Hili Properties plc - Updated Financial Analysis Summary

On 3 June 2024, Hili Properties plc published an updated Financial Analysis Summary. The following are the main highlights of the company’s expected financial performance and position in 2024:

• Revenues are expected to fall by 3.4% to €15.7 million, reflecting the Dzelzevas Shopping Centre’s disposal in early 2024.
• Also due to the disposal of the shopping centre EBITDA is anticipated to fall by 1.6% to €11.9 million.
• Finance costs are projected to remain relatively unchanged at €6.77 million. Consequently, the interest cover is anticipated to stay at 1.76 times.
• In terms of financial position, total assets are estimated to decline by 4.8% to €243.2 million reflecting the disposal of the Dzelzevas Centre and the utilisation of cash (including the proceeds from the disposal of the Dzelzevas Centre) for the Company’s investment plans as well as dividend payment. Notably non-current assets are expected to fall by 30.4% to €165.6 million (31 December 2023: €237.9 million) as €62.6 million worth of property are being reclassified to property held for sale.
• Total liabilities are projected to remain practically unchanged at €127.1 million. Likewise, no anticipated material change to total debt is forecasted leaving it at €116.1 million.
• Meanwhile, total equity is expected to decrease to €116.1 million in FY2024 as the non-controlling interest will be removed following the Company’s plans to conclude the acquisition of the remaining 25% shareholding in Baneasa Real Estate SRL. As a result, the gearing ratio (calculated as total debt divided by total debt plus equity) is anticipated to increase to 50.0% compared to 47.7% as at the end of 2023. Considering a projected cash balance of €1.34 million (FY2023: €6.4 million), the net debt-to-EBITDA multiple is forecasted to rise to 9.6 times compared to 8.9 times in 2023.