Arcona Property Fund N.V. delivered a 47 percent increase in net rental income over the first six months of 2017. Net rents received jumped to EUR 2.29 million from EUR 1.55 million in the equivalent period in 2016. The result after tax was EUR 2.2 million compared to EUR 119,000 the year before. The operational result improved from EUR 230,000 to EUR 852,000 over the equivalent period.
Arcona Property Fund booked an operational result of EUR 630,000 in the second quarter of 2017, up from EUR 222,000 in the first quarter – an increase of 184 percent. Net rents received increased by 21 percent from Q1 2017, from EUR 1,034,000 to EUR 1,251,000.
The accelerating improvement in the operational results of the Fund is partly due to the purchase and integration of the Polish retail portfolio in late 2016/ early 2017. In addition, the performance has been positively influenced by active management across the whole portfolio, driving down vacancy and bringing in new tenants.
Other noteworthy developments in the first half year of 2017 were: Increase in the occupancy rate to 83 percent [end 2016: 80.7 percent]; Increase in the Loan to Value ratio to 52.4 percent [end 2016: 49.3 percent]; 7.1 percent growth in the intrinsic value per share, to EUR 12.52 [end 2016: EUR 11.69]; 22.2 percent increase of the share price, to EUR 6.60 [end 2016: EUR 5.40]; Reduction of the discount to intrinsic value to 47.3 percent [end 2016: 55.5 percent].
For the full year 2017 the Arcona Property Fund is maintaining its forecast for an operational result of EUR 2.08 million, as indicated in the press release of 6 July 2017 reporting the acquisition of a Polish office building.
At the General Meeting of Shareholders on 18 May 2017 it was stated that the Arcona Property Fund would shortly publish a guideline for future dividend policy. The management hereby states that the dividend policy going forward shall be to distribute a cash amount equal to ca. 35 percent of the annual operational result of the Fund.
Income-producing properties are becoming an increasingly appreciated option for Romanian or foreign private investors who have previously been mainly active in the residential sector and who are now targeting...