009, for total sales proceeds of €100.1 million, compared to a carrying value of €104.1 million. The sales price equated to a 5.6% NOI yield.
During the first quarter 2009 the Group signed 81 commercial leases for approximately 31,000 square metres, including new leases for approximately 20,500 square metres.
Lettable space of 2.1 million square metres with occupancy of 85.7% as at 31 March 2009, unchanged from 31 December 2008 on a same store basis.
* FFO (Funds from Operations) is a non-IFRS financial measure used by our Group's management to report the funds generated from operations for investment and the payment of dividends to shareholders. The FFO measure above is stated excluding realised gains and losses and related costs on asset sales and impairment charges.
Financing and Liquidity
As at 31 March 2009, the Company had a corporate cash balance of €14.3 million.
Following the repayment of €10 million of its corporate loan on 31 March 2009, the Group has two material short term recourse obligations totalling €145 million comprised as follows:
A €115 million corporate loan facility (with scheduled amortization payments prior to maturity on 30 June 2011), and
A guarantee obligation limited to €30 million in respect of an acquisition facility which matures on 30 September 2009.
The Company announced today its intention to raise €130 million of additional funds through the issue of unlisted perpetual convertible securities. The offer includes (without limitation) the following terms:
The convertible securities will be issued at par and will be entitled to a coupon of 20 per cent, payable annually in arrear. Interest may accrue and is capable of being paid in shares at the conversion price at the Company's discretion. No interest will be paid out until the corporate loan facility has been paid off in full.
The convertible securities are perpetual but the Company may redeem the securities after 2 years at a premium of 20 per cent.
The securities will be convertible into shares at the holder's option at a conversion price per Ordinary Share of €0.30. This represents a 6% premium to the volume weighted average trading price for the Company's ordinary shares for the 10 trading days prior to the announcement of the potential capital raise on 30th April.
Under the terms of the issue and subject to applicable securities laws and regulations, the Company is proposing to invite qualifying shareholders, regardless of the number of Ordinary Shares they hold, to apply to subscribe for the convertible securities which will have a minimum denomination of €50,000.
The Company will reserve the right to decline applications in excess of any qualifying shareholder's pro rata entitlement. In the event of over-subscription of the convertible securities, the Company will have the discretion to increase the principal amount of the securities offered and/or to scale back applications to a minimum subscription amount of €50,000.
The Company will reserve the right to allocate a portion of the convertible securities to third parties.
Certain funds managed by Fortress have conditionally undertaken to participate in the issue by subscribing approximately €15.4 million of the issue.
The Company intends to appoint Lazard & Co. Limited as financial adviser and placement agent in